Executive Summary
IDEXX Laboratories delivered a solid QQ4 2024 performance, underpinned by resilient demand for companion-animal diagnostics and expanding water testing offerings. Revenue of USD 954.3 million marked a 5.84% year‑over‑year increase but a 2.18% quarter‑over‑quarter decline, reflecting a modest sequential slowdown. The company maintained a durable margin profile, with gross margin of 59.8% and operating margin of 27.4%, supported by favorable product mix, pricing discipline, and continued cost discipline. Net income rose 11.12% year over year to USD 216.1 million, yielding an EPS of USD 2.63 (diluted USD 2.62). Cash flow generation remained robust, with cash from operations of USD 262.0 million and free cash flow of USD 222.8 million, enabling continued capital allocation activities including USD 245.99 million in share repurchases, partially offset by net debt accumulation and debt repayments during the period.
Key Performance Indicators
Key Insights
Revenue performance: USD 954.29m in Q4 2024; YoY growth +5.84%; QoQ change -2.18%.
Gross Profit: USD 570.66m; gross margin 59.80%; YoY gross profit up 8.46%; QoQ margin down 4.26%.
Operating Income: USD 261.69m; operating margin 27.42%; YoY operating income +6.68%; QoQ -13.89%.
Net Income: USD 216.15m; net margin 22.65%; YoY net income +11.12%; QoQ -7.17%.
EPS: USD 2.63 (undiluted); diluted USD 2.62; YoY EPS +12.39%; QoQ -7.07%.
EBITDA: USD 298.56m; EBITDA margin 31.28%; EBITDAR 0.3129x.
Cash ...
Financial Highlights
Revenue performance: USD 954.29m in Q4 2024; YoY growth +5.84%; QoQ change -2.18%.
Gross Profit: USD 570.66m; gross margin 59.80%; YoY gross profit up 8.46%; QoQ margin down 4.26%.
Operating Income: USD 261.69m; operating margin 27.42%; YoY operating income +6.68%; QoQ -13.89%.
Net Income: USD 216.15m; net margin 22.65%; YoY net income +11.12%; QoQ -7.17%.
EPS: USD 2.63 (undiluted); diluted USD 2.62; YoY EPS +12.39%; QoQ -7.07%.
EBITDA: USD 298.56m; EBITDA margin 31.28%; EBITDAR 0.3129x.
Cash Flow: Operating cash flow USD 262.03m; free cash flow USD 222.77m; capex USD 39.25m; free cash flow yield and cash conversion from operations remain supportive.
Balance Sheet: Cash and equivalents USD 288.27m; total assets USD 3.293b; total liabilities USD 1.698b; total stockholders’ equity USD 1.596b; net debt USD 698.68m. Leverage metrics remain comfortable with debt to capitalization ~38.2% and interest coverage ~30.6x.
Capital Allocation: Significant share repurchases of USD 245.99m and debt repayments of USD 75.0m; net cash provided by financing activities negative USD 232.78m, reflecting a deliberate capital return stance while maintaining liquidity.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
954.29M |
5.84% |
-2.18% |
| Gross Profit |
570.66M |
8.46% |
-4.26% |
| Operating Income |
261.69M |
6.68% |
-13.89% |
| Net Income |
216.15M |
11.12% |
-7.17% |
| EPS |
2.63 |
12.39% |
-7.07% |
Key Financial Ratios
operatingProfitMargin
27.1%
operatingCashFlowPerShare
$3.2
freeCashFlowPerShare
$2.84
Management Commentary
No earnings call transcript data provided for QQ4 2024. Consequently, no management quotes or theme-specific highlights can be inserted. When available, typical themes would include strategy updates on expanding in-clinic diagnostics, growth initiatives in water quality testing, product pipeline updates, margin management actions, and capital allocation priorities (e.g., share repurchases vs. acquisitions).
Forward Guidance
Outlook assessment relies on qualitative indicators and the reported quantitative base. IDEXX exhibits strong cash generation and a durable margin structure, suggesting the ability to fund ongoing R&D and product development while returning value to shareholders. Potential tailwinds include continued resilience in the companion-animal diagnostics market and growth in water testing and related services, supported by global demand for high-quality diagnostic solutions. Potential headwinds include macroeconomic volatility affecting veterinary practice capital expenditure, currency translations for non‑USD revenues, and competitive pressures in select segments. Management guidance for full-year 2025 is not provided in the data; therefore the assessment assumes a steady-state growth scenario with continued margin discipline. Key factors for investors to monitor: (i) trajectory of revenue growth in core diagnostics and water testing, (ii) persistence of gross and operating margins amid input cost dynamics, (iii) capital allocation pace (share repurchases vs. acquisitions) and (iv) the trajectory of free cash flow and leverage.