Q4 2025 Bruker Corp Earnings Call

February 12, 2026

Speaker #1: Good morning , everyone , and welcome to the Bruker Corporation . Fourth quarter 2020 Earnings Conference Call All participants will be in a listen only mode .

Speaker #1: Should you need assistance , please signal a conference specialist by pressing the star key , followed by zero . After today's presentation , there will be an opportunity to ask questions to ask a question , you may press star and then one .

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Speaker #1: At this time , I'd like to turn the floor over to Joe Kostka , Director of Investor Relations . Please go ahead

Speaker #2: Good morning . I would like to welcome everyone to Bruker Corporation's Fourth quarter 2020 earnings conference call . My name is Joe Kostka and I am the director of Bruker Investor Relations Joining me on today's call are Frank Laukien .

Joe Kostka: Good morning. I would like to welcome everyone to Bruker Corporation's Q4 2025 earnings conference call. My name is Joe Kostka, and I am the Director of Bruker Investor Relations. Joining me on today's call are Frank Laukien, our President and CEO, and Gerald Herman, our EVP and CFO. In addition to the earnings release we issued earlier today, during today's conference call, we will be referencing a slide presentation that can be downloaded from the Events and Presentation section of Bruker's Investor Relations website. During today's call, we will be highlighting non-GAAP financial information. Reconciliations of our non-GAAP to GAAP financial measures are included in our earnings release and are posted on our website at ir.bruker.com. Before we begin, I would like to reference Bruker's Safe Harbor statement, which is shown on slide 2 of the presentation.

Speaker #2: Our president and CEO, Frank Laukien, and Gerald Herman, our EVP and CFO. In addition to the earnings release we issued earlier today, during today's conference call we will be referencing a slide presentation that can be downloaded from the Events and Presentations section of Bruker's Investor Relations website.

Speaker #2: During today's call , we will be highlighting non-GAAP financial information , reconciliations of our non-GAAP to GAAP financial measures are included in our earnings release and are posted on our website at IR Bruker .

Speaker #2: Com Before we begin , I would like to reference Bruker safe Harbor statement , which is shown on slide two of the presentation During this conference call , we will or may make forward looking statements regarding future events and the financial and operational performance of the company that involve risks and uncertainties , including those related to our recent acquisitions , geopolitical risks , market demand , tariffs , currency exchange rates , competitive dynamics or supply chains .

Joe Kostka: During this conference call, we will or may make forward-looking statements regarding future events and the financial and operational performance of the company that involve risks and uncertainties, including those related to our recent acquisitions, geopolitical risks, market demand, tariffs, currency exchange rates, competitive dynamics, or supply chains. The company's actual results may differ materially from such statements. Factors that may cause such differences include, but are not limited to, those discussed in today's earnings release and in our Form 10-K for the period ending December 31, 2024, as updated by our other SEC filings, which are available on our website and on the SEC's website. Also, please note that the following information is based on current business conditions and to our outlook as of today, February 12, 2026.

Speaker #2: The company's actual results may differ materially from such statements Factors that may cause such differences include , but are not limited to , those discussed in today's earnings release and in our form 10-K for the period ending December 31st , 2020 .

Speaker #2: Four . As updated by our other SEC filings , which are available on our website and on the SEC's website Also , please note that the following information is based on current business conditions and to our outlook as of today , February 12th , 2026 .

Speaker #2: We do not intend to update our forward looking statements based on new information , future events , or for other reasons . Except as may be required by law .

Joe Kostka: We do not intend to update our forward-looking statements based on new information, future events, or for other reasons, except as may be required by law, prior to the release of our Q1 2026 financial results, expected in early May 2026. You should not rely on these forward-looking statements as necessarily representing our views or outlook as of any date after today. We will begin today's call with Frank providing an overview of our business progress. Gerald will then cover the financials for the Q4 and full year of 2025 in more detail and share our full year 2026 financial outlook. Now, I'd like to turn the call over to Bruker's CEO, Frank Laukien.

Speaker #2: Prior to the release of our first quarter 2020 financial results , expected in early May 2026 , you should not rely on these forward looking statements as necessarily representing our views or outlook as as of any date after today .

Speaker #2: We will begin today's call with Frank providing an overview of our business progress. Gerald will then cover the financials for the fourth quarter and full year of 2025.

Speaker #2: In more detail and share our full year 2026 financial outlook Now , I'd like to turn the call over to Bruker CEO Frank Laukien .

Speaker #3: Thank you Joe . Good morning , everyone , and thank you for joining us on today's fourth quarter 2020 earnings call At the conclusion of a difficult year , 2025 , with headwinds from academic funding , tariffs and currencies , we are pleased that in the fourth quarter , we delivered revenues ahead of our expectations BSI or Bruker Scientific Instruments book to bill in the fourth quarter was again over 1.0 x , providing more confidence that we are past the trough in demand seen in the middle of 2025 .

Frank Laukien: Thank you, Joe. Good morning, everyone, and thank you for joining us on today's fourth quarter 2025 earnings call. At the conclusion of a difficult year, 2025, with headwinds from academic funding, tariffs, and currencies, we are pleased that in the fourth quarter, we delivered revenues ahead of our expectations. BSI, or Bruker Scientific Instruments, book-to-bill in the fourth quarter was again over 1.0x, providing more confidence that we are past the trough in demand seen in the middle of 2025. We also saw strong free cash flow in Q4, over $200 million, after admittedly weaker cash flow earlier in 2025. The year 2025 was the first full year of ownership for the three large strategic acquisitions that we completed in the first half of 2024.

Speaker #3: We also saw strong free cash flow in Q4 , over 200 million after admittedly weaker cash flow earlier in 2025 . The year 2025 was the first full year of ownership for the three large strategic acquisitions that we completed in the first half of 24 .

Speaker #3: Both Elitech and Shemspeed delivered robust mid to high single digit percentage organic revenue growth year over year , while Nanostring was approximately flat due to pressure on US academic funding in fiscal year 25 .

Frank Laukien: Both ELITech and Chemspeed delivered robust mid- to high single-digit percentage organic revenue growth year-over-year, while NanoString was approximately flat due to pressure on US academic funding in fiscal year 2025. Encouragingly, spatial biology, including NanoString orders, were up in the double-digit percentages organically in Q4 2025 year-over-year. Our innovation engine continued to shine in 2025, with outstanding and very competitive product launches at the AGBT, AACR, and ASMS conferences last year. Many of these recent launches have seen strong initial demand, which we expect to drive revenue growth in fiscal year 2026 and beyond. Looking to 2026, we expect continued improvements in our market to drive demand for our differentiated post-genomic discovery, translational, and diagnostic solutions.

Speaker #3: Encouragingly , spatial biology , including nanostring orders , were up in the double digit percentages organically in the fourth quarter of 25 year over year .

Speaker #3: Our innovation engine continued to shine in 2025 , with outstanding and very competitive product launches at the AGT , ACR and Asms conferences .

Speaker #3: Last year, many of these recent launches have seen strong initial demand, which we expect to drive revenue growth in fiscal year 2026 and beyond. Looking to 2026, we expect continued improvements in our markets to drive demand for our differentiated post-genomic discovery, translational, and diagnostic solutions.

Speaker #3: We start the year with solid BSI segment backlog of over seven months of revenue and good bookings . Momentum resulting from two consecutive quarters with BSI book to bill greater than 1.0 .

Frank Laukien: We start the year with solid BSI segment backlog of over 7 months of revenue and good bookings momentum, resulting from 2 consecutive quarters with BSI Book-to-Bill greater than 1.0. We are pleased to see the fiscal year 2026 NIH budget pass Congress with an increase in funding year-over-year and barriers to grant overhead cuts and multi-year grant funding. But for now, there is still some lingering uncertainty in the US gov market. The second-half improvements in 2025 in biopharma and industrial research order trends and robust semi-metrology orders in Q4 position these end markets for improved revenue performance in 2026. Finally, BEST, which was a headwind to our overall revenue growth in 2025, should turn into a tailwind in 2026, having booked major multi-year agreements worth more than half a billion dollars over multiple years.

Frank Laukien: We start the year with solid BSI segment backlog of over 7 months of revenue and good bookings momentum, resulting from 2 consecutive quarters with BSI Book-to-Bill greater than 1.0. We are pleased to see the fiscal year 2026 NIH budget pass Congress with an increase in funding year-over-year and barriers to grant overhead cuts and multi-year grant funding. For now, there is still some lingering uncertainty in the US gov market. The second-half improvements in 2025 in biopharma and industrial research order trends and robust semi-metrology orders in Q4 position these end markets for improved revenue performance in 2026. Finally, BEST, which was a headwind to our overall revenue growth in 2025, should turn into a tailwind in 2026, having booked major multi-year agreements worth more than half a billion dollars over multiple years.

Speaker #3: We are pleased to see the fiscal Year 26 NIH budget passed . Congress with an increase in funding year over year and barriers to grant overhead cuts and multi-year grant funding But for now , there is still some lingering uncertainty .

Speaker #3: Uncertainty in the US market . The second half improvements in 25 in biopharma and industrial research order trends and robust semi metrology orders in Q4 position .

Speaker #3: These end markets for improved revenue performance in 2026 . Finally , best , which was a headwind to our overall revenue growth in 2025 , should turn into a tailwind in 2026 .

Speaker #3: Having booked major multi-year agreements worth more than half $1 billion over multiple years Accordingly , we are establishing our fiscal year 2026 guidance for reported revenue growth of 45% , with 1 to 2% organic revenue growth for the full year and an approximate 1.5% revenue growth contribution from an M&A .

Frank Laukien: Accordingly, we are establishing our fiscal year 2026 guidance for reported revenue growth of 45%, with 1% to 2% organic revenue growth for the full year, and an approximate 1.5% revenue growth contribution from an M&A. This all implies constant exchange rate revenue growth of 2.5% to 3.5% year-over-year in fiscal year 2026. As we explained in our press release, we still expect a mid-single-digit organic revenue decline in Q1 of 2026, primarily due to the strong Q1 2025 year-over-year comparison. After our first quarter this year, we now expect to resume organic revenue growth in the second quarter and for the remainder of the year.

Speaker #3: This all implies constant exchange rate , revenue growth of two and a half to 3.5% year over year in fiscal year 26 , as we explained in our press release , we still expect a mid-single digit organic revenue decline in Q1 of 26 , primarily due to the strong Q1 25 .

Speaker #3: Year over year comparison After our first quarter this year , we now expect to resume organic revenue growth in the second quarter . And for the remainder of the year .

Speaker #3: We remain very committed to rapid non-GAAP operating profit margin expansion, and we aim for 250 to 300 basis points operating profit margin improvement in '26.

Frank Laukien: We remain very committed to rapid non-GAAP operating profit margin expansion, and we aim for 250 to 300 bps operating profit margin improvement in 2026, despite and including a 50 bps currency headwind. This implies, in principle, 300 to 350 bps of expected organic operating margin expansion, driven by our major cost-saving initiatives, which we now expect to exceed the upper end of our previously stated range of $100 to $120 million. Finally, in fiscal year 2026, we expect non-GAAP EPS growth of 15% to 17%, despite and including a strong 8% or approximately $0.15 expected currency headwind, which again implies 23% to 25% constant exchange rate, non-GAAP EPS growth compared to 2025. Turning to current results now on slide 4.

Speaker #3: Despite and including a 50 bips currency headwind . This implies in principle , 300 to 350 Bips of expected organic operating margin expansion driven by our major cost saving initiatives , which we now expect to exceed the upper end of our previously stated range of 100 to 120 million .

Speaker #3: Finally , in fiscal year 26 , we expect non-GAAP EPs growth of 15 to 17% , despite an including a strong 8% or approximately $0.15 expected currency headwind , which again implies 23 to 25% constant exchange rate .

Speaker #3: Non-GAAP EPS growth compared to '25. Turning to current results now on slide four. In the fourth quarter of '25, Bruker delivered stronger revenues than expected.

Frank Laukien: In Q4 2025, Bruker delivered stronger revenues than expected and above the preliminary range we provided at JPM in early January. Bruker's Q4 2025 reported revenues of $977.2 million were approximately flat year-over-year, including a currency tailwind of 4.1%, a growth contribution from M&A of 0.8%, and an organic decline of 5.1%. Organic declines in BSI and BEST, net of intercompany eliminations, were also both at 5.1% in the quarter. In the fourth quarter, our non-GAAP operating margin was 15.7%, down 240 BPS year-over-year, as lower revenue volume, additional tariff costs, and currency headwinds were only partially mitigated in Q4 by our earlier cost and pricing actions.

Speaker #3: And above the preliminary range . We provided at JPM in early January . Bruker fourth quarter , 25 reported revenues of 977.2 million were approximately flat year over year , including a currency tailwind of 4.1% , a growth contribution from M&A of 0.8% and an organic decline of 5.1% .

Speaker #3: Organic declines in BSI and at best net of intercompany eliminations , were also both at 5.1% in the quarter In the fourth quarter , our non-GAAP operating margin was 15.7% , down 240 Bips year over year , as lower revenue volume , additional tariff costs and currency headwinds were only partially mitigated in Q4 by our earlier cost and pricing actions Fourth quarter 25 non-GAAP diluted EPs was $0.59 , down from $0.76 in Q4 of 24 .

Frank Laukien: Q4 2025 non-GAAP diluted EPS was $0.59, down from $0.76 in Q4 2024. Gerald will discuss the drivers for margins and EPS later in more detail. As I said earlier, Q4 BSI book-to-bill was again meaningfully greater than 1.0, and our Q4 free cash flow was good at $207 million. Moving on to our 2025 full year performance on Slide 5. Fiscal year 2025 reported revenues increased by 2.1% to $3.44 billion. On an organic basis, revenues declined 3.7% year-over-year, consisting of a 3.5% organic decline in scientific instruments and a 5.4% organic decline at BEST, as always, net of intercompany eliminations.

Speaker #3: Gerald will discuss the drivers for margins and EPs later in more detail . As I said earlier , fourth quarter BSI book to Bill was again meaningfully greater than 1.0 .

Speaker #3: And our fourth quarter free cash flow was good at 270,000,207 million . Moving on to our 2025 full year performance on slide five .

Speaker #3: Fiscal year 25 reported revenues increased by 2.1% to 3.44 billion on an organic basis . Revenues declined 3.7% year over year , consisting of a 3.5 organic decline in scientific instruments and a 5.4% organic decline at best As always , net of intercompany eliminations , acquisitions added 3.5% to revenue growth , and there was a 2.3% currency revenue tailwind for the year Our 2025 non-GAAP gross and operating margin and GAAP and non-GAAP EPs performance are all summarized on slide five .

Frank Laukien: Acquisitions added 3.5% to revenue growth, and there was a 2.3% currency revenue tailwind for the year. Our 2025 non-GAAP growth and operating margin and GAAP and non-GAAP EPS performance are all summarized on Slide 5. Margins and EPS were down year-over-year as a result of dilution from our strategic acquisitions that closed in the first half of 2024, volume deleverage, and strong currency and tariff headwinds. So please turn to slide 6, slides 6 and 7, where we highlight the 2025 constant exchange rate performance of our three scientific instruments groups and of our BEST segment year-over-year. In 2025, BioSpin group revenue was $879 million and declined in the mid-single-digit percentage. Solid revenue growth in Chemspeed lab automation was more than offset by declines in NMR instrumentation.

Frank Laukien: Acquisitions added 3.5% to revenue growth, and there was a 2.3% currency revenue tailwind for the year. Our 2025 non-GAAP growth and operating margin and GAAP and non-GAAP EPS performance are all summarized on Slide 5. Margins and EPS were down year-over-year as a result of dilution from our strategic acquisitions that closed in the first half of 2024, volume deleverage, and strong currency and tariff headwinds. Please turn to slide 6, slides 6 and 7, where we highlight the 2025 constant exchange rate performance of our three scientific instruments groups and of our BEST segment year-over-year. In 2025, BioSpin group revenue was $879 million and declined in the mid-single-digit percentage. Solid revenue growth in Chemspeed lab automation was more than offset by declines in NMR instrumentation.

Speaker #3: Margins and EPs were down year over year as a result of dilution from our strategic acquisitions that closed in the first half of 24 volume deleverage and strong currency and tariff headwinds So please turn to slide six .

Speaker #3: Slide six and seven where we highlight the 2025 constant exchange rate performance of our three scientific instruments groups and of our best segment year over year in 2025 .

Speaker #3: Biospin group revenue was 879 million and declined in the mid single digit percentage . Solid revenue growth in Shemspeed lab automation was more than offset by declines in NMR instrumentation .

Speaker #3: Biopharma revenues were weak , resulting resulting from soft bookings in the first half of 25 . In the fourth quarter of 25 , we had revenue from a 1.2GHz NMR in the UK , our second gigahertz class NMR of 2025 compared to four gigahertz NMR in 2024 .

Frank Laukien: Biopharma revenues were weak, resulting from soft bookings in the first half of 2025. In the fourth quarter of 2025, we had revenue from a 1.2 gigahertz NMR in the UK, our second gigahertz class NMR of 2025, compared to four gigahertz NMRs in 2024. The 2 fewer gigahertz systems resulted in a roughly $25 million revenue headwind for 2025 revenues. We're expecting just one gigahertz NMR system in revenue in 2026, as present gigahertz class NMR funding activity, which is healthy, but would likely not yet come in as revenue in 2026, but may well refill our gigahertz NMR pipeline for 2027 and beyond.

Speaker #3: The two fewer gigahertz systems resulted in a roughly 25 million revenue headwind for to 25 revenues . We're expecting just one one , just one gigahertz NMR system in revenue in 2026 , as present , gigahertz class NMR funding activity , which is healthy but would likely not yet come in as revenue in 26 .

Speaker #3: But may well refill our gigahertz NMR pipeline for 27 and beyond For 2025 , the group had revenue of 1.2 billion and constant exchange rate growth in the high single digit percentage , with growth in microbiology and infection diagnostics driven by Elitech molecular diagnostics , as well as by our optics division driven by our applied market security , detection , growth .

Frank Laukien: For 2025, the CALID group had revenue of $1.2 billion and constant exchange rate growth in the high single digits%, with growth in microbiology and infection diagnostics, driven by ELITech Molecular Diagnostics, as well as by our optics division, driven by our applied market security detection growth. This was partially offset by softness in mass spectrometry, as strong orders for the recently launched timsOmni and timsMetabo mass spectrometers were expected to start to convert into revenue, mostly in 2026. On Slide 7, Bruker Nano 2025 revenues was $1.1 billion and declined to the low single digits%, as solid growth in spatial biology, driven by NanoString and robust biopharma growth, was more than offset by declines in EcoGalv and industrial markets.

Speaker #3: This was partially offset by softness in mass spectrometry as strong orders for the recently launched Tims , Omni and Tims Metabo mass spectrometers were expected to start to convert into revenue , mostly in 2026 .

Speaker #3: On slide seven , Bruker nano 25 revenues was 1.1 billion and declined in the low single digits percentage as solid growth in spatial biology driven by Nanostring and robust biopharma growth , was more than offset by declines in agave and industrial markets .

Speaker #3: Semi revenue semiconductor metrology revenues were flat for the year , with a strong semi order book in Q4 of 25 , which is expected to drive stronger semi performance in 26 .

Frank Laukien: Semi revenue, semiconductor metrology revenues were flat for the year, with a strong semi order book in Q4 of 2025, which is expected to drive stronger semi performance in 2026. Finally, 2025 BEST revenues declined in the mid-single digits percentage, net of intercompany eliminations due to soft superconducting demand for clinical MRI systems. However, we received major multi-year orders at the end of the fourth quarter of 2025 and at the very beginning of Q1 of 2026, for superconducting wire from large MRI manufacturers totaling more than $500 million. This is over multiple years. Also, our research instruments business, which is part of BEST, received more than $40 million in orders for enabling technology for the extreme light infrastructure, something that we had a press release on previously, and this will also is expected to go into revenue mostly in late 2026.

Speaker #3: Finally , 2025 best revenues declined in the mid-single digits , percentage net of intercompany eliminations due to soft superconducting demand for clinical MRI systems .

Speaker #3: However , we received major multiyear orders at the end of the fourth quarter of 25 , and at the very beginning of Q1 of 26 for superconducting wire from large MRI manufacturers totaling more than 500 million .

Speaker #3: This is over multiple years . Also , our research instruments business , which is part of best received more than 40 million in orders for enabling technology for the extreme light infrastructure , something that we had a press release on previously , and this will also is expected to grow into revenue mostly in 20 .

Speaker #3: Late in 2026 . Moving to slide eight . Now we highlight our project accelerate 3.0 portfolio expansion strategy . And we talked about that a little bit at the J.P.

Frank Laukien: Moving to Slide 8 now, we highlight our Project Accelerate 3.0 portfolio expansion strategy, and we talked about that a little bit at the J.P. Morgan conference. We remain very focused on our leadership and expanding our leadership in post-genomic disease research and drug discovery tools, primarily proteomics and multiomics, and of course, a core focus also on spatial biology. We continue to expand and focus in novel diagnostics, novel and differentiated diagnostics opportunities, with novel microbiology and infectious disease molecular diagnostics opportunities. I'll highlight that our ELITech molecular diagnostics business had very strong placements in fiscal year 2025, which bodes well for fiscal year 2026 revenue growth. In microbiology, we're entering the rapid AST market with the Wave platform, hoping to get FDA clearance for the first claim in this year, in 2026.

Speaker #3: Morgan Conference . We remain very focused on our leadership and expanding our leadership . In Post-genomic disease research and drug discovery tools , primarily proteomics and multiomics , and of course , core focus also on spatial biology .

Speaker #3: We continue to expand and focus in novel diagnostics , novel and differentiated diagnostics opportunities with novel microbiology and infectious disease , molecular diagnostics opportunities .

Speaker #3: I'll highlight that our Elitech molecular diagnostics business at very strong placements in fiscal year 25 , which bodes well for fiscal year 26 revenue growth in microbiology .

Speaker #3: We're entering the rapid AST market with the wave platform , hoping to get FDA clearance for the first claim in this year . In 2026 and in molecular diagnostics .

Frank Laukien: And in molecular diagnostics, we intend to expand into second generation affordable syndromic panels on our Genius systems. Finally, a very important trajectory for us is that our proteomic and spatial biology translational research tools increasingly are expected to enter laboratory-developed tests, or LDT, markets here in the US and elsewhere in CLIA laboratories. We're excited about our next gen automated and digitized self-driving labs, something that we just announced on Monday at the SLAS conference here in Boston. And as I've mentioned earlier, our security, defense, and airport detection business, something that was lingering for a number of years, but where we have differentiated capabilities, is growing nicely at this point, particularly in Europe and overseas.

Frank Laukien: And in molecular diagnostics, we intend to expand into second generation affordable syndromic panels on our Genius systems. Finally, a very important trajectory for us is that our proteomic and spatial biology translational research tools increasingly are expected to enter laboratory-developed tests, or LDT, markets here in the US and elsewhere in CLIA laboratories. We're excited about our next gen automated and digitized self-driving labs, something that we just announced on Monday at the SLAS conference here in Boston. As I've mentioned earlier, our security, defense, and airport detection business, something that was lingering for a number of years, but where we have differentiated capabilities, is growing nicely at this point, particularly in Europe and overseas.

Speaker #3: We intend to expand into second generation affordable syndromic panels on our genius systems . Finally , a very important trajectory for us is that our proteomic and spatial biology translational research tools increasingly are expected to enter laboratory developed tests , or LDT markets here in the US and elsewhere in laboratories .

Speaker #3: We're excited about our next-gen automated and digitized self-driving labs, something that we just announced on Monday at the SLAs conference here in Boston.

Speaker #3: And as I've mentioned earlier , our security , defense and airport detection business , something that was lingering for a number of years .

Speaker #3: But where we have differentiated capabilities is growing nicely at this point , particularly in Europe and overseas . And finally , we continue to benefit from the AI boom indirectly in our that our semiconductor metrology tools for new nodes and advanced packaging have seen solid order growth and particularly strong order growth in the fourth quarter With that , let me conclude soon on slide nine , where you see where we give you our annual update on our revenue mix for the BSI segment , which , as you know , is 93% of our revenue .

Frank Laukien: And finally, we continue to benefit from the AI boom indirectly, in that our semiconductor metrology tools for new nodes and advanced packaging have seen solid order growth, and particularly strong order growth in the fourth quarter. With that, let me conclude soon on slide nine, where you see where we give you our annual update on our revenue mix for the BSI segment, which, as you know, is 93% of our revenue. We are pleased that step by step, our aftermarket component of revenue is increasing. A year ago, in 2024, it was 35%, now it's at 38%, and in fact, that part was growing organically also in 2025.

Speaker #3: We are pleased that step by step , our aftermarket component of revenue is increasing . A year ago , in 24 , it was 35% .

Speaker #3: Now it's at 38% . And in fact , that part was growing organically . Also in 2025 . Our end market growth is , as you would expect with now more than 60% of our revenue coming from the project Accelerate 3.0 focus areas .

Frank Laukien: Our end market growth is, as you would expect, now more than 60% of our revenue coming from the Project Accelerate 3.0 focus areas, and with particularly good growth that we're expecting also in terms of orders and revenue from biopharma, from diagnostics, and from semiconductor metrology. Finally, by geography, as you all know, US biopharma and industrial growth looked stronger, certainly in orders, in the second half of the year. US a.k.a. gov is still weak and had been weak throughout 2025, except for the first quarter. The rest of APAC has been very, very resilient and strong. China, which used to be 16% to 17% of our revenue, has continued to decline, although we saw some nice order growth in Q4, and is now about 14%—just under 14% of our revenue. Right.

Speaker #3: And with particularly good growth that we're expecting . Also , in terms of orders and revenue from biopharma , from diagnostics , and from semiconductor metrology .

Speaker #3: Finally , by geography , as you all know , us biopharma and industrial growth looked stronger , certainly in orders in the second half of the year .

Speaker #3: U.S. CA.gov is still weak and had been all year throughout 2020, weak throughout 2025 except for the first quarter; the rest of APAC has been very, very resilient and strong.

Speaker #3: And China , which used to be 16 to 17% of our revenue , has continued to decline . Although we saw some nice order growth in Q4 and is now about 40 just under 14% of our revenue Right .

Speaker #3: In summary , 2025 was indeed a challenging year for Bruker . We faced multiple unexpected significant headwinds and we responded by continuing to innovate , launching novel and differentiated high value solutions .

Frank Laukien: In summary, 2025 was indeed a challenging year for Bruker. We faced multiple unexpected, significant headwinds, and we responded by continuing to innovate, launching novel and differentiated high-value solutions. We've also focused on cost efficiencies, taking very significant costs out in order to take a large step in 2026 towards greater than 20% operating margins in the next few years. In the medium term, beyond 2026, we expect our organic growth profile to return to a CAGR that is 200 to 300 bps above the LSDX market growth rate, and we will continue to focus on continued major margin expansion steps in 2027 and 2028 as well, while driving continued double-digit non-GAAP EPS growth. We believe that our transformed portfolio is now poised to achieve EBITDA margins greater than 25% over time.

Speaker #3: We have also focused on cost efficiencies , taking very significant costs out in order to take a large step . In 26 towards greater than 20% operating margins in the next few years .

Speaker #3: In the medium term , beyond 2026 , we expect our organic growth profile to return to a to a kegger that is 2 to 300 bips above the Lstd market growth rate , and we will continue to focus on continued major margin expansion steps in 27 and 28 , as well .

Speaker #3: While driving continued double digit non-GAAP EPs growth . We believe that our transformed portfolio is now poised to achieve EBITDA margins greater than 25% over time , with that , let me turn the call over to to Gerald , our CFO .

Frank Laukien: With that, let me turn the call over to Gerald, our CFO.

Speaker #4: Thank you , Frank , and thanks , everyone for joining us today . Before I get into the details of our financial performance , I wanted to provide a high level view of how the fourth quarter played out versus our expectations at the time of our last earnings call .

Gerald Herman: Thank you, Frank, and thanks, everyone, for joining us today. Before I get into the details of our financial performance, I wanted to provide a high-level view of how the Q4 played out versus our expectations at the time of our last earnings call. We're pleased that revenue for the quarter came in about $20 million above our guide expectations. However, despite the top-line outperformance, our non-GAAP operating margin of 15.7% came in below our expectations by about 100 basis points. This was driven by headwinds of approximately 50 basis points from unfavorable mix, 30 basis points from delayed tariff offsets, and about 20 basis points from a stronger foreign exchange headwind relative to our prior guidance.

Speaker #4: We're pleased that revenue for the quarter came in about $20 million above our guide expectations . However , despite the top line outperformance , our non-GAAP operating margin of 15.7% came in below our expectations by about 100 basis points This was driven by headwinds of approximately 50 basis points from unfavorable mix , 30 basis points from delayed tariff offsets , and about 20% bips .

Speaker #4: Sorry , 20 basis points from a stronger foreign exchange headwind relative to our prior guidance . Our guide for fiscal year 26 reflects an improved mix profile as well as pricing and supply chain actions more fully mitigating the tariff impact going forward .

Gerald Herman: Our guide for fiscal year 2026 reflects an improved mix profile, as well as pricing and supply chain actions, more fully mitigating the tariff impact going forward. Now, some further details on Bruker's fourth quarter and full year 2025 financial performance, starting on slide 11. In the fourth quarter of 2025, Bruker's reported revenue decreased 0.2% to $977.2 million, which reflects an organic revenue decline of 5.1% year-over-year. Acquisitions contributed 0.8% to our top line, while foreign exchange was a 4.1% tailwind. Both our BSI and BEST segments had organic revenue declines of 5.1% in the fourth quarter of 2025, with organic revenue declines across all groups.

Speaker #4: Now , some further details on Bruker fourth quarter and full year 2020 financial performance starting on slide 11 . In the fourth quarter of 25 , Bruker reported revenue decreased 0.2% to $977.2 million , which reflects an organic revenue decline of 5.1% year over year .

Speaker #4: Acquisitions contributed 0.8% to our top line , while foreign exchange was a 4.1% tailwind . Both our BSI and best segments had organic revenue declines of 5.1% in the fourth quarter of 25 , with organic revenue declines across all groups .

Speaker #4: BSI fourth quarter 25 instruments revenue declined in the mid to high single digits , while aftermarket revenue saw growth in the low single digit range year over year .

Gerald Herman: BSI fourth quarter 2025 instruments revenue declined in the mid- to high-single digits, while aftermarket revenue saw growth in the low-single-digit range year over year. As Frank mentioned, for the full year of 2025, aftermarket revenue now represents 38% of BSI revenues, up from 35% in 2024. Geographically, and on an organic basis, in the fourth quarter of 2025, our Americas revenue declined in the low teens %. Europe revenue declined in the high single digits %, and Asia Pacific revenue grew in the high single digits %, including double-digit growth in China, all year over year. For our IMEA region, Q4 2025 revenue was up high single digits % year over year. Non-GAAP gross margin decreased 310 basis points in the fourth quarter of 2025 to 49.4%.

Speaker #4: As Frank mentioned , for the full year of 2025 , aftermarket revenue now represents 38% of BSI revenues , up from 35% in 2024 .

Speaker #4: Geographically and on an organic basis . In the fourth quarter of 25 , our Americas revenue declined in the low teens percentage . European revenue declined in the high single digits percentage , and Asia Pacific revenue grew in the high single digits percentage , including double digit growth in China all year over year .

Speaker #4: For our Imea region , Q4 2020 revenue was up high . Single digits . Percentage year over year . non-GAAP gross margin decreased 310 basis points in the fourth quarter of 25 to 49.4% , factors impacting our gross margin in the fourth quarter of 25 are essentially similar to those impacting the operating margin in the quarter .

Gerald Herman: Factors impacting our gross margin in Q4 2025 are essentially similar to those impacting the operating margin in the quarter. In Q4 2025, we posted a non-GAAP operating margin of 15.7%, down 240 basis points compared to Q4 2024. This decline was driven by a combined 490 basis points decline from lower volume, unfavorable mix, tariffs, and strong currency headwinds. These headwinds, which are described in more detail on the slide, were partially offset by a 250 basis point benefit from our fiscal year 2025 cost-saving initiatives, as we realized approximately $25 million of cost savings in the quarter. On a non-GAAP basis, Q4 2025 diluted EPS was $0.59, down 22.4% from $0.76 in Q4 2024.

Speaker #4: In the fourth quarter of 25 , we posted a non-GAAP operating margin of 15.7% , down 240 basis points compared to the fourth quarter of 24 .

Speaker #4: This decline was driven by a combined 490 basis points decline from lower volume , unfavorable mix tariffs and strong currency headwinds . These headwinds , which are described in more detail on the slide , were partially offset by a 250 basis point benefit from our fiscal year 25 cost saving initiatives as we realized approximately $25 million of cost savings in the quarter .

Speaker #4: On a non-GAAP basis , fourth quarter 25 diluted EPs was $0.59 , down 22.4% from $0.76 in the fourth quarter of 24 . Our non-GAAP effective tax rate was 29.9% , compared to 32.5% in the fourth quarter of 24 , with the decrease driven primarily by discrete items .

Gerald Herman: Our non-GAAP effective tax rate was 29.9%, compared to 32.5% in Q4 2024, with the decrease driven primarily by discrete items in Q4 2025. On a GAAP basis, we reported diluted EPS of $0.10 versus $0.09 in Q4 2024. Weighted average diluted shares outstanding in Q4 2025 were 171.7 million, an increase of 19.7 million shares, or 13%, compared to Q4 2024, reflecting the accounting for the mandatory convertible preferred stock offering we completed in September 2025. Turning now to Slide 12. We had an excellent cash generation quarter in Q4 2025, with approximately $230 million of operating cash flow generated in the quarter, actually the highest in our history.

Speaker #4: In the fourth quarter of 25 . On a GAAP basis , we reported diluted EPs of $0.10 versus $0.09 in the fourth quarter of 24 , weighted average diluted shares outstanding in the fourth quarter of 25 were 171.7 million , an increase of 19.7 million shares , or 13% , compared to the fourth quarter of 24 , reflecting the accounting for the mandatory convertible preferred stock offering .

Speaker #4: We September of 2025 . Turning now to slide 12 . We had an excellent cash generation quarter in the fourth quarter of 25 , with approximately $230 million of operating cash flow generated in the quarter , actually the highest in our history .

Speaker #4: We delivered over $100 million in improved working capital performance in the fourth quarter of 25 , and with CapEx investments at 22.6 million drove free cash flow of $207.3 million in the fourth quarter of 25 , up about $54 million over the fourth quarter of 24 .

Gerald Herman: We delivered over $100 million in improved working capital performance in Q4 2025, and with CapEx investments at $22.6 million, drove free cash flow of $207.3 million in Q4 2025, up about $54 million over Q4 2024. We finished Q4 2025 with cash, cash equivalents, and short-term investments of approximately $300 million. During the fourth quarter, we used cash to fund selected Project Accelerate 3.0 investments, capital expenditures, and continued our delevering actions with a debt repayment of approximately $145 million in the quarter. We ended fiscal year 2025 with a leverage ratio of approximately 3.1. Slide 13 shows our non-GAAP P&L results for the full year of 2025.

Speaker #4: We finished the fourth quarter of 2025 with cash , cash equivalents and short term investments of approximately $300 million . During the fourth quarter , we used cash to fund selected project Accelerate 3.0 investments , capital expenditures and continued our delevering actions with a debt repayment of approximately $145 million in the quarter .

Speaker #4: We ended fiscal year 25 with a leverage ratio of approximately 3.1 . Slide 13 shows our non-GAAP results for the full year of 2025 .

Speaker #4: Revenue was up 2.1% to $3.44 billion , including an organic revenue decline of 3.7% . Acquisitions added 3.5% to our top line , resulting in constant exchange rate revenue to be roughly flat year over year .

Gerald Herman: Revenue was up 2.1% to $3.44 billion, including an organic revenue decline of 3.7%. Acquisitions added 3.5% to our top line, resulting in constant exchange rate revenue to be roughly flat year-over-year. Foreign exchange was a 2.3% tailwind to revenue growth in fiscal year 2025. Fiscal year 2025 non-GAAP operating margin was 12.6%, down 280 basis points year-over-year. This decrease reflects net headwinds from M&A of approximately 65 basis points, tariffs of approximately 65 basis points, foreign exchange 70 basis points, as well as the impact from lower estimated volume impact of approximately 80 basis points, which includes the partial benefits from our pricing and cost reductions.

Speaker #4: Foreign exchange was a 2.3% tailwind to revenue growth in fiscal year 25 . Fiscal year 25 non-GAAP operating margin was 12.6% , down 280 basis points year over year .

Speaker #4: This decrease reflects net headwinds from M&A of approximately 65 basis points , tariffs of approximately 65 basis points , foreign exchange 70 basis points , as well as the impact from lower estimated volume impact of approximately 80 basis points , which includes the partial benefits from our pricing and cost reductions .

Speaker #4: The remainder of the non-financial results for the full year of 2025 are summarized on slide 13, with the drivers as explained earlier and on the slide. Turning now to slide 15.

Gerald Herman: The remainder of the non-GAAP P&L results for the full year of 2025 are summarized on slide 13, with the drivers, as explained earlier and on the slide. Turning now to slide 15. We enter the year with a healthy backlog of approximately 7 months and solid order momentum after 2 consecutive quarters of BSI book-to-bill above 1.0. We are initiating guidance for fiscal year 2026 as follows: reported revenue of $3.57 to $3.60 billion, representing reported growth of 4% to 5%, compared to fiscal year 2025. Organic revenue growth of 1% to 2% year-over-year, plus acquisitions contributing 1.5%, plus an estimated currency tailwind of 1.5%, all contributing to reported revenue growth.

Speaker #4: We entered the year with a healthy backlog of approximately seven months and solid order momentum . After two consecutive quarters of BSI book to bill above 1.0 , we were initiating guidance for fiscal year 26 as follows .

Speaker #4: Reported revenue of 3.57 to $3.6 billion , representing reported growth of 4 to 5% . Compared to fiscal year 2025 . Organic revenue growth of 1 to 2% year over year , plus acquisitions contributing 1.5% plus an estimated currency tailwind of 1.5% .

Speaker #4: All contributing to reported revenue growth for operating margins in fiscal year 26 . We expect organic non-GAAP operating margin expansion of 300 to 350 basis points in the year , offset by approximately 50 basis points of currency headwind , resulting in a net non-GAAP operating margin expansion of 250 to 300 basis points compared to the 12.6% posted in fiscal year 25 .

Gerald Herman: For operating margins in fiscal year 2026, we expect organic non-GAAP operating margin expansion of 300 to 350 basis points in the year, offset by approximately 50 basis points of currency headwind, resulting in a net non-GAAP operating margin expansion of 250 to 300 basis points compared to the 12.6% posted in fiscal year 2025. We expect to take a major step up in operating margin performance in fiscal year 2026, with much of this margin improvement driven by our previously announced $120 million cost actions taken in fiscal year 2025, which we now expect to exceed. With markets signaling further recovery and our new products and solutions gaining traction, we expect to take another meaningful step up in operating margins in fiscal year 2027 and beyond.

Speaker #4: We expect to take a major step up in operating margin performance in fiscal year 26 , with much of this margin improvement driven by our previously announced $120 million cost actions taken in fiscal year 25 , which we now expect to exceed with markets signaling further recovery .

Speaker #4: And with our new products and solutions gaining traction, we expect to take another meaningful step up in operating margins in fiscal year '27 and beyond.

Speaker #4: On the bottom line , we're guiding to non-GAAP EPs for fiscal year 26 , in a range of 210 to 215 or non-GAAP EPs growth of 15 to 17% , compared to fiscal year 25 .

Gerald Herman: On the bottom line, we're guiding to non-GAAP EPS for fiscal year 2026 in a range of $2.10 to $2.15, or non-GAAP EPS growth of 15% to 17% compared to fiscal year 2025. Using current foreign exchange rates, we're estimating a currency headwind of approximately 8% to fiscal year 2026 EPS, implying non-GAAP CER EPS growth of 23% to 25% year-over-year. Other guidance assumptions are listed on the slide. Our fiscal year 2026 ranges have been updated for foreign currency rates as of 31 December 2025. Finally, a bit of color on Q1 of 2026. We have a strong year-over-year comparison as we delivered mid-single digit VSI organic revenue growth in the first quarter of 2025, and margins in EPS in Q1 of 2025 were not yet impacted by US import tariffs or AccGov funding disruptions.

Speaker #4: Using current foreign exchange rates were estimating a currency headwind of approximately 8% to fiscal year 26 EPs , implying non-GAAP EPs growth of 23 to 25% year over year .

Speaker #4: Other guidance assumptions are listed on this slide . Our fiscal year 2026 ranges have been updated for foreign currency rates as of December 31st , 2025 .

Speaker #4: Finally , a bit of color on Q1 of 26 , we have a strong year over year comparison as we delivered mid-single digit BSI organic revenue growth in the first quarter of 2025 and margins in EPs in Q1 of 25 were not yet impacted by U.S.

Speaker #4: import tariffs or Akagawa funding disruptions . Therefore , we anticipate first quarter 2026 organic revenue to be down in the mid-single digits . Percentage and margin and EPs to be down meaningfully compared to the first quarter of 2025 .

Gerald Herman: Therefore, we anticipate Q1 2026 organic revenue to be down in the mid-single digits percentage and operating margin and EPS to be down meaningfully compared to the Q1 of 2025. We then expect operating margins and EPS stepping up each quarter thereafter throughout the rest of 2026. To wrap up, we're encouraged by the order momentum we now see in many of our end markets. This, combined with some stability in the US academic funding environment, gives us confidence that we're positioned to return to organic revenue growth in the Q2 of 2026, and we plan robust operating margin expansion and non-GAAP EPS growth in fiscal year 2026 and beyond. With that, I'd like to turn the call over to Joe. Thank you very much.

Speaker #4: We then expect operating margins and EPs . Stepping up each quarter thereafter throughout the rest of 2026 . To wrap up , we're encouraged by the order momentum we now see in many of our end markets .

Speaker #4: This , combined with some stability in the US academic funding environment , gives us confidence that we're positioned to return to organic revenue growth in the second quarter of 2026 , and we plan robust operating margin expansion and non-GAAP EPs growth in fiscal year 26 and beyond With that , I'd like to turn the call over to Joe .

Speaker #4: Thank you very much .

Speaker #2: Thank you , Gerald . We'll now begin the Q&A portion of the call as a reminder to allow everyone time for questions . We ask that you limit yourself to one question and one follow up .

Joe Kostka: Thank you, Gerald. We'll now begin the Q&A portion of the call. As a reminder, to allow everyone time for questions, we ask that you limit yourself to one question and one follow-up. Operator?

Speaker #2: Operator

Speaker #1: Ladies and gentlemen , at this time , we will begin the question and answer session To ask a question , you may press star and then one on your touchtone telephones .

Operator 2: Ladies and gentlemen, at this time, we will begin the question-and-answer session. To ask a question, you may press Star and then one on your touchtone telephones. If you are using a speakerphone, we do ask that you please pick up the handset prior to pressing the keys to ensure the best sound quality. To withdraw your questions, you may press Star and two. At this time, we'll pause momentarily to assemble the roster. Our first question today comes from Puneet Souda from Leerink Partners. Please go ahead with your question.

Operator: Ladies and gentlemen, at this time, we will begin the question-and-answer session. To ask a question, you may press Star and then one on your touchtone telephones. If you are using a speakerphone, we do ask that you please pick up the handset prior to pressing the keys to ensure the best sound quality. To withdraw your questions, you may press Star and two. At this time, we'll pause momentarily to assemble the roster. Our first question today comes from Puneet Souda from Leerink Partners. Please go ahead with your question.

Speaker #1: If you are using a speakerphone , we do ask that you please pick up the handset prior to pressing the keys to ensure the best sound quality .

Speaker #1: To withdraw your questions , you may press star and two . At this time , we'll pause momentarily to assemble the roster Our first question today comes from Sudha from Learing Partners .

Speaker #1: Please go ahead with your question

Puneet Souda: Yeah, hi, guys. Thanks for the questions here. Frank, the gross margin question has been a frequent one and obviously a focus in the quarter. Could you talk about, you know, just given the Q4 margins, you came in below. You're expecting a number of cost initiatives to push margins higher in 2026. Maybe just tell us where those cost initiatives focused. How much reduction, how should we think about that beyond that $120 million that you've talked about? And also, for Gerald, if you could talk about the gross margin cadence, just given the significant ramp you have throughout the year, and anything you can provide on your comment around the meaningful Q1 gross margin impact.

Speaker #5: Yeah . Hi guys . Thanks for the questions . Here , Frank . The margin question has been a frequent one and obviously a focus in the quarter .

Speaker #5: Could you talk about , you know , just given the for Q margins , you came in below , you were expecting a number of cost initiatives to push margins higher in 26 , maybe just tell us where are those costs initiatives focused .

Speaker #5: How much reduction ? How should we think about that beyond that 120 million that you've talked about ? And also for Gerald , if you could talk about the margin , cadence just given the the ramp , significant ramp , you have throughout the year and anything you can provide on your comment around the meaningful one .

Speaker #5: Q margin impact

Speaker #3: Okay , Puneet , I'll start . Good morning So as Gerald had explained of the 100 bips lower margin than what we had expected in Q4 of 25 , the way we look at it is that the 50 Bips from unfavorable mix is not likely to repeat itself .

Gerald Herman: Okay, Puneet, I'll start. Good morning. So as Gerald had explained, of the 100 bips lower margin than what we had expected in Q4 of 2025, the way we look at it is that the 50 bips from unfavorable mix is not likely to repeat itself. Those were idiosyncratic factors in Q4. Thirty bips from delayed revenue offset, I think will offset that successfully in 2026, and the 20 bips of stronger currency headwind is here to stay for now, right? And in fact, as you will see, as you will have seen from our guidance by now, both on the operating margin expansion in 2026 as well as on the EPS growth, we have acknowledged significant headwinds from currency.

Gerald Herman: Okay, Puneet, I'll start. Good morning. As Gerald had explained, of the 100 bips lower margin than what we had expected in Q4 of 2025, the way we look at it is that the 50 bips from unfavorable mix is not likely to repeat itself. Those were idiosyncratic factors in Q4. Thirty bips from delayed revenue offset, I think will offset that successfully in 2026, and the 20 bips of stronger currency headwind is here to stay for now, right? And in fact, as you will see, as you will have seen from our guidance by now, both on the operating margin expansion in 2026 as well as on the EPS growth, we have acknowledged significant headwinds from currency.

Speaker #3: Those were idiosyncratic factors in Q4 30 Bips from delayed tariffs offset . I think will offset that successfully in 2026 . And the 20 bips of stronger currency headwind is here to stay for now , right .

Speaker #3: And in fact , as you will see , as you will have seen from our guidance by now , both on the operating margin expansion in 26 as well as on the EPs growth , we have acknowledged significant headwinds from currency accordingly .

Gerald Herman: Accordingly, and that leads to the second part of your questions, we have gone even stronger or even further on the cost initiatives. We now expect these to-

Speaker #3: And that leads to the second part of your questions . We have gone even stronger or even further on the cost initiatives . We now expect these to yield on an annualized basis between closer to 140 million or even higher than that .

Frank Laukien: ... yield on an annualized basis, between closer to $140 million or even higher than that. That will not all these additional cost cut, cost reductions will, not all be active or effective, excuse me, in Q1 or Q2. But certainly by Q3, that should be all effective and then become annualized. So we've been pushing that, if you like, by an additional 10 to 15 percent. And that's about the right amount.

Frank Laukien: ... yield on an annualized basis, between closer to $140 million or even higher than that. That will not all these additional cost cut, cost reductions will, not all be active or effective, excuse me, in Q1 or Q2. Certainly by Q3, that should be all effective and then become annualized. We've been pushing that, if you like, by an additional 10 to 15 percent. That's about the right amount.

Speaker #3: That will not all these additional cost cost reductions will not not all be active or effective . Excuse me In Q1 or Q2 , but certainly by Q3 , that should be all effective .

Speaker #3: And then become annualized . So we've been pushing that , if you like , by an additional 10 to 15% . And that's about the right amount .

Speaker #3: We don't want to under-invest in our opportunities , but we also , of course , are very committed to this 250 to 300 of operating margin expansion and the double digit in this case reported 15 to 17% reported EPs growth , which is all in including currency headwinds , which are strong and including obviously also some of the dilution we had from the mandatory convert .

Frank Laukien: We don't want to underinvest in our opportunities, but we also, of course, are very committed to this 250 to 300 bps of operating margin expansion and the double-digit, in this case, reported 15 to 17% in reported EPS growth, which is all-in including currency headwinds, which are strong, and including obviously also some of the dilution we had from the mandatory convert. So that's. Hopefully, that addressed your questions. I think you had something for Gerald on cadence.

Frank Laukien: We don't want to underinvest in our opportunities, but we also, of course, are very committed to this 250 to 300 bps of operating margin expansion and the double-digit, in this case, reported 15 to 17% in reported EPS growth, which is all-in including currency headwinds, which are strong, and including obviously also some of the dilution we had from the mandatory convert. Hopefully, that addressed your questions. I think you had something for Gerald on cadence.

Speaker #3: So that's hopefully that addressed your questions . I think you had something for Gerald on cadence .

Speaker #4: Yeah . Hi Puneet , it's Gerald . I'll just comment . Just generally , as I mentioned in my prepared remarks , we we had a quite strong Q1 of 25 .

Gerald Herman: Yeah. Hi, Puneet, it's Gerald. I'll just comment just generally, as I mentioned in my prepared remarks, we had a quite strong Q1 of 2025. You may recall, while we sort of hit the mid-single digits range of total Bruker organic growth at the BSI level, it was actually mid-single digits and quite substantial. I mean, we don't expect to hit that in the first quarter, especially on our organic performance. So we are expecting softer Q1, and we expect to pick up the pace pretty dramatically, starting in Q2, Q3, and stronger again, finishing again in the fourth quarter. The step up in operating margin growth is quite significant, largely due to what Frank was just describing.

Gerald Herman: Yeah. Hi, Puneet, it's Gerald. I'll just comment just generally, as I mentioned in my prepared remarks, we had a quite strong Q1 of 2025. You may recall, while we sort of hit the mid-single digits range of total Bruker organic growth at the BSI level, it was actually mid-single digits and quite substantial. I mean, we don't expect to hit that in the first quarter, especially on our organic performance. We are expecting softer Q1, and we expect to pick up the pace pretty dramatically, starting in Q2, Q3, and stronger again, finishing again in the fourth quarter. The step up in operating margin growth is quite significant, largely due to what Frank was just describing.

Speaker #4: You may recall , while we we sort of hit the mid-single digits range of total Bruker organic growth at the VSI level , it was actually mid-single digits and quite substantial .

Speaker #4: I mean , we don't expect to hit that in the first quarter , especially on our organic performance . So we are expecting a softer Q1 and we expect to pick up the pace pretty dramatically starting in Q2 three and stronger again .

Speaker #4: Finish again in the fourth quarter . The step up in operating margin growth is quite significant , largely due to what Frank was just describing .

Speaker #4: Some of what we do have in the fourth quarter of '25, about $25 million of cost savings, are reflected mostly in the opex category.

Gerald Herman: We do have in Q4 2025, about $25 million of cost savings that are reflected mostly in the OpEx category. You'll see that again in the other quarters as we move forward. But some of our European-based cost actions will take effect more in Q1 and in Q2, so you'll start to see a more significant ramp starting in Q2, and thereafter, Q3 and Q4. We can talk more about the details, but fundamentally, that's the direction.

Gerald Herman: We do have in Q4 2025, about $25 million of cost savings that are reflected mostly in the OpEx category. You'll see that again in the other quarters as we move forward. Some of our European-based cost actions will take effect more in Q1 and in Q2, so you'll start to see a more significant ramp starting in Q2, and thereafter, Q3 and Q4. We can talk more about the details, but fundamentally, that's the direction.

Speaker #4: You'll see that again in the other quarters as we move forward . But some of our European based cost actions will take effect more in the first quarter .

Speaker #4: And in the second . So you'll start to see a more significant ramp starting in Q2 and thereafter , Q3 and Q4 . You can talk more about the details , but fundamentally , that's the direction

Speaker #5: Okay . That's super helpful . Thanks for that . Just a quick follow up on Frank . The new and competitive renewal awards are coming in lower .

Puneet Souda: Okay. That's super helpful. Thanks for that. Just a quick follow-up on, Frank. The new and competitive, renewable awards are coming in lower. Maybe it's due to the, at NIH mainly, and maybe it's due to the political, challenges that we have in getting those grants out and whatnot. But NIH is supposed to be, 1%, better this year versus last year. So just any, any, feedback on the ACA gov customers, in your, you know, interactions in the, in, so far in Q1, would appreciate any context there. Thank you.

Puneet Souda: Okay. That's super helpful. Thanks for that. Just a quick follow-up on, Frank. The new and competitive, renewable awards are coming in lower. Maybe it's due to the, at NIH mainly, and maybe it's due to the political, challenges that we have in getting those grants out and whatnot. NIH is supposed to be, 1%, better this year versus last year. Just any, any, feedback on the ACA gov customers, in your, you know, interactions in the, in, so far in Q1, would appreciate any context there. Thank you.

Speaker #5: Maybe it's due to the at NIH mainly , and maybe it's due to the political challenges that we have in getting those grants out and whatnot .

Speaker #5: But NIH is supposed to be 1% better this year versus last year . So just any any feedback on the customers in your , you know , interactions in the , in so far in the first quarter , would appreciate any context there .

Speaker #5: Thank you .

Speaker #3: Yeah , I mean the you know , it's nobody's talking about a strong tailwind yet . But the absence of the strong headwind from last year feels a little bit better for us .

Frank Laukien: Yeah, I mean, the, you know, it's nobody's talking about a strong tailwind yet, but the absence of the strong headwind from last year feels a little bit better for US ACA gov. US ACA gov orders in Q4 were still quite weak. But I think, you know, that's, so that's bottoming out later than the trough in biopharma and industrial research demand, where we probably saw the trough mid-year of last year. It's so, so there's still that. That's why everybody, including us in particular, are still cautious on growth rates this year, right? 1 to 2% organic growth rate isn't a snapback to our typical growth rates. So we're still, we're still cautious on that. But I am obviously compared to a really tough year, 25, I'm encouraged that things are likely going to get better.

Frank Laukien: Yeah, I mean, the, you know, it's nobody's talking about a strong tailwind yet, but the absence of the strong headwind from last year feels a little bit better for US ACA gov. US ACA gov orders in Q4 were still quite weak. I think, you know, that's, so that's bottoming out later than the trough in biopharma and industrial research demand, where we probably saw the trough mid-year of last year. It's so, so there's still that. That's why everybody, including us in particular, are still cautious on growth rates this year, right? 1 to 2% organic growth rate isn't a snapback to our typical growth rates. We're still, we're still cautious on that. I am obviously compared to a really tough year, 25, I'm encouraged that things are likely going to get better.

Speaker #3: Gave us ex-gov orders in Q4 . We're still quite weak , but I think , you know , that's so that's bottoming out later than the trough in biopharma .

Speaker #3: And industrial research demand , where we probably saw the trough midyear of last year . It's so there's still that's that's why everybody , including us in particular , are still cautious on growth rates this year .

Speaker #3: Right ? 1 to 2% organic growth rate isn't a snapback to our typical growth rates . So we're still we're still cautious on that .

Speaker #3: But I am obviously compared to a really tough year 25 . I'm encouraged that things are likely going to get better . But I think until academia more confidence and that I think it'll may be a couple of quarters , even if an NIH budget that's flat or up plus 1% .

Frank Laukien: But I think until academia gets more confidence, and that. And I think it'll may be a couple of quarters, even if an NIH budget that's flat or up plus 1%, and with prohibitions against overhead cuts and multi-year grants, or at least limitations on those. If this will pass, and, you know, I think there's a reasonable chance of that. Similarly, also encouraging on NSF and other science budgets, by the way, NASA, DOE, you name it. So I'm encouraged with that, but I think it may not help us with orders all that much till the second half.

Frank Laukien: But I think until academia gets more confidence, and that. I think it'll may be a couple of quarters, even if an NIH budget that's flat or up plus 1%, and with prohibitions against overhead cuts and multi-year grants, or at least limitations on those. If this will pass, and, you know, I think there's a reasonable chance of that. Similarly, also encouraging on NSF and other science budgets, by the way, NASA, DOE, you name it. I'm encouraged with that, but I think it may not help us with orders all that much till the second half.

Speaker #3: And with prohibitions against overhead cuts and multi-year grants , or at least limitations on those , if this will pass . And , you know , I think there's a reasonable chance of that .

Speaker #3: Similarly , also encouraging on NSF and other science budgets , by the way , NASA , Doe , you name it . So I'm encouraged with that .

Speaker #3: But I think it may not help us with orders all that much until the second half

Speaker #5: Got it . Okay . Thank you .

Puneet Souda: Got it. Okay. Thank you.

Speaker #3: Thank you .

Frank Laukien: Thank you.

Speaker #1: Our next question comes from Michael Ryskin from Bank of America. Please go ahead with your question.

Operator 2: Our next question comes from Michael Ryskin, from Bank of America. Please go ahead with your question.

Operator: Our next question comes from Michael Ryskin, from Bank of America. Please go ahead with your question.

Speaker #6: Hey , thanks for thanks for the question , guys . I want to dig into the margin a little bit in terms of the 2026 versus four .

Michael Ryskin: Hey, thanks for the question, guys. I wanna dig into the margin a little bit. In terms of the 2026 versus Q4. I think you talked about Q4 coming in a little bit lighter, and you shifting some of those. I guess, asking it qualitatively, just, you know, you pointed to the higher end of the range. What gives you confidence in your ability to take that, given, you know, that you weren't able to execute on all the margin cross outs in Q4? Just sort of, you know... Yeah, just confidence on ability to execute that. And then I've got a follow-up. Thanks.

Speaker #6: Q I think you talked about four . Q coming in a little bit lighter and you shifting some of those , I guess , asking a qualitatively just you pointed to the higher end of the range .

Speaker #6: What gives you confidence in your ability to take that , given that you weren't able to execute on all the margin cost outs in the fourth quarter , just sort of , you know , yeah , just confidence on ability to execute that .

Speaker #6: And then I've got a follow up . Thanks

Speaker #3: Well , we've taken out a we've taken out the high end of the 100 to 120 million in cost already . And we are in the process of taking out additional cost , which will let's say that becomes fully effective by midyear .

Frank Laukien: Well, we've taken out the high end of the $100 to $120 million in costs already, and we are in the process of taking out additional cost, which will, let's say, that becomes fully effective, or by mid-year. So that's why we have a lot of confidence in that. And then some of the other margin idiosyncrasy, some of that has to do with pricing, supply chain, these things. When, you know, when we increase pricing and until we then get an order, and until that order turns into revenue, in many cases, be 3 or 4 quarters. So the effect of all these things, those good steps that we did take and have taken or continue to take on the supply chain, have a longer lead time, and we noticed that in Q4.

Frank Laukien: Well, we've taken out the high end of the $100 to $120 million in costs already, and we are in the process of taking out additional cost, which will, let's say, that becomes fully effective, or by mid-year. That's why we have a lot of confidence in that. Then some of the other margin idiosyncrasy, some of that has to do with pricing, supply chain, these things. When, you know, when we increase pricing and until we then get an order, and until that order turns into revenue, in many cases, be 3 or 4 quarters. The effect of all these things, those good steps that we did take and have taken or continue to take on the supply chain, have a longer lead time, and we noticed that in Q4.

Speaker #3: So that's why we have a lot of confidence in that . And then some of the other margin idiosyncrasies , some of that has to do with with with pricing , supply chain .

Speaker #3: These things , you know , when we increase pricing and until we then get an order and until that order turns into revenue , can in many cases be 3 or 4 quarters .

Speaker #3: So the effect of all these things is good steps that we did take and have taken or continue to take on the supply chain , have a a longer lead time .

Speaker #3: And we noticed that in Q4 . But , you know , they really are happening and they have happened . So that gives us a lot of confidence in next year .

Frank Laukien: You know, they really are happening, and they have happened, so that gives us a lot of confidence in next year. As I said, we had some, we really did have some unfavorable mix in Q4, so we don't think that will repeat itself.

Speaker #3: And as I said , we had some we really did have some unfavorable mix in Q4 . So we don't think that will repeat itself .

Speaker #6: Okay , okay . I appreciate that . And then for the follow up , I want to I want to talk about your comments .

Michael Ryskin: Okay. Okay, I appreciate that. Then for the follow-up, I wanna, I wanna talk about your comments you made about revenue pacing through the year. I think you pointed to, down mid-single in the first quarter, but you expect revenues to be positive starting in Q2. Just clarify how much of that is the comps from prior year. I know there were, you know, Q1 2025 was surprisingly good. You know, I think, I think we didn't see the hit from the end market slowdown and from the NIH concerns until later in the year. So how much of that is the prior year comps versus underlying assumptions on any end market improvement this year, or just sort of, you know, how your order book, visibility, factors into that? Just, you know, the confidence between that Q1 jumping.

Michael Ryskin: Okay. Okay, I appreciate that. Then for the follow-up, I wanna, I wanna talk about your comments you made about revenue pacing through the year. I think you pointed to, down mid-single in the first quarter, but you expect revenues to be positive starting in Q2. Just clarify how much of that is the comps from prior year. I know there were, you know, Q1 2025 was surprisingly good. You know, I think, I think we didn't see the hit from the end market slowdown and from the NIH concerns until later in the year. How much of that is the prior year comps versus underlying assumptions on any end market improvement this year, or just sort of, you know, how your order book, visibility, factors into that? Just, you know, the confidence between that Q1 jumping.

Speaker #6: You made about revenue , pacing through the year . I think you pointed to down mid-single in the first quarter , but you expect revenues to be positive starting in two .

Speaker #6: Q just clarify how much of that is the comps from prior year ? I know there were one . Q was surprisingly good .

Speaker #6: You know , I think I think we didn't see the hit from the market slowdown from the NIH concern . So later in the year .

Speaker #6: So how much of that is the prior year comps versus underlying assumptions on any end market improvement this year , or just sort of how your order book visibility factors into that ?

Speaker #6: Just the confidence between that one. Q-jumping.

Speaker #3: Yeah , it's both . Yeah . You're right . It's both I mean , you know , the there's I can't I cannot really disentangle that quantitatively .

Frank Laukien: Yeah, it's both. Yeah, you're right, it's both. I mean, you know, and there's I cannot really disentangle that quantitatively, but qualitatively, both, your question already implies they both play a role. So yes, the comps get easier, and in some cases, a lot easier by Q2, right? Q2 2025 was not good for us. So the comps do get easier and even through the remainder of the year. So with easier comps and with picking up, with improving gradually improving order momentum in many of the segments, even if not all of them. Even China bookings were better in Q4, Applied and Semi was very strong. Biopharma was very solid in bookings in Q3 and Q4 of last year.

Frank Laukien: Yeah, it's both. Yeah, you're right, it's both. I mean, you know, and there's I cannot really disentangle that quantitatively, but qualitatively, both, your question already implies they both play a role. Yes, the comps get easier, and in some cases, a lot easier by Q2, right? Q2 2025 was not good for us. The comps do get easier and even through the remainder of the year. With easier comps and with picking up, with improving gradually improving order momentum in many of the segments, even if not all of them. Even China bookings were better in Q4, Applied and Semi was very strong. Biopharma was very solid in bookings in Q3 and Q4 of last year.

Speaker #3: But qualitatively both your question already implies they both play a role . So yes the the comps get easier . And in some cases a lot easier by Q2 .

Speaker #3: Right . Q2 was Q2 25 was not good for us . So the coms do get easier . And even through the remainder of the year .

Speaker #3: So with easier comps and with picking up with improving , gradually improving order momentum in many of the segments , even if not all of them , even China bookings were better in Q4 applied .

Speaker #3: Semi was very strong . Biopharma was very solid in bookings in Q3 and Q4 of last year . Industrial research , which came to a was very , very slow .

Frank Laukien: Industrial research, which was very, very slow, the orders in Q2, as everybody was trying to figure out what's the new geopolitical and tariff landscape. As that has now become solidified or stabilized for the time being, I think these markets have all picked up. Really, little bit the outlier is still US ACA Gov, but at least even there, from what I see, reading more than tea leaves, reading NIH budgets, I think it may begin to benefit us in the second half in bookings. That, however, may then mean that it, you know, could be a Q4 or mostly 2027 effect in revenue, which is why we think longer term, we return to our 200 to 300 BPS above market revenue, organic CAGR, but not yet this year.

Speaker #3: The orders in Q2 , as everybody was trying to figure out what's the new geopolitical and tariff landscape as that has now become solidified or stabilized for the time being .

Speaker #3: I think these markets have all picked up really the a little bit the outlier is still us govt , but at least even there , from what I see reading , more than tea leaves , reading NIH budgets , I think it may begin to benefit us in the second half .

Speaker #3: In bookings . That , however , may then mean that it could be a Q4 or mostly 27 effect in revenue , which is why we think longer term we return to our 200 to 300 bips above market revenue .

Speaker #3: Organic agar . But not yet . This year . But but even this year , you do the math pretty easily with a mid-single digit decline in Q1 .

Frank Laukien: But even this year, you do the math pretty easily with a mid-single-digit decline in Q1. Obviously, the organic growth rates for the remainder of the year, the remaining three quarters, are better than the full year growth rate. Obviously, that's easy math for you and for us. But even at that level, they're not fully back at our long-term growth rates. We hope to achieve those in 2027 and beyond. I hope that helps.

Frank Laukien: But even this year, you do the math pretty easily with a mid-single-digit decline in Q1. Obviously, the organic growth rates for the remainder of the year, the remaining three quarters, are better than the full year growth rate. Obviously, that's easy math for you and for us. Even at that level, they're not fully back at our long-term growth rates. We hope to achieve those in 2027 and beyond. I hope that helps.

Speaker #3: Obviously , the organic growth rates for the remainder of the year , the remaining three quarters are better than the full year growth rate .

Speaker #3: Obviously , that's the easy math for you and for us . And but it's but even at that level , they're not fully back at our long term growth rates .

Speaker #3: We hope to achieve those in 27 and beyond . I hope that helps

Speaker #6: No , that's super helpful . Much appreciated . Thanks . Thanks , Frank

Michael Ryskin: No, that's super helpful. Much appreciated. Thanks. Thanks, Frank.

Speaker #3: Sure .

Frank Laukien: Sure.

Speaker #1: Our next question comes from Tycho Peterson from Jefferies . Please go ahead with your question

Operator 2: Our next question comes from Tycho Peterson from Jefferies. Please go ahead with your question.

Operator: Our next question comes from Tycho Peterson from Jefferies. Please go ahead with your question.

Speaker #7: Hey , thanks , Frank . Maybe just can we do a quick walk on the assumptions for some of the other end markets ?

Tycho Peterson: Hey, thanks. Frank, maybe just can we do a quick walk on the assumptions for some of the other end markets? I appreciate you've, you know, hit on academic already, but what are you assuming for biopharma this year? What are you assuming for semi? You know, anything in microbiology that could be a headwind; we've heard about, you know, that from some of your peers. So maybe just give us a walk on some of the other end markets.

Tycho Peterson: Hey, thanks. Frank, maybe just can we do a quick walk on the assumptions for some of the other end markets? I appreciate you've, you know, hit on academic already, but what are you assuming for biopharma this year? What are you assuming for semi? You know, anything in microbiology that could be a headwind; we've heard about, you know, that from some of your peers. Maybe just give us a walk on some of the other end markets.

Speaker #7: I appreciate you hit on academic already , but what are you assuming for biopharma this year ? What are you assuming for semi anything in microbiology that could be a headwind .

Speaker #7: We've heard about that from some of your peers . So maybe just give us a walk on some of the other end markets .

Gerald Herman: Tycho, it's Gerald. I'll just talk generally about the end markets assumed in the guide. For biopharma, we're not assuming a significant snapback. We're assuming low single digits organic growth. Our semi business, which was relatively flat on a revenue level for 2025, we're expecting to be in the low single digits in growth. Clinical, a little bit stronger for us from our microbiology-based business. And academic and government research, largely driven by continued softness for Q1 or so, we are expecting to be sort of flat or low single digits down. Industrial, flat and applied about the same. So generally speaking, we are not expecting a significant snapback in any of our end markets. We think strength coming from biopharma and certainly semi in 2026.

Gerald Herman: Tycho, it's Gerald. I'll just talk generally about the end markets assumed in the guide. For biopharma, we're not assuming a significant snapback. We're assuming low single digits organic growth. Our semi business, which was relatively flat on a revenue level for 2025, we're expecting to be in the low single digits in growth. Clinical, a little bit stronger for us from our microbiology-based business. Academic and government research, largely driven by continued softness for Q1 or so, we are expecting to be sort of flat or low single digits down. Industrial, flat and applied about the same. Generally speaking, we are not expecting a significant snapback in any of our end markets. We think strength coming from biopharma and certainly semi in 2026.

Speaker #4: Gerald I'll just I'll just talk just generally about the end markets assumed in the guide for biopharma . We're we're not assuming a significant snapback .

Speaker #4: We're assuming low single digits organic growth . Our semi business , which was relatively flat on a revenue level for 2025 . We're expecting to be in the low single digits in growth , clinical a little bit stronger for us from our microbiology based business and academic and government research , largely driven by continued softness for the first quarter or so , we are expecting to be sort of flat or low single digits down industrial flat and applied about the same .

Speaker #4: So generally speaking , we are not expecting a significant snapback in any of our end markets . We think strength coming from biopharma and certainly semi in 2026 .

Speaker #7: Okay .

Tycho Peterson: Okay, and then-

Speaker #3: And then I would add maybe one fine point . Molecular diagnostics , which is of course part of infectious disease diagnostics . We're expecting very good growth there this year because we had nearly nearly 30% .

Frank Laukien: I, I would add maybe one fine point. Molecular diagnostics, which is, of course, part of infectious disease diagnostics, we're expecting very good growth there this year because we had nearly, nearly 30%, now about 30% more placements of these Genius platforms last year in 2025 than what we had anticipated and what we had planned. So that was, that was excellent. So that tends to then bring in the pull-through in the following year. So that, so I think diagnostics, biopharma, and semi will be the highlights for the year. 2026, and others are recovering and stabilizing, and US ACA Gov, perhaps turning in our revenues and PNL, not really much of a corner until Q4 or perhaps even into next year. But with improving trends and less headwinds. Sorry, yeah.

Frank Laukien: I, I would add maybe one fine point. Molecular diagnostics, which is, of course, part of infectious disease diagnostics, we're expecting very good growth there this year because we had nearly, nearly 30%, now about 30% more placements of these Genius platforms last year in 2025 than what we had anticipated and what we had planned. That was, that was excellent. That tends to then bring in the pull-through in the following year. That, so I think diagnostics, biopharma, and semi will be the highlights for the year. 2026, and others are recovering and stabilizing, and US ACA Gov, perhaps turning in our revenues and PNL, not really much of a corner until Q4 or perhaps even into next year. With improving trends and less headwinds. Sorry, yeah.

Speaker #3: Now about 30% more placements of these genius platforms last year . In 25 . Then what we had anticipated , what we had planned .

Speaker #3: So that was that was excellent . So that tends to then bring in the pull through in the following year . So that so I think diagnostics and biopharma and semi will be the highlights for the year 26 and others are recovering and stabilizing and us us Perhaps turning in our revenues and personnel .

Speaker #3: Not really much of a corner until Q4 or perhaps even into next year , but with improving trends and headwinds . Sorry . Yep .

Speaker #7: And then I know you've had a number of questions on margins . Can you just comment on gross margins for this year ? Are you expecting gross margin expansion ?

Tycho Peterson: And then, Gerald, I know you had a number of questions on margins. Can you just comment on gross margins for this year? Are you expecting gross margin expansion?

Speaker #4: Yeah , we are . I mean , as you already heard specifically on the fourth quarter , we were somewhat below our expectations on gross margin level , and that was partly being driven by the mix issues and the tariff .

Gerald Herman: Yeah, we are. I mean, we, as you already heard, specifically on the fourth quarter, we were somewhat below our expectations on the gross margin level, and that was partly being driven by the mix issues and-

Doug Schenkel: ... the tariff and, of course, the foreign exchange pieces I highlighted earlier. So yeah, we're not gonna be able to do too much further on the foreign exchange piece, but on the mix, our view is that this is gonna improve for us. And certainly from the tariff side, as you heard from Frank, you know, recover that and mitigate any tariffs going forward.

Doug Schenkel: ... the tariff and, of course, the foreign exchange pieces I highlighted earlier. We're not gonna be able to do too much further on the foreign exchange piece, but on the mix, our view is that this is gonna improve for us. Certainly from the tariff side, as you heard from Frank, you know, recover that and mitigate any tariffs going forward.

Speaker #4: And of course , the foreign exchange pieces . I highlighted earlier . So yeah , we're we're not going to be able to do too much further on the foreign exchange piece , but on the mix , our view is that this is going to improve for us .

Speaker #4: And certainly from the tariff side , as you heard from Frank , we're expecting to , you know , recover that and mitigate any tariffs going forward .

Speaker #3: I think I think it's fair to say that of our operating profit margin expansion , about half of it comes from gross margin expansion .

Frank Laukien: I think, I think it's fair to say that of our operating profit margin expansion, about half of it comes from gross margin expansion.

Speaker #4: Yeah . And of course , our opex . Right , right .

Doug Schenkel: Yeah, and of course, our OpEx, right?

Frank Laukien: Right. But it's about half.

Frank Laukien: Right. It's about half.

Speaker #3: But it's about it's about half half . Yeah . This year . 26 and probably beyond and beyond that as well .

Doug Schenkel: Yes.

Frank Laukien: This year, 2026, and probably beyond that as well.

Speaker #7: Okay . And then Frank , on the M&A contributions you flagged proteomics and spatial entering LTT and Clea , can you maybe just elaborate a little bit more on how you think about that opportunity ?

Tycho Peterson: Okay. And then, Frank, on the M&A contributions, you flagged proteomics and spatial entering LDT and CLIA. Can you maybe just elaborate a little bit more on, you know, how you think about that opportunity?

Tycho Peterson: Okay. Then, Frank, on the M&A contributions, you flagged proteomics and spatial entering LDT and CLIA. Can you maybe just elaborate a little bit more on, you know, how you think about that opportunity?

Speaker #3: Sorry, those were not M&A contributions. Those were.

Frank Laukien: Sorry, those were not M&A contributions. Those were-

Speaker #7: I don't know if it was related to Nanostring or okay . Can you just comment on what .

Tycho Peterson: I didn't know if it was related to NanoString or something. Okay, can you just comment on what-

Speaker #3: No no , no . Those were this is just our our higher growth and higher margin opportunities , which we bundle under the now further evolved project accelerate much of that or some of that was M&A .

Frank Laukien: No, no, no. Those were—this is just our, our higher growth and higher margin opportunities, which we bundle under the now further evolved Project Accelerate. Much of that, or some of that was M&A, but it was prior M&A that we've now owned for one or two years in these areas.

Speaker #3: But it was prior M&A that we've now owned for 1 or 2 years in these areas .

Speaker #7: Okay . Thank you .

Tycho Peterson: Okay, thank you.

Speaker #8: All right Thank you .

Frank Laukien: All right. Thank you.

Speaker #1: Our next question , our next question comes from Subbu Nambi from Guggenheim . Please go ahead with your question .

Operator 2: Our next question comes from Subbu Nambi from Guggenheim. Please go ahead with your question.

Operator: Our next question comes from Subbu Nambi from Guggenheim. Please go ahead with your question.

Speaker #9: Hey guys . Thank you for taking my questions for what are your expectations this year for book to Bill and backlog to hover at ?

Subbu Nambi: Hey, guys. Thank you for taking my questions. So what are your expectations this year for Book-to-Bill and backlog to hover at? Will it be noisy with some end market rebound? Just how should we be thinking about the trend of customer spending interest in 2026?

Subbu Nambi: Hey, guys. Thank you for taking my questions. What are your expectations this year for Book-to-Bill and backlog to hover at? Will it be noisy with some end market rebound? Just how should we be thinking about the trend of customer spending interest in 2026?

Speaker #9: Will it be noisy with some end market rebound ? Just how should we be thinking about the trend of customer spending interest in 2026 ?

Speaker #3: Yeah , we expect continued gradual improvements . So while we don't specifically forecast backlog or book to bill , we hope that we believe actually that the book trends over the last two quarters , which in BSI were , you know , above 1.0 , will continue into this year .

Frank Laukien: Yeah, we expect continued gradual improvements. So while we don't specifically forecast backlog or book-to-bill, we hope that we believe, actually, that the book-to-bill trends of the last two quarters, which in BSI were, you know, above 1.0, will continue into this year. Also aided, of course, by easier comps, at least again, in Q2 through Q4. And we may use a little bit of our still high backlog this year, but, you know, we're not, we're not modeling anything that becomes all normalized to, you know, perhaps the five and a half or 5x level, five months level that we think it would be a normalized level for the way BSI is configured now.

Frank Laukien: Yeah, we expect continued gradual improvements. While we don't specifically forecast backlog or book-to-bill, we hope that we believe, actually, that the book-to-bill trends of the last two quarters, which in BSI were, you know, above 1.0, will continue into this year. Also aided, of course, by easier comps, at least again, in Q2 through Q4. We may use a little bit of our still high backlog this year, but, you know, we're not, we're not modeling anything that becomes all normalized to, you know, perhaps the five and a half or 5x level, five months level that we think it would be a normalized level for the way BSI is configured now.

Speaker #3: Also aided , of course , by easier comps , at least again in Q2 through Q4 and we may need we may use a little bit of our still high backlog this year .

Speaker #3: But , you know , we're not we're not modeling anything that that becomes all normalized to , you know , perhaps the five and a half or five level , five months level that we that we that we think it would be a normalized level for the absis configured now

Speaker #9: Thank you for that . And then you mentioned some new products in microbiology and diagnostics exiting 2026 . What do these businesses look like ?

Subbu Nambi: Thank you for that. And then, you mentioned some new products in microbiology and diagnostics. Exiting 2026, what do these businesses look like, like, from a product roadmap perspective and a revenue growth perspective? Thank you.

Subbu Nambi: Thank you for that. Then, you mentioned some new products in microbiology and diagnostics. Exiting 2026, what do these businesses look like, like, from a product roadmap perspective and a revenue growth perspective? Thank you.

Speaker #9: Like from a product roadmap perspective and a revenue growth perspective Thank you

Speaker #3: Okay . Exiting 26 okay . Yeah . So in microbiology I assume that we'll have the first rapid AST gram negative positive blood culture claim approved by the FDA this year , 2026 .

Frank Laukien: Okay. Exiting 2026. Okay. Yeah, so in microbiology, I assume that we'll have the first rapid AST, gram-negative positive blood culture, claim approved by the FDA this year, 2026, hopefully before midyear. And that we will be in clinical trials for additional claims on that rapid AST platform. So that will be a nice build-up over the next couple of years as more and more content's becoming available on that Wave platform. Of course, there's a lot of content coming out on our existing Genius platforms, both in Europe, and then we're also doing a first assay going into clinical trials for entering the US market with these Genius platforms. Again, that won't move the needle in 2026.

Frank Laukien: Okay. Exiting 2026. Okay. Yeah, so in microbiology, I assume that we'll have the first rapid AST, gram-negative positive blood culture, claim approved by the FDA this year, 2026, hopefully before midyear. That we will be in clinical trials for additional claims on that rapid AST platform. That will be a nice build-up over the next couple of years as more and more content's becoming available on that Wave platform. Of course, there's a lot of content coming out on our existing Genius platforms, both in Europe, and then we're also doing a first assay going into clinical trials for entering the US market with these Genius platforms. Again, that won't move the needle in 2026.

Speaker #3: Hopefully before mid-year . And that we will be in clinical trials for additional claims on that rapid AST platform . So that will be a nice build up over the next couple of years as more and more contents becoming available on that wave platform .

Speaker #3: Of course, there's a lot of content coming out on our existing Genius platforms, both in Europe, and then we're also doing a first assay going into clinical trials for entering the US market with these Genius platforms.

Speaker #3: Again , that won't move the needle in 26 . It'll include still some investment , obviously , in OpEx investments in 26 , but that will begin to mostly help us then for further growth in 27 , 28 and beyond .

Frank Laukien: It'll include still some investment, obviously, in OpEx investments in 2026, but that will begin to mostly help us then for further growth in 2027, 2028, and beyond. What was the second part of your question, or did that address your question?

Speaker #3: And what was the second part of your question , or what did that address your question ?

Speaker #9: The diagnostics business ?

Subbu Nambi: The diagnostics business.

Speaker #3: Yeah . Well , the genius is the diagnostics business , right ? Syndromic panels will begin to roll out and get through regulatory approvals in Europe and in 20 late 26 , 27 .

Frank Laukien: Yeah. Well, the Genius is the diagnostics business, right? Syndromic panels will begin to roll out and get through regulatory approvals in Europe in late 2026, 2027. So they'll begin to affect our larger install base in Europe first, Europe and Latin America, and a few other countries, actually. And then there'll be a series of affordable syndromic panels coming out through and making it through the regulatory processes, IVDR, in this case, in 2027, 2028. So these are. You know, that's just a flywheel. You add something every year. It doesn't make a big difference in one year, but the cumulative effect over time is just very, very nice. As we've seen with molecular diagnostics, even in 2025, that was a very nice growth market, mid to high single digit growth market for us.

Frank Laukien: Yeah. Well, the Genius is the diagnostics business, right? Syndromic panels will begin to roll out and get through regulatory approvals in Europe in late 2026, 2027. They'll begin to affect our larger install base in Europe first, Europe and Latin America, and a few other countries, actually. Then there'll be a series of affordable syndromic panels coming out through and making it through the regulatory processes, IVDR, in this case, in 2027, 2028. These are. You know, that's just a flywheel. You add something every year. It doesn't make a big difference in one year, but the cumulative effect over time is just very, very nice. As we've seen with molecular diagnostics, even in 2025, that was a very nice growth market, mid to high single digit growth market for us.

Speaker #3: So they'll begin to affect our larger installed base in Europe . First , Europe and Latin America and a few other countries actually .

Speaker #3: And then there'll be a series of syndromic , affordable , syndromic panels coming out through and making it through the regulatory processes . In this case , in 27 , 28 .

Speaker #3: So these are , you know , that's just a flywheel . You add something every year . It doesn't make a big difference in one year .

Speaker #3: But the cumulative effect over , is just very , very nice . As we've seen with molecular diagnostics , even in 25 , that was a that was a very nice growth market , mid to high single digit growth market for us .

Speaker #9: Perfect . Thank you so much

Subbu Nambi: Perfect. Thank you so much.

Frank Laukien: Mm-hmm.

Speaker #1: Our next question comes from Doug Schenkel from Wolfe Research . Please go ahead with your question .

Operator 2: Our next question comes from Doug Schenkel from Wolfe Research. Please go ahead with your question.

Operator: Our next question comes from Doug Schenkel from Wolfe Research. Please go ahead with your question.

Speaker #10: Good morning guys . Thank you for taking my question . So regarding first quarter organic revenue growth guidance , your description of the difficult comparison is accurate .

Doug Schenkel: Good morning, guys. Thank you for taking my question. So regarding first quarter organic revenue growth guidance, your description of the difficult comparison is accurate. However, there's, you know, two or three discrete items that seem like those should render the number a bit better. What I'm thinking about are, you know, first, the recovery of at least part of the $40 million in semiconductor-related revenue that you previously told us had slipped out of Q4, and you expected to recapture largely in Q1, but over the course of the first half. The second is the impact of pricing, which you started to get more aggressive with, you know, last May, and it takes time for that to come through, quarter by quarter, but it seems like at this point, that should be more meaningful.

Doug Schenkel: Good morning, guys. Thank you for taking my question. Regarding first quarter organic revenue growth guidance, your description of the difficult comparison is accurate. However, there's, you know, two or three discrete items that seem like those should render the number a bit better. What I'm thinking about are, you know, first, the recovery of at least part of the $40 million in semiconductor-related revenue that you previously told us had slipped out of Q4, and you expected to recapture largely in Q1, but over the course of the first half. The second is the impact of pricing, which you started to get more aggressive with, you know, last May, and it takes time for that to come through, quarter by quarter, but it seems like at this point, that should be more meaningful.

Speaker #10: However , there's 2 or 3 discrete items that seem like those should render the number a bit better . What I'm thinking about are first , the recovery of at least part of the $40 million in semiconductor related revenue that you previously told us had slipped out of Q4 , and you expected to recapture largely in Q1 .

Speaker #10: But over the course of the first half , the second is the impact of pricing , which you started to get more aggressive with .

Speaker #10: You know , last May , and it takes time for that to come through quarter by quarter . But it seems like at this point that should be more meaningful .

Doug Schenkel: And then, you know, I guess the third I would point to is you did talk about an NMR placement slipping out of Q4, and, you know, maybe that gets recaptured in Q1. So when I think about those things, that doesn't seem consistent with mid-single digit organic declines in Q1, even with the comp. Can you help us out?

Speaker #10: And then, you know, I guess the third I would point to is, you did talk about an NMR placement slipping out of Q4, and maybe that gets recaptured in Q1.

Doug Schenkel: And then, you know, I guess the third I would point to is you did talk about an NMR placement slipping out of Q4, and, you know, maybe that gets recaptured in Q1. When I think about those things, that doesn't seem consistent with mid-single digit organic declines in Q1, even with the comp. Can you help us out?

Speaker #10: So when I think about those things , that doesn't seem consistent with mid-single digit organic declines in Q1 , even with the comp , can you help us out

Speaker #4: Yes , Doug , it's Gerald , with respect to the the Q1 story , I think it's it's important to understand that , you know , some of our organic performance in Q1 of 25 was pretty significant in terms of both mix and and the actual operating profit performance .

Gerald Herman: Yes. Doug, it's Gerald. With respect to the Q1 story, I think it's important to understand that, you know, some of our organic performance in Q1 of 2025 was pretty significant in terms of both mix and the actual operating profit performance. So we had strong order performance in semi, in particular, in the first quarter of 2025, and very strong bookings performance in that quarter. So we think that the timing of our existing orders that are principally driven by what happened in H1, really, of 2025, will not significantly improve our ability to execute on orders in the first quarter.

Gerald Herman: Yes. Doug, it's Gerald. With respect to the Q1 story, I think it's important to understand that, you know, some of our organic performance in Q1 of 2025 was pretty significant in terms of both mix and the actual operating profit performance. We had strong order performance in semi, in particular, in the first quarter of 2025, and very strong bookings performance in that quarter. We think that the timing of our existing orders that are principally driven by what happened in H1, really, of 2025, will not significantly improve our ability to execute on orders in the first quarter.

Speaker #4: So we had strong order performance in semi in particular in in the first quarter of 2025 and very strong bookings performance in that quarter .

Speaker #4: So so we think that the the timing of our existing orders , that are principally driven by what happened in H H1 really of 2025 will not significantly improve our ability to execute on orders in the first quarter so that becomes a headwind in its in its own right , right .

Gerald Herman: So that becomes a headwind in its own right, but it's just the timing of our orders and the lead time required in order for those to execute into revenue. I would say secondly, with respect to the semi orders that got pushed out, I mean, I think our commentary has been pretty consistent about hitting the first half of 2026. Not all of that is going to impact in Q1. So I think we are expecting to see some improvement in Q2 from those, but not all of it hits in Q1 of 2026. And then on the NMR side, I mean, we don't have any specific NMR pushouts. I mean, we had some challenges in BioSpin for sure, from a mix perspective.

Gerald Herman: So that becomes a headwind in its own right, but it's just the timing of our orders and the lead time required in order for those to execute into revenue. I would say secondly, with respect to the semi orders that got pushed out, I mean, I think our commentary has been pretty consistent about hitting the first half of 2026. Not all of that is going to impact in Q1. I think we are expecting to see some improvement in Q2 from those, but not all of it hits in Q1 of 2026. Then on the NMR side, I mean, we don't have any specific NMR pushouts. I mean, we had some challenges in BioSpin for sure, from a mix perspective.

Speaker #4: Just the timing of our orders and the lead time required in order for those to execute into revenue . I would say , secondly , with respect to the semi orders that got pushed out , I mean , I think our our commentary has been pretty consistent about hitting the first half of 2026 and not all of that is going to impact in the in Q1 .

Speaker #4: So I think we are expecting to see some improvement in Q2 from those , but not all of it hits in the in in Q1 of 26 .

Speaker #4: And then on the NMR side , I mean , we don't have any specific NMR pushouts . I mean , we've had some challenges in Biosyn for sure , from a mix perspective .

Speaker #4: We saw some of that in the fourth quarter , but we don't really . .

Gerald Herman: We saw some of that in Q4, but we don't really-

Speaker #3: The 1.2GHz did not get delayed . It was in Q4 . The UK 1.2GHz . Maybe . Doug , I mean , your you know us really well .

Frank Laukien: The 1.2 gigahertz did not get delayed.

Gerald Herman: Yeah.

Frank Laukien: It was in Q4, the UK 1.2 gigahertz. Maybe, Doug, I mean, you know us really well. You know, you know a lot of the moving pieces. Obviously, as we've said, a mid-single digits, that's obviously quite a range, right, of outcomes for Q1. But we just wanted to highlight that it will still be our revenue, almost certainly will still be down, and I think mid-single digits, which is a bit of a range, we realize that, is not just prudent and conservative, I think that's the right number. It puts a little bit into perspective the obviously greater optimism that we have in resuming organic growth, and not only at the 1 to 2% level, but more meaningfully in the subsequent three quarters of this year.

Frank Laukien: It was in Q4, the UK 1.2 gigahertz. Maybe, Doug, I mean, you know us really well. You know, you know a lot of the moving pieces. Obviously, as we've said, a mid-single digits, that's obviously quite a range, right, of outcomes for Q1. We just wanted to highlight that it will still be our revenue, almost certainly will still be down, and I think mid-single digits, which is a bit of a range, we realize that, is not just prudent and conservative, I think that's the right number. It puts a little bit into perspective the obviously greater optimism that we have in resuming organic growth, and not only at the 1 to 2% level, but more meaningfully in the subsequent three quarters of this year.

Speaker #3: You know , you know , a lot of the moving pieces , obviously a as we've said , a mid-single digits . That's obviously quite a range , right , of of outcomes for Q1 .

Speaker #3: But we just wanted to highlight that it will still be our revenue almost certainly will still be down . And and I think mid-single digits , which is a bit of a range .

Speaker #3: We realized that is is is is not just prudent and conservative . I think that's the right number . It puts a little bit into perspective .

Speaker #3: The obviously greater optimism that we have in resuming organic growth, and not only at the 1% to 2% level, but more meaningfully in the subsequent three quarters of this year.

Speaker #10: Okay . All right . Thank you guys .

Doug Schenkel: Okay. All right. Thank you, guys.

Speaker #4: Thank you .

Frank Laukien: Thank you.

Gerald Herman: You're welcome.

Speaker #1: Our next question comes from Luke Sergott from Barclays . Please go ahead with your question .

Operator 2: Our next question comes from Luke Sergott from Barclays. Please go ahead with your question.

Operator: Our next question comes from Luke Sergott from Barclays. Please go ahead with your question.

Speaker #11: Hey , this is Jake on for Luke . Thanks for the question . I wanted to dig more in on China and that double digit growth your mix there is historically leaned towards industrials , but with your build out on the pharma portfolio and this part of the market picking up there , what is your end market mix in China look like now ?

Luke Sergott: Hey, this is Jake on for Luke. Thanks for the question. I wanted to dig more in on China and that double-digit growth. Your mix there has historically leaned towards industrials, but with your build-out on the pharma portfolio and this part of the market picking up there, what does your end market mix in China look like now, and how should we think about it going forward?

Speaker #11: And how should we think about it going forward

Frank Laukien: Yeah, after a bit of a lull there, when the CRO business went away and then there was indeed very little on that. Now, China has recovered on the CRO side, and China is becoming, it's in a drug discovery and development biopharma powerhouse in its own right, so that's beginning to become noticeable. And academic spending, there was, I mean, we don't talk about it much anymore, but there was decent academic spending and bookings in Q4, better than the year before. Whether some of that was stimulus or not is now not so clear. People can't really just, "This is stimulus, this is other academic funding." It's become more nebulous and diffuse. But anyway, it was healthier.

Speaker #3: Yeah . After a after a bit of a lull there when the CRO business went away and , and then there was indeed we had very little on that .

Frank Laukien: Yeah, after a bit of a lull there, when the CRO business went away and then there was indeed very little on that. Now, China has recovered on the CRO side, and China is becoming, it's in a drug discovery and development biopharma powerhouse in its own right, so that's beginning to become noticeable. Academic spending, there was, I mean, we don't talk about it much anymore, but there was decent academic spending and bookings in Q4, better than the year before. Whether some of that was stimulus or not is now not so clear. People can't really just, "This is stimulus, this is other academic funding." It's become more nebulous and diffuse. Anyway, it was healthier.

Speaker #3: Now China has recovered on the CRO side and China is becoming it's in a drug discovery and development biopharma powerhouse in its own right .

Speaker #3: So that's beginning to become noticeable . And academic spending there was I mean , we don't talk about it much anymore . But there was decent academic spending and bookings in in Q4 , better than the year before .

Speaker #3: Whether some of that was stimulus or not . It's now not so clear . People can't really just this is stimulus . This is other academic funding .

Speaker #3: It's become more nebulous and diffuse . But anyway , it was it was healthier . So we we didn't know what expectations to have for China .

Frank Laukien: So we didn't know what expectations to have for China in Q4, but it ended up being one of the better performers in terms of bookings, and also at the end of the year, we had some decent revenues there.

Speaker #3: In Q4 . But it ended up being one of the one of the one of the better performers in terms of bookings and also at the end of the year , we had some decent revenues .

Speaker #3: There .

Luke Sergott: Mm-hmm. Great, thanks for that.

Speaker #11: Great. Thanks for that.

Frank Laukien: Hard to read any trends into that. Clearly, the biopharma piece in China is growing, no questions about that. Of course, there's also some of that is growing also in India, and also the rest of APAC, you know, from Korea to Taiwan to Japan. They all have improving biopharma trends for our particular tools. So the... And of course, there's a lot of semiconductor metrology in APAC outside of China.

Frank Laukien: Hard to read any trends into that. Clearly, the biopharma piece in China is growing, no questions about that. Of course, there's also some of that is growing also in India, and also the rest of APAC, you know, from Korea to Taiwan to Japan. They all have improving biopharma trends for our particular tools. Of course, there's a lot of semiconductor metrology in APAC outside of China.

Speaker #3: Hard to read . Any trends into that ? Clearly , the biopharma piece in China is growing . No questions about that . Of course , there's also some of that is growing also in India .

Speaker #3: And also the rest of APAC . You know , from Korea to Taiwan to Japan , they all have improving biopharma trends for our particular tools .

Speaker #3: So and of course , there's a lot of semiconductor metrology in APAC outside of China . Obviously Taiwan , Korea , but also Japan .

Luke Sergott: Mm-hmm.

Frank Laukien: Obviously, Taiwan, Korea, but also Japan. So we're benefiting from that, mostly on the order side, which bodes well for gradual step-ups in 2026.

Frank Laukien: Obviously, Taiwan, Korea, but also Japan. We're benefiting from that, mostly on the order side, which bodes well for gradual step-ups in 2026.

Speaker #3: So we're benefiting from that that mostly on the order side , which should bode well for bodes well for gradual step ups in 26 .

Speaker #4: Now , I would just add that our guide for 2026 related to China is not strong . I mean , we are assuming that the basic revenue performance is largely flat , which is not a good , you know , certainly not a snapback from where it was several years ago .

Gerald Herman: I would just add that our guide for 2026 related to China is not strong. I mean, we are assuming that the basic revenue performance is largely flat, which is not a good, you know, certainly not a snapback from where it was several years ago. So we're not assuming strong growth in China in our guide, current guide position.

Gerald Herman: I would just add that our guide for 2026 related to China is not strong. I mean, we are assuming that the basic revenue performance is largely flat, which is not a good, you know, certainly not a snapback from where it was several years ago. We're not assuming strong growth in China in our guide, current guide position.

Speaker #4: So we're not assuming strong growth in China in our current guide position .

Speaker #11: Great . Thank you

Michael Ryskin: Great. Thank you.

Speaker #1: Our next question comes from Dan Brennan from TD Cowen . Please go ahead with your question

Operator 2: Our next question comes from Dan Brennan from TD Cowen. Please go ahead with your question.

Operator: Our next question comes from Dan Brennan from TD Cowen. Please go ahead with your question.

Speaker #12: Great . Thank you . Thanks for the questions . So maybe the first one would just be on us academic and government . Frank and Gerald , I know you made some comments already .

Daniel Brennan: Great, thank you. Thanks for the questions. So maybe the first one would just be on US academic and government, Frank and Gerald, I know you made some comments already. Just, did you guys say what the instrument growth or trend was for you from that customer base in 25 and what's assumed in 26? And I think, Frank, you mentioned multi-year funding was capped. I'm just wondering, like, is that multi-year funding no longer a headwind, or just how do we think about that for 26?

Daniel Brennan: Great, thank you. Thanks for the questions. Maybe the first one would just be on US academic and government, Frank and Gerald, I know you made some comments already. Just, did you guys say what the instrument growth or trend was for you from that customer base in 25 and what's assumed in 26? And I think, Frank, you mentioned multi-year funding was capped. I'm just wondering, like, is that multi-year funding no longer a headwind, or just how do we think about that for 26?

Speaker #12: Just did you guys say what the instrument growth or trend was for you from that customer base in 25 ? And what's assumed in 26 .

Speaker #12: And I think , Frank , you mentioned multi-year funding was capped . I'm just wondering like , is that multi-year funding no longer a headwind or just how do we think about that for 26 ?

Speaker #3: Yeah . Good question . On the multi-year funding . Quite honestly , I'm not so sure . I'm I'm a little confused by that as well .

Frank Laukien: Yeah, good question. On the multi-year funding, quite honestly, I'm not so sure. I'm a little confused by that as well, on how that all plays itself out. You know, even if it's multi-year funding, it is more funding into the system, and some of that funding is a little bit fungible in some of these big academic research or disease research centers. If they get more funding in one area, it alleviates pressures elsewhere to transfer budgets, so it makes more money available. So even the multi-year grants aren't bad for us, even if they don't always immediately and directly fund another NMR or mass spec or microscope. Before, to your first part of your question, bookings in ACA Gov in the US for the year were down in the high teens. Yeah.

Frank Laukien: Yeah, good question. On the multi-year funding, quite honestly, I'm not so sure. I'm a little confused by that as well, on how that all plays itself out. You know, even if it's multi-year funding, it is more funding into the system, and some of that funding is a little bit fungible in some of these big academic research or disease research centers. If they get more funding in one area, it alleviates pressures elsewhere to transfer budgets, so it makes more money available. Even the multi-year grants aren't bad for us, even if they don't always immediately and directly fund another NMR or mass spec or microscope. Before, to your first part of your question, bookings in ACA Gov in the US for the year were down in the high teens. Yeah.

Speaker #3: I know that all plays itself out . You know , even if it's multi-year funding , it is more funding into the system .

Speaker #3: And , and some of that funding is a little bit fungible . And some of these big academic research or disease research centers , if , if they get more funding in one area , it alleviates pressures elsewhere to transfer budget .

Speaker #3: So it makes more money available . So even the multi-year grants aren't bad for us , even if they don't always immediately and directly fund another NMR or mass spec or microscope for the to your first part of your question , bookings in in the US for the year were were down in the high teens .

Speaker #3: Yeah . So not the worst outcome but not a great outcome . Right . So that's clearly significant headwind . We also felt it in revenues .

Frank Laukien: So, not the worst outcome, but not a great outcome, right? So that's clearly a significant headwind. We also felt it in revenues, but bookings were down significantly in high teens for the year.

Speaker #3: But bookings were down significantly, in the high teens for the year.

Speaker #12: Right . And you .

Daniel Brennan: Right, and you guys-

Speaker #3: Guys have said that means in some quarters it was down more than 20% . Yep .

Frank Laukien: That means in some quarters it was down more than 20%. Yep.

Daniel Brennan: And, and-

Speaker #12: Sorry I think you said earlier Frank , it was flat . The outlook is expected flat in 26 . Is that right

Frank Laukien: Sorry. Go ahead.

Daniel Brennan: I think you said earlier, Frank, it was flat, the outlook is expected flat in 2026. Is that right?

Speaker #8: This is for all of you, yeah.

Frank Laukien: This is for all of ACA Gov.

Daniel Brennan: ACA Gov, yeah. Yeah.

Speaker #12: Yeah yeah .

Frank Laukien: Yeah, yeah.

Speaker #8: So this is .

Daniel Brennan: Okay.

Frank Laukien: So this is not, this was not a US-specific comment.

Speaker #3: Not this was not a US specific comment . But as you know China and Japan and Europe and almost everywhere else was much more , much better than in the US .

Daniel Brennan: Right.

Frank Laukien: But as you know, China, Japan, and Europe, the ACA Gov, and almost everywhere else was much more much better than in the US, right? Some were, some were strong, some were just solid, you know, solid and good. So that was a comment for all of ACA Gov, not, not a US-specific comment.

Frank Laukien: But as you know, China, Japan, and Europe, the ACA Gov, and almost everywhere else was much more much better than in the US, right? Some were, some were strong, some were just solid, you know, solid and good. That was a comment for all of ACA Gov, not, not a US-specific comment.

Speaker #3: Right . Some were some were strong , some were just solid , you know , solid and good . So that was a comment for all of us .

Speaker #3: Not not a US specific comment . I don't know that we broke that out . Therefore you'd still expect us to be down organically in revenue for the year 26 .

Daniel Brennan: Got it.

Frank Laukien: I don't know that we broke that out. Therefore, you'd still expect US ACA Gov to be down organically in revenue for the year 2026.

Speaker #12: Got it . And if I can just take one more just on semis , just so the guide is flat for semis , I know that business has been growing double digits .

Daniel Brennan: Got it. If I can just speak one more just on semis, just so the guide is flat for semis. I know that business had been growing double digits. You were very positive on kind of the AI connection. Can you just elaborate a little bit on that?

Speaker #12: You are very positive on kind of the AI connection . Can you just elaborate a little bit .

Speaker #4: Just to be sure ? Yeah . It's up . Yeah . Just to be clear . So with respect to full year 25 revenue performance , semi was flat for full year 26 .

Gerald Herman: Just, just to be sure, Dan, you know-

Frank Laukien: Sorry, that's upright.

Gerald Herman: Yeah, just to be clear. So with respect to full year 2025 revenue performance, semi was flat.

Gerald Herman: Yeah, just to be clear. With respect to full year 2025 revenue performance, semi was flat.

Daniel Brennan: Right.

Gerald Herman: For full year 2026, in our guide, we're expecting actually to be up in the low single digits range. That's, that's what we're currently thinking. By the way, just to your, just to clarify, even on the ACA Gov side, we're not expecting a significant growth level in ACA Gov, either in the US or globally in our guide.

Speaker #4: In our guide we were expecting actually to be up in the low single digits range . And that's that's what we're currently thinking by the way just to your just to clarify , even on the Yakugaku side , we're not expecting a significant growth level in either in the US or globally .

Speaker #4: In our guide Right .

Frank Laukien: Right.

Speaker #12: Okay . Thank you very much .

Daniel Brennan: Okay, thank you very much.

Speaker #4: You're welcome

Gerald Herman: You're welcome.

Speaker #1: And our .

Operator 2: Our last question comes from Brandon Couillard from Wells Fargo. Please go ahead with your question.

Speaker #3: Next question .

Speaker #1: Our last question comes from Brandon Coulthard from Wells Fargo . Please go ahead with your question .

Operator: Our last question comes from Brandon Couillard from Wells Fargo. Please go ahead with your question.

Speaker #13: Hey , thanks . Good morning Frank . Just directionally , which of the three segments do you expect to lead in terms of revenue growth this year ?

Brandon Couillard: Hey, thanks. Good morning. Frank, just directionally, which of the three BSI segments do you expect to lead in terms of revenue growth this year? And just one clarification on the ultra-high field NMR systems. You know, I think you said 1 install expected in 2026. You used to carry a pretty large backlog there. Do you expect to go back to, say, 3 or 4 installations in 2027? Is that just a timing thing or something dynamic?

Speaker #13: And just one clarification on the ultra high field in Amaro systems , I think you said one install expected in 26 . You used to carry a pretty large backlog .

Speaker #13: There. Do you expect to go back to, say, three or four installations in '27? Is that just a timing thing, or a funding dynamic?

Speaker #13: Thanks

Frank Laukien: Right. So thank you, Brandon. You were asking about the groups, right?

Speaker #3: Right , so , so thank you , Brandon , you were asking about the groups , right ? Yeah . So we think the weakest growth in the groups this year in 26 will be in Biospin , whereas Bionano and Khalid and Best are expected to grow organically Comparable to all three grow .

Frank Laukien: Right. Thank you, Brandon. You were asking about the groups, right?

Brandon Couillard: Yeah.

Frank Laukien: Yeah. So we think the weakest growth in the groups this year in 2026 will be in BioSpin, whereas Nano and CALID and BEST are expected to grow organically. Comparable, so they'll all three grow, but BioSpin, because of the longer term bookings and also because of, for instance, no ultra field or maybe only one in revenue in 2026, BioSpin's going to be the laggard this year in revenue growth and not normalized till 2027. Indeed, to your second part of your question, Brandon, there is some good activity, but you know, trying to find funding, building consortia, et cetera.

Frank Laukien: Yeah. We think the weakest growth in the groups this year in 2026 will be in BioSpin, whereas Nano and CALID and BEST are expected to grow organically. Comparable, so they'll all three grow, but BioSpin, because of the longer term bookings and also because of, for instance, no ultra field or maybe only one in revenue in 2026, BioSpin's going to be the laggard this year in revenue growth and not normalized till 2027. Indeed, to your second part of your question, Brandon, there is some good activity, but you know, trying to find funding, building consortia, et cetera.

Speaker #3: But biospin because of the longer term bookings and also because of , for instance , a no ultra high field or maybe only one in in in revenue in 26 Biospin going to be the laggards this year in revenue growth and not normalized till 27 .

Speaker #3: Indeed , to your second part of your question , Brandon , there is some good activity . But , you know , trying to find funding , building consortia , etc.

Speaker #3: . So I don't know that we'll go back to for a year , but I think we'll be hopefully be able to go back to 2 or 3 a year in revenue by , you know , 26 , 20 .

Frank Laukien: So I don't know that we'll go back to 4 a year, but I think we'll be, hopefully be able to go back to 2 or 3 a year in revenue, by, you know, 2026, twenty-- sorry, 2027 and beyond. That's sort of our expectations. So 2026 will be a bit of a lull, which goes hand in hand, but it's not the only reason that BioSpin will be the growth laggard in 2026 for us.

Frank Laukien: So I don't know that we'll go back to 4 a year, but I think we'll be, hopefully be able to go back to 2 or 3 a year in revenue, by, you know, 2026, twenty-- sorry, 2027 and beyond. That's sort of our expectations. 2026 will be a bit of a lull, which goes hand in hand, but it's not the only reason that BioSpin will be the growth laggard in 2026 for us.

Speaker #3: Sorry , 27 and beyond . That's sort of our expectations . So 26 will be a bit of a lull , which goes hand in hand .

Speaker #3: But it's not the only reason that Biospin will be the growth laggard in 26 for us .

Speaker #13: Okay , great . Gerald , what do you have penciled in for net interest in other expense for 26 and for cash flow was a bright spot in the fourth quarter .

Brandon Couillard: Okay, great. And then, Gerald, what do you have penciled in for net interest and other expense for 26? And the cash flow was a bright spot in the Q4. How do we think about free cash flow conversion this year? Thanks.

Brandon Couillard: Okay, great. Gerald, what do you have penciled in for net interest and other expense for 26? And the cash flow was a bright spot in the Q4. How do we think about free cash flow conversion this year? Thanks.

Speaker #13: As we think about free cash flow conversion this year . Thanks .

Speaker #4: Yeah . I mean , we're just on the last point and we're quite pleased with how the fourth quarter came in as far as working capital conversion .

Gerald Herman: ...Yeah, I mean, we're just on the last point, and we're quite pleased with how the fourth quarter came in, as far as working capital conversion and our actual cash flow for the quarter came in about $207 million on the free cash flow, $27 million on the free cash flow number. So quite pleased about that. As you already know, we've had a lot of effort related to inventory actions, and happy to see that it is resulting in something positive. I mean, we could talk further more about that. When you, when you look at just interest expense line, you know, we're thinking somewhere around this, you know, $35 to 40 million range for interest expense, and then we have some offsets on that other, other income line.

Gerald Herman: ...Yeah, I mean, we're just on the last point, and we're quite pleased with how the fourth quarter came in, as far as working capital conversion and our actual cash flow for the quarter came in about $207 million on the free cash flow, $27 million on the free cash flow number. Quite pleased about that. As you already know, we've had a lot of effort related to inventory actions, and happy to see that it is resulting in something positive. I mean, we could talk further more about that. When you, when you look at just interest expense line, you know, we're thinking somewhere around this, you know, $35 to 40 million range for interest expense, and then we have some offsets on that other, other income line.

Speaker #4: And our our actual cash flow for the quarter came in about 207 on the free cash flow , 207 million on the free cash flow number .

Speaker #4: So quite pleased about that as you already know , we've had a lot of effort related to inventory actions and happy to see that it is resulted in something positive .

Speaker #4: I mean , we can talk further more about that when you when you look at just interest expense line , you know , we're thinking somewhere around this , you know , 35 to $40 million range for interest expense .

Speaker #4: And then we have some offsets on that other other income line . We can talk about more of this offline . But there's some nets that get you to I think a better performance on the other income line .

Gerald Herman: We can talk about more of this offline, but there's some nets that get you to, I think, a better performance on the other income line, net interest other income line, for us in 2026.

Speaker #4: Net interest , other income line for us in 26 .

Speaker #13: Thanks .

Operator 2: Thanks.

Operator: Thanks.

Speaker #4: Okay

Gerald Herman: Okay.

Speaker #1: And with that , ladies and gentlemen , we'll be ending today's question and answer session . I'd like to turn the floor back over to Joe Kostka for closing comments .

Operator 2: With that, ladies and gentlemen, we'll be ending today's question-and-answer session. I'd like to turn the floor back over to Joe Kostka for closing comments.

Operator: With that, ladies and gentlemen, we'll be ending today's question-and-answer session. I'd like to turn the floor back over to Joe Kostka for closing comments.

Speaker #2: Thank you for joining us today . Bruker leadership team looks forward to meeting with you at an investor event or speaking with you directly during the first quarter .

Gerald Herman: Thank you for joining us today. Bruker's leadership team looks forward to meeting with you at an investor event or speaking with you directly during Q1. Feel free to reach out to me to arrange any follow-up. Have a good day.

Speaker #2: Feel free to reach out to me to arrange any follow-up. Have a good day.

Operator 2: Ladies and gentlemen, with that, we'll conclude today's conference call and presentation. We do thank you for joining. You may now disconnect your lines.

Operator: Ladies and gentlemen, with that, we'll conclude today's conference call and presentation. We do thank you for joining. You may now disconnect your lines.

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