Bruker's Big Cost Cuts May Not Be Enough To Offset Margin Pain

Benzinga
Yesterday

Bruker Corporation (NASDAQ:BRKR) reported its third-quarter earnings on Monday, beating Wall Street expectations, despite a decline in profit and revenue compared to the same period last year.

The company posted earnings of 45 cents per share, above analysts’ estimates of 34 cents, but down from 60 cents in the same period last year.

Revenue came in at $860.5 million, topping estimates of $848.7 million. Sales were down from $864.4 million in the same quarter last year.

Also Read: Bruker, Mineralys Therapeutics And Other Big Stocks Moving Lower In Wednesday’s Pre-Market Session

Revenue growth from acquisitions contributed 1.1%, while foreign currency translation provided a favorable 2.9% year-on-year impact.

Bruker’s third-quarter 2025 GAAP financial results included non-cash impairment charges of $119.4 million related to goodwill and intangible assets, as well as restructuring charges of $34.5 million.

Adjusted gross profit margin stood at 50.1% and an adjusted operating income margin at 12.3% for the quarter.

The company reported cash, cash equivalents, and restricted cash of $297.3 million at the end of the period.

Segment Performance

In the third quarter of 2025, Bruker’s Scientific Instruments (BSI) segment generated revenue of $787.9 million, down 1.5% from the prior year, reflecting an organic decline of 5.4%.

The Energy & Supercon Technologies (BEST) segment delivered revenue of $73.8 million, up 7.4% year-over-year, driven by an organic increase of 6.9% (net of intercompany eliminations).

Outlook

For full year 2025, Bruker expects total revenue between $3.41 billion and $3.44 billion, representing modest reported growth of 1% to 2%, compared with its prior guidance of $3.43 billion to $3.50 billion and the $3.44 billion consensus estimate.

The company now anticipates an organic revenue decline of 4% to 5%, partially offset by roughly 3.5% growth from acquisitions.

Non-GAAP earnings per share are projected in the range of $1.85 to $1.90, down 21% to 23% year-over-year, versus the previous outlook of $1.95 to $2.05 and below the analyst consensus of $1.96.

Bruker also expects an effective tax rate of about 27%. Capital expenditures are forecast between $80 million and $90 million.

Operating margin is expected to narrow by approximately 250 basis points, including a 65-bp impact from organic factors, 60-bp from M&A, 60-bp from tariffs, and 65-bp from foreign exchange headwinds.

CEO Commentary

Frank H. Laukien, Bruker’s President and CEO, commented, “In the third quarter, we were encouraged by our mid-single digit percentage organic bookings growth year-over-year, with a Scientific Instruments segment book-to-bill ratio greater than 1.0. For the first time this year, we saw strength in bookings in the academic/government market segment, as well as improving biopharma and applied markets orders.”

“For fiscal 2026, our major cost-savings initiatives are progressing well towards the high end of our $100 to $120 million cost-down targets and are expected to deliver significant operating margin expansion and EPS growth in 2026.”

Price Action: BRKR shares were trading lower by 2.75% to $37.87 at last check Monday.

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Photo by T. Schneider via Shutterstock

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