Bruker’s Q2 2025 revenue of $797.4 million represented a 0.4% year-over-year decline, but the underlying performance was weaker with organic revenue declining 7.0%. The company benefited from a 3.7% contribution from acquisitions and a favorable 2.9% foreign currency translation impact. Constant-exchange rate (CER) revenue decreased 3.3%, highlighting the challenging demand environment across key markets.

The revenue decline was broad-based, with particularly challenging conditions in the U.S. academic market, as well as weakness in biopharma and industrial research instruments demand. Tariffs and currency headwinds could not yet be fully compensated by mitigating price, supply chain, and cost actions during the quarter.

Profitability metrics showed significant pressure, with non-GAAP operating income declining 35% to $72.0 million from $110.7 million in Q2 2024. Non-GAAP operating margin compressed to 9.0% from 13.8% in the prior year, reflecting both volume deleverage and increased investments in innovation.

Non-GAAP diluted EPS decreased 38.5% to $0.32 compared to $0.52 in Q2 2024, while GAAP diluted EPS remained flat at $0.05. The significant gap between GAAP and non-GAAP results reflected $60.1 million in adjustments, including restructuring costs, acquisition-related expenses, and purchased intangible amortization.

For the first half of 2025, revenue increased 5.0% to $1.60 billion, but organic revenue declined 2.3%. Non-GAAP diluted EPS for the first half was $0.78, down 25.7% from $1.05 in the prior year period, demonstrating the sustained pressure on earnings throughout the first half of the year.

Bruker Scientific Instruments (BSI) generated $733.2 million in Q2 2025 revenue, down 0.3% year-over-year but declining 7.2% organically. The segment faced challenging demand conditions across multiple end markets, with particular weakness in U.S. academic research funding and biopharma drug discovery investments.

Within BSI, the BioSpin division experienced a 10.2% revenue decline to $195.3 million, reflecting continued softness in high-end NMR and preclinical imaging systems. The CALID (Chemical Analysis and Life Sciences) division showed resilience with 7.6% growth to $285.8 million, benefiting from strength in applied markets and recent acquisitions.

The Nano division remained relatively stable with a slight 0.2% decline to $252.1 million. Despite market headwinds, the division continued to benefit from investments in next-generation semiconductor metrology solutions supporting AI chip manufacturing requirements.

Bruker Energy & Supercon Technologies (BEST) revenues of $66.3 million decreased 4.1% year-over-year, with organic revenue declining 4.8%. The segment faced challenges from delayed project timelines and reduced capital spending in certain energy and industrial applications.

For the first half of 2025, BSI revenue increased 6.6% to $1.48 billion, primarily driven by acquisition contributions, while organic revenue declined 1.4%. BEST revenues decreased 11.7% to $125.6 million, with organic revenue declining 11.5%, reflecting more pronounced weakness in this smaller segment.

United States revenue experienced the most significant decline, decreasing 8.5% to $222.9 million in Q2 2025. This weakness primarily reflected challenging demand conditions in the U.S. academic market, where funding constraints and delayed capital equipment purchases significantly impacted sales. The ongoing uncertainty around research funding and federal budget allocations continued to weigh on customer purchasing decisions.

Europe showed relative resilience with revenues declining only 1.2% to $272.5 million. While the region faced some economic headwinds, established research infrastructure and more stable funding mechanisms helped cushion the impact compared to the U.S. market.

Asia Pacific was the bright spot with 6.8% revenue growth to $242.1 million, benefiting from continued investments in research and development across key markets including China, Japan, and South Korea. However, management noted that visibility into China stimulus effects remains limited, creating some uncertainty for future quarters.

Other regions grew 9.7% to $59.9 million, driven by expansion in emerging markets and strategic initiatives to diversify the geographic revenue base.

For the first half of 2025, the geographic trends persisted with the U.S. showing continued weakness while Asia Pacific delivered strong growth. Europe maintained steady performance, and other regions contributed meaningfully to overall growth.

Despite challenging market conditions, Bruker continued its commitment to innovation with several breakthrough technologies launched during the quarter, positioning the company for profitable growth acceleration in post-genomic disease biology research and next-generation drug discovery:

Key Innovations for Profitable Growth

• timsOmni: Ushers in era of functional proteomics and proteoform analysis with unprecedented depth and resolution. This breakthrough technology addresses the growing need for detailed protein characterization in drug discovery and personalized medicine applications.
• timsMetabo: Delivers unprecedented annotation confidence in 4D metabolomics with ultra-high sensitivity at speed and scale. This innovation strengthens Bruker’s position in the rapidly growing metabolomics market.
• timsUltra AIP: Enables ultra-high sensitivity 4D single-cell proteomics and immunopeptidomics, addressing the critical need for single-cell analysis in immunology and cancer research.
• Biocrates Acquisition: Expands Bruker’s multiomics solutions with unique consumables, software, and specialty CRO services for quantitative metabolomics, enhancing the company’s end-to-end capabilities.

These innovations demonstrate Bruker’s strategic focus on post-genomic disease biology research and next-generation drug discovery and development. The company’s continued investment in R&D, despite current market pressures, positions it well for recovery and growth acceleration when market conditions improve.

The integration of newly acquired technologies and capabilities, including recent acquisitions of PhenomeX, ELITech, Chemspeed, and NanoString, continues to strengthen Bruker’s comprehensive portfolio in life sciences and analytical instrumentation.

Research and development expenses increased to $100.2 million in Q2 2025 from $92.2 million in Q2 2024, representing the company’s commitment to maintaining innovation leadership even during challenging periods. This investment focus supports Bruker’s long-term competitive positioning in high-growth, high-margin applications.

In response to the challenging demand environment, Bruker announced a significantly expanded cost management initiative designed to improve operational efficiency and maintain competitiveness:

Expanded Cost Savings Program

• Expected to reduce annual costs by $100-120 million in FY 2026
• Supports commitment to resume rapid margin expansion and double-digit EPS growth in FY 2026
• Designed to be effective even if demand remains muted
• Builds on Bruker’s successful track record of rebounding strongly from previous market disruptions

The cost management initiative includes multiple components focused on operational optimization, organizational efficiency, and strategic prioritization. This program demonstrates management’s proactive approach to maintaining profitability and positioning for growth acceleration when market conditions improve.

During Q2 2025, the company incurred $7.3 million in restructuring costs, bringing the first-half total to $17.5 million. These investments are expected to generate substantial returns through improved operational efficiency and cost structure optimization.

Management emphasized that the cost savings initiative is designed to be sustainable and strategic, focusing on areas that will not impair the company’s innovation capabilities or long-term competitive position. The program includes:

• Operational efficiency improvements across manufacturing and supply chain
• Organizational optimization and process streamlining
• Strategic prioritization of resources toward highest-return activities
• Technology and automation investments to reduce long-term costs

The initiative positions Bruker to emerge stronger from the current market downturn, with improved operational leverage and enhanced profitability potential during the anticipated recovery phase.

Based on current market visibility and ongoing challenges, Bruker has updated its fiscal year 2025 financial outlook:

Revenue Guidance

• FY 2025 revenue: $3.43 to $3.50 billion
• Reported growth of 2% to 4% year-over-year (vs. FY 2024 revenue of $3.37 billion)
• Constant-exchange rate (CER) revenue approximately +0.5%
• Organic revenue decline of 2% to 4%
• M&A revenue growth contribution of approximately 3.5%
• Foreign currency translation revenue tailwind of approximately 2.5%

Earnings Guidance

• FY 2025 non-GAAP EPS: $1.95 to $2.05
• Compared to FY 2024 non-GAAP EPS of $2.41
• Reflects current challenging demand conditions and investment in strategic initiatives

The updated guidance reflects management’s cautious outlook while gaining improved visibility into several key factors:

• U.S. academic funding trends and timing of potential recovery
• China economic stimulus effects and market recovery
• Finalized tariff impacts and company’s ability to mitigate through pricing and cost actions
• Timing of recovery in biopharma drug discovery and industrial research instruments demand

Management noted that the guidance is based on foreign currency exchange rates as of June 30, 2025, and assumes no significant additional adverse impacts from currently enacted tariffs or geopolitical developments.

Despite the near-term challenges, Bruker remains optimistic for a partial demand recovery in FY 2026 and points to the company’s successful track record of rebounding very strongly from previous market disruptions.