ICON reports fourth quarter and full year 2024 results

• Net business wins in the quarter of $2,413 million; a net book to bill in the quarter of 1.18. Full year net business wins of $9,974 million; a net book to bill of 1.20.
• Closing backlog of $24.7 billion, an increase of 1.4% on quarter three 2024 and 8.3% on quarter four 2023.
• Quarter four revenue of $2,041.1 million, representing a decrease of 1.2% on prior year revenue. Full year revenue of $8,282 million, representing a year on year increase of 2.0%. 
• Quarter four adjusted EBITDA of $422.6 million or 20.7% of revenue, an increase of 0.9% on quarter three 2024. Full year adjusted EBITDA of $1,735.8 million or 21.0% of revenue, representing a year on year increase of 2.5%. 
• GAAP net income for the quarter of $260.0 million or $3.16 per diluted share, an increase of 21.5% on quarter four 2023 diluted earnings per share.  Full year GAAP net income of $791.5 million or $9.53 per diluted share. 
• Quarter four adjusted net income was $282.4 million or $3.43 per diluted share, an increase of 2.4% on quarter three 2024 adjusted diluted earnings per share. Full year adjusted net income of $1,162.7 million or $14.00 per diluted share, an increase of 9.5% on the prior year adjusted diluted earnings per share.
• Net debt balance of $2.9 billion at December 31, 2024 with net debt to adjusted EBITDA ratio of 1.7x.
• Free cash flow on target at $1.1 billion for 2024.
• $400.0 million worth of stock repurchased in quarter four at an average price of $217.  $500.0 million worth of stock repurchased in full year 2024 at an average price of $229.
• Board of Directors authorized a new share repurchase program of up to $750 million to be opportunistically deployed.  Total value of authorized share repurchases of up to $1 billion.
• Re-affirming previously communicated full-year 2025 financial revenue guidance in the range of $8,050 - $8,650 million and adjusted diluted earnings per share* in the range of $13.00 - $15.00. Adjusted diluted earnings per share to exclude amortization, stock compensation, restructuring, foreign exchange and transaction-related / integrated-related adjustments.
   

Dublin, Ireland, February 19, 2025 – ICON plc (NASDAQ: ICLR), a world-leading healthcare intelligence and clinical research organization, today reported its financial results for the fourth quarter and full year ended December 31, 2024.
 

CEO, Dr. Steve Cutler commented, “ICON’s results in quarter four were in-line with our expectations as we continue to manage through a challenging transition period in our business. Encouragingly, we saw progress in a number of key areas in quarter four. 

Gross business wins increased 8% sequentially, indicative of a positive, albeit volatile, underlying demand environment in both the large pharma and biotech divisions.  Cash management was strong in quarter four, bringing full year free cash flow in line with our targeted $1.1 billion.  On a full year basis, we reported growth across key metrics, including revenue growth of 2% as well as adjusted diluted earnings per share growth of 9.5% year over year.  Finally, we are reaffirming our previously issued full-year 2025 guidance ranges for revenue and adjusted diluted earnings per share.”

Read the consolidated income statements and summary balance sheet data.

Fourth Quarter 2024 Results

Gross business wins in the fourth quarter were $3,064 million and cancellations were $651 million. This resulted in net business wins of $2,413 million and a book to bill of 1.18.

Revenue for the fourth quarter was $2,041.1 million. This represents a decrease of 1.2% on prior year revenue or 1.6% decrease on a constant currency basis.

GAAP net income was $260.0 million, resulting in $3.16 diluted earnings per share in quarter four 2024 compared to $2.60 diluted earnings per share in quarter four 2023, an increase of 21.5% year over year. Adjusted net income for the quarter was $282.4 million, resulting in an adjusted diluted earnings per share of $3.43 compared to $3.46 per share for the fourth quarter 2023.

Adjusted EBITDA for the fourth quarter was $422.6 million or 20.7% of revenue, a year-on-year decrease of 5.7%.

The effective tax rate on adjusted net income in quarter four 2024 was 16.5%.

Cash generated from operating activities for the quarter was $338.3 million. During the quarter $61.3 million was spent on capital expenditure.  $400.0 million worth of stock was repurchased at an average price of $217.  Additionally, $7.4 million of Term Loan B payments were made during the quarter.  At December 31, 2024, the Group had cash and cash equivalents of $538.8 million, compared to cash and cash equivalents of $695.5 million at September 30, 2024 and $378.1 million at December 31, 2023.  Net indebtedness as at December 31, 2024 was $2.9 billion.

Full Year 2024 Results

Gross business wins were $12,082 million and cancellations were $2,108 million. This resulted in net business wins of $9,974 million and a book to bill of 1.20.

Full year revenue was $8,281.7 million. This represents a year on year increase of 2.0% on a reported and constant currency basis.

GAAP net income was $791.5 million, resulting in $9.53 diluted earnings per share compared to $7.40 per share for the equivalent prior year period.  This represents an increase of 28.8%. Adjusted net income was $1,162.7 million, resulting in an adjusted diluted earnings per share of $14.00 compared to $12.79 per share for the equivalent prior year period. This represents an increase of 9.5%.

Adjusted EBITDA was $1,735.8 million or 21.0% of revenue, a year on year increase of 2.5%.

The effective tax rate on adjusted net income in 2024 was 16.5%.

Cash generated from operating activities in 2024 was $1,286.7 million. $168.1 million was spent on capital expenditure. $500.0 million worth of stock was repurchased in 2024 at an average price of $229.  There were no amounts drawn on the revolving credit facility at December 31, 2024. $55 million was drawn down at December 31, 2023.  Successful issuance of $2 billion Investment grade bond in May 2024. The proceeds were used to repay a portion of the senior secured term loan and to pay fees, costs and expenses related to the offering.

Other Information

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release contains certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income and adjusted diluted earnings per share. Adjusted EBITDA, adjusted net income and adjusted diluted earnings per share exclude amortization, stock compensation, foreign exchange gains and losses, restructuring and transaction-related / integration-related adjustments.  Free cash flow reflects cash generated from operating activities less capital expenditure.  While non-GAAP financial measures are not superior to or a substitute for the comparable GAAP measures, ICON believes certain non-GAAP information is useful to investors for historical comparison purposes.

ICON will hold a conference call on February 20, 2025 at 08:00 EST [13:00 Ireland & UK].  This call and linked slide presentation can be accessed live from our website at http://investor.iconplc.com.  A recording will also be available on the website for 90 days following the call. In addition, a calendar of company events, including upcoming conference presentations, is available on our website, under “Investors”.  This calendar will be updated regularly.

This press release contains forward-looking statements, including statements about our financial guidance. These statements are based on management's current expectations and information currently available, including current economic and industry conditions.  These statements are not guarantees of future performance or actual results, and actual results, developments and business decisions may differ from those stated in this press release.  The forward-looking statements are subject to future events, risks, uncertainties and other factors that could cause actual results to differ materially from those projected in the statements, including, but not limited to, the ability to enter into new contracts, maintain client relationships, manage the opening of new offices and offering of new services, the integration of new business mergers and acquisitions, as well as other economic and global market conditions and other risks and uncertainties detailed from time to time in SEC reports filed by ICON, all of which are difficult to predict and some of which are beyond our control. For these reasons, you should not place undue reliance on these forward-looking statements when making investment decisions. The word "expected" and variations of such words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are only as of the date they are made and we do not undertake any obligation to update publicly any forward-looking statement, either as a result of new information, future events or otherwise. More information about the risks and uncertainties relating to these forward-looking statements may be found in SEC reports filed by ICON, including its Form 20-F, F-1, F-4, S-8, F-3 and certain other reports, which are available on the SEC's website at http://www.sec.gov.

* Our full-year 2025 guidance adjusted diluted earnings per share measures are provided on a non-GAAP basis because the company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. For the same reasons, the company is unable to address the probable significance of the unavailable information.

ICON plc is a world-leading healthcare intelligence and clinical research organization. From molecule to medicine, we advance clinical research providing outsourced services to pharmaceutical, biotechnology, medical device and government and public health organizations. We develop new innovations, drive emerging therapies forward and improve patient lives. With headquarters in Dublin, Ireland, ICON employed approximately 41,900 employees in 106 locations in 55 countries as at December 31, 2024. For further information about ICON, visit: www.iconplc.com.

Source: ICON plc
Contact: Investor Relations +1 888 381 7923 
Nigel Clerkin Chief Financial Officer +353 1 291 2000
Kate Haven Vice President Investor Relations +1 888 381 7923

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