ICLR ICON PLC

Highlights

• 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.

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.”

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.

ICON/ICLR-F

ICON plc

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2024 AND DECEMBER 31, 2023

(UNAUDITED)

 

 

Three Months Ended

 

Twelve Months Ended

 

December 31, 2024

 

December 31, 2023

 

December 31, 2024

 

December 31, 2023

 

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

Revenue

$

2,041,101

 

 

$

2,066,248

 

 

$

8,281,676

 

 

$

8,120,176

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

Direct costs

 

1,441,736

 

 

 

1,445,727

 

 

 

5,845,319

 

 

 

5,719,949

 

Selling, general and administrative

 

151,445

 

 

 

195,560

 

 

 

728,348

 

 

 

768,559

 

Depreciation and amortization

 

96,655

 

 

 

149,733

 

 

 

488,500

 

 

 

585,950

 

Transaction and integration related

 

7,907

 

 

 

9,660

 

 

 

29,574

 

 

 

44,176

 

Restructuring

 

46,334

 

 

 

—

 

 

 

92,123

 

 

 

45,390

 

Total costs and expenses

 

1,744,077

 

 

 

1,800,680

 

 

 

7,183,864

 

 

 

7,164,024

 

 

 

 

 

 

 

 

 

Income from operations

 

297,024

 

 

 

265,568

 

 

 

1,097,812

 

 

 

956,152

 

Interest income

 

3,008

 

 

 

1,720

 

 

 

8,609

 

 

 

5,014

 

Interest expense

 

(51,429

)

 

 

(81,034

)

 

 

(237,237

)

 

 

(336,699

)

 

 

 

 

 

 

 

 

Income before income tax income / (expense)

 

248,603

 

 

 

186,254

 

 

 

869,184

 

 

 

624,467

 

Income tax income / (expense)

 

11,395

 

 

 

30,164

 

 

 

(77,710

)

 

 

(11,749

)

 

 

 

 

 

 

 

 

Income before share of losses from equity method investments

 

259,998

 

 

 

216,418

 

 

 

791,474

 

 

 

612,718

 

Share of losses from equity method investments

 

—

 

 

 

—

 

 

 

—

 

 

 

(383

)

Net income

$

259,998

 

 

$

216,418

 

 

$

791,474

 

 

$

612,335

 

 

 

 

 

 

 

 

 

Net income per Ordinary Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

3.18

 

 

$

2.63

 

 

$

9.60

 

 

$

7.46

 

Diluted

$

3.16

 

 

$

2.60

 

 

$

9.53

 

 

$

7.40

 

 

 

 

 

 

 

 

 

Weighted average number of Ordinary Shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

81,785,620

 

 

 

82,399,478

 

 

 

82,482,764

 

 

 

82,101,813

 

Diluted

 

82,236,018

 

 

 

83,112,757

 

 

 

83,032,424

 

 

 

82,717,640

 

ICON plc

CONDENSED CONSOLIDATED BALANCE SHEETS

AS AT DECEMBER 31, 2024 AND DECEMBER 31, 2023

(UNAUDITED)

 

 

December 31, 2024

 

December 31, 2023

ASSETS

(in thousands)

Current assets:

 

 

 

Cash and cash equivalents

$

538,785

 

 

$

378,102

 

Available for sale investments

 

—

 

 

 

1,954

 

Accounts receivable, net of allowance for credit losses

 

1,401,989

 

 

 

1,790,322

 

Unbilled revenue

 

1,286,274

 

 

 

951,936

 

Other receivables

 

79,487

 

 

 

65,797

 

Prepayments and other current assets

 

140,435

 

 

 

132,105

 

Income taxes receivable

 

83,523

 

 

 

91,254

 

Total current assets

$

3,530,493

 

 

$

3,411,470

 

 

 

 

 

Non-current assets:

 

 

 

Property, plant and equipment, net

 

382,879

 

 

 

361,184

 

Goodwill

 

9,051,410

 

 

 

9,022,075

 

Intangible assets, net

 

3,559,792

 

 

 

3,855,865

 

Operating right-of-use assets

 

147,602

 

 

 

140,333

 

Other receivables

 

72,796

 

 

 

78,470

 

Deferred tax asset

 

74,758

 

 

 

73,662

 

Investments in equity

 

57,948

 

 

 

46,804

 

Total Assets

$

16,877,678

 

 

$

16,989,863

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

173,025

 

 

$

131,584

 

Unearned revenue

 

1,614,758

 

 

 

1,654,507

 

Other liabilities

 

923,603

 

 

 

915,399

 

Income taxes payable

 

55,258

 

 

 

13,968

 

Current bank credit lines, loan facilities and notes

 

29,762

 

 

 

110,150

 

Total current liabilities

$

2,796,406

 

 

$

2,825,608

 

 

 

 

 

Non-current liabilities:

 

 

 

Non-current bank credit lines, loan facilities and notes, net

 

3,396,398

 

 

 

3,665,439

 

Lease liabilities

 

140,085

 

 

 

126,321

 

Non-current other liabilities

 

83,470

 

 

 

45,998

 

Non-current income taxes payable

 

125,834

 

 

 

186,654

 

Deferred tax liability

 

812,486

 

 

 

899,100

 

Commitments and contingencies

 

—

 

 

 

—

 

Total Liabilities

$

7,354,679

 

 

$

7,749,120

 

 

 

 

 

Shareholders' Equity:

 

 

 

Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized, 80,756,860 shares issued and outstanding at December 31, 2024 and 82,495,086 shares issued and outstanding at December 31, 2023.

 

6,586

 

 

 

6,699

 

Additional paid-in capital

 

7,020,231

 

 

 

6,942,669

 

Other undenominated capital

 

1,304

 

 

 

1,162

 

Accumulated other comprehensive loss

 

(229,929

)

 

 

(143,506

)

Retained earnings

 

2,724,807

 

 

 

2,433,719

 

Total Shareholders' Equity

$

9,522,999

 

 

$

9,240,743

 

Total Liabilities and Shareholders' Equity

$

16,877,678

 

 

$

16,989,863

 

ICON plc

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2024 AND DECEMBER 31, 2023

(UNAUDITED)

 

 

Year ended

 

December 31, 2024

 

December 31, 2023

 

(in thousands)

Cash flows provided by operating activities:

 

 

 

Net income

$

791,474

 

 

$

612,335

 

 

 

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

488,500

 

 

 

585,950

 

Impairment of operating right-of-use assets and related property, plant and equipment

 

15,731

 

 

 

8,686

 

Reduction in carrying value of operating right-of-use assets

 

39,787

 

 

 

41,546

 

Loss on equity method investments

 

—

 

 

 

383

 

Acquisition-related gain

 

—

 

 

 

(6,160

)

Amortization of financing costs and debt discount

 

23,533

 

 

 

16,402

 

Stock compensation expense

 

45,870

 

 

 

55,667

 

Deferred tax benefit

 

(100,542

)

 

 

(85,403

)

Unrealized foreign exchange movements

 

6,911

 

 

 

19,706

 

Other non-cash items

 

31,900

 

 

 

24,332

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

349,309

 

 

 

(83,296

)

Unbilled revenue

 

(339,921

)

 

 

4,716

 

Unearned revenue

 

(37,743

)

 

 

134,566

 

Other net assets

 

(28,157

)

 

 

(168,403

)

Net cash provided by operating activities

 

1,286,652

 

 

 

1,161,027

 

 

 

 

 

Cash flows used in investing activities:

 

 

 

Purchase of property, plant and equipment

 

(168,060

)

 

 

(140,692

)

Purchase of subsidiary undertakings (net of cash acquired)

 

(84,159

)

 

 

(71,766

)

Movement of available for sale investments

 

—

 

 

 

(241

)

Proceeds from investments in equity

 

2,690

 

 

 

—

 

Purchase of investments in equity

 

(17,261

)

 

 

(13,954

)

Net cash used in investing activities

 

(266,790

)

 

 

(226,653

)

 

 

 

 

Cash flows used in financing activities:

 

 

 

New Notes issue costs

 

(12,679

)

 

 

—

 

Drawdown of credit lines and loan facilities

 

2,317,480

 

 

 

370,000

 

Repayment of credit lines and loan facilities

 

(2,677,763

)

 

 

(1,265,000

)

Proceeds from exercise of equity compensation

 

36,187

 

 

 

50,973

 

Share issue costs

 

(22

)

 

 

(16

)

Repurchase of ordinary shares

 

(499,998

)

 

 

—

 

Share repurchase costs

 

(388

)

 

 

—

 

Net cash used in financing activities

 

(837,183

)

 

 

(844,043

)

 

 

 

 

Effect of exchange rate movements on cash

 

(21,996

)

 

 

(997

)

Net increase in cash and cash equivalents

 

160,683

 

 

 

89,334

 

Cash and cash equivalents at beginning of year

 

378,102

 

 

 

288,768

 

Cash and cash equivalents at end of year

$

538,785

 

 

$

378,102

 

ICON plc

RECONCILIATION OF NON-GAAP MEASURES

FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2024 AND DECEMBER 31, 2023

(UNAUDITED)

 

 

Three Months Ended

 

Year ended

 

December 31, 2024

 

December 31, 2023

 

December 31, 2024

 

December 31, 2023

 

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

Net income

$

259,998

 

 

$

216,418

 

 

$

791,474

 

 

$

612,335

 

Share of losses from equity method investments

 

—

 

 

 

—

 

 

 

—

 

 

 

383

 

Income tax (income) / expense

 

(11,395

)

 

 

(30,164

)

 

 

77,710

 

 

 

11,749

 

Net interest expense

 

48,421

 

 

 

79,314

 

 

 

228,628

 

 

 

331,685

 

Depreciation and amortization

 

96,655

 

 

 

149,733

 

 

 

488,500

 

 

 

585,950

 

Stock-based compensation expense (a)

 

4,687

 

 

 

7,845

 

 

 

45,870

 

 

 

55,667

 

Foreign currency (gains)/losses, net (b)

 

(30,045

)

 

 

15,381

 

 

 

(18,085

)

 

 

12,916

 

Oncacare (gain) (g)

 

—

 

 

 

—

 

 

 

—

 

 

 

(6,160

)

Restructuring (c)

 

46,334

 

 

 

—

 

 

 

92,123

 

 

 

45,390

 

Transaction and integration related costs (d)

 

7,907

 

 

 

9,660

 

 

 

29,574

 

 

 

44,176

 

Adjusted EBITDA

$

422,562

 

 

$

448,187

 

 

$

1,735,794

 

 

$

1,694,091

 

 

 

 

 

 

 

 

 

Adjusted net income and adjusted diluted net income per Ordinary Share

 

 

 

 

 

 

 

Net income

$

259,998

 

 

$

216,418

 

 

$

791,474

 

 

$

612,335

 

Income tax (income) / expense

 

(11,395

)

 

 

(30,164

)

 

 

77,710

 

 

 

11,749

 

Amortization

 

59,278

 

 

 

115,986

 

 

 

350,291

 

 

 

459,854

 

Stock-based compensation expense (a)

 

4,687

 

 

 

7,845

 

 

 

45,870

 

 

 

55,667

 

Foreign currency (gains)/losses, net (b)

 

(30,045

)

 

 

15,381

 

 

 

(18,085

)

 

 

12,916

 

Restructuring (c)

 

46,334

 

 

 

—

 

 

 

92,123

 

 

 

45,390

 

Oncacare (gain) (g)

 

—

 

 

 

—

 

 

 

—

 

 

 

(6,160

)

Transaction and integration related costs (d)

 

7,907

 

 

 

9,660

 

 

 

29,574

 

 

 

44,176

 

Transaction-related financing costs (e)

 

1,467

 

 

 

3,916

 

 

 

23,533

 

 

 

16,402

 

Adjusted tax expense (f)

 

(55,808

)

 

 

(51,535

)

 

 

(229,761

)

 

 

(194,152

)

Adjusted net income

$

282,423

 

 

$

287,507

 

 

$

1,162,729

 

 

$

1,058,177

 

 

 

 

 

 

 

 

 

Diluted weighted average number of Ordinary Shares outstanding

 

82,236,018

 

 

 

83,112,757

 

 

 

83,032,424

 

 

 

82,717,640

 

 

 

 

 

 

 

 

 

Adjusted diluted net income per Ordinary Share

$

3.43

 

 

$

3.46

 

 

$

14.00

 

 

$

12.79

 

(a)

Stock-based compensation expense represents the amount of recurring expense related to the company’s equity compensation programs (inclusive of employer related taxes).

(b)

Foreign currency (gains)/ losses, net relates to gains or losses that arise in connection with the revaluation, or settlement, of non-US dollar denominated assets and liabilities. We exclude these gains and losses from adjusted EBITDA and adjusted net income because fluctuations from period- to- period do not necessarily correspond to changes in our operating results.

(c)

Restructuring relates to charges incurred in connection with the company's realignments of its workforce, with the elimination of redundant positions as well as reviewing its global office footprint and optimizing its locations to best fit the requirements of the company.

(d)

Transaction and integration related costs include expenses associated with our acquisitions and any other costs incurred directly related to the integration of these acquisitions.

(e)

Transaction-related financing costs includes costs incurred in connection with changes to our long-term debt and amortization of financing fees. We exclude these costs from adjusted EBITDA and adjusted net income because they result from financing decisions rather than from decisions made related to our ongoing operations.

(f)

Represents the tax effect of adjusted pre-tax income at our estimated effective tax rate.

(g)

On April 20, 2023, the Company completed the purchase of the majority investor’s 51% majority voting share capital of Oncacare Limited (“Oncacare”). This gave rise to an acquisition-related gain of $6.2 million. This gain was excluded from adjusted EBITDA and adjusted net income.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250219834235/en/

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 http://www.iconplc.com