Q4 2025 Labcorp Holdings Inc Earnings Call Transcript
Key Points
- Labcorp Holdings Inc (LH) reported over 7% top line growth and 13% adjusted EPS growth for 2025, with margins improving by over 50 basis points.
- The company completed several strategic acquisitions, including select outreach laboratory services from Parkview Health and anatomic pathology assets from Incyte Diagnostics, contributing to over $1 billion in revenue growth.
- Labcorp Holdings Inc (LH) launched more than 130 new tests in 2025, focusing on high-growth areas such as oncology, women's health, neurology, and autoimmune disease.
- The company expanded its leadership in specialty testing, with esoteric testing growing double digits and the launch of the first FDA-cleared blood test for Alzheimer's disease assessment.
- Labcorp Holdings Inc (LH) announced a strategic investment to build a new central laboratory facility, supporting growth and demand with a state-of-the-art 500,000-plus square foot laboratory.
- The fourth quarter organic volume growth was lighter than expected at 1%, impacted by lower referrals from a large consumer genetic client and adverse weather conditions.
- Free cash flow decreased to $419 million in the fourth quarter, down from $665 million the previous year, primarily due to working capital timing.
- The early development revenue declined by 13.5% in the fourth quarter, with expectations of flat growth in 2026.
- Labcorp Holdings Inc (LH) faces challenges with the delay of PAMA, requiring continued advocacy for permanent reform through the Results Act.
- The company anticipates a 30 basis points reduction in diagnostic volume in 2026 due to the expiration of the ACA tax credit.
Good day, and thank you for standing by. Welcome to the Q4 2025 Labcorp Holdings earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Christin O'Donnell, Vice President of Investor Relations. Please go ahead.
Thank you, Operator. Good morning, and welcome to Labcorp's fourth quarter 2025 conference call. As detailed in today's press release, there will be a replay of this conference call available.
With me today are Adam Schechter, Chairman and Chief Executive Officer; and Julia Wang, Executive Vice President and Chief Financial Officer. This morning, in the Investor Relations section of our website at www.labcorp.com, we posted both our press release and an Investor Relations presentation with additional information on business and operations, which includes a
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