Highlights

Net business wins in the quarter of $2,022 million; a net book to bill in the quarter of 1.01. Closing backlog of $24.7 billion, an increase of 0.3% on quarter four 2024 and 6.0% on quarter one 2024. Quarter one revenue was $2,001.3 million and quarter one adjusted EBITDA was $390.7 million or 19.5% of revenue. GAAP net income for the quarter was $154.2 million or $1.90 per diluted share. Quarter one adjusted net income was $258.3 million or $3.19 per diluted share. Net debt was $2.9 billion at March 31, 2025 with a net debt to adjusted EBITDA ratio of 1.7x. $250.0 million worth of stock repurchased in quarter one at an average price of $184. Updating full-year 2025 financial revenue guidance in the range of $7,750 - $8,150 million, representing a year - over - year decrease of -6.4% to -1.6%. Updating full-year 2025 adjusted diluted earnings per share* guidance in the range of $12.75 - $14.25, representing a year - over - year movement of -8.9% to +1.8%. Adjusted diluted earnings per share to exclude amortization, stock compensation, restructuring, foreign exchange, transaction-related / integration-related adjustments and their related taxation effect.

DUBLIN, April 30, 2025--(BUSINESS WIRE)--ICON plc (NASDAQ: ICLR), a world-leading clinical research organization powered by healthcare intelligence, today reported its financial results for the first quarter ended March 31, 2025.

CEO, Dr. Steve Cutler commented, "ICON’s performance in quarter one was impacted by the volatility and cautiousness that continues to be present in the broader clinical development market. Bookings were below expectations due to delays in customer decision making, careful capital allocation and continued elevated cancellations. Despite additional revenue pressure from previously disclosed trial delays, ICON delivered adjusted EBITDA margin and earnings per share in-line with our expectations, due to focused resource utilization and strong cost control across the business.

We are updating our full year financial guidance primarily to exclude the two large next-generation COVID vaccine trials. However, we have very recently received a positive update on one of those studies and are actively working with the sponsor to resume work on this trial. On a full-year basis, we now anticipate revenue to be in the range of $7,750 - $8,150 million and adjusted diluted earnings per share in the range of $12.75 to $14.25, as we continue to carefully manage our resources to ensure delivery of critical development programs for our customers."

Story Continues

First Quarter 2025 Results

Gross business wins in the first quarter were $2,681 million and cancellations were $659 million. This resulted in net business wins of $2,022 million and a book to bill of 1.01.

Revenue for the first quarter was $2,001.3 million. This represents a decrease of 4.3% on quarter one 2024 or a 3.2% decrease on a constant currency basis.

GAAP net income was $154.2 million, resulting in $1.90 diluted earnings per share in quarter one 2025 compared to $2.25 diluted earnings per share in quarter one 2024, a decrease of 15.6% year over year. Adjusted net income for the quarter was $258.3 million, resulting in an adjusted diluted earnings per share of $3.19 compared to $3.47 per share for the first quarter 2024.

Adjusted EBITDA for the first quarter was $390.7 million or 19.5% of revenue, a decrease of 12.0% on quarter one 2024.

The effective tax rate on adjusted net income in quarter one 2025 was 16.5%.

Cash generated from operating activities for the quarter was $268.2 million. During the quarter $28.9 million was spent on capital expenditure. $250.0 million worth of stock was repurchased at an average price of $184. Additionally, $7.4 million of Term Loan B payments were made during the quarter. At March 31, 2025, the Group had cash and cash equivalents of $526.7 million, compared to cash and cash equivalents of $538.8 million at December 31, 2024 and $396.1 million at March 31, 2024. Net indebtedness as at March 31, 2025 was $2.9 billion.

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. 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 May 1, 2025 at 08:00 EDT [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 clinical research organization powered by healthcare intelligence. 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 41,250 employees in 97 locations in 55 countries as at March 31, 2025. For further information about ICON, visit: www.iconplc.com.

ICON/ICLR-F

ICON plc

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND MARCH 31, 2024

(UNAUDITED)  Three Months Ended March 31,  March 31, 2025  2024 (in thousands, except share and per share data)  Revenue $ 2,001,332   $ 2,090,386   Costs and expenses:  Direct costs  1,442,679    1,471,367  Selling, general and administrative  198,384    177,350  Depreciation and amortization  95,958    149,181  Transaction and integration related  5,404    6,991  Restructuring  39,346    —  Total costs and expenses  1,781,771    1,804,889   Income from operations  219,561    285,497  Interest income  1,802    1,930  Interest expense  (47,609 )   (71,665 )  Income before income tax expense  173,754    215,762  Income tax expense  (19,603 )   (28,324 ) Net income $ 154,151   $ 187,438   Net income per Ordinary Share:   Basic $ 1.91   $ 2.27  Diluted $ 1.90   $ 2.25   Weighted average number of Ordinary Shares outstanding:   Basic  80,552,734    82,579,203  Diluted  80,924,355    83,249,303

ICON plc

CONDENSED CONSOLIDATED BALANCE SHEETS

AS AT MARCH 31, 2025 AND DECEMBER 31, 2024

(UNAUDITED)  March 31,  December 31, 2025  2024 ASSETS (in thousands) Current assets:  Cash and cash equivalents $ 526,698   $ 538,785  Accounts receivable, net of allowance for credit losses  1,387,462    1,401,989  Unbilled revenue  1,197,080    1,286,274  Other receivables  87,490    79,487  Prepayments and other current assets  153,340    140,435  Income taxes receivable  63,969    83,523  Total current assets $ 3,416,039   $ 3,530,493   Non-current assets:  Property, plant and equipment, net  378,253    382,879  Goodwill  9,065,335    9,051,410  Intangible assets, net  3,501,307    3,559,792  Operating right-of-use assets  147,377    147,602  Other receivables  75,122    72,796  Deferred tax asset  77,404    74,758  Investments in equity  62,160    57,948  Total Assets $ 16,722,997   $ 16,877,678   LIABILITIES AND SHAREHOLDERS’ EQUITY  Current liabilities:  Accounts payable $ 118,168   $ 173,025  Unearned revenue  1,497,166    1,614,758  Other liabilities  994,308    923,603  Income taxes payable  49,888    55,258  Current bank credit lines, loan facilities and notes  29,762    29,762  Total current liabilities $ 2,689,292   $ 2,796,406   Non-current liabilities:  Non-current bank credit lines, loan facilities and notes, net  3,390,438    3,396,398  Lease liabilities  138,354    140,085  Non-current other liabilities  85,713    83,470  Non-current income taxes payable  129,529    125,834  Deferred tax liability  788,816    812,486  Commitments and contingencies  —    —  Total Liabilities $ 7,222,142   $ 7,354,679   Shareholders' Equity:  Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized,  79,464,252 shares issued and outstanding at March 31, 2025 and  80,756,860 shares issued and outstanding at December 31, 2024  6,505    6,586  Additional paid-in capital  7,037,344    7,020,231  Other undenominated capital  1,389    1,304  Accumulated other comprehensive loss  (173,191 )   (229,929 ) Retained earnings  2,628,808    2,724,807  Total Shareholders' Equity $ 9,500,855   $ 9,522,999  Total Liabilities and Shareholders' Equity $ 16,722,997   $ 16,877,678

ICON plc

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND MARCH 31, 2024

(UNAUDITED)  Three Months Ended March 31,  March 31, 2025  2024 (in thousands) Cash flows provided by operating activities:  Net income $ 154,151   $ 187,438   Adjustments to reconcile net income to net cash provided by operating activities:  Depreciation and amortization expense  95,958    149,181  Reduction in carrying value of operating right-of-use assets  9,384    11,472  Amortization of financing costs and debt discount  1,480    3,907  Stock compensation expense  12,359    13,181  Deferred tax benefit  (25,014 )   (35,145 ) Unrealized foreign exchange movements  18,081    (1,027 ) Other non-cash items  8,240    4,629  Changes in operating assets and liabilities:  Accounts receivable  9,706    (80,431 ) Unbilled revenue  84,155    (42,546 ) Unearned revenue  (122,305 )   56,485  Other net assets  22,045    59,932  Net cash provided by operating activities  268,240    327,076   Cash flows used in investing activities:  Purchase of property, plant and equipment  (28,907 )   (27,152 ) Purchase of subsidiary undertakings (net of cash acquired)  (2,537 )   (7,831 ) Movement of available for sale investments  —    (1 ) Proceeds from investments in equity  103    —  Purchase of investments in equity  (5,941 )   (4,381 ) Net cash used in investing activities  (37,282 )   (39,365 )  Cash flows used in financing activities:  Drawdown of credit lines and loan facilities  50,000    50,000  Repayment of credit lines and loan facilities  (57,440 )   (330,000 ) Proceeds from exercise of equity compensation  4,763    16,305  Share issue costs  (5 )   (4 ) Repurchase of ordinary shares  (250,000 )   —  Share repurchase costs  (150 )   —  Net cash used in financing activities  (252,832 )   (263,699 )  Effect of exchange rate movements on cash  9,787    (6,032 ) Net (decrease) / increase in cash and cash equivalents  (12,087 )   17,980  Cash and cash equivalents at beginning of period  538,785    378,102  Cash and cash equivalents at end of period $ 526,698   $ 396,082

ICON plc

RECONCILIATION OF NON-GAAP MEASURES

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND MARCH 31, 2024

(UNAUDITED)  Three Months Ended March 31,  March 31, 2025  2024 (in thousands, except share and per share data)  Adjusted EBITDA  Net income $ 154,151   $ 187,438  Income tax expense  19,603    28,324  Net interest expense  45,807    69,735  Depreciation and amortization  95,958    149,181  Stock-based compensation expense (a)  12,294    13,181  Foreign currency losses/(gains), net (b)  18,095    (10,814 ) Restructuring (c)  39,346    —  Transaction and integration related costs (d)  5,404    6,991  Adjusted EBITDA $ 390,658   $ 444,036   Adjusted net income and adjusted diluted net income per Ordinary Share  Net income $ 154,151   $ 187,438  Income tax expense  19,603    28,324  Amortization  58,946    116,498  Stock-based compensation expense (a)  12,294    13,181  Foreign currency losses/(gains), net (b)  18,095    (10,814 ) Restructuring (c)  39,346    —  Transaction and integration related costs (d)  5,404    6,991  Transaction-related financing costs (e)  1,465    3,907  Adjusted tax expense (f)  (51,035 )   (57,012 ) Adjusted net income $ 258,269   $ 288,513   Diluted weighted average number of Ordinary Shares outstanding  80,924,355    83,249,303   Adjusted diluted net income per Ordinary Share $ 3.19   $ 3.47

(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 losses/(gains), net relates to losses or gains that arise in connection with the revaluation, or settlement, of non-US dollar denominated assets and liabilities. We exclude these losses and gains 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. (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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250430194955/en/

Contacts

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

View Comments