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Mar 31
ICON Q1 2025 Earnings Report
reported financial results for the first quarter ended March 31, 2025
Key Takeaways
ICON plc reported a challenging first quarter of 2025 with revenue and bookings below expectations due to market volatility and delays in customer decision making. Despite revenue pressure, adjusted EBITDA margin and EPS were in line with expectations due to cost control. Full-year 2025 guidance was updated, primarily excluding two large next-generation COVID vaccine trials.
Net business wins for the quarter were $2,022 million, resulting in a net book-to-bill ratio of 1.01.
Closing backlog increased by 0.3% from Q4 2024 and 6.0% from Q1 2024, reaching $24.7 billion.
Q1 2025 revenue was $2,001.3 million, a 4.3% decrease from Q1 2024.
GAAP diluted EPS for Q1 2025 was $1.90, a 15.6% decrease from Q1 2024, while adjusted diluted EPS was $3.19.
ICON
ICON
Forward Guidance
ICON updated its full-year 2025 financial guidance, primarily excluding two large next-generation COVID vaccine trials. Revenue is now expected 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.
Positive Outlook
- Very recently received a positive update on one of the excluded large next-generation COVID vaccine trials.
- Actively working with the sponsor to resume work on the positively updated trial.
- Continuing to carefully manage resources to ensure delivery of critical development programs.
- Adjusted diluted earnings per share guidance includes potential for year-over-year growth of up to 1.8%.
- Focus on cost control and resource utilization is expected to continue.
Challenges Ahead
- Full-year 2025 revenue guidance represents a year-over-year decrease of -6.4% to -1.6%.
- Full-year 2025 adjusted diluted earnings per share guidance represents a year-over-year movement of -8.9% to +1.8%.
- Guidance excludes two large next-generation COVID vaccine trials.
- Performance in Q1 was impacted by volatility and cautiousness in the clinical development market.
- Bookings were below expectations due to delays in customer decision making, careful capital allocation, and continued elevated cancellations.