ICLR ICON PLC

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.

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.”

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/

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