- Home
- News & Events
- Press releases
- ICON report first quarter 2025 results
ICON reports first quarter 2025 results
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, Ireland, April 30, 2025 – 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.”
Read the consolidated income statements and summary balance sheet data.
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.
Source: ICON plc
Contact: 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
All at ICON