ICON Reports First Quarter 2025 Financial Results
ICON plc (NASDAQ: ICLR), a leading global clinical research organization (CRO) driven by healthcare intelligence, today announced its financial results for the first quarter of 2025, which ended on March 31, 2025.
CEO Commentary
Dr. Steve Cutler, CEO of ICON, provided an overview of the company’s performance in the first quarter, commenting, “ICON’s results for the first quarter were impacted by the broader volatility in the clinical development market, which continues to affect customer decision-making and capital allocation. Our bookings fell short of expectations due to prolonged decision cycles, ongoing careful capital deployment, and higher-than-expected cancellations. Despite facing additional pressure from previously disclosed delays in clinical trials, we maintained an adjusted EBITDA margin and earnings per share that were in line with our forecasts, thanks to strategic resource management and strong cost control across the organization.”
Dr. Cutler further noted, “In light of these factors, we are adjusting our full-year financial guidance, primarily to exclude two large next-generation COVID vaccine trials. However, we have received a positive update on one of these studies, and we are currently working with the sponsor to resume work on the trial. We now anticipate full-year revenue in the range of $7,750 million to $8,150 million and adjusted diluted earnings per share between $12.75 and $14.25. As always, we remain committed to managing our resources effectively to ensure the successful delivery of critical development programs for our customers.”
First Quarter 2025 Results
ICON reported gross business wins of $2,681 million in the first quarter, alongside cancellations amounting to $659 million. The net business wins for the quarter stood at $2,022 million, with a book-to-bill ratio of 1.01. Despite the challenges, the company demonstrated resilience in managing its pipeline.
Revenue for the first quarter of 2025 totaled $2,001.3 million, representing a decrease of 4.3% compared to the first quarter of 2024. On a constant currency basis, the decline was slightly less at 3.2%.
In terms of profitability, ICON reported GAAP net income of $154.2 million, translating to $1.90 diluted earnings per share. This marked a decrease of 15.6% compared to the $2.25 diluted earnings per share reported in the same period last year. On an adjusted basis, the company reported net income of $258.3 million and adjusted diluted earnings per share of $3.19, compared to $3.47 per share in the first quarter of 2024.
Adjusted EBITDA for the first quarter was $390.7 million, or 19.5% of revenue, which represented a 12.0% decline compared to the same period last year.
Cash Flow and Capital Expenditure
ICON’s cash flow from operating activities during the first quarter was robust, amounting to $268.2 million. The company spent $28.9 million on capital expenditures during the quarter and repurchased $250.0 million of its own stock at an average price of $184 per share. In addition, ICON made $7.4 million in payments toward Term Loan B during the quarter. As of March 31, 2025, the company’s cash and cash equivalents stood at $526.7 million, slightly lower than the $538.8 million reported at the end of 2024 but higher than the $396.1 million at the same time last year. Net indebtedness was $2.9 billion at the end of the quarter.
Tax and Financial Adjustments
The effective tax rate on ICON’s adjusted net income for the first quarter was 16.5%. ICON’s financial statements also included certain non-GAAP financial measures, such as adjusted EBITDA, adjusted net income, and adjusted diluted earnings per share. These non-GAAP metrics exclude certain items, including amortization, stock compensation, foreign exchange gains and losses, and restructuring or transaction-related adjustments. While ICON believes these non-GAAP measures provide valuable insight for investors, they are not a substitute for GAAP measures and should be considered in conjunction with them.
Guidance for 2025
ICON has adjusted its full-year guidance for 2025. The company’s revised forecast excludes two large next-generation COVID vaccine trials, which were expected to have a significant impact on revenue. However, recent positive developments related to one of these trials have provided a degree of optimism, with efforts underway to resume work in collaboration with the sponsor.
Based on the updated expectations, ICON now anticipates full-year revenue in the range of $7,750 million to $8,150 million. Adjusted diluted earnings per share for the year are now expected to be between $12.75 and $14.25.
Despite the challenges faced in the first quarter, including cancellations and delays in some of its trials, ICON remains optimistic about its full-year prospects. The company is focused on managing resources efficiently and continuing to deliver on its key programs for clients across the pharmaceutical, biotechnology, medical device, and public health sectors.
Conference Call and Additional Information
ICON will hold a conference call to discuss its first-quarter results on May 1, 2025, at 08:00 EDT (13:00 Ireland & UK). A live webcast of the call, including a slide presentation, will be available on the company’s investor relations website at http://investor.iconplc.com. A recording of the call will also be available on the website for 90 days following the event. Additionally, ICON’s investor relations page provides a calendar of upcoming company events, including conference presentations, which will be updated regularly.
This press release contains forward-looking statements, including statements regarding ICON’s financial guidance and expectations for the remainder of 2025. These statements reflect ICON’s current views based on available information, including economic conditions and industry trends, but they are not guarantees of future performance. Actual results may differ materially from those projected due to various risks and uncertainties, including challenges in securing new contracts, changes in client relationships, the integration of acquisitions, and broader market conditions.
The forward-looking statements are made as of the date of this release, and ICON does not undertake any obligation to update them publicly in the future. For a detailed description of the risks and uncertainties, ICON encourages investors to refer to its filings with the U.S. Securities and Exchange Commission (SEC), available at http://www.sec.gov.
ICON plc is a global leader in clinical research, providing outsourced services to the pharmaceutical, biotechnology, medical device, and public health sectors. The company supports the development of new therapies and the advancement of patient care through a comprehensive range of clinical research services. Headquartered in Dublin, Ireland, ICON employed approximately 41,250 people across 97 locations in 55 countries as of March 31, 2025.
For more information about ICON, please visit www.iconplc.com.
