Bruker Corporation (BRKR) Earnings Call Transcript & Summary

Life Sciences and Diagnostics team. Pleased to be joined by the management team of Bruker. This is a standard 40-minute session. We'll do a corporate presentation and then Q&A afterwards. Frank, take it away.

Good morning, everybody. Thank you, Casey. Well, good to see many familiar faces. Welcome once again back to San Francisco and the JPMorgan conference. I'll give you an incremental evolutionary presentation today and an update on the key themes for Bruker in 2026. There will be some new insights and some new opportunities, but I don't think there'll be any rabbits out of the hat, so to speak. So what are the themes for Bruker in 2026, let's jump right into it. After a very significant 70% revenue jump between 2020 and 2024 with '25 admittedly being a rough year. Our focus is for the -- not only this year, but for the next 3 to 5 years is very much on profitability on a transformative margin and EPS jump. Basically, we think we hope we can take our margins from the mid-teens to the low- to mid-20s and deliver double-digit EPS growth over that period. We are continuing, of course, to invest in our key strategic opportunities. Our leadership particularly in post-genomic discovery tools for both disease biology, clinical research but also very much for drug discovery and development. Finally, we're evolving, if you like, an expanding Project Accelerate into Project Accelerate 3.0. You've been -- those of us who've been investing or following Bruker for a while. We'll be familiar with this. And here, we're particularly looking at aftermarket and sticky revenues, in particular, we think we have some very compelling and unique and novel opportunities in clinical microbiology and in molecular diagnostics and also in something and that will be a new theme for many of you because so far, it's been a little bit under the radar, but now that it reaches about $100 million in revenue per year, it's beginning to be needle moving for us as well is this opportunity in automated AI lab tools providers, both automation, digitization, data management, software, et cetera. I'll talk more about that. So let's cut -- let me make sure I handle the slides properly. I'd like to draw your attention to our safe harbor statement. We do have an 8-K this morning with this presentation. It should have come out literally minutes ago in time for this presentation as I will be giving some forward-looking statements and sort of as we tend to do a bit of flavor for Q4 revenue and bookings with full earnings coming in early to mid-February. Right. Bruker Corporation at a glance, nothing incredibly new here, and some of this is 2024 data because we don't have full '25 data. I won't go through all the bullets and many of you are quite familiar with us. Major revenue jump was absolutely strategic for us. We were always considered a little bit subscale and that $3.4 billion in revenue after this very significant, primarily organic, but also inorganic jump over the 4-year period, '20 to '24. We have the scale to compete in all the markets we wish to be in. And we've also, very importantly, entered key growth market -- markets with opportunities for higher organic growth rates but also for higher margin profiles. As I said, going forward, we sometimes think in 3- to 5-year phases where you evolve the company differently, the focus very much going be on profitability and margin and EPS improvements. Right. So we'll not spend much time on this. This slide isn't exactly what it was last year. We evolve, our core evolves, our opportunities, our tools evolve. This is something to study at your leisure, but I won't go through it. The take-home point here is Bruker is -- in the majority of our portfolio, we are the #1 or #2 market -- one of the market leaders. Often, we are the #1, so there are niches, including niches where we have pricing and margin power and all these things that you're looking for to drive a very, very healthy and differentiated business. Right. '25 was rough and there is no 2 ways about it. It was -- we were -- we found ourselves at the enviable focal point of weak academic demand, also weaker demand, at least in the first half of the year for research tools in general as both industrial research and biopharma research. We're hesitant with these changing tariffs, MFM and other currency and other turbulences that we have experienced in the economy last year. We did take a hit from the tariffs for sure, with 75% of our revenues in the U.S. being imported primarily from Europe, Switzerland, also Malaysia and Israel. Anyway, we've been countering that, but the initial hit was there. And of course, the deterioration of the U.S. dollar also hit us pretty hard. So I don't mean to whine and complain. Our job is to manage through it, but it was a rough year. What did we do about it? Well, we continued with what I think is industry-leading in to reaccelerate growth and enhance market share and also gross margin profile in this post-genomic era and in some of our other markets. I think our introductions of various spatial biology tools, and I'll come back to that. at AGBT and AACR or various mass spec multiomics tools at the ASMS conference, some NMR tools, et cetera were absolutely -- they were drowned out last year, I get it, but they are actually very important, and they're getting really good traction. I think they'll help us in resuming organic growth and hopefully getting back by next year. This is going to be a snapback by next year, hopefully getting back to what we think our portfolio allows us namely to be -- to have organic revenue CAGRs of 200 to 300 bps above market. In '25, we could not deliver on that, I get it. Cost reduction is very important. We had said we would aim for $100 million to $120 million of cost reductions, both COGS and OpEx, and we are very much we are very much focused on the high end of that. So we're aiming to deliver $120 million of anticipated cost savings in 2026. So that even with limited revenue growth, we can still deliver very significant margin improvement and double-digit EPS growth despite the mandatory convert that if you recall, we did in Q3. So even with that, we still expect to deliver that. Of course, we're only giving color today. We're really giving guidance for '26 then in February when we report our Q4 earnings. And yes, seizing the opportunities in proteomics and metalomics, in spatial biology, the many subfields of spatial biology that Mark can talk about or we'll talk about today in the one-on-one meetings. Very exciting molecular diagnostics and clinical microbiology opportunities. These are not -- these are not commoditized fields. They can be in some areas, but the areas in which we play, and the areas in which our new platforms and technologies allow us to go into going forward, I think, to make that as compelling fundamentally in terms of our growth margin opportunities as some of the other more research oriented and drug discovery-oriented opportunities. And automated AI lab, defense tech, there are some other good growth drivers that I will mention. All right. It's 2026, hopefully less turbulent than '25. So this is sort of a longer-term view. This is just kind of in support of what I've been saying. Yes, we had a very significant revenue growth, organic and 8% organic CAGR, very good and 12% constant exchange rate because we also did some very meaningful acquisitions in '23, '24. And then '25 was a tougher year. This is simply the midpoint of guidance. This is not a new indication of where exact -- don't measure the millimeters here. This is just our previous guidance. And same for EPS. Obviously, with the acquisitions, we strategically took some deliberate dilution to change the portfolio. I think it was very important for us strategically. And then, yes, last year, 2025, a tougher year. The M&A that we did execute in -- primarily in '23 and '24 was absolutely transforming for our portfolio and for the future of this company. in proteomics, metabolomics broadly multiomics. In cellular analysis, a field that we had not been in previously. In spatial biology, where we had a toehold or a couple of toeholds and now we have really the broadest and deepest portfolio in the industry and also in scientific software, data management, digitization. And last, but not least, it's only 3 letters here, but it will be very important, and I'll come back to it in clinical microbiology and the closely overlapping from a customer point of view, field of infectious disease, molecular diagnostics. We're not really in cancer testing. We're doing molecular diagnostics for infectious disease. So continue to expand and drive our leadership in post-genomic era tools, discovery solutions. As I said, for both disease biology research, that's where the academic spending is coming from cancer centers and neurodegeneration and autoimmunity research centers more from -- and still from departments of chemistry, et cetera. But academic medical center funding is actually not so bad. I'm on the Board of a major cancer institute and their funding continues to be pretty good, even in challenged time better than what you would expect from the rest of academia, which is still under pressure as we know. These same post-genomic era tools are also being used in biopharma. I'm pleased to say that the color that I have on Q3 and Q4 is that indeed, biopharma is back to investing, whereas in Q2, they were very reluctant. And so Q3, Q4 looked solid and including here in the U.S. or especially here in the U.S. also in biopharma investment in some of the very high-end tools that would -- that you know us for. So profit focus for the next -- for this year as well as for the next 3 and also for the next 5 to 6 years, the annualized cost savings we've mentioned. This is no new information, but we are -- the color is for flat and margin expansion or flat or low single-digit organic revenue growth. We'll also have a little bit of growth still from currency, and we'll have a little bit of growth also still from acquisitions. So resumption of growth is the -- but moderate growth for '26. It's not a snapback. And then very strong commitment beyond just '26 and taking a big step and a big swing in '26. For '27 through '30 really to deliver continued major margin expansion that may be 150 or 200 bps per year each year, hopefully, and double-digit non-GAAP EPS CAGR, while presumably by '27 returning to what we think our portfolio and should enable us to do, which is to deliver meaningfully above market revenue, organic revenue CAGR. So Project Accelerate, for those of you familiar with it, we always had Project Accelerate plus operational excellence above-market revenue and margin expansion and profitable CAGR already. Project Accelerate, which we started really in 2017. It's now in its third iteration, but it's a very, very good program. It's around 60% of our revenue already and that will only expand. What's new in Project Accelerate 3.0, and I'll go into details in a moment, but very interesting opportunities in clinical microbiology and closely related in molecular diagnostic as it relates to infectious disease primarily. Automated, digitized AI-ready labs. That's a big new investment theme in biopharma, but also in material science and specialty chemicals and that -- we can play in that. And even defense detection, which for a very long time, has been lingering at perhaps 1% of our revenue, but that's on its way to 2% and maybe 3% of our revenue. So as that crosses or has crossed the $50 million a year threshold, it will become also more meaningful from something that was just a little niche that you probably didn't pay much attention to and that was fine. The performance execution, we really have outstanding leadership teams. We have a great Bruker management process. And I think they've done a really good job also in a rather challenging '25. I'm very proud of them. and they're taking all the hard steps that it will take to deliver major margin expansion in '26 and beyond. So a busy slide, maybe almost more of a reference slide. I'm certainly not going to talk to all of those words on the left. The 3.0 continuing focus on post-genomic era leadership. I won't repeat everything I've said already. The novel molecular diagnostics and clinical microbiology opportunities and the AI lab market opportunities. I'll have a separate slide. I'll have a separate talking points on that. So as we're -- the buzz words are, the highlights are, we think we are can take our sample to answer molecular diagnostics franchise with the Genius platforms into syndromic panels on routine systems. I think that's going to be a very interesting way of doing syndromic panels more in the future in a more affordable way in a way that better fits the routine clinical workflow and should also allow us to enter the U.S. market. And then focused on the U.S. market initially, but eventually we hope to take that -- make that a worldwide opportunity, got entering into the AST field and particularly the emerging rapid AST field, antibiotic susceptibility testing for those who don't deal with microbiology every day. I'll talk more about automated and digitized AI-ready labs. And of course, we continue to expand on our nano tools for AI for the high-performance computing era. And again, I'll give you more details on that. Our core is thriving. This isn't some legacy business. Our ACA/GOV biopharma applied now also industrial, defense tech, defense detection for airport markets, et cetera, are quite differentiated and really have good margins, good pricing power and good market conditions. This isn't -- this is a thriving core. We are a leader in IR, Near IR, Raman, both spectroscopy and microscopy, again, not something that you're probably paying that much attention to. But hey, that's about 10% of our business and has excellent margins and also very solid growth potential and even throughout the rougher year last year, continued to deliver growth. And then, yes, we have opportunities in cleantech, in superconductors, again, I'll come back to that. On the right is some of the preliminary information. That's also why we filed an 8-K this morning. Our Q4 '25 preliminary revenue subject to audit, et cetera, is between $965 million and $970 million, that lines up to be above about $10 million, above consensus at this point. And for the full year '25, that would add up to a preliminary data to about $3.43 billion in revenue in reported revenue up about 2%. Of course, that's down organically, but we also made up for that with inorganic additions. So in constant exchange rate revenue we actually are managed to be flat or up a few million in '25, which in '25 is somewhat of a management and performance fee for us given the many headwinds that we faced. And importantly, just as in Q3, for our BSI segment, which is 93% of the company, in Q4, it looks like our book-to-bill was again just above 1.0, which is encouraging. Preliminary outlook. This is not guidance. Guidance will come in February, non-GAAP constant exchange rate, flat to low single-digit organic revenue growth. We hope we can get back to that, but we won't snap back to our traditional growth rates right away. We're aiming for an organic operating profit margin expansion of a bigger step, 250 to 300 bps and we're aiming for double-digit non-GAAP EPS growth for '26. That's the outlook. That's the color. I know you'll write its guidance, but it's not guidance. So guidance comes in early February, and then we can give you more details. Right. So some of these things you've heard recently, you've seen some of our press releases. The first one was about, wow, NIH and NSFR are still funding big projects, even in a difficult 2025, so were a number of magnetic resonance orders that we've highlighted. Of course, they also highlight mass specs and microscopes, but anyway, this is what we had highlighted here. We then had a press release that you may have also seen already in Q4 about some substantial European magnetic resonance orders, including one of these 1 gigahertz systems was funded in France and some other rather large items that altogether added up to $25 million. And then very recently, and this may surprise you, but there is this little BEST segment of 7%, 8% of our revenue. Both of the 2 large orders towards the bottom of the left-hand side come from the BEST segment, from our research instruments technologies, which we are a majority owner of that physics, high-energy physics, very, very deep tech business. They brought in a $40 million order from the Extreme Light Infrastructure, a European Union project in Romania, with very significant funding, $40 million not all of that will go into '26 revenue, but some of it will. And then just recently, we announced 2 renewals but expansions or very -- 1 very large and 1 sizable multiyear orders for our advanced superconductors for present and next-generation MRI magnets, built by the big health care companies, health medtech companies. So we have some rather differentiated technology there and having that best was a drag on growth last year. And with these new framework orders, which allow us good planning over the next multiyear period, some of them up to 7 years, that's peace of mind and resuming growth there as well. So those were some rather large orders, and we were very pleased because these come up for renewal renegotiation every 5 to 7 years. And I think our innovation, our differentiated capabilities there really allowed us and then it has its own competition, but I think we've done really well with more details in these press releases. It's a -- that's a big deal and removes a drag or a headwind to growth that was meaningful last year and that should reverse in '26 and beyond as well. Sorry, I went the wrong way. I was supposed to not. Yes. Little bit of defense tech. I said it already. We like it because it's also a lot of sticky business. Sometimes at Bruker, we say we work too hard for all the revenue. We have to deliver so much innovation, and that's great. But last year, people weren't quite as willing to work or to pay for innovation, for research instruments and ACA/GOV. So we're very deliberately emphasizing more sticky, more aftermarket, more consumables business, more service businesses. And actually, this defense detection business with a lot of airport security and air cargo security, plus some defense detection [indiscernible]. One is global, one is primarily in Europe, fits the bill. So as I said, that used to be a $30 million business. It's now $50 million, $60 million, and it may very well become a $100 million business for us in the years to come. And to Bruker someone is now a verb. I've been told by my kids. My son got Brukered when we went through Zurich Airport, they swiped his fingertips. And so if you too in Frankfurt or in Zurich or Geneva or a bunch of other French or Norwegian or Saudi and other airports, you can get Brukered. And that, hopefully, you'll get a little green reassuring light that there's nothing -- there's no traces on fingertips or on your cell phone. Anyway, that's a nice business for us that for all the wrong geopolitical reasons, of course, is rather active defense tech element. And for us, from a sleeper business where we had cool technologies and luckily, they were all validated and ready to go for these larger investment projects. Now we're really doing quite well and growing rapidly. So it's a nice part of the core business that's now growing. We continue to focus. This is a slide that I showed here in this room or next door last year. Bruker, I won't go through it again, but this curve continues to be an enormous long-term 25-year opportunity. And we really have transformed our portfolio. And biology, disease biology competencies to lead in the post-genomic era clinical disease research and in providing the advanced biopharma discovery tools to deal with this enormous greater complexity of biology, hence, disease biology, mechanisms of action pathways, you name it. and sets up Bruker for long-term leadership and growth in this next 25-year period of how a disease biology and drug discovery will be done, and we're very well positioned for that. So complexity is good. It's more opportunity. And we see that. We see that in some of our new tools being adopted pretty early on by biopharma, the timsOmni for instance or the CosMx with the whole transcriptome panel. Here is a good example. I didn't go through all the instruments. You've seen all the instruments. We launched at AGBT and AACR, so I didn't go into that. But Mark, has shown us this. We've had remarkable growth, very high double-digit growth in the consumables for the CosMx spatial platform. And overall, our even in a rough year, our spatial biology business last year grew and actually grew in the low double digits, but that's pretty good, right? So all this innovation while taking out cost is really paying off and maybe the highlight was this whole transcriptome panel on the CosMx, which is completely unavailable anywhere else. It's really very unique. And for [indiscernible] disease or other biology research in tissues, it's really -- it's the way to go. And so the pull-through is very significant and the excitement in the community is there, even with limited ACA/GOV funding. But even with that, we've seen very, very nice growth in our spatial biology business. And also in other parts of it, but we wanted to highlight this. Our new multiomics mass spectrometers have been -- that we launched at ASMS, 3 of them. Again, I don't want to talk about every single one of them. But this 1 because it's so game-changing. It is, in a way, proteomics 2.0 when you want to look at functional proteins and proteoforms, you do top-down proteomics. And the team's Omni doing that at scale and speed is very, very unique instrument to the market. These are 1.5 million instruments. We get quite a few orders for them. We think there is a lot in the grant pipeline. We got a lot of biopharma orders from them, from the big names that you would expect even before the end of the year. This wasn't revenue in '25, yet will begin to ship and turn into revenue in '26, but it's -- I think it's really very important. It opens up a new field in a field, we're quite honestly, mass spec rules. I mean, if you really want to add scale, get proteoforms, get post-translational modifications, quantitate them and you want to not do it for one purified protein. But for the many proteins that are functional and perhaps causing disease or whatever they may be or may be a target. This is a very, very important instrument for biopharma and for disease research. It's getting good traction as it is sibling, the timsMetabo where we seriously entered the metabolomics market, lower price point, but we got quite a few orders. That's a great high-end metabolomics instrument that's also quite differentiated. So much on that. Semiconductor metrology. You need to look at chips in smaller and smaller nodes. You need to look at packaging for high-performance computing. We've been at this for a while. This business -- this was a -- is now meaningful as well. It's about 8% of our revenue, and it has above corporate margin profile. So as that grows, it's incremental margins are good. And that's, of course, a megatrend where we participate in and are enabling quite honestly, what various 4-letter companies around the world are doing that are doing particularly well in this space, and they need us as part of enabling all of this. And it's a good business for us. As I mentioned, I wanted to just briefly highlight these new trends in automated labs that are not fully digitized, where you have to complete data management under control, not only for the instrument but for the entire lab, and have that ready for AI analysis and improvements. So we're not running those labs. We're the tools provider for those labs but there is a gold rush towards these lights out labs or labs that have very high productivity and can generate in an automated way, very large amounts of very high-quality data. So yes, you need detectors, Bruker plays a key role in the detectors. But what's new is the chem speed automation and the SciY scientific software, data management, lab digitization, et cetera. That's coming together. And I think it's worth mentioning a little bit now altogether, that's about a $100 million business for us. We expect that to grow very fast. And we also think that has a very large TAM, again, as a tools provider, not as running those labs ourselves. Let me finish up with 2 or 3 slides on clinical microbiology and molecular diagnostics, a key, perhaps the key focal point of the further evolution of Project Accelerate 3.0 or PA3 as we call it here, for sure. As a reminder, in microbiology, with our MALDI Biotyper, we have over -- approaching 8,000 systems installed, 200 million identification. This has come completely mainstream. And we're now very pleased to add to this identification, the AST and not the established AST that's been almost unchanged for decades. Other companies are doing that. That's fine, but the rapid AST that will allow faster adaptation of antibiotic or perhaps antifungal, but in this case, antibiotic treatments. And we haven't -- I'll show you more details on that in a moment. We then became a much bigger play in molecular diagnostics, all for infectious diseases really with the ELITech acquisition in mid to -- in early '24. That now has good news, that has about 1,600 of their Genius platforms, sample to answer Genius platforms installed. Last year, we actually installed more and more than 200 of those, plan was 140, 150, so about 30% more. We are really getting traction in that -- in those niches. So by now, infectious disease molecular biology and molecular diagnostics is about a $500 million business. It has 65 going towards 70%, 75% aftermarket, so more sticky aftermarket consumables revenue and its margins are well above our corporate average. We intend to develop this further, enter the U.S. market eventually and seize unique opportunities in syndromic panels which is really a $2 billion market. A company other than Bruker has done an amazingly good job in that market, and there's a couple of others that are doing a good job as well. So it's -- they've established the market, but it's specialized instruments, thousands of them that are don't fit into the routine workflows or into the standard hospital workflows. And it's also very expensive. So that's why it's mostly adopted in the U.S. and not so much in Europe and elsewhere. We think we can change that. We have taken this LiquidArray high-plex, 15-plex or so quantitative PCR technology that Bruker had was a diamond in the rough, plus the sample-to-answer Genius systems and the proof of concept is now there, that is really works. That wasn't always clear, but that really allows us to think we can launch over the next 2 to 3 years, a significant number of next-generation, more affordable syndromic panels that work on your routine instruments that do other work for you in your hospital or your lab chain. We're very excited about that. I think it's a big growth opportunity. We also think it's going to be a unique differentiator that allows us to enter the U.S. market with that over time. And we're starting first clinical trials for the U.S. market for a certain specialized Candida Auris and some other applications that are a high clinical need already in '26. So that bodes well with a lot with good growth, good execution and future upside from 2 rather important developments, syndromic panels and then taking this to the U.S. market after all. And I think that's my last slide. Very pleased to be adding the WAVE rapid AST platform that we added as an asset deal that has been developed by another company as a second-generation instrument. It's really -- we think it's the most promising new rapid AST platform. And I won't take you through all the reasons for that, but being able to do this with a very large number of drug combinations, over 150, actually close to 200 on average and 4.5x is our response time for -- initially for positive blood cultures, but eventually also for isolates, which I think is important for urgent isolates. This has a lot of opportunity. Yes, this may be an addressable market, that's not billion, $400 million. But if we can capture a big piece of that, and of course, add this to our strength of our microbiology franchise, this is going to be quite differentiated and an important further strategic step for Bruker, for our clinical microbiology business. So we're very excited about that. I'll let you read the other advantages of the system, but we think it's really quite compelling in terms of workflow, fit, cost, modularity. All of that, I think it hits all. We've been analyzing this market for a very long time, and we think this is this is clearly the best system. And I'm very happy to have that as part of Bruker now. We hope to launch that in the U.S. market in '26 if we get FDA clearance in '26, which we're optimistic that we will. And with that, I'd like to thank you for your attention and happy to answer some questions.

Great. Thank you for that, Frank. Yes. Maybe to kick it off, you announced preliminary 4Q revenues came in above the Street. Can you just unpack the performance in the quarter by end market and product group and note any areas where maybe you outperformed your expectations? And would also be curious to hear if you saw any sort of budget flush?

Okay. So we'll really do that in early February when we have all the data and can slice and dice it. Maybe just a little bit anecdotal. I would say in the U.S., academia was still challenged. But there was some academic spending, but I wouldn't call it strong yet. And on the other hand, it was notable that biopharma spent quite significantly, including in some very expensive tools that normally they adopt years later. But if they absolutely need it to get to deal with a higher complexity of information that they need to accelerate drug discovery and reduce the failure rates for lack of information, I think that was encouraging. So let me give you these 2 anecdotal points, the real slicing and dicing by market, by geography, we can do when we report earnings. Right now, I don't have all of that information yet.

Okay. And I would assume similar on the order book, book-to-bill came in above 1, just any...

It's above 1, which is good. it is incremental. It's not -- things aren't booming, but things are getting -- clearly getting better.

Okay. Is there any specific pocket? I know to the extent that you can talk, but it seems like European academic trends are getting better. Anything to call out there?

Let me dig deeper when I have all the data, and I have [indiscernible] on all the comparisons. Right now, it would be too anecdotal.

Yes. Fair enough. And maybe on the bottom line, you pointed to solid progress towards that $120 million cost saving target that you have pointing to the Street to 250 to 300 basis points of operating margin expansion next year or this year, I should say. Can you just talk about what are the drivers there of margin expansion? Where do you see the most operating leverage in the business?

Gerald, I'm going to pass this to you if your microphone [indiscernible].

And confidence level that you'll hit that target.

Gerald is our CFO, you may all know him.

Yes. I'd say 1 of the primary drivers is the cost-saving actions that we've taken through 2025. We're targeting, as Frank noted, $120 million of cost savings and that's not just at the OpEx line. This is going to involve both the gross margin and our OpEx categories. We've done that across almost all the business groups, all the infrastructure groups at the corporate levels. So it's very broad, I would say it's the largest cost-saving actions that Bruker has taken in likely a decade. Beyond that, I think we do have some early signs for sure on the mix side of the business that we will do better from a gross margin perspective in a number of our businesses, in particular, I would say, in some of the core elements of the business. So mix will be a factor. And I would say we will not see some of the things we saw in '25, at least our expectation is we now will have neutralized the tariff elements that we had headwinds on in fiscal year '25. I mean we are hoping for a better stability in the U.S. dollar. I mean, I guess we'll see what the current administration thinks about that as we go forward. But that will be helpful, especially in the latter half of '26. So those will be some of the big pieces.

Okay. Maybe as a follow-up to that, Gerald, on the margin piece. So you noted in 2027, you expect to return to a normalized sort of environment on the top line. And continue -- you called for continued major margin expansion through 2030. Do you have an updated target margin that investors can anchor to the end -- by the end of that 2030 time frame and any to call...

Now you're pushing us beyond the earnings call even towards -- I think we'll -- this would be a good question. It's a good question, of course. But that would be more for an Investor Day if we do an Investor Day later this year to look at -- right now, February guidance for '26 at an Investor Day maybe in the summer, maybe in the early fall, more of a multiyear outlook but it gives you a color of where we're driving even if I'm not giving you numbers today.

Understood.

But I think you can do some of the math and plug into your models.

Okay. Maybe touch on some of the new product launches that you talked towards in the presentation. You launched 3 new instruments at ASMS last year, you talked a little bit about timsOmni here. Can you just give some more color on early customer feedback on those 3 new products? Any sort of follow-through you've seen in the order book at this point? And any sort of expectations on spatial biology?

I'll bounce to my colleague, Mark, on spatial biology, and then I'll talk about timsOmni. Do you want to talk?

So Frank referred to a number of things we did in 2025. So we launched in CosMx, the whole transcriptome panel. So it's -- nobody does 18,000 gene coding things. And so that's propelled a lot. So our consumables business is quite up through the year through that. It also drove platform sales, I'd say, where others had -- you just heard, had instruments sales that were down, we weren't down in instrument sales. We actually were flat in some and then up in other, and then consumables were up across the board in spatial biology. So besides whole transcriptome, we launched also CosMx 2.0 which was quite an enhancement in detection efficiency and sensitivity. And then we did a number of things around the CellScape platform that kind of opened up the playbook of markers for that one, for spatial proteomics. So it's quite a good year and it propelled good book-to-bill for us there.

TimsMetabo, we expect to sell 30, 50 of those a year. TimsOmni, might be 15, 20 or so, but these are 1.5 million systems. So each one of these things does add up. Those launches and that we are so early for both of these new launches where we entered slightly new and adjacent markets is actually remarkable. In one, timsOmni, we're doing missionary work, but people thought this was so compelling that they repurposed exiting sizable budgets and said, we've got to have one of those. TimsMetabo, we're entering a somewhat crowded market. Everybody is in the -- everybody in mass spec is in that market. But since it has rather differentiated 4D-Metabolomics capabilities, we're getting some good orders as well at the high end of that market.

Got it. looks like we only have a few seconds left here. You gave a lot of info in the presentation. Maybe what's the most -- what's the one thing you're most excited for, for the upcoming year in 2026?

Which of your -- Sophie's [indiscernible] sorry. I love all of our children here. I love all the opportunities. Maybe the most novel that you haven't heard before are these new diagnostic opportunities because those are truly new. They also will not all be needle moving in '26, but there definitely needle moving in '26, '27, '28 as you know, the time constants in diagnostics are longer. But boy, once you are in a new market or becoming a market leader in a new market, it's just really, really great recurring business.

All right. We'll have to leave it there. Thank you to the Bruker team for joining us today. Thank you for -- everybody for attending the conference. Enjoy.

Thank you very much.