Company: DHR
Filing Date: 2025-10-21
Form Type: 10-Q
Source: 0000313616-25-000182
Chunk: 43

Company: DANAHER CORP /DE/
Filing Date: 2025-10-21
Form: 10-Q
Item: Item 1
Chunk 43
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 prior and future periods and to Danaher’s peers.  Management also uses this non-GAAP financial measure to measure the Company’s operating and financial performance and uses core sales growth as one of the performance measures in the Company’s executive short-term cash incentive compensation program.  The Company excludes the effect of currency translation from this measure because currency translation is not under management’s control, is subject to volatility and can obscure underlying business trends.  The Company excludes the effect of acquisitions and divestiture-related items because the nature, size, timing and number of acquisitions and divestitures can vary dramatically from period-to-period and between the Company and its peers and can also obscure underlying business trends and make comparisons of long-term performance difficult.

Throughout this discussion, references to sales growth or decline refer to the impact of both price and unit sales and references to productivity improvements generally refer to improved cost-efficiencies resulting from the ongoing application of the Danaher Business System.

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Sales Growth and Core Sales Growth

% Change Three-Month Period Ended September 26, 2025 vs. Comparable 2024 Period% Change Nine-Month Period Ended September 26, 2025 vs. Comparable 2024 PeriodTotal sales growth (GAAP)4.5 %2.5 %Impact of:Currency exchange rates (1.5)%(1.0)%Core sales growth (non-GAAP)3.0 %1.5 %

Operating Profit Performance 

Operating profit margins increased 260 basis points from 16.5% during the three-month period ended September 27, 2024 to 19.1% for the three-month period ended September 26, 2025.  

Third quarter 2025 vs. third quarter 2024 operating profit margin comparisons were favorably impacted by:

•Third quarter 2024 impairment charge related to a trade name in the Life Sciences segment, net of impairment charges related to technology and other assets in the Biotechnology segment and a trade name in the Diagnostics segment in the third quarter of 2025.  Refer to Note 8 to the accompanying Consolidated Condensed Financial Statements for additional information regarding the impairments - 220 basis points

•Higher 2025 core sales, net of the impact of changes in leverage from the Company’s operations and administrative cost structure and the impact of product mix - 45 basis points

Third quarter 2025 vs. third quarter 2024 operating profit margin comparisons were unfavorably impacted by:

•Incremental dilutive effect