Company: DHR
Filing Date: 2025-10-21
Form Type: 10-Q
Source: 0000313616-25-000182
Chunk: 159

Company: DANAHER CORP /DE/
Filing Date: 2025-10-21
Form: 10-Q
Item: Item 2
Chunk 159
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 2025 vs. third quarter 2024 operating profit margin comparisons were favorably impacted by:

•Higher third quarter 2025 core sales and improvements in leverage in the segment’s operational and administrative cost structure, net of the impact of product mix - 170 basis points

34

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

•Third quarter 2025 impairment charge related to a trade name - 60 basis points

•Third quarter 2025 impact of a product line disposition which did not qualify as discontinued operations - 10 basis points

Operating profit margin decreased 120 basis points during the nine-month period ended September 26, 2025 as compared to the comparable period of 2024.  The following factors unfavorably impacted year-over-year operating profit margin:

•The impact of product mix and currency exchange rates, net of higher 2025 core sales and improvements in leverage from the segment’s operational and administrative cost structure - 85 basis points

•First nine months of 2025 impairment charge related to a trade name - 20 basis points

•First nine months of 2025 impact of a product line disposition which did not qualify as discontinued operations - 15 basis points

COST OF SALES AND GROSS PROFIT

Three-Month Period EndedNine-Month Period Ended($ in millions)September 26, 2025September 27, 2024September 26, 2025September 27, 2024Sales$6,053 $5,798 $17,730 $17,337 Cost of sales(2,530)(2,397)(7,173)(7,021)Gross profit$3,523 $3,401 $10,557 $10,316 Gross profit margin58.2 %58.7 %59.5 %59.5 %

Cost of sales increased year-over-year during both the three and nine-month periods ended September 26, 2025 as compared to the comparable periods in 2024.  The increase during both periods was primarily due to the impact of higher year-over-year sales volumes, currency exchange rates and product mix.  The increase during the nine-month period also reflected a $15 million impairment charge related to a facility in the Biotechnology segment.  These increases were partially offset by a $25 million acquisition-related charge associated with the fair value adjustment to inventory recorded in the first nine