BRKR Bruker 10-Q 2026-09-30 section summaries

Bruker Corporation — Q3 and nine months ended September 30, 2026

Amounts in $ millions, except per-share data and where noted.

Consolidated results

Revenue grew 1.6% in Q3 and 3.1% for 9M. Service revenue drove most of Q3’s increase, while product revenue was nearly flat. Gross profit increased despite modest revenue growth, but substantial goodwill impairments and other operating charges drove larger operating losses. Q3 other operating charges included $18.0 million of acquisition-related expenses; Q3 2025 included a $43.7 million gain from acquisition-related hybrid-liability adjustments.

Segment results (quarter only)

The reportable segments were reorganized effective July 1, 2026, with prior periods recast. BSI BIOS and BEST operating income improved; BSI BMID operating income declined, while BSI NANO revenue was lower but operating income rose.

Cash flow and capital spending (nine months)

Operating cash flow improved despite the net loss; noncash asset-impairment addbacks were $368.5 million, versus $147.5 million. Cash paid for interest was $43.4 million, down from $50.2 million. Financing included $186.3 million of long-term debt repayments and $115.0 million of revolver repayments, partly offset by $230.0 million of revolver proceeds.

Balance sheet, liquidity and shares

Net intangible assets comprised existing technology and patents of $421.5 million, customer relationships of $398.8 million, trade names of $37.1 million and other intangibles of $1.8 million. Total debt included $1,699.5 million of notes and loans and $13.9 million of finance leases. Revolver borrowings were $115.0 million at a 1.12% weighted-average rate; $783.9 million remained available under the $900.0 million facility due January 2029. Bruker was in compliance with its financial covenants. September amendments provided temporary additional flexibility in leverage calculations, including a capped quarterly reduction of $150 million in the covenant’s indebtedness measure.

Impairments, acquisitions and other drivers

The $309.4 million of 9M goodwill impairments included $211.0 million in BSI NANO’s BSB&CA reporting unit ($36.5 million in Q2 and $174.5 million in Q3, eliminating its remaining goodwill) and $98.4 million in BSI BIOS’s CST unit, also eliminating its remaining goodwill. BSB&CA’s Q3 charge followed worsening competition and results below expectations; CST’s charge reflected lower revenue and cash-flow forecasts. Management cautioned that further impairment is possible. Valuations use Level 3 assumptions, including discount rates of 11.0%–14.0% for BSB&CA and 13.5% for CST.

Acquisitions included Tofwerk ($74.0 million), Mimetas ($60.7 million) and other acquisitions ($7.1 million); total consideration was $141.8 million, net of $21.8 million cash acquired. Bruker acquired the remaining 60% of Tofwerk and 94% of Mimetas; acquired businesses contributed $32.8 million of revenue and $2.6 million of pretax losses through September 30. Remeasurement of Bruker’s former Tofwerk interest generated a $12.2 million Q1 gain. Mimetas expanded the company’s organ-on-a-chip and microphysiological research offerings.

Minority-investment impairments were $40.3 million for 9M, including $34.6 million related to NovAliX. Separately, an investee’s IPO-related fair-value accounting produced $37.3 million of 9M unrealized gains. Interest and other income, net, was $7.0 million for 9M, compared with $38.1 million of expense in 2025; this included investment and derivative valuation effects. Total derivatives had a $155.7 million net fair-value liability at quarter-end, compared with $252.0 million at year-end.

Commitments and potential dilution

Remaining performance obligations were $2,776.2 million, versus $2,569.4 million at year-end; most are expected to convert to revenue within 12 months, though installation and customer-readiness requirements make timing variable. Revenue is historically highest in Q4 and lowest in Q1.

Bruker had 2.76 million Series A mandatory convertible preferred shares outstanding, with $693.6 million aggregate liquidation preference and a 6.375% annual cumulative dividend rate if declared. Unless converted or redeemed earlier, they automatically convert in September 2028 at 6.9534–8.5179 common shares per preferred share, or approximately 19.2–23.5 million common shares before adjustments. Stock-based compensation was $17.7 million for 9M, versus $17.4 million; $58.6 million of unrecognized pre-tax compensation expense was expected to be recognized over a weighted-average 3.0 years.

Bruker (BRKR) — Part I, Item 2

Bruker’s Q3 2026 revenue grew modestly, while gross profit and adjusted profitability improved. The results were sharply affected by goodwill impairments and other charges, widening GAAP losses. Management cited cost savings and favorable Q3 mix as margin supports; academic/government demand and China remained areas of weakness.

Consolidated results

Amounts in $ millions, except margins.

Q3 revenue increased 1.6%; 9M revenue increased 3.1%. Gross margin expanded 500 basis points in Q3 and 240 basis points in 9M. Management attributed improvement to cost savings, lower restructuring costs and favorable Q3 mix. For 9M, higher volume and a favorable net U.S. tariff impact helped, partly offset by unfavorable mix, higher purchased-intangible amortization and foreign exchange. Non-GAAP results exclude significant restructuring, acquisition/integration, IT-transformation, amortization and impairment items.

Segment results

Amounts in $ millions; segment operating income (loss).

BMID revenue was $395.8 million in 9M 2026 versus $373.3 million in 9M 2025, growth of 6.0%, compared with 2.6% in Q3. BIOS 9M revenue was $1,154.8 million versus $1,117.1 million; NANO was $770.4 million versus $775.2 million; and BEST was $223.1 million versus $199.4 million.

BIOS Q3 growth reflected acquisitions, primarily Tofwerk and Mimetas, and stronger industrial and semiconductor demand, partly offset by weaker hospital/clinical and academic/government research revenue; a stronger U.S. dollar reduced Q3 BIOS revenue by about $4.0 million. In 9M, acquisitions contributed $43.0 million, while FX added about $16.0 million. BMID benefited from industrial and pharmaceutical/biotechnology demand, with 9M FX adding about $10.0 million. BEST growth reflected hospital/clinical demand; lower semiconductor and other-market revenue partly offset 9M gains. Geographically, Q3 growth in Europe and North America was partly offset by lower China revenue.

Impairments, other items and outlook risks

Goodwill impairment charges totaled $309.4 million in 9M: $211.0 million for BSB&CA in BSI NANO ($36.5 million in Q2 and $174.5 million in Q3) and $98.4 million for CST in BSI BIOS in Q2. Each charge eliminated the reporting unit’s remaining goodwill. Revised forecasts reflected competitive and market changes, recent performance and lower expected revenue or operating margins. Subsequent tests after the July 1 segment reorganization found no further impairment, but additional impairment remains possible if reporting-unit fair values decline. The non-GAAP reconciliation included goodwill and intangible impairment adjustments of $174.5 million in Q3 and $312.1 million in 9M.

Other charges (gains), net increased year over year, largely because of an unfavorable swing in acquisition-related hybrid-liability adjustments; the 9M comparison also benefited from $24.7 million lower acquisition-related litigation charges. Q3 interest and other expense included a $34.6 million NovAliX investment impairment, partly offset by a $9.7 million unrealized equity-investment gain. 9M included a $37.3 million unrealized equity gain and a $12.2 million gain on remeasurement of the previously held Tofwerk interest. Effective tax rates were 10.1% for Q3 and (3.2)% for 9M, versus 19.6% and 18.4%; deductible BSB&CA impairment drove the Q3 tax benefit, while nondeductible CST impairment affected the 9M provision.

Bruker submitted requests for refunds of IEEPA tariffs paid in FY2025 and Q1 2026, with the majority approved by September 30; approved refunds reduce product costs. The company said tariffs and trade-policy uncertainty have contributed to lower-than-anticipated bookings, revenue and profitability. Other risks include FX, geopolitical tensions, supply constraints, customer readiness and shipment timing, and academic research-budget timing. Effective July 1, 2026, Bruker reorganized reportable segments, combining businesses into BSI BIOS and BMID; prior-period segment information was recast.

Cash flow, debt and liquidity

Amounts in $ millions.

Operating cash flow reflected a $234.4 million use from changes in operating assets and liabilities, net of acquisitions, partly offset by noncash adjustments to the $346.4 million consolidated net loss. Payment timing and lower cash taxes helped working capital, while lower receivable collections offset some benefit. Financing included $186.3 million of debt repayments, $55.8 million of preferred and common dividends, and $115.0 million of net revolver proceeds; prior-year financing included preferred-stock issuance.

At September 30, 2026, cash and cash equivalents were $119.7 million, including $75.6 million held by foreign subsidiaries, and outstanding debt was $1.7 billion. Bruker was in compliance with debt covenants and had a $900.0 million revolving facility, with potential incremental capacity of up to $400.0 million. Management expects cash and available credit to support needs for at least 12 months, though future financing availability and operating cash generation are not assured.

The September 2025 issuance of 2.76 million Series A mandatory convertible preferred shares had a $690 million aggregate liquidation preference and a 6.375% annual cumulative dividend on the $250-per-share preference. Dividends may be paid in cash, common shares or both; proceeds repaid the December 2026 term loan and revolver borrowings and partially repaid the March 2027 term loan.

As of September 30, 2026, Bruker reported no material change in its exposure to market risk compared with December 31, 2025. Further information on market risks is provided in Item 7A of its 2025 Form 10-K.

Controls and Procedures

As of September 30, 2026, the CEO and CFO concluded that disclosure controls and procedures were effective. Management stated that the unaudited condensed consolidated financial statements fairly present, in all material respects, the company’s financial condition, results of operations, and cash flows in conformity with GAAP.

No changes during the quarter ended September 30, 2026 materially affected, or were reasonably likely to materially affect, internal control over financial reporting.

Bruker’s 10-Q identifies no specific new risk factors and refers investors to the risks described in its 2025 Form 10-K. The company cautions that the risks discussed in the 10-Q and 10-K are not exhaustive: risks or uncertainties that are currently unknown or considered immaterial could still materially adversely affect its business, financial condition, or operating results.

For the quarter ended September 30, 2026, no Bruker Corporation directors or officers informed the company that they had adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement. This section contains no financial results or other business developments.