Bruker (BRKR-Q)

BRKR is a $4.8B life sciences company. It has had a rough year, down 45% YTD and down 53% in one year. Dividend is 0.62%, P/E 16X. Very high debt and disappointing results are the problem here. $2.3B in debt is a massive amount compared with $165M in annual cash flow. Bruker's disappointing 2Q results marked a clear reset, reflecting a prolonged downturn in research and biopharma demand, compounded by macroeconomic uncertainty, US academic funding disruptions and tariff-driven cost inflation materially altering the near-term outlook. A 40% drop in EPS reflects weakness in core markets and the clear need to pivot toward protecting margins, since earlier pricing and productivity gains fell short. The expanded $100-$120 million cost-reduction initiative is a necessary step, though most benefits won't materialize until 2026. Brukers' 4Q ramp-up and outlook for 2026 growth rests on a precarious mix of shrinking backlog conversion, improving order momentum on a still-muted 0.9 book-to-bill and early returns from cost actions, leaving little room for missteps. We would not want to be involved here heading into year end tax selling. 
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