Labcorp Holdings Inc.

Good day and thank you for standing by. Welcome to the Q2 2025 LabCorp Holdings Earnings Conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Christa O'Donnell, Vice President of Investor Relations. Please go ahead.

Thank you, operator. Good morning and welcome to LabCorp's second quarter 2025 conference call. As detailed in today's press release, there will be a replay of this conference call available. With me today are Adam Schechter, Chairman and Chief Executive Officer, and Julia Wong, Executive Vice President and Chief Financial Officer. This morning in the Investor Relations section of our website at .labcorp.com, we posted both our press release and an Investor Relations presentation with additional information on our business and operations, which include a reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures, both of which are discussed during today's call. Please see the Use of Adjusted Measures section in our Press Release and Investor Relations presentation for more information regarding our use of non-GAAP financial measures. Additionally, we are making forward-looking statements. These forward-looking statements include, but are not limited to, statements with respect to the estimated 2025 guidance and the related assumptions, the projected impact of various factors on the company's businesses, operating and financial results, cash flows and or financial condition, including global economic and market conditions, future business strategies, expected savings, benefits and synergies from the LaunchPad Initiative and from acquisitions and other strategic transactions and partnerships, the completed holding company reorganization and opportunities for future growth. Each of the forward-looking statements is subject to change based upon various factors, many of which are beyond our control. More information is included in our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q and in the company's other filings with the SEC. We have no obligation to provide any updates to these forward-looking statements, even if our expectations change. Now I'll turn the call over to Adam Schechter.

Thank you, Kristin, and good morning, everyone. We appreciate you joining us today to discuss our second quarter financial results and progress on our strategy. During the quarter, we delivered double-digit top-line growth and solid margin expansion. Our financial results reflect continued strength of our diagnostic laboratories business and momentum in our biopharma laboratory services business. Enterprise revenue reached $3.5 billion, representing 10% growth versus last year. Diagnostics revenue grew 9%, reaching $2.7 billion, driven equally by organic growth and acquisitions. Margin improved slightly, including the impact from Invitek. And Invitek continues to perform very well and remains on track. BLS delivered strong revenue performance and grew 11% or 8% constant currency to $785 million, while margins improved 50 basis points. Central laboratories grew 8% or 4% constant currency, and early development grew 20% or 18% constant currency. Importantly, the quarterly book to bill was strong at 1.18, with a trailing 12 months of 1.11. Enterprise margin improved 20 basis points, and adjusted earnings per share of $4.35 grew 10% year over year. Based upon our performance year to date and our expectations for the second half of the year, we are raising our enterprise guidance. Julie will provide more details on our results and full year 2025 outlook in just a moment. But first, I'll highlight how our strategy is continuing to enable our growth and our leadership in the industry. First, in our diagnostic laboratory segment, one of our objectives is to be the partner of choice for health systems and regional local laboratories. By focusing on these customers, we've expanded our presence in hospitals, we've strengthened customer relationships, and we've brought in patient access in key geographies, which helps improve patient outcomes and also accelerate growth. Through technology solutions, such as LabCorp Diagnostic Assistant, we've been able to provide data and analytics and important insights to our customers. Many of these customers are thought leaders in specialty areas, and our collaboration with them mutually benefits our collective scientific expertise. In the quarter, we announced acquisitions and partnerships with several health systems and regional local laboratories, including acquiring key clinical and anatomic pathology assets from Insight Diagnostics in the Pacific Northwest, extending our long-term agreement with UHealth, the University of Miami Health System, to serve as their preferred laboratory partner. Progressing our acquisition of select oncology and clinical testing assets from BioReference Health, the transaction is on track to close in the second half of 2025. And subsequent to quarter end, we announced an agreement to acquire select assets of the outreach business from community health systems across 13 states. CHS is one of the largest healthcare companies in the United States. Looking ahead, we have a strong deal pipeline, and we look forward to sharing our progress in the coming quarters. Second, we continue to launch new and innovative tests in our specialty-focused areas, including oncology, women's health, neurology, and autoimmune diseases. This focus has helped to accelerate our growth in those categories, as well as across our core testing portfolio, as physicians utilize our broad test menu to meet the comprehensive needs of these patients. We have leading expertise, both scientifically and in the marketplace in these areas, which also complements our BLS business. We partner with many pharmaceutical and biotechnology companies as they develop novel therapeutics, as well as products which require companion diagnostics. In the second quarter, we made important progress, launching innovative tests in specialty areas, and introducing new capabilities to our customers. We expanded our oncology portfolio with new solutions for cancer detection, diagnosis, and monitoring. Key launches include expansion of our MRD portfolio through Blackport Plasma Detect, a liquid biopsy test that assesses colon cancer recurrence risk, and PDX, ileoplasma-focused DX, the first and only FDA authorized pan-solid tumor liquid biopsy test for targeted treatment guidance. We continue to advance our leading position in Alzheimer's disease, and plan to offer Fuji Revio's FDA-cleared biomarker test that aids in diagnosing the disease in the coming weeks. We also expanded our consumer offerings. We launched several consumer-initiated tests through LabCorp on-demand, including tests that measure an individual's cortisol and leptin levels. We also introduced a new and improved OVIA app, providing women with a single platform to support their health journey. We introduced LabCorp Whole Health Solutions for functional medicine, integrative medicine, and primary care practices. The solution offers specialized test panels and a test menu of more than 1,000 scientifically-backed biomarkers for cardiometabolic health, hormones, micronutrients, longevity, and wellness. Finally, our central laboratory business added digital pathology capabilities, including advanced image scanning to preserve critical sample data and AI-powered solutions to provide analysis on large data sets instantly. These enhancements complement our existing global anatomic pathology capabilities, our full-service tissue-based testing, and our companion diagnostic development across cancer, MASH, and other diseases. And third, we are focused on enhancing customer and employee experiences and leveraging technology to drive ongoing operational and process efficiencies. We're using digital technologies and AI to drive improvements in areas such as Net Promoter Score, our large-span initiatives, and margins. We expect to see continued benefits as we incorporate technology across our business. To summarize, we delivered very strong results in the quarter and continue to make significant progress on our strategy. We remain committed to delivering sustained value to our customers, our employees, and our shareholders. With that, I'll turn the call over to Julia to discuss our financial results and 2025 outlook in further retail.