Labcorp Holdings Inc.

Good day and thank you for standing by. Welcome to the Q3 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, Kristen O'Donnell, Vice President of Investor Relations. Please go ahead.

Thank you, operator. Good morning and welcome to LabCorp's third 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 Wang, Executive Vice President and Chief Financial Officer. This morning in the investor relations section of our website at www.labcorp.com, we posted both our press release and an investor relations presentation with additional information on our business operations, which include a reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures. 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 four 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, Kristen, and good morning, everyone. Thank you for joining us today to discuss our third quarter 2025 financial results and progress on our strategy. During the quarter, we delivered strong revenue growth and margin improvement. leading to double-digit EPS growth. Our financial results reflect continued momentum in our diagnostic laboratories and central laboratory businesses. At an enterprise level, revenue increased to $3.6 billion, representing 9% growth compared to last year. Margin for the quarter improved 100 basis points driven by diagnostics. Adjusted EPS grew 19%. and we generated strong free cash flow of $281 million. Moving to our business segments. Diagnostics revenue increased 8.5%, primarily due to strong organic growth of 6%. Margin improved 110 basis points, driven by strong organic demand and Invitae. Invitae was accretive in the quarter and will be slightly accretive for the full year. BLS revenue increased 8% or 5% constant currency. Central Laboratories growth was strong at 10% or 7% constant currency, more than offsetting softness in early development. BLS margin improved 20 basis points and the quarterly book to bill was 0.9 with the trailing 12 months remaining strong at 1.09. In response to the lower than anticipated revenue and early development, we are beginning to divest or restructure through site consolidation approximately $50 million of annual revenue. We will focus these actions on non-core areas, which will result in a more streamlined business and slight improvement to operating income. Julie will provide more details on our results and full year 2025 outlook in just a moment. We continue to make progress in our strategy to be the partner of choice for health systems and regional local laboratories to lead in high growth therapeutic areas and to use science and technology to accelerate growth, to enhance the customer experience, and to improve operational efficiency across our business. Starting with health systems and regional local laboratories, we've added a significant number of strong strategic relationships over the past several years. Through these partnerships and acquisitions, we've expanded our patient provider network, and we've strengthened our presence in key markets. These partnerships have increased access to our broad test menu, they've improved patient care, and they've driven efficiencies for our customers. This quarter, we signed an agreement to acquire select clinical laboratory assets of Empire City Laboratories, which serves the New York tri-state area. We signed an agreement to acquire select assets of Laboratory Alliance of Central New York, a pathology reference laboratory. In parallel, we signed an agreement with Kraus Health to manage their inpatient labs. We expect these transactions to close in the first quarter of 2026. We continue to make progress on the acquisition of select assets of the outreach business from community health systems across 13 states, which we expect to close by year end. We completed our acquisition of select oncology and clinical testing assets from BioRef and Cell. This acquisition further solidifies LabCorp's position as an industry leader in oncology. We continue to have a very robust pipeline of opportunities, and we look forward to updating you on our progress. Additionally, we are expanding our business in high-growth specialty areas, including oncology, women's health, neurology, and autoimmune diseases. These are areas where science, clinical need, the use of genetic testing, and innovation are accelerating. We are experiencing strong growth across these segments, which also increases demand in our core test menu as physicians rely on LabCorp for comprehensive diagnostic solutions. In the quarter, we introduced several innovative testing capabilities. We expanded our leading oncology and genetic testing portfolio. OmniSeq Insight, our comprehensive genomic profile test for solid tumors in support of therapy selection, now evaluates ovarian tumors for HRD. PDDX ileotissue complete, used for therapy selection for pan-solid tumors, became the first and remains the only tissue-based tumor profiling test with CE marking under the European Union's in vitro diagnostic regulation. This enhances our global tissue profiling capabilities in support of clinical trials. Genoscopy received FDA approval for a simplified at-home collection method for PoloSense. for colorectal cancer screening. As a commercial partner, we will be expanding access to this test to patients and providers. We also expanded access to our Vitae genetic test through Epic Aura, enabling streamlined ordering and results delivery for Epic customers. In neurology, where we have one of the most comprehensive test menus in the industry, we expanded our leadership position. We introduced the first blood-based test cleared by the FDA to aid in the diagnosis of Alzheimer's disease in specialty care settings. In early 2026, we're planning to offer the only FDA-cleared blood test to rule out Alzheimer's-related amyloid pathology in a primary care setting. Separately, we continue to experience strong momentum in our consumer business. In the quarter, we launched several consumer-initiated tests through LabCorp OnDemand, including tests for lead exposure, ApoB for heart health, and a panel for healthy aging. LabCorp partnered with Prya Health, a consumer experience platform for health systems, to help close care gaps and to deliver better experiences for patients. Moving now to review our use of science and technology to accelerate growth to enhance the customer experience and to improve operational efficiency. This quarter, we launched LabCorp Test Finder, a generative AI tool developed with Amazon Web Services to improve test selection for providers and health systems. It allows clinicians to easily search for lab tests using plain language, streamlining decision-making and improving care. In our core laboratory operations, We're investing in digital and AI capabilities to improve in areas such as pathology, psychology, and microbiology. Through a collaboration with Roche, we are digitalizing pathology workflows using slide scanners to enhance diagnostic speed and scalability. We've also deployed a new FDA-cleared AI platform for digital psychology that enables remote viewing and rapid analysis of cell-based samples, improving turnaround times. Finally, we're using AI and automation to accelerate microbiology workflows to reduce turnaround times. These are just a few examples where we are using technology, robotics, and AI. We look forward to discussing others in the future. In summary, we delivered a strong quarter and made meaningful progress on our strategy. We have momentum as we finish 2025 and move into 2026. Our focus remains in driving value for both our customers and shareholders. With that, I'll turn the call over to Julia to discuss our financial results and 2025 outlook in greater detail.