Labcorp Holdings Inc.

Good day, and thank you for standing by. Welcome to the Q4 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 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Kristen O'Donnell, Vice President of Investor Relations. Please go ahead.

Thank you, operator. Good morning and welcome to LabCorp's fourth 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, 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 business and operations, which includes 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 2026 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 and expected savings, benefits and synergies from acquisitions and other strategic actions and partnerships, 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, Kristen, and good morning, everyone. We appreciate you joining us to review our fourth quarter and full year 2025 performance and our outlook for 2026. 2025 was a very strong year for LabCorp, with over 7% top-line growth, 13% adjusted EPS growth, and with margins also improving by over 50 basis points. With the momentum that we have, we expect strong underlying business performance in 2026. As we look back at 2025, we made significant progress across our strategic priorities. We deepened our partnerships with health systems and regional local laboratories by signing or closing 13 deals. The transactions we have closed in this area over the past three years have contributed to growth of more than $1 billion in revenue and has expanded access to our broad portfolio of routine and specialty testing. In the fourth quarter, we entered into an agreement to acquire select outreach laboratory services from Parkview Health. We completed our acquisition of select outreach assets from community health systems, and we acquired select anatomic pathology assets from Insight Diagnostics. Subsequent to the quarter, we completed our acquisition of select assets of Empire City Laboratories. We continue to have a very robust pipeline of opportunities, and we look forward to updating you on our progress. We also advanced our leadership and specialty testing with providers, health systems, and pharmaceutical clients. They're increasingly turning to us for more complex and innovative laboratory testing. In fact, esoteric testing grew double digits last year. And when physicians choose LabCorp for specialty testing, they tend to use LabCorp for all of that patient's testing needs. This will continue to be a key growth engine, including in our central laboratory business, where utilization of specialty testing in clinical trials continues to increase. In 2025, we launched more than 130 new tests. The majority of those were in strategic and high-growth areas, including oncology, women's health, neurology, and autoimmune disease. We also successfully integrated in VTAG, expanding our leadership in genetic testing solutions. Recently, we added several new specialty tests. In January, we expanded access to MRD testing for stage 1 through 3 breast cancer, stage 1 through 3A non-small cell lung cancer, and stage 3 colon cancer to help detect recurrence earlier than traditional imaging. In oncology, we now offer comprehensive and advanced testing capabilities with over 450 tests for many types and stages of cancer. We also advance our leadership in neurology and launched the first FDA-cleared blood test for Alzheimer's disease assessment in the primary care setting. This will enable broader access and better and more timely patient care. And in consumer health, we saw strong growth as consumers looked to take more control of their health and wellness. Last year, LabCorp OnDemand continued to expand and now offers tests for over 200 biomarkers in categories like men's and women's health, cancer screenings, sexual health, and longevity. In the quarter, On Demand launched new tests for food allergies, micronutrients, and thyroid health. We also continue to make significant progress through technology and AI-powered solutions to accelerate innovation, to improve quality, to enhance customer experience, and to operate more efficiently. For example, we launched AI and automation in areas such as pathology, psychology, and microbiology. Recently, we announced that LabCorp became the first US commercial laboratory to enter in an agreement to implement Roche's fully automated mass spectrometry solution. In addition, we improved the customer experience in several areas. AI-powered solutions simplified appointment scheduling and results reporting for consumers. Our AI test finder experience for physicians helps them find the right lab test in seconds, freeing up time for patient care. And LabCorp's Global Trial Connect will help to accelerate clinical trials for investigator sites and for sponsors. Finally, we announced a strategic investment to build a new central laboratory facility to support growth and demand. which will enable us to deliver more integrated, connected experience for customers. Construction of the new state-of-the-art 500,000 plus square foot laboratory and kit production facility is expected to begin later this year. Our strategic focus and disciplined execution drove strong financial results in 2025. In the fourth quarter, enterprise revenue increased 6%. Margins improved 120 basis points, and adjusted EPS grew 18 percent. Diagnostics revenue increased 6 percent, with organic growth of over 4 percent. Central laboratory revenue increased 11 percent, or 8 percent constant currency, and as expected, early development revenue declined. The biopharma laboratory services segment book to bill in the quarter reached 1.16, and the trailing 12 months was also strong at 1.09. Our central laboratory business saw strong demand, underscored by wins in oncology, neurology, and also in cardiometabolic studies. Free cash flows from continuing operations were $490 million. Based upon the momentum of our business, going into 2026. We expect full-year enterprise revenue growth of 5.4% at the midpoint of our guidance, improved margins across both segments, and adjusted EPS growth of approximately 9%. This outlook reflects the delay of PAMA through December 31, 2026. While we are pleased by the delay, permanent reform is necessary, and we will continue to advocate for the passage of the Results Act this year. Finally, Mark Schroeder, Executive Vice President and President of Diagnostics and Chief Operations Officer, and Sandy Vanderaart, Executive Vice President, Chief Legal Officer, and Corporate Secretary, will be retiring April 1st. It has been a privilege to work with Mark and Sandy. They have made extraordinary contributions shaped our strategy, developed strong talent, and strengthened our ability to deliver on our mission. Their successors have been appointed following a thoughtful succession plan, and we look forward to introducing them to you in the coming months and as we plan for an investor day later in the year. With that, I'll turn the call over to Julia to discuss our financial results and 2026 outlook in greater detail.