Quest Diagnostics

Balance sheet supports resilience and M&A. As of December 31, 2024, total debt was about 6.2 billion dollars and cash about 0.55 billion dollars; by September 30, 2025, total debt declined to roughly 5.7 billion dollars with cash about 0.43 billion dollars, implying net debt around 5.2 billion dollars.

Operating income in 2024 was approximately 1.35 billion dollars with solid interest coverage, and 2025 cash from operations guidance was raised to about 1.8 billion dollars with around 0.5 billion dollars capex, for implied FCF near 1.3 billion dollars. Dividend coverage is comfortable and repurchases are discretionary.

The model is capital light relative to revenue, and cash conversion is strong. Leverage is moderate for a stable, high-visibility business. Key watch items are reimbursement resets in 2027 and integration of acquired assets.