Charles River(US:CRL)2025-11-05 12:16Revenue Performance - Third-quarter revenue for Charles River Laboratories was $1.00 billion, a decrease of 0.5% from $1.01 billion in Q3 2024[1] - Organic revenue declined by 1.6%, with lower revenue in the Discovery and Safety Assessment (DSA) and Manufacturing Solutions segments, partially offset by growth in the Research Models and Services (RMS) segment[2] - Total revenue for the three months ended September 27, 2025, was $1,004,852,000, a slight decrease of 0.1% compared to $1,009,763,000 for the same period in 2024[26] - Reported revenue growth for the total company in Q3 2025 was a decrease of 0.5%, with the RMS segment growing by 7.9% while the DSA and MS segments declined by 2.3% and 3.1%, respectively[36] - For the nine months ended September 27, 2025, reported revenue growth was a decrease of 0.9%, with the RMS segment growing by 2.4% and the DSA and MS segments declining by 2.0% and 0.8%, respectively[36] Income and Earnings - GAAP net income for Q3 2025 was $54.4 million, or $1.10 per diluted share, down from $68.7 million, or $1.33 per diluted share in Q3 2024[3] - Non-GAAP net income decreased by 10.0% to $120.3 million, with diluted earnings per share of $2.43, a decrease of 6.2% from $2.59 in Q3 2024[4] - Net income attributable to Charles River Laboratories for the three months ended September 27, 2025, was $54,422,000, a decrease of 22% from $69,657,000 in the same period last year[26] - Basic earnings per share for Q3 2025 was $1.11, down from $1.34 in Q3 2024, while diluted earnings per share was $1.10 compared to $1.33 in the prior year[34] - Basic earnings per share, excluding non-GAAP adjustments, was $2.45 for Q3 2025, compared to $2.60 in Q3 2024, indicating a decrease of 5.8%[34] Segment Performance - RMS segment revenue increased by 7.9% to $213.5 million, with organic revenue growth of 6.5% driven by large research model products[6] - DSA segment revenue decreased by 2.3% to $600.7 million, with organic revenue down 3.1% due to lower sales volume[8] - Manufacturing segment revenue decreased by 3.1% to $190.7 million, with organic revenue down 5.1% primarily from lower revenue in CDMO and Biologics Testing[10] - Discovery and Safety Assessment revenue decreased to $600,685,000 for the three months ended September 27, 2025, down from $615,060,000 for the same period in 2024, a decline of 2.3%[29] - Manufacturing Solutions revenue decreased to $190,693,000 for the three months ended September 27, 2025, down from $196,879,000 for the same period in 2024, a decline of 3.1%[30] Guidance and Projections - The company updated its 2025 guidance, narrowing revenue growth expectations to a range of (1.5)% to (0.5)%[12] - Non-GAAP EPS estimate for 2025 is now projected at $10.10 to $10.30, up from the previous range of $9.90 to $10.30[13] Cash Flow and Assets - Cash flows from operating activities for the nine months ended September 27, 2025, were $590,126,000, compared to $575,215,000 for the same period in 2024[28] - Total current assets increased to $1,532,104,000 as of September 27, 2025, from $1,403,071,000 as of December 28, 2024[27] - Long-term debt, net and finance leases, decreased to $2,185,453,000 as of September 27, 2025, from $2,240,205,000 as of December 28, 2024[27] - Cash and cash equivalents increased to $207,097,000 as of September 27, 2025, from $194,606,000 as of December 28, 2024[27] Investment Activities - The company experienced a net cash used in investing activities of $116,514,000 for the nine months ended September 27, 2025, compared to $168,982,000 in the prior year[28] - The company reported a gain of $20.201 million from venture capital and strategic equity investments in Q3 2025, compared to a loss of $2.507 million in Q3 2024[34] Operating Performance - Operating income for the nine months ended September 27, 2025, was $308,602,000, down 21.9% from $395,034,000 in the previous year[26] - The company reported an operating income of $133,799,000 for the three months ended September 27, 2025, which is 13.3% of revenue, compared to 11.6% for the same period in 2024[30] - Non-GAAP operating income for the total company was $197,725,000, which is 19.7% of revenue for the three months ended September 27, 2025, compared to 19.9% for the same period in 2024[30] Strategic Focus - The company remains focused on differentiating itself through innovative solutions and unlocking value in drug development and manufacturing programs[5] - The company intends to continue assessing the potential value of reporting non-GAAP results consistent with applicable rules and regulations[30]