Bio-Techne(US:TECH)2026-02-04 21:31Financial Performance - Consolidated net sales for the quarter ended December 31, 2025 were $295.9 million, remaining flat compared to the same prior year period, with a 1% decrease for the six months ended December 31, 2025 at $582.4 million [115]. - Organic revenue for the quarter ended December 31, 2025 remained flat, with a favorable foreign currency exchange impact of 2% and an unfavorable impact of 2% from non-recurring prior year revenue from a business held-for-sale [115]. - Consolidated gross margins for the quarter and six months ended December 31, 2025 were 64.6% and 65.1%, respectively, compared to 65.3% and 64.3% for the same prior year periods [116]. - Non-GAAP adjusted net earnings for the quarter ended December 31, 2025 were $72.1 million, with diluted earnings per share of $0.46, compared to $68.1 million and $0.42 in the prior year [127]. Expenses and Cost Management - Selling, general and administrative expenses decreased by 6% to $113.7 million for the quarter and by 4% to $229.9 million for the six months ended December 31, 2025, primarily due to ongoing cost management initiatives [119]. - Research and development expenses decreased by 8% to $23.1 million for the quarter and by 3% to $47.4 million for the six months ended December 31, 2025, while continuing to make strategic growth investments [120]. Segment Performance - Protein Sciences segment net sales for the quarter ended December 31, 2025 were $215.1 million, a 2% increase, while remaining flat for the six months at $417.3 million [121]. - Diagnostics and Spatial Biology segment net sales for the quarter ended December 31, 2025 were $81.2 million, a 4% decrease, with an operating margin of 10.4% compared to 3.9% in the prior year [123]. Taxation - The effective income tax rate for the quarter and six months ended December 31, 2025 was 25.2% and 22.9%, respectively, compared to 18.6% and 17.5% for the same prior year periods [125]. - The forecasted tax rate for the remainder of fiscal 2026 is expected to range from 25% to 29% [126]. - The non-GAAP adjusted tax rate for the quarter ended December 31, 2025, was 22.3%, compared to 21.5% in the same quarter of 2024 [129]. Cash Flow and Capital Management - As of December 31, 2025, cash and cash equivalents were $172.9 million, an increase from $162.2 million as of June 30, 2025 [130]. - The company generated $110.0 million from operating activities in the six months ended December 31, 2025, down from $148.2 million in the same period of 2024, primarily due to changes in cash payment timing [133]. - Capital expenditures for fixed assets for the six months ended December 31, 2025, were $11.3 million, compared to $16.0 million in 2024, with an expected $18 million for the remainder of fiscal 2026 [135]. - The company paid cash dividends of $24.9 million during the six months ended December 31, 2025, slightly down from $25.4 million in 2024 [138]. - The company made repayments of $86.0 million on its long-term debt during the six months ended December 31, 2025, compared to $19.0 million in the same period of 2024 [140]. - The company has a line-of-credit of $740 million available as of December 31, 2025, governed by a Credit Agreement maturing on August 31, 2027 [130]. - The company expects to meet its cash and working capital requirements for at least the next 12 months through available cash and generated cash from operations [132]. Acquisitions - The company acquired 19.9% of Wilson Wolf for $232 million in fiscal 2023, with a future obligation to acquire the remaining 80.1% by December 31, 2027, contingent on financial milestones [131]. Asset Management - The company received $4.6 million for assets held-for-sale during the six months ended December 31, 2025, compared to $1.8 million in 2024 [137].