Charles River(US:CRL)2026-02-18 12:13Revenue Performance - Fourth-quarter revenue was $994.2 million, a decrease of 0.8% from $1,002.5 million in Q4 2024[1] - Full-year revenue for 2025 was $4.02 billion, down 0.9% from $4.05 billion in 2024, with a 1.6% decline on an organic basis[13] - Total revenue for the three months ended December 27, 2025, was $994.2 million, a decrease of 0.3% compared to $1,002.5 million for the same period in 2024[32] - Service revenue for the twelve months ended December 27, 2025, was $3.25 billion, down from $3.30 billion in 2024, reflecting a decline of approximately 1.6%[32] - Total revenue for the twelve months ended December 27, 2025, was $4,015.4 million, a slight decrease from $4,049.9 million in the previous year[37] - Total revenue growth for the three months ended December 27, 2025, reported a decline of 0.8%[43] - For the twelve months ended December 27, 2025, total revenue growth was down 0.9%, with the RMS Segment growing by 2.0%[43] Segment Performance - The DSA segment revenue was $591.6 million in Q4 2025, a decrease of 2.0% from $603.3 million in Q4 2024[8] - The Manufacturing segment revenue was $196.4 million in Q4 2025, an increase of 0.7% from $194.9 million in Q4 2024[11] - The RMS segment revenue for 2025 was $846.1 million, an increase of 2.0% from $829.4 million in 2024[16] - RMS Segment revenue grew by 1.0% for the same period, while DSA Segment and MS Segment reported declines of 2.0% and 0.4%, respectively[43] - The DSA Segment reported a 2.6% decline in non-GAAP organic revenue growth for the twelve months[43] Earnings and Losses - GAAP loss per share for Q4 2025 was $(5.62), compared to a loss of $(4.22) per share in Q4 2024[3] - Non-GAAP earnings per share for Q4 2025 were $2.39, a decrease of 10.2% from $2.66 in Q4 2024[4] - The company reported a net loss of $276.3 million for the three months ended December 27, 2025, compared to a net loss of $214.5 million for the same period in 2024[32] - Operating income (loss) for the three months ended December 27, 2025, was $(283.4) million, compared to $(167.7) million in the same period of 2024[32] - The net loss available to common shareholders for the three months ended December 27, 2025, was $(276.6) million, compared to $(215.7) million in the same period last year[41] Impairments and Charges - The company incurred an intangible asset impairment charge of $211.0 million for the three months ended December 27, 2025[32] - The company recognized a goodwill impairment charge of $165.0 million in fiscal year 2025, following a triggering event due to a loss of key customers[38] - Intangible asset impairment charges totaled $210.9 million, with $102.0 million related to the RMS Cell Solutions asset group and $108.9 million to the Manufacturing CDMO Gene Therapy asset group[38] - The company reported a goodwill impairment of $165,000 thousand for the twelve months ended December 27, 2025, compared to $215,000 thousand in the previous year[35] Future Expectations - The company expects organic revenue growth to return in the second half of 2026, driven by positive DSA booking trends[20] - Non-GAAP EPS for 2026 is projected to increase by approximately 4% to 9% due to cost savings and a lower tax rate[20] - The 2026 revenue guidance indicates growth of at least flat to +1.5%, with organic revenue expected to be (1.0)% to at least flat[22] - Future expectations include the impact of foreign exchange, interest rates, and enhanced efficiency initiatives on revenue growth[29] Financial Position - Total assets decreased to $7,135,422 thousand as of December 27, 2025, from $7,528,345 thousand as of December 28, 2024, representing a decline of approximately 5.2%[34] - Total current liabilities increased to $1,120,315 thousand as of December 27, 2025, from $994,101 thousand as of December 28, 2024, marking an increase of approximately 12.7%[34] - The total equity of Charles River Laboratories decreased to $3,169,931 thousand as of December 27, 2025, from $3,466,952 thousand as of December 28, 2024, a decline of approximately 8.6%[34] - Cash flows from operating activities provided $737,646 thousand for the twelve months ended December 27, 2025, slightly up from $734,577 thousand in 2024[35] - Cash, cash equivalents, and restricted cash at the end of the period increased to $215,997 thousand from $205,570 thousand, reflecting a net change of $10,427 thousand[35] Non-GAAP Measures - The company plans to continue assessing the potential value of reporting non-GAAP results to provide investors with a clearer understanding of core operating results[27] - The company emphasizes the importance of non-GAAP financial measures for understanding core operating results and future prospects[43] - Non-GAAP operating income as a percentage of revenue for the Research Models and Services segment was 21.9% for the three months ended December 27, 2025, down from 22.8% in the same period of 2024[36] - Non-GAAP operating income for the twelve months ended December 27, 2025, was $768.8 million, representing 19.8% of revenue, compared to 19.9% in the prior year[41] - Non-GAAP adjustments to operating income for the twelve months ended December 27, 2025, amounted to $764.1 million, up from $575.3 million in the previous year[41] - Non-GAAP operating income as a percentage of revenue for the three months ended December 27, 2025, was 32.1%, an increase from 28.7% in the prior year[37] Inventory and Supply Chain - The company incurred $27 million in inventory charges related to non-human primate supply chain issues in fiscal year 2024[38]