Mesa Labs Announces Third Quarter Results

Core Insights - Mesa Laboratories, Inc. reported strong performance in its third fiscal quarter of FY 2025, with significant growth in revenues, orders, and adjusted operating income (AOI) while reducing debt levels [3][4][5] Financial Performance - Total revenues for 3Q25 reached $62,840, marking a 17.5% increase compared to 3Q24, driven by 12.6% organic growth and 4.9% from the GKE acquisition [4][8] - AOI excluding unusual items grew by 13.3% year-over-year to $14,788, representing 23.5% of total revenues [5][8] - Operating income increased dramatically by 8,725% to $5,779, although the company reported a net loss of $1,676 due to unrealized foreign currency losses and interest expenses [8][21] Division Performance - Sterilization and Disinfection Control (SDC) generated revenues of $23,507 with core organic growth of 8.2% [9] - Calibration Solutions (CS) saw revenues of $14,429, achieving core organic growth of 18.9% [10] - Biopharmaceutical Development (BPD) revenues reached $12,237, with a core organic growth of 31.3% driven by increased capital spending [11] - Clinical Genomics (CG) reported revenues of $12,667, with a modest core organic growth of 1.9% [12] Strategic Initiatives - The GKE acquisition is expected to contribute significantly to organic growth starting in 4Q25, with initial revenues exceeding expectations [4][9] - The company aims to reduce its total Net Leverage Ratio below 3.0x by the end of 2Q26, having reduced it to 3.20 in 3Q25 [3][8] Market Outlook - The company anticipates continued year-over-year core revenue growth in 4Q25, supported by solid sales funnels and backlog [6] - Potential challenges include adapting to new U.S. policies and economic conditions, particularly in Europe [6]