Neogen (NasdaqGS:NEOG) Q1 2026 Earnings Call October 09, 2025 08:00 AM ET Company ParticipantsMike Nassif - CEODave Naemura - CFOBob Labick - PresidentBill Waelke - VP of Investor Relations and TreasuryConference Call ParticipantsBrandon Vazquez - Equity Research AnalystSubbu Nambi - Senior AnalystDavid Westenberg - Senior Research Analyst and Managing DirectorTom DeBourcy - Principal and Senior Equity Research AnalystOperatorGood morning, ladies and gentlemen, and welcome to Neogen Corporation's first quar ...

Summary of Stanley Black & Decker FY Conference Call Company Overview - **Company**: Stanley Black & Decker (NYSE: SWK) - **Date of Conference**: September 11, 2025 Key Points Leadership Changes - Chris Nelson will transition from COO to CEO in October, while Don Allan will become Executive Chair [2] - The company emphasizes a strong organic growth strategy and transformation focus [2][3] Brand Strategy - The company is prioritizing investments in three key brands: DEWALT®, STANLEY®, and CRAFTSMAN®, which collectively account for over 75% of revenue [4][5][11] - This strategy aims to enhance brand resonance with end users and improve productivity and safety [4][5] Brand Performance - DEWALT® has shown strong growth, while STANLEY® and CRAFTSMAN® are expected to improve with focused investments [6][8] - CRAFTSMAN® is being retooled to better target DIY consumers [7][8] Innovation and Workforce - The company is focusing on product innovation in carpentry, concrete, plumbing, and electrical categories [9][10] - Over 400 customer-facing employees have been added to support sales and field service [9][10] Market Dynamics - The company aims to outgrow the market by 2% to 3% above real GDP growth, targeting a growth rate of 4% to 6% [14][15] - The competitive landscape includes several players, with the company and TTI brands each holding about 12% market share [15][16] Financial Performance - Gross margins are recovering, with a target of reaching 35% in the future, although tariffs have delayed this by about 12 months [18][20] - The company anticipates achieving around 31% gross margin for the full year 2025, with plans for further improvements through price increases and tariff mitigation [20][21] Tariff Impact - Tariffs have introduced approximately $800 million in annualized costs, which the company plans to mitigate through pricing strategies and supply chain adjustments [20][21][32] - The company is working to optimize its supply chain to reduce reliance on China and enhance USMCA compliance [30][36] Market Conditions - The pro market remains resilient, while the consumer market is under pressure, with fluctuations in point-of-sale (POS) performance [22][23] - The company expects that certainty in tariffs and interest rates could positively impact market conditions [23][24] Future Outlook - The company is preparing for a potentially volatile macroeconomic environment in 2026, focusing on maintaining gross margins and cash flow [38][39] - Plans for divestiture of certain assets, particularly in the fastener business, are ongoing, with expectations to monetize these assets in late 2025 or early 2026 [40][41] Strategic Considerations - The company is committed to maximizing shareholder value and is evaluating its portfolio composition to ensure alignment with growth strategies [41][42] Additional Insights - The company is focused on maintaining pricing discipline while competing on innovation and product support [15][29] - There is a recognition of the need for multi-nodal manufacturing capabilities to adapt to changing global trade dynamics [36][37]

Financial Data and Key Metrics Changes - The company reported a 3.5% growth in the first half of the year, with expectations of normalizing to about 2.5% growth due to order timing adjustments [48][49] - For the second half, the company anticipates a growth rate of approximately 1.5%, normalizing to about 2.5% as well, aligning with the full-year guidance of 2% to 3% [49][50] - The purification and filtration divestiture is expected to provide a 25% to 30% annual benefit, with a significant portion of the EPS benefit realized in the fourth quarter [17][19] Business Line Data and Key Metrics Changes - The MedSurge business experienced a headwind in Q2 but is expected to accelerate in the second half, particularly in advanced wound care [49][50] - The dental segment has launched three new products this year, leading to strong traction and expectations for accelerated growth in the latter half of the year [36][38] Market Data and Key Metrics Changes - The company is focusing on attractive markets for innovation, leveraging its capabilities in material science and data science to drive growth [12][13] - The dental market is seeing a transformation with new product launches that are expanding market share and improving patient experience [38][39] Company Strategy and Development Direction - The company is undergoing a significant transformation in three phases: focusing on mission, talent, and culture; strategic alignment; and future transformation through portfolio rationalization [4][6] - The company aims to optimize its portfolio continuously, evaluating whether assets belong with them or should be divested [23][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving free cash flow guidance of $450 to $550 million despite a slow start in the first half due to timing issues [52][53] - For 2026, management anticipates tailwinds from commercial improvements and new product launches, while also acknowledging headwinds from SKU rationalization [55][56] Other Important Information - The company has made significant changes in leadership and talent within the MedSurge business to address past underperformance [14][15] - The partnership with Ensemble in revenue cycle management is expected to enhance the company's position in autonomous coding technology [42][46] Q&A Session Summary Question: How should we think about Q3 and Q4 in terms of cadence? - The company expects a normalization of growth rates in the second half, with specific improvements in advanced wound care and dental segments [49][50] Question: Can you talk about your confidence in achieving your free cash flow guidance? - Management is confident in meeting the guidance, with action plans in place to address the slow start in the first half [52][53] Question: What are your comments around valuations and the marketplace for tuck-in deals? - The company acknowledges that while attractive assets are not inexpensive, they will maintain a disciplined approach to acquisitions [35] Question: What are your expectations for pricing in 2025 and 2026? - The company expects pricing to be flat to plus 1%, focusing on sustainable volume growth rather than maximizing price [66][68]

Financial Data and Key Metrics Changes - Global market growth in dollar terms is stabilizing at around 2% to 2.5%, below the long-term average of 3% to 4% [2] - North America shows 2% to 3% dollar growth with very little volume growth, primarily driven by price mix [2] - The impact of tariffs has been reduced from a $1 billion growth impact to approximately $750 million [20] Business Line Data and Key Metrics Changes - The China business has shown positive momentum with the first positive growth dot in the last quarter, indicating a potential positive trajectory [3][5] - Europe is currently flat, but there is potential for slight volume growth combined with innovation-based pricing to return to positive growth [17][19] Market Data and Key Metrics Changes - The promotional environment in the U.S. is stable, with pockets of heavy promotion investment to gain short-term volume share [10][11] - Retail inventory levels in the U.S. are expected to remain relatively stable, with no significant negative adjustments anticipated [6][7] Company Strategy and Development Direction - The company is focused on driving innovation and market growth in both volume and dollar terms as a primary strategy [3] - There is a commitment to lean into challenges rather than pull back on investment and innovation [30] - The organizational redesign aims to enhance integrated decision-making and reduce internal transaction costs [52] Management's Comments on Operating Environment and Future Outlook - The operating environment is characterized as stable but challenging, with a need to drive innovation to stimulate market growth [2][24] - Management expresses confidence in the innovation pipeline and its ability to drive growth, particularly in Europe and the U.S. [17][19][31] Other Important Information - The company is implementing Supply Chain 3.0, focusing on optimizing end-to-end value chains and leveraging technology for productivity improvements [56][57] - Employee morale is high, particularly in facilities utilizing automation, indicating a positive work environment [61] Q&A Session Summary Question: What is the current operating environment and category growth? - The operating environment is stable, with global market growth stabilizing at around 2% to 2.5% [2] Question: How is the China business performing? - The China business is on a positive trajectory, with recent interventions paying dividends [5] Question: What are the expectations regarding retail inventory adjustments in the U.S.? - Retail inventory levels are expected to remain stable, with no significant negative adjustments anticipated [6][7] Question: How is the promotional environment evolving in the U.S.? - The promotional environment is stable, with some areas seeing increased promotional investment [10][11] Question: What is the impact of tariffs on pricing? - The impact of tariffs has been reduced, and pricing strategies are being paired with innovation [20][12] Question: What is the focus of the organizational redesign? - The redesign aims to enhance integrated decision-making and reduce internal transaction costs [52][53]

Financial Data and Key Metrics Changes - Global market growth in dollar terms is stabilizing at around 2% to 2.5%, below the long-term average of 3% to 4% [2][3] - North America shows 2% to 3% dollar growth with very little volume growth, primarily driven by price mix [2] - The impact of tariffs has been revised from a $1 billion growth impact to approximately $750 million [21] Business Line Data and Key Metrics Changes - The China business has shown positive momentum with the first positive growth dot in the last quarter, indicating a potential positive trajectory [5][6] - Europe is experiencing flat growth, but there is potential for slight volume growth combined with innovation-based pricing [17][18] Market Data and Key Metrics Changes - The promotional environment in the U.S. is stable, with pockets of heavy promotion to gain short-term volume share, but overall value share gains are not expected [11][12] - Retail inventory levels in the U.S. are expected to remain stable, with no significant negative adjustments anticipated in Q1 [7][8] Company Strategy and Development Direction - The company is focused on driving innovation and market growth in both volume and dollar terms as a primary strategy [3][4] - There is a commitment to not react to short-term promotional pressures but to maintain integrated superiority across product offerings [11][12] - The organizational redesign aims to enhance decision-making speed and quality by creating smaller, integrated teams [50][53] Management's Comments on Operating Environment and Future Outlook - The operating environment is characterized as stable but challenging, with a need to drive innovation to stimulate market growth [2][3] - Management expresses confidence in the innovation pipeline and its ability to drive growth, particularly in Europe and the U.S. [17][18][20] - The company acknowledges the volatility in the market and emphasizes the importance of maintaining pricing strategies that align with innovation [13][14] Other Important Information - The company is committed to investing in integrated superiority despite market challenges, with a focus on innovation and productivity improvements [27][29] - Supply Chain 3.0 initiatives are being implemented to optimize end-to-end value chains, with significant improvements expected in productivity and quality [59][60] Q&A Session Summary Question: How has the promotional environment in the U.S. changed? - The promotional environment remains stable, with some areas seeing increased promotional investment to gain short-term volume share, but this does not lead to sustained value share gains [11][12] Question: What is the outlook for pricing in light of tariff impacts? - The company expects to offset tariff impacts primarily through pricing strategies, with a focus on innovation-based pricing rather than just cost increases [21][14] Question: How is the company addressing competition from smaller brands? - The company acknowledges the presence of smaller brands but emphasizes that the majority of growth will come from its core brands, which still have significant room for growth [46][48]

SharkNinja (SN) FY Conference Summary Company Overview - SharkNinja operates in 37 product categories, including traditional items like vacuum cleaners and blenders, as well as innovative products like ice cream makers and espresso machines [2][4] - The company emphasizes consumer-centric innovation as a core strategy for growth [2][4] Financial Performance - SharkNinja reported a strong quarter with double-digit top-line growth each year since going public [4] - The company aims for a 14% top-line growth midpoint for the current year, following a 32% growth last year [39] Innovation Strategy - SharkNinja launches approximately 25 new products annually, focusing on creating product franchises rather than one-off hits [20][27] - The company uses consumer insights to guide product development, ensuring features align with consumer value [9][10] - Recent successful innovations include the slushy maker, which exceeded initial expectations and is seen as part of a broader franchise strategy [30][32] Supply Chain and Tariff Management - SharkNinja has been transitioning U.S. production out of China, aiming for 90% by the end of Q2 2025 and nearly 100% by year-end [15][18] - The company has invested in supply chain efficiency and cost management to mitigate tariff impacts, focusing on value engineering and consumer insights [8][13] International Expansion - The UK is the largest international market, with recent shifts to direct distribution models in Mexico and plans for further expansion in Europe [33][38] - SharkNinja is moving from a distributor model to owning distribution in several European countries, which is expected to enhance revenue and margins [36][38] Market Position and Consumer Health - SharkNinja does not compete at the low or high ends of the market but focuses on innovation and price value [51][52] - The company has not observed a slowdown in consumer spending, despite broader market concerns, and believes that innovation will help sustain its position during economic fluctuations [53] Key Takeaways - SharkNinja's growth strategy is built on three pillars: maintaining a strong base business, launching new products, and expanding internationally [39][43] - The company sees significant potential for growth in international markets and new product categories, indicating a robust outlook for future expansion [46][50]

Financial Data and Key Metrics Changes - Adjusted EBITDA was $113 million, down 19% year over year, or 10% excluding portfolio actions, driven by lower organic sales and production volume [7][15] - Sales for Q3 were $463 million, down 15% year over year, including a $53 million impact from portfolio optimization [14] - Adjusted EPS, excluding acquisition amortization, was $1.04, down 30% from the prior year [16] - Adjusted EBITDA margin was 24.4%, down 120 basis points [15] Business Line Data and Key Metrics Changes - Life Sciences sales were $162 million, down 17% year over year, primarily due to portfolio optimization initiatives [19] - Personal Care sales were $147 million, down 16% year over year, driven by portfolio optimization actions [25] - Specialty Additives sales declined 13% to $131 million, with organic sales and volumes both down 11% [30] - Intermediates generated $33 million in sales, down from $36 million in the same period last year [22] Market Data and Key Metrics Changes - Demand patterns remain mixed across the portfolio, with pharma steady and recovering, while personal care shows encouraging signs [42] - Specialty additives and intermediates are still facing headwinds, particularly in China [43] - Approximately 85% of the portfolio is tied to consumer end markets, many of which are non-cyclical and more resilient [11] Company Strategy and Development Direction - The company has completed its portfolio optimization and restructuring program, which remains ahead of schedule [12] - Focus on cost savings and operational discipline to support strong margins [6] - The company aims to drive differentiation and margin-accretive growth through innovation [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term opportunities despite current mixed demand [42] - The company is monitoring regulatory developments and does not anticipate a material direct impact on fiscal year results from tariff-related uncertainties [44] - Management highlighted the importance of maintaining a disciplined capital allocation strategy while focusing on productivity and innovation [49] Other Important Information - The company generated nearly 100% free cash flow conversion in the quarter, demonstrating the strength of its underlying business [8] - Liquidity at quarter end was over $800 million, providing flexibility for strategic investments [17] Q&A Session Summary Question: Insights on fiscal year 2026 and market recovery - Management discussed the cleaner portfolio and stable demand expected in personal care and pharma, with potential upside in specialty additives depending on market conditions [54][56] Question: Clarification on cost savings and restructuring - Management confirmed that restructuring and network optimization actions are complete, with expected savings flowing through to the P&L [78][80] Question: Stability in personal care markets - Management noted stability in mass brands, while the prestige segment has shown variability, particularly in biofunctional actives [70][72] Question: Near-term sales guidance and segment performance - Management indicated expectations for a sales increase in Q4 driven by specific portfolio activities, particularly in personal care and pharma [95][98]

Core Viewpoint - The successful listing of the Amova E Fund ChiNext Index ETF on the Singapore Exchange (SGX) provides investors with a new channel to capitalize on growth opportunities driven by innovation in China [1][2] Group 1: Product Overview - The Amova E Fund ChiNext Index ETF is the first Singapore ETF hedged in Singapore dollars, offering exposure to high-growth, innovative companies listed on the Shenzhen Stock Exchange [1] - The ETF is managed by Nikko Asset Management and focuses on key industries that drive China's economic transformation towards high value-added sectors, including technology, healthcare, and advanced manufacturing [1] Group 2: Market Context - The launch of this ETF aligns with the increasing market interest in China's innovation and growth themes, enhancing the range of A-share ETFs available under the SGX and Shenzhen Stock Exchange mutual fund scheme [2] - The ChiNext Index targets the 100 largest and most liquid growth companies in China, closely aligned with national strategic priorities such as digitalization, green energy, and industrial upgrading [1] Group 3: Impact on SGX - The successful listing of the Amova E Fund ChiNext Index ETF increases the total number of ETFs listed on SGX to 48, with total assets under management (AUM) exceeding 14 billion Singapore dollars [2]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1.67 billion, representing a 6% increase reported and 5.3% core growth year-over-year [9][27] - Operating margin was 25.1%, absorbing some incremental tariff costs, and EPS was $1.31, growing 7% compared to Q2 2024 [9][33] - Gross margin was 54.1%, down from the previous year due to tariffs, currency, and product mix [31] Business Line Data and Key Metrics Changes - The Agilent CrossLab Group reported revenue of $713 million, growing 9%, driven by double-digit growth in consumables and automation [28] - Life Sciences and Diagnostics Market Group revenue was $654 million, growing 3%, with high single-digit growth in pathology and NASD [29] - Applied Markets Group revenue was flat at $300 million, with growth in spectroscopy offset by declines in gas chromatography [29] Market Data and Key Metrics Changes - All regions experienced growth: Americas grew low single digits, EMEA grew mid single digits, and China led with 10% growth [12] - India delivered high teens growth, prompting the opening of a new solution center [13] - Environmental and forensics grew 6% globally, driven by strong demand for PFAS testing [15] Company Strategy and Development Direction - The company is executing its three-year Ignite transformation strategy, focusing on operational efficiency and tariff mitigation [11][20] - Agilent acquired BioVectra for approximately $1 billion to expand CDMO capabilities [20] - The company is committed to innovation, launching new products in cell analysis and chromatography [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth prospects despite macroeconomic uncertainties [26] - The company is maintaining its core growth rate guidance of 2.5% to 3.5% for the year [26][35] - Management highlighted the importance of strategic pricing initiatives to mitigate tariff impacts [21][88] Other Important Information - The company is tracking over 350 regulations globally related to PFAS testing, anticipating significant market growth by 2030 [16] - Operating cash flow was $221 million, with capital expenditures of $114 million [33] - The company ended the quarter with a net leverage ratio of 1, indicating a strong balance sheet [33] Q&A Session Summary Question: Order trends in the quarter - Management noted that orders grew low single digits in Q2, with stable business across regions and no significant pull forward from pharma tariffs [50][51] Question: Expectations for NASD and BioVectra - Management expressed confidence in double-digit growth for NASD in the second half of the year, supported by strong order visibility [56] Question: Impact of tariffs on consumables - The $15 million pull forward in consumables was driven by customer actions in response to high tariff rates, with no overall revenue impact expected [64][65] Question: Differences in ordering patterns in pharma - The majority of business is on the QAQC and development side, with small molecule growth of 10% in the quarter [72] Question: PFAS regulation impacts - PFAS testing grew 75% year-over-year, with expectations for continued strong results despite regulatory uncertainties [74] Question: Reshoring and capacity build-outs - Discussions with pharma customers regarding reshoring are still in early stages, with potential tailwinds expected in the next 2-3 years [84] Question: Pricing strategies - The company has established enterprise pricing capabilities and is on track for approximately 100 basis points of price realization for the year [88][90]

Financial Data and Key Metrics Changes - The company authorized an additional $7.5 billion in shares for its accelerated buyback program, representing 21% of outstanding equity [3][4] - Operating cash flows reached over $141 million, the highest for the first quarter, with free cash flows totaling $107 million for the quarter and $620 million for the trailing twelve months [12] - The company has successfully reduced its leverage from three times to two times over the past two years, maintaining a strong balance sheet [12] Business Line Data and Key Metrics Changes - The residential segment saw growth primarily due to outdoor products, with margins holding well [16] - The commercial foodservice business experienced success from investments in the ice and beverage platform, although muted buying levels from major chain customers offset some gains [14] - Food processing revenues dropped due to customer-driven delivery delays, but the company anticipates higher sequential revenue in Q2 [15][19] Market Data and Key Metrics Changes - The company is facing tariff-related costs estimated to increase annual expenses by approximately $150 million to $200 million, with a significant portion attributed to foreign-sourced componentry from China [6][18] - The company expects to offset tariff impacts by the end of the year through operational actions and pricing adjustments [7][18] Company Strategy and Development Direction - The company plans to separate its food processing business into a standalone public company by early 2026, aiming to unlock shareholder value and enhance strategic focus [4][5] - The company is focusing on market expansion opportunities in adjacent markets such as poultry, pet foods, and snacks [5][22] - Strategic investments have been made to drive sustainable long-term growth, particularly in automation, digital technologies, and IoT connectivity [8][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenging market conditions affecting major chain customers but remains optimistic about sequential revenue increases throughout the year [17][20] - The company is confident in its ability to navigate tariff challenges and believes it is well-positioned to capitalize on market opportunities [7][45] - The long-term outlook for the food processing segment remains bullish, with a robust pipeline of opportunities [21][24] Other Important Information - The company plans to hold a dedicated Shareholder Day in Q4 to present further details on the strategic roadmap for the food processing business [6] - The company has received multiple industry awards for its innovative products, highlighting its commitment to innovation [10][99] Q&A Session Summary Question: 2025 sales guidance and segment outlook - Management indicated that the full-year outlook is primarily driven by the commercial segment, with expectations for improvement over the year despite current challenges [30][32] Question: Buyback decision rationale - The buyback decision was influenced by the company's strong cash flow, balance sheet position, and belief that the current share price does not reflect the business's strength [39][41] Question: Tariff impact and share gains - Management expressed confidence in offsetting tariff costs through operational initiatives and highlighted opportunities for share gains due to a strong U.S. manufacturing footprint [44][46] Question: Segment-level tariff cost allocation - The estimated tariff impact is weighted more towards commercial (approximately 70%), followed by residential (20%), and food processing (10%) [53] Question: Revenue outlook and new store openings - Management expects sequential improvement in revenue for Q2 and noted that new store openings are anticipated to be higher in the second half of the year [62] Question: Competitive pricing landscape - The company has observed competitors implementing price increases ranging from 10% to 25%, while it plans a mid-single-digit increase [83]