Financial Data and Key Metrics Changes - In Q3 2025, total revenue was $144 million, flat year over year on a reported basis and down 2% on an organic basis [17][19] - Adjusted EBITDA margin expanded by approximately 260 basis points year over year to 12.3%, reflecting operational turnaround efforts [9][18] - Free cash flow for the quarter was $15 million, driven primarily by improved working capital [18] Business Line Data and Key Metrics Changes - Sample Management Solutions (SMS) revenue was $78 million, down 4% year over year on a reported basis and down 6% on an organic basis, primarily due to softer bookings and timing delays [20] - Multiomics segment delivered revenue of $66 million, up 4% on a reported basis and up 3% on an organic basis, driven by growth in next-generation sequencing [21][22] - Non-GAAP gross margin for SMS was 53.6%, up 760 basis points year over year, while Multiomics gross margin was 42.6%, down approximately 500 basis points year over year [20][23] Market Data and Key Metrics Changes - China posted 10% organic growth in the Multiomics segment despite macro and geopolitical headwinds [22] - The company anticipates a 1% headwind to full year 2025 revenue due to reductions in NIH funding levels [10][90] Company Strategy and Development Direction - The company is focused on long-term value creation and operational turnaround, with key growth priorities including strengthening commercial excellence and investing in R&D [6][7] - The Azenta Business System (ABS) is being leveraged to enhance operational efficiency and drive growth [8][68] - The company plans to prioritize investments in gross margin productivity, organic growth offerings, and strategic M&A opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management remains committed to full year 2025 guidance of organic revenue growth between 3% to 5% and adjusted EBITDA margin expansion of 300 basis points [9][25] - The company is optimistic about capitalizing on opportunities arising from the current dynamic environment [11] - Management noted that the operational improvements have allowed them to reaffirm guidance despite external challenges [11] Other Important Information - The company ended the quarter with $550 million in cash and no outstanding debt, positioning it well for future investments [12][24] - An Investor Day is planned for later in the calendar year to discuss achievements and outlook [13] Q&A Session Summary Question: Guidance for fiscal 2025 and thoughts on fiscal 2026 - Management indicated confidence in a step-up in Q4 due to momentum in NGS and sufficient backlog, with a commitment to 5% to 8% CAGR for fiscal 2026 [29][34] Question: Weakness in SMS core products - Management clarified that there are no cancellations, but orders are being pushed out due to capital equipment purchase delays [35][36] Question: Gene synthesis headwinds - Management noted softness in gene synthesis from pharma accounts but expects improvements in Q4 [39][40] Question: Q4 revenue expectations - Management highlighted a seasonal step-up from Q3 to Q4 and strong funnel visibility, indicating confidence in achieving revenue targets [44][46] Question: Leadership changes impact - Management discussed new commercial leadership in North America and positive early signs from the regional model [48][50] Question: M&A funnel focus - Management emphasized a disciplined approach to M&A, focusing on core biorepositories and multiomics opportunities [52][54] Question: NIH funding headwinds - Management maintained a consistent view on NIH funding as a 1% headwind but expressed optimism about potential increases in funding [89][90]

Core Insights - The company reported a revenue of 68.8 billion for 2024, a year-on-year decrease of 7.28%, and a net profit attributable to shareholders of 2.84 billion, down 3.54%, slightly below expectations [1] - The company focuses on high-quality development and digital transformation, reducing emphasis on scale growth due to the long-term slowdown in the traditional infrastructure industry [4] Financial Performance - In Q4, the company achieved a revenue of 25.9 billion, a decline of 5.06%, with a net profit of 1.342 billion, down 7.54% [1] - The core construction business generated a revenue of 57.2 billion in 2024, accounting for 83% of total revenue, with a gross margin of 6.96%, an increase of 0.03 percentage points [2] - The overall expense ratio for 2024 increased by 0.06 percentage points to 8.94%, with specific rates for sales, management, R&D, and financial expenses showing varied changes [3] Business Segmentation - Revenue from digital information services grew significantly, with a year-on-year increase of 27% to 4.0 billion, and a gross margin of 17%, up 1.7 percentage points [2] - The company signed new orders with an 8% year-on-year increase, indicating a focus on quality regions, with 65% of revenue coming from Shanghai and 90% from the Yangtze River Delta, Guangdong, Hong Kong, Macau, and Singapore [1] Future Outlook - The company aims for a revenue and profit growth of 5-10% in 2025, supported by favorable cash flow and a high dividend payout ratio, with a projected dividend yield of 5.25% based on the closing price of 6.09 yuan on April 25 [1] - Profit forecasts for 2025-2027 are adjusted to 2.98 billion, 3.12 billion, and 3.26 billion, reflecting a downward revision due to the anticipated slowdown in revenue growth [4] - The target price is set at 9.24 yuan, based on a segmented valuation approach, maintaining a "buy" rating [4]