Summary of Earnings Call Records Company Overview - The company discussed in the earnings call is CRL, which operates in the biopharmaceutical industry, particularly focusing on DSA (Drug Substance and Analytical) services and other related segments. Key Financial Highlights - 1Q25 overall revenue was $984 million, a year-over-year decline of 2.7%, with organic revenue (excluding currency effects, acquisitions, and divestitures) down by 1.8%, which was better than the previously expected single-digit decline [1][2] - Non-GAAP Operating Margin (OM) was 19.1%, an increase of 0.6 percentage points year-over-year [1] - Non-GAAP EPS was $2.34, reflecting a year-over-year increase of 3.1% [1] DSA Segment Performance - DSA segment revenue for 1Q25 was $590 million, with organic revenue down 1.4% year-over-year [2] - New orders in the DSA segment reached $620 million in 1Q25, a quarter-over-quarter increase of 20%, with netb2b exceeding 1 for the first time since 2022H2, indicating a recovery in order backlog [2] - The company raised its full-year guidance for the DSA segment, now expecting a low single-digit decline in revenue, improved from a previously anticipated mid-high single-digit decline [2] Industry Insights - Approximately 25% of the company's revenue comes from large molecules, with around 10% from monoclonal antibodies and 15% from other large molecules. The recent FDA regulations aimed at reducing animal testing are expected to have a minimal short-term impact on performance [1] - The company remains cautious regarding the potential impacts of budget cuts from NIH/FDA, Q1 financing conditions, and tariffs [2] Other Business Segments - RMS (Research Model Services) revenue for 1Q25 was $210 million, with organic revenue down 2.5%, aligning with previous expectations. Growth in small animal model sales, primarily due to price increases, was a key driver [2] - Manufacturing segment revenue for 1Q25 was $180 million, with organic revenue down 2.2% [2] - The company anticipates a full-year organic revenue decline of 4.5% to 2.5%, revised from a previous forecast of 5.5% to 3.5% [3] Conclusion - The overall sentiment in the industry remains cautious, but there are no signs of further deterioration. The company is adjusting its expectations based on current market conditions and performance trends [2][3]