Loading...
•
Jun 28
Charles River Labs Q2 2025 Earnings Report
Charles River Laboratories reported its second-quarter 2025 financial results, with revenue of $1.03 billion and GAAP earnings per share of $1.06.
Key Takeaways
Charles River Laboratories delivered a solid second-quarter financial performance, with revenue reaching $1.03 billion, a slight increase of 0.6% year-over-year. The company reported GAAP EPS of $1.06 and non-GAAP EPS of $3.12, demonstrating progress towards organic revenue growth, particularly driven by favorable results in the Discovery and Safety Assessment (DSA) segment. Operating margins improved on a non-GAAP basis across all segments, partially offset by higher unallocated corporate costs.
Second-quarter revenue was $1.03 billion, a 0.6% increase from the prior year, with foreign currency translation positively impacting reported revenue by 1.2%.
GAAP earnings per share were $1.06, a decrease from $1.74 in Q2 2024, primarily due to higher amortization expense, restructuring costs, and legal/advisory fees.
Non-GAAP earnings per share increased by 11.4% to $3.12, driven by operating margin improvements across all segments and lower diluted shares outstanding due to stock repurchases.
The company updated its 2025 guidance, increasing its full-year outlook for revenue and non-GAAP EPS, reflecting better-than-expected Q2 results, especially in the DSA segment.
Charles River Labs
Charles River Labs
Charles River Labs Revenue by Segment
Revenue by Segment
Research Models and Services Revenue
CapyFin.comDiscovery and Safety Assessment Revenue
CapyFin.comManufacturing Solutions Revenue
CapyFin.com Forward Guidance
Charles River Laboratories is updating its 2025 financial guidance, increasing its full-year outlook for revenue and non-GAAP earnings per share, primarily due to better-than-expected second-quarter results, especially in the DSA segment, and a more favorable foreign exchange impact.
Positive Outlook
- Increased full-year revenue growth guidance to (2.5)% – (0.5)% from (5.5)% – (3.5)%.
- Increased full-year non-GAAP EPS estimate to $9.90 – $10.30 from $9.30 – $9.80.
- Better-than-expected second-quarter financial results, particularly in the DSA segment.
- More favorable impact from foreign exchange expected for the full year.
- Biopharmaceutical demand is stabilizing, and small and mid-sized biotech companies are showing consistent demand trends.
Challenges Ahead
- Reported revenue growth for the full year is still projected to be negative.
- Organic revenue growth for the full year is projected to be negative, ranging from (3.0)% to (1.0)%.
- GAAP EPS estimate for the full year has been slightly lowered to $4.25 – $4.65 from $4.35 – $4.85.
- Higher acquisition-related amortization and other acquisition- and integration-related costs are anticipated (~$3.60 vs. ~$3.50 previously).
- Increased costs associated with restructuring actions are expected (~$1.40 vs. ~$1.00 previously).