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Jun 28, 2025
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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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