Charles River Laboratories International Inc
Q4 2025 Earnings
Market Reaction
Did CRL Beat Earnings? Q4 2025 Results
Charles River Laboratories delivered a modest beat to close out fiscal 2025, with Q4 revenue of $994.23 million edging past the $984.84 million consensus by 0.95%, while non-GAAP EPS of $2.39 cleared the $2.35 estimate by 1.70%, even as both metrics declined from the prior-year period. Revenue slipped 0.8% year-over-year, weighed down by a 2.6% organic decline tied to persistent softness in the Discovery and Safety Assessment and Manufacturing Solutions segments, though foreign currency provided a 1.9% tailwind that cushioned the headline figure. The quarter's most consequential development was $376.00 million in non-cash impairment charges, including $165.00 million in goodwill and $211.00 million in intangible assets tied to the Biologics Solutions and Cell Solutions units, which pushed the company to a GAAP net loss of $276.56 million. Questions about whether leadership changes and planned divestitures can restore durable growth have circulated broadly. Looking to 2026, Charles River guided non-GAAP EPS to $10.70 to $11.20, anticipating a return to organic revenue growth in the second half of the year, supported by strengthening DSA booking trends that emerged late in Q4.
- Substantial improvement in DSA net bookings in Q4 demonstrating stabilization of biopharmaceutical demand
- Foreign currency translation increased reported revenue by 1.9%
- Lower revenue for discovery services and regulated safety assessment services drove DSA organic decline of 3.3%
- Higher study-related direct costs in DSA related to large-model sourcing and staffing
- Unfavorable revenue mix in RMS related to large research models and lower small research model revenue in North America
- Manufacturing segment benefited from cost savings from restructuring initiatives, driving non-GAAP margin improvement to 32.1%
- Lower revenue in CDMO business partially offset by higher Microbial Solutions and Biologics Testing revenue
“We were pleased with our 2025 financial results, including substantial improvement in DSA net bookings in the fourth quarter that demonstrates the stabilization of the biopharmaceutical demand environment. We are making significant progress on several strategic initiatives that will enable the Company to better capitalize on future growth opportunities, and we remain intently focused on scientific innovation that will reinforce our position as the leader in preclinical drug development.”
Charles River Laboratories CEO, on the earnings call
Forward Guidance & Outlook
For 2026, Charles River guides reported revenue growth of at least flat to +1.5%, with organic revenue growth of -1.0% to at least flat (excluding planned divestitures representing ~7% of 2025 revenue). Non-GAAP EPS is expected at $10.70–$11.20, representing ~4%–9% growth, driven by incremental restructuring and efficiency savings, earnings accretion from the K.F. (Cambodia) acquisition, and a lower tax rate. GAAP EPS is guided at $6.30–$6.80. The company expects a return to organic revenue growth in H2 2026 on both a consolidated and DSA segment basis, supported by robust Q4 2025 booking trends and an expectation of continued favorable booking activity. Manufacturing segment organic growth is expected as it anniversaries the loss of a large commercial CDMO client, partially offset by lower RMS revenue due to declining large model revenue and lower Insourcing Solutions/CRADL revenue.
CRL YoY Financials
CRL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.