10-K · February 19, 2025
Charles River reports FY2024 revenue of $4,049,989,000 with operating income of $227,347,000 and diluted EPS of $0.20, while generating strong operating cash flow of $734,577,000 (free cash flow approx. $501,610,000…
Earnings analysis · 10-Q
CRL earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
Charles River Laboratories reported Q1 2026 revenue of $995.8 million, exceeding estimates, but faced a significant GAAP net loss attributable to shareholders of $14.8 million due to substantial divestiture losses.…
Read full summary
Charles River Laboratories reported Q1 2026 revenue of $995.8 million, exceeding estimates, but faced a significant GAAP net loss attributable to shareholders of $14.8 million due to substantial divestiture losses. Segment performance varied, with growth in Manufacturing offset by declines in Research Models and Services. The company's operating cash flow decreased significantly, indicating ongoing pressures despite positive revenue trends.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.06
- Operating margin
- 12.0%
- Segment
- Research Models and Services (RMS)
- Segment
- Discovery and Safety Assessment (DSA)
- Segment
- Manufacturing Solutions (Manufacturing)
What stood out
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Revenue Exceeds Estimates
Q1 2026 revenue reached $995.8 million, surpassing the estimate of $976.2 million and representing a year-over-year growth of 1.2%.
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EPS Beats Expectations
The company reported a diluted EPS of $2.06, exceeding the estimate of $1.95 by 5.6%.
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Manufacturing Segment Growth
Manufacturing revenue increased by 6.8% to $190.5 million, driven mainly by Microbial Solutions.
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Operating Margin Improvement
Operating income increased significantly to $119.9 million, which represents a margin of 12.0%, up from 7.6% in the prior year.
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Major Asset Divestitures
Completed divestiture of CDMO and Cell Solutions businesses, resulting in a pre-tax loss of $118 million.
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Cost Savings Initiatives
Management anticipates generating $300 million in annualized cost savings by the end of 2026.
What to watch
-
Substantial GAAP Net Loss
The company recorded a net loss of $14.8 million, a decline from a profit of $25.5 million in Q1 2025, primarily impacted by divestiture losses.
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Declining Cash Flows
Operating cash flows dropped to $41.1 million from $171.7 million year-over-year, largely due to increased variable compensation payments.
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Increased Debt Levels
Total debt rose to $2.67 billion from $2.12 billion, raising concerns about liquidity and leverage.
Management's outlook
2026 guidance reaffirmed with expectations of revenue decline between -5.5% to -4.0%.
Earlier filings 4
10-Q · May 9, 2024
Charles River reported revenue of $1,011.6M for the quarter, down 1.7% year-over-year, while operating income fell 25.0% to $126.0M and operating margin compressed 380 bps to 12.5%. Performance was driven by weakness in…
10-K · February 14, 2024
Charles River (CRL) describes a strategy of offering an integrated drug discovery and non-clinical development platform across three reportable segments (RMS, DSA, Manufacturing) and augmenting organic growth with…
10-Q · November 8, 2023
Charles River reported Q3 revenue of $1,026,623,000, up $37,466,000 or 3.8% year-over-year, with operating income essentially flat at $151,502,000 (14.8% of revenue). DSA drove growth while Manufacturing declined; net…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.