Charles River Laboratories reported a challenging fourth quarter and full year 2025 with declining revenues and non-GAAP EPS, primarily due to weakness in the Discovery and Safety Assessment (DSA) and Manufacturing Solutions (Manufacturing) segments. Significant GAAP impairments also impacted reported results. The company provided cautious 2026 guidance, anticipating a return to organic revenue growth in the second half of the year, driven by strategic initiatives and expected improvements in the biopharmaceutical demand environment.
Non-GAAP operating margin in Manufacturing Solutions segment increased to 32.1% from 28.7% in Q4 2024, driven by cost savings from restructuring initiatives.
positiveFull-year 2025 non-GAAP operating margin was 19.8%, a slight decrease from 19.9% in 2024, indicating relative stability in core operational profitability.
neutralSubstantial improvement in DSA net bookings in the fourth quarter demonstrates stabilization of the biopharmaceutical demand environment.
positiveFourth-quarter revenue decreased 0.8% to $994.2 million, with organic revenue declining 2.6% driven by DSA and Manufacturing segments.
negativeFull-year 2025 revenue decreased 0.9% to $4.02 billion, with organic revenue declining 1.6%.
negativeFourth-quarter GAAP loss per share was $(5.62), a significant deterioration from $(4.22) in the prior year, impacted by substantial non-cash impairments.
negativeFull-year 2025 GAAP loss per share was $(2.91), a decrease from GAAP earnings per share of $0.20 in 2024.
negativeFourth-quarter non-GAAP diluted EPS decreased 10.2% to $2.39 from $2.66 in Q4 2024, driven by lower revenue and operating margin.
negativeFull-year 2025 non-GAAP diluted EPS decreased 0.4% to $10.28 from $10.32 in 2024.
negativeSignificant non-cash impairments totaling $376.0 million ($211.0M intangible asset impairment and $165.0M goodwill impairment) were recorded in the fourth quarter of 2025.
negativeOrganic revenue in the RMS segment decreased 0.9% due to lower revenue for large and small research models in North America.
negativeOrganic revenue in the DSA segment decreased 3.3%, driven by lower sales volume for discovery and regulated safety assessment services.
negativeOrganic revenue in the Manufacturing segment decreased 2.1%, driven by lower revenue in the CDMO business.
negative2026 guidance anticipates organic revenue growth to be between -1.0% and flat, indicating continued revenue pressure.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Research Models and Services (RMS) | N/A | — | — | — |
Discovery and Safety Assessment (DSA) | N/A | — | — | — |
Manufacturing Solutions (Manufacturing) | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
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.
As we look ahead, we are cautiously optimistic that positive demand trends will continue in 2026.
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