Charles River Laboratories International, Inc. · NYSE:CRL

Charles River Laboratories International — Q4 2025 Earnings Presentation

53 slides from Charles River Laboratories International's earnings presentation, Feb 18, 2026

  1. Slide 1: 4Q 2025 Results & 2026 Guidance

    Charles River Laboratories 4Q 2025 Results & 2026 Guidance February 18, 2026 © 2026 Charles River Laboratories International, Inc.

  2. Slide 2: Safe Harbor

    Safe Harbor Caution Concerning Forward-Looking Statements. This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “in

  3. Slide 3: 2025 Year-in-Review & Market Environment

    2025 Year-in-Review & Market Environment ▪ Pleased that 2025 financial results were at upper ends of revenue and non-GAAP earnings per share ranges that were provided in November ▪ Q4 capped a year marked by: ̶ Stabilization of biopharma demand, including substantial improvements in DSA net bookings

  4. Slide 4: Market Environment – Biotech Funding

    Market Environment – Biotech Funding ▪ Biotech funding environment slowed in 1H25, and we subsequently experienced softer demand from small and mid- sized biotech clients during summer months ▪ However, with a reinvigorated funding environment in 2H25, including a record $28B in 4Q25, biotech client

  5. Slide 5: Strategic Actions Update

    Strategic Actions Update ▪ Made substantial progress on strategic actions outlined in November to unlock long-term shareholder value, including: ̶ Strengthening and refining our portfolio ̶ Maintaining a balanced yet disciplined approach to capital deployment ▪ To strengthen our portfolio, announced

  6. Slide 6: Strategic Actions Update, cont.

    Strategic Actions Update, cont. ▪ Will continue to evaluate additional M&A, including in bioanalysis and geographic expansion, to support clients as they seek to drive greater efficiency and success in their drug development programs ▪ Also focused on continuing to build NAMs portfolio (new approach

  7. Slide 7: Strategic Actions Update, cont.

    Strategic Actions Update, cont. ▪ Also continue to make progress on plan to divest businesses totaling ~7% of 2025 annual revenue ▪ Divestiture processes and negotiations with potential buyers are ongoing ̶ Continue to expect planned divestitures will be completed by middle of 2026 ▪ Expected non-GA

  8. Slide 8: 4Q25 & FY 2025 Revenue

    4Q25 & FY 2025 Revenue ($ in millions, except per Organic Organic share amounts) 4Q25 4Q24 YOY Δ 2025 2024 YOY Δ Δ Δ Revenue $994.2 $1,002.5 (0.8)% (2.6)% $4,015.4 $4,050.0 (0.9)% (1.6)% ▪ 4Q25 revenue declined on an organic basis in all three business segments, driven primarily by lower revenue in

  9. Slide 9: 4Q25 & FY 2025 Operating Margin

    4Q25 & FY 2025 Operating Margin 4Q25 4Q24 YOY Δ 2025 2024 YOY Δ GAAP OM% (28.5)% (16.7)% NM 0.6% 5.6% (500) bps Non-GAAP OM% 18.1% 19.9% (180) bps 19.8% 19.9% (10) bps ▪ 4Q25 non-GAAP operating margin decline principally driven by three anticipated factors: ̶ Lower revenue ̶ Higher staffing and NHP

  10. Slide 10: 4Q25 & FY 2025 EPS

    4Q25 & FY 2025 EPS 4Q25 4Q24 YOY Δ 2025 2024 YOY Δ GAAP EPS $(5.62) $(4.22) (33.2)% $(2.91) $0.20 NM Non-GAAP EPS $2.39 $2.66 (10.2)% $10.28 $10.32 (0.4)% ▪ 4Q25 non-GAAP EPS decrease was due to: ̶ Lower operating margin ̶ Tax rate was a meaningful YOY headwind ▪ For FY 2025, non-GAAP EPS was nearly

  11. Slide 11: DSA Results – Revenue

    DSA Results – Revenue ($ in millions) 4Q25 4Q24 YOY Δ 2025 2024 YOY Δ Revenue, reported $591.6 $603.3 (2.0)% $2,402.9 $2,451.3 (2.0)% (Favorable)/unfavorable impact of FX (1.5)% (0.8)% Impact of divestitures 0.2% 0.2% Revenue growth, organic (3.3)% (2.6)% ▪ 4Q25 revenue decline reflected lower study

  12. Slide 12: DSA Demand KPIs

    DSA Demand KPIs Period Qtr-End Backlog* Net Bookings* Net Book-to-Bill** ($ in billions) ($ in millions) (Quarterly) 4Q25 $1.86 $665 1.12x 3Q25 $1.80 $494 0.82x 2Q25 $1.93 $506 0.82x 1Q25 $1.99 $616 1.04x 4Q24 $1.97 $510 0.85x ▪ Sequential improvement in net book-to-bill principally driven by small

  13. Slide 13: DSA Results – Operating Margin

    DSA Results – Operating Margin 4Q25 4Q24 YOY Δ 2025 2024 YOY Δ DSA GAAP OM% 14.3% 10.4% 390 bps 17.7% 18.1% (40) bps DSA Non-GAAP OM% 20.1% 24.7% (460) bps 24.2% 25.7% (150) bps ▪ Both 4Q25 and FY 2025 non-GAAP operating margin declines were driven by lower revenue and higher costs related to increa

  14. Slide 14: RMS Results – Revenue

    RMS Results – Revenue ($ in millions) 4Q25 4Q24 YOY Δ 2025 2024 YOY Δ Revenue, reported $206.3 $204.3 1.0% $846.1 $829.4 2.0% (Favorable)/unfavorable impact of FX (1.9)% (0.8)% Revenue growth, organic (0.9)% 1.2% ▪ 4Q25 organic decline primarily driven by lower NHP revenue and lower sales volume of

  15. Slide 15: RMS 2025 – Revenue, cont.

    RMS 2025 – Revenue, cont. ▪ In small research models business, lower North American sales volume in 4Q25 reflected that in-house research by large pharma and mid-sized biotech clients has not fully recovered ▪ Revenue from academic and government accounts remained very stable, but the growth rate ha

  16. Slide 16: RMS Results – Operating Margin

    RMS Results – Operating Margin 4Q25 4Q24 YOY Δ 2025 2024 YOY Δ RMS GAAP OM% (33.6)% 6.7% NM 5.3% 13.8% (850) bps RMS Non-GAAP OM% 21.9% 22.8% (90) bps 24.8% 23.7% 110 bps ▪ 4Q25 non-GAAP operating margin primarily impacted by lower revenue for small models in North America and an unfavorable revenue

  17. Slide 17: Manufacturing Results – Revenue

    Manufacturing Results – Revenue ($ in millions) 4Q25 4Q24 YOY Δ 2025 2024 YOY Δ Revenue, reported $196.4 $194.9 0.7% $766.4 $769.3 (0.4)% (Favorable)/unfavorable impact of FX (2.8)% (1.2)% Revenue growth, organic (2.1)% (1.6)% ▪ Lower 4Q25 and FY 2025 organic growth rates primarily driven by lower C

  18. Slide 18: Manufacturing Results – Operating Margin

    Manufacturing Results – Operating Margin 4Q25 4Q24 YOY Δ 2025 2024 YOY Δ Manufacturing GAAP OM% (115.9)% (93.6)% NM (24.0)% (9.3)% NM Manufacturing Non-GAAP OM% 32.1% 28.7% 340 bps 28.8% 27.4% 140 bps ▪ Segment non-GAAP operating margin continued to improve and move closer to 30% level in 2025, driv

  19. Slide 19: Concluding Remarks – CEO Succession Plan

    Concluding Remarks – CEO Succession Plan ▪ Chair, President & CEO Jim Foster announced planned retirement in January, effective at the conclusion of Annual Meeting of Shareholders on May 5th ̶ Will remain on CRL Board of Directors after retirement ▪ Closing remarks from Jim Foster: ̶ Leading the ext

  20. Slide 20: Concluding Remarks – CEO Succession Plan, cont.

    Concluding Remarks – CEO Succession Plan, cont. ▪ Closing remarks from Jim Foster, cont.: ̶ We have made tremendous progress over the last 12 months: from NAMs and NHP supply, to the biopharma demand environment, to our strategic review ̶ Therefore, it’s the right time to transition the Company into

  21. Slide 21: Birgit Girshick’s Opening Remarks

    Birgit Girshick’s Opening Remarks ▪ Birgit Girshick is deeply honored to become CRL’s next CEO and committed to building upon the solid foundation that Jim has established ▪ With the talented team at CRL, we will continue to work tirelessly to: ̶ Lead the industry ̶ Accelerate the progress we have m

  22. Slide 22: 2026 Guidance

    2026 Guidance Revenue growth, reported At Least Flat to +1.5% Impact of divestitures/(acquisitions), net 0.0-(0.5)% (Favorable)/unfavorable impact of FX (1.0)%-(1.5)% Revenue growth, organic (1.0)% to At Least Flat GAAP EPS estimate $6.30-$6.80 Acquisition-related amortization and other acquisition

  23. Slide 23: 2026 Segment Revenue Outlook - RMS

    2026 Segment Revenue Outlook - RMS ▪ RMS: Two primary factors driving a low- to mid-single-digit organic revenue decline in 2026 1. NHP revenue expected to be below 2025 levels, representing an ~200 bps headwind to RMS growth rate • Due primarily to the timing of shipments, which favored 2025 and wi

  24. Slide 24: 2026 Segment Revenue Outlook - DSA

    2026 Segment Revenue Outlook - DSA. ▪ DSA: Expect organic revenue growth rate will be between slightly positive and a low-single-digit decline in 2026 ̶ Cautiously optimistic that favorable DSA trends will continue in 2026 • Supported by recent improvement in biotech funding ̶ Believe strong booking

  25. Slide 25: 2026 Segment Revenue Outlook - Manufacturing

    2026 Segment Revenue Outlook - Manufacturing ▪ Manufacturing: Expect organic revenue growth rate will rebound to a low-single-digit increase in 2026 ̶ Lower commercial revenue in the CDMO business partially offset by another robust year for Microbial Solutions ̶ Favorable outlook vs. 2025 primarily

  26. Slide 26: 2026 Operating Margin

    2026 Operating Margin ▪ Expect consolidated non-GAAP operating margin improvement of 20-50 bps in 2026 ̶ Primarily driven by DSA segment ▪ 2026 non-GAAP operating margin expansion will largely be driven by acquisition of the assets of K.F. (Cambodia) • Lower sourcing costs to procure NHPs to support

  27. Slide 27: 2026 Earnings Per Share & Cost-Saving Initiatives

    2026 Earnings Per Share & Cost-Saving Initiatives ▪ Expect most of the 2026 non-GAAP EPS improvement will be generated from operations, driven by operating margin expansion ▪ Expect to generate at least $100M in incremental cost savings above 2025 level to help protect the operating margin because r

  28. Slide 28: 1Q26 Operating Margin

    1Q26 Operating Margin ▪ Expect 1Q26 non-GAAP operating margin will be in mid-teens, pressured by a few discrete factors, including: ̶ Unfavorable mix from timing of NHP shipments in RMS segment ̶ Acceleration of stock compensation expense due to CEO transition ̶ Higher DSA cost related primarily to

  29. Slide 29: Two Executive Appointments – CFO & CLO

    Two Executive Appointments – CFO & CLO ▪ Pleased to announce the addition of two experienced senior leaders this spring ▪ Glenn Coleman will become Executive Vice President & CFO on April 6th ̶ Seasoned financial leader and operationally oriented CFO with over a decade of experience in healthcare in

  30. Slide 30: 2026 Guidance

    2026 Guidance Revenue growth, reported At Least Flat to +1.5% Impact of divestitures/(acquisitions), net 0.0-(0.5)% (Favorable)/unfavorable impact of FX (1.0)%-(1.5)% Revenue growth, organic (1.0)% to At Least Flat GAAP EPS estimate $6.30-$6.80 Acquisition-related amortization and other acquisition

  31. Slide 31: 2026 Segment Revenue Outlook

    2026 Segment Revenue Outlook 2026 Reported 2026 Organic Revenue Growth Revenue Growth(1) RMS Low- to mid-single-digit decline Low- to mid-single-digit decline Low-single-digit decline to DSA Flat to low-single-digit growth slightly positive growth Manufacturing Mid- to high-single-digit growth Low-s

  32. Slide 32: 1Q26 Outlook

    1Q26 Outlook 1Q26 Outlook Reported revenue YOY Flat to slightly negative Organic revenue YOY Low-single-digit decline Non-GAAP EPS YOY High-teens decline vs. 1Q25 ▪ RMS: Growth rate will be negatively impacted by lower NHP revenue due primarily to the timing of shipments, which will have nearly $10M

  33. Slide 33: 1Q26 Earnings Outlook

    1Q26 Earnings Outlook 1Q26 YOY EPS Headwinds (vs. 1Q25) Non-GAAP EPS Additional Details Lower NHP Revenue ~$(0.15) Primarily due to timing of NHP shipments Stock Compensation ~$(0.15) ~Two-thirds related to CEO transition Primarily due to higher NHP sourcing costs and study starts, as well Lower DSA

  34. Slide 34: Unallocated Corporate Expenses

    Unallocated Corporate Expenses ($ in millions) 4Q25 4Q24 2025 2024 GAAP $71.1 $61.8 $259.7 $258.1 Non-GAAP $47.4 $51.9 $219.3 $231.3 ▪ Expect non-GAAP unallocated corporate expenses in 2026 to be similar to the ~5.5% of total revenue reported in 2025 ─ 1Q26 to be elevated due to the timing of stock

  35. Slide 35: Tax Rate

    Tax Rate ($ in millions) 4Q25 4Q24 2025 2024 GAAP 6.1% 1.4% (42.9)% 72.8% Non-GAAP 24.7% 19.5% 24.6% 21.3% ▪ Non-GAAP tax rate for 2026 expected to be in the range of 22.0%-23.0%, a decrease from 24.6% in 2025 ▪ Anticipated decrease is primarily driven by: ̶ Benefits related to the enactment of the

  36. Slide 36: Net Interest Expense

    Net Interest Expense ($ in millions) 4Q25 4Q24 2025 2024 Interest expense, net $22.8 $26.4 $102.1 $117.7 ▪ In 2025: ̶ Lowered net interest expense by shifting debt to lower-interest-rate geographies and by repaying debt borrowed for stock repurchases earlier in the year ̶ Outstanding debt of $2.1B (

  37. Slide 37: Balanced Approach to Capital Deployment

    Balanced Approach to Capital Deployment ▪ We will continue to take a disciplined approach to capital deployment and plan to regularly evaluate the optimal balance between acquisitions, debt repayment, stock repurchases, and other uses of cash ▪ For 2026, with the deployment of over $500M in capital

  38. Slide 38: Cash Flow

    Cash Flow ($ in millions) 4Q25 4Q24 2025 2024 2026 Guidance Free cash flow (FCF) $58.6 $83.7 $518.5 $501.6 $375-$400 Capex $89.0 $75.6 $219.2 $233.0 ~$200 Depreciation $45.1 $48.4 $177.6 $190.2 ~$195 Amortization (1) $33.2 $53.7 $225.7 $171.5 ~$195 ▪ Expect 2026 FCF will be in a range of $375-$400M

  39. Slide 39: 2026 Guidance Summary

    2026 Guidance Summary GAAP Non-GAAP Revenue growth/(decrease) At Least Flat to +1.5% reported (1.0)% to At Least Flat organic(1) Unallocated corporate ~5.5% of revenue ~5.5% of revenue Operating margin Low-teens OM% 20-50 bps increase vs. 2025 Net interest expense $95M-$100M $95M-$100M Tax rate 27.0

  40. Slide 40: Closing Remarks

    Closing Remarks ▪ Remain encouraged by recent demand trends and the potential to return to organic revenue growth in 2H26 ▪ Focused on driving our strategy forward ̶ Selective and strategic M&A that aligns with core competencies ̶ Decisive actions to deliver continued benefits to drive efficiency an

  41. Slide 41: 4Q25/FY25 Regulation G Financial Reconciliations & Appendix

    4Q25/FY25 Regulation G Financial Reconciliations & Appendix © 2026 Charles River Laboratories International, Inc.

  42. Slide 42: Foreign Exchange (FX) Impact

    Foreign Exchange (FX) Impact FX Exchange (FX) Impact 2025 2026E (% of total revenue) Revenue FX Rates U.S. Dollar 66% ― Euro 19% 1.20 British Pound 6% 1.36 Chinese Yuan (renminbi) 4% 0.14 Canadian Dollar 2% 0.74 Other currencies 3% ― 42

  43. Slide 43: Updated NHP Supply Statistics - 2025

    Updated NHP Supply Statistics - 2025 ▪ In 2025, CRL’s global NHP usage for safety assessment studies totaled ~12,850 models ̶ Compared to 11,646 models in 2024 ▪ CRL has committed to annually disclose when a country of origin exceeds 30% of our globally sourced NHPs for use in our Safety Assessment

  44. Slide 44: Reconciliation of GAAP to Non-GAAP Selected Business Segment Information

    CHARLES RIVER LABORATORIES INTERNATIONAL, INC. RECONCILIATION OF GAAP TO NON-GAAP SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED)(1) (in thousands, except percentages) Three Months Ended Twelve Months Ended December 27, 2025 December 28, 2024 December 27, 2025 December 28, 2024 Research Models and

  45. Slide 45: Reconciliation of GAAP to Non-GAAP Selected Business Segment Information

    CHARLES RIVER LABORATORIES INTERNATIONAL, INC. RECONCILIATION OF GAAP TO NON-GAAP SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED) (1) (in thousands, except percentages) Three Months Ended Twelve Months Ended December 27, 2025 December 28, 2024 December 27, 2025 December 28, 2024 CONTINUED FROM PRE

  46. Slide 46: Reconciliation of GAAP Earnings (Loss) to Non-GAAP Earnings

    CHARLES RIVER LABORATORIES INTERNATIONAL, INC. RECONCILIATION OF GAAP EARNINGS (LOSS) TO NON-GAAP EARNINGS (UNAUDITED)(1) (in thousands, except per share data) Three Months Ended Twelve Months Ended December 27, 2025 December 28, 2024 December 27, 2025 December 28, 2024 Net income (loss) available t

  47. Slide 47: Reconciliation of GAAP Revenue Growth to Non-GAAP Revenue Growth

    CHARLES RIVER LABORATORIES INTERNATIONAL, INC. RECONCILIATION OF GAAP REVENUE GROWTH (1) TO NON-GAAP REVENUE GROWTH, ORGANIC (UNAUDITED) Three Months Ended December 27, 2025 Total CRL RMS Segment DSA Segment MS Segment Revenue growth, reported (0.8)% 1.0 % (2.0)% 0.7 % (Increase) decrease due to for

  48. Slide 48: Reconciliation of GAAP Revenue and Earnings Per Share

    CHARLES RIVER LABORATORIES INTERNATIONAL, INC. RECONCILIATION OF GAAP TO NON-GAAP REVENUE AND EARNINGS PER SHARE (EPS) Guidance for the Twelve Months Ended December 26, 2026E 2026 GUIDANCE (1) Revenue growth/(decrease), reported At Least Flat to +1.5% Impact of divestitures/(acquisitions), net 0.0%

  49. Slide 49: Reconciliation of GAAP Tax Rate to Non-GAAP Tax Rate

    CHARLES RIVER LABORATORIES INTERNATIONAL, INC. RECONCILIATION OF GAAP TAX RATE TO NON-GAAP TAX RATE (UNAUDITED) (1) (in thousands) Three Months Ended Twelve Months Ended December 27, 2025 September 27, 2025 December 28, 2024 December 27, 2025 December 28, 2024 Income (loss) before income taxes & non

  50. Slide 50: Reconciliation of Gross/Net Leverage Ratio

    CHARLES RIVER LABORATORIES INTERNATIONAL, INC. RECONCILIATION OF GROSS/NET LEVERAGE RATIO, INCLUDING GAAP NET INCOME TO ADJUSTED EBITDA (UNAUDITED) (1) (dollars in thousands, except for per share data) December 27, 2025 December 28, 2024 December 30, 2023 December 31, 2022 December 25, 2021 December

  51. Slide 51: Reconciliation of Free Cash Flow

    CHARLES RIVER LABORATORIES INTERNATIONAL, INC. RECONCILIATION OF FREE CASH FLOW (NON-GAAP) (UNAUDITED) (1) (in thousands) Three Months Ended Twelve Months Ended December 27, 2025 December 28, 2024 December 27, 2025 December 28, 2024 Net cash provided by operating activities $ 147,520 $ 159,362 $ 737

  52. Slide 52: Reconciliation of GAAP to Non-GAAP Selected Business Segment Information

    CHARLES RIVER LABORATORIES INTERNATIONAL, INC. RECONCILIATION OF GAAP TO NON-GAAP SELECTED BUSINESS SEGMENT INFORMATION (UNAUDITED) (1) (in thousands, except percentages) Three Months Ended September 27, 2025 Unallocated Corporate Overhead $ (63,833) Add back: Acquisition, integration, and divestitu

  53. Slide 53: © 2026 Charles River Laboratories International, Inc.

    © 2026 Charles River Laboratories International, Inc.

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