Charles River Laboratories International, Inc. · NYSE:CRL

Charles River Laboratories International — Q2 2026 Earnings Presentation

26 slides from Charles River Laboratories International's earnings presentation, Aug 5, 2026

  1. Slide 1: Charles River Laboratories 2Q 2026 Results

    Charles River Laboratories 2Q 2026 Results August 5, 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: CRL 2Q26 Highlights

    CRL 2Q26 Highlights ▪ Achieving financial targets: 2Q26 revenue and non-GAAP EPS exceeded our prior outlook ̶ Organic revenue(1) growth of 0.1% exceeded prior outlook of a low-single-digit decline • First time that revenue has increased organically since 3Q23 ̶ Non-GAAP EPS of $3.02 increased 47% se

  4. Slide 4: Recent Progress on Our Strategy: Pathway to Purpose

    Recent Progress on Our Strategy: Pathway to Purpose ▪ Utilizing new technologies, including AI, to modernize and strengthen our own scientific portfolio and enhance operating efficiency ▪ In May, introduced an enhanced digital pathology solution that delivers AI-enabled, end-to-end workflows designe

  5. Slide 5: Recent Progress on Our Strategy: Pathway to Purpose, cont.

    Recent Progress on Our Strategy: Pathway to Purpose, cont. ▪ In June, announced a unique collaboration with Eli Lilly’s TuneLab AI/ML drug discovery platform to support of Lilly’s goal to advance R&D modernization efforts ̶ CRL will provide non-clinical – or “wet lab” – testing expertise to help bui

  6. Slide 6: Recent Biopharma End Market Trends

    Recent Biopharma End Market Trends Believe biopharma demand is continuing to sustainably improve ▪ Small and Mid-Sized Biotech: Drove improving DSA demand trends as a result of the reinvigorated biotech funding environment ̶ Trailing 12-month biotech funding of nearly $100B was just below peak level

  7. Slide 7: 2Q26 Results

    2Q26 Results ($ in millions, except per share amounts) 2Q26 2Q25 YOY Δ Organic Δ Revenue $1,004.1 $1,032.1 (2.7)% 0.1% GAAP OM% 11.9% 9.7% 220 bps Non-GAAP OM% 20.5% 22.1% (160) bps GAAP EPS $(0.03) $1.06 NM Non-GAAP EPS $3.02 $3.12 (3.2)% ▪ Organic revenue growth of 0.1% exceeded prior outlook of l

  8. Slide 8: RMS 2Q26 Performance

    RMS 2Q26 Performance ($ in millions, except per share amounts) 2Q26 2Q25 YOY Δ Organic Δ RMS Revenue $209.5 $213.3 (1.8)% (1.4)% RMS GAAP OM% 17.3% 16.8% 50 bps RMS Non-GAAP OM% 24.5% 25.3% (80) bps ▪ Small models: Lower sales volume in North America was mostly offset by robust demand for small mode

  9. Slide 9: DSA 2Q26 Performance

    DSA 2Q26 Performance ($ in millions, except per share amounts) 2Q26 2Q25 YOY Δ Organic Δ DSA Revenue $606.5 $618.0 (1.9)% 0.2% DSA GAAP OM% 20.5% 19.9% 60 bps DSA Non-GAAP OM% 25.6% 27.4% (180) bps ▪ Revenue: Slight organic improvement driven by higher study volume for regulated safety assessment se

  10. Slide 10: DSA 2Q26 Performance, cont.

    DSA 2Q26 Performance, cont. ▪ Expect DSA organic revenue growth rate to accelerate in 2H26 supported by encouraging trends in DSA demand environment to date ̶ Net bookings increased 12.6% sequentially in 2Q26 with broad-based improvement across global biopharma and small & mid-sized biotech client s

  11. Slide 11: Manufacturing 2Q26 Performance

    Manufacturing 2Q26 Performance ($ in millions, except per share amounts) 2Q26 2Q25 YOY Δ Organic Δ MFG Revenue $188.1 $200.8 (6.3)% 1.3% MFG GAAP OM% 34.9% 6.0% 2,890 bps MFG Non-GAAP OM% 37.8% 32.8% 500 bps ▪ Microbial Solutions: High-single-digit organic revenue growth for Microbial Solutions, pri

  12. Slide 12: Updated 2026 Guidance

    Updated 2026 Guidance GAAP Non-GAAP RMS revenue Mid-single-digit decline Low- to mid-single-digit organic decline (Unchanged from prior) (Unchanged from prior) DSA revenue Low-single-digit decline Low-single-digit organic growth (Prior: low- to mid-single-digit decline) (Prior: low-single-digit decl

  13. Slide 13: Non-Operating Results/Guidance Summary

    Non-Operating Results/Guidance Summary ($ in millions) 2Q26 2Q25 2026 Guidance Comments • 2Q26 increase primarily driven by higher costs associated ~8.0% Unallocated corporate – GAAP $106.4 $70.5 with deferred compensation plan of revenue • Impact from deferred compensation plan more than offset by

  14. Slide 14: 2H26 Non-GAAP Operating Margin Bridge vs. 1H26

    2H26 Non-GAAP Operating Margin Bridge vs. 1H26 > 500 bps ~ 23.5% ~100 bps ~ 150 bps ~ 250 bps 18.4% 1H 2026 Strategic Transactions Corporate Price/Volume & Other 2H 2026 (Divestitures & K.F. (incl. Efficiency Savings) Est. Acquisition) ▪ Clear line of sight into expected 2H26 non-GAAP operating marg

  15. Slide 15: 3Q26 Outlook

    3Q26 Outlook 3Q26 Outlook Reported revenue (YOY) (6.0)% - (4.0)% decline Organic revenue (YOY) 1.0% - 3.0% growth Non-GAAP EPS $2.90-$3.00 ▪ Reported revenue decline primarily reflects impact of completed divestitures ▪ Organic revenue growth improvement primarily driven by improving DSA demand tren

  16. Slide 16: 2Q26 Regulation G Financial Reconciliations & Appendix

    2Q26 Regulation G Financial Reconciliations & Appendix © 2026 Charles River Laboratories International, Inc.

  17. Slide 17: 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 Six Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Research Models and Services Revenue $

  18. Slide 18: 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 Six Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 CONTINUED FROM PREVIOUS SLIDE Unalloca

  19. Slide 19: 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 Six Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Net income (loss) available to Charles River La

  20. Slide 20: Reconciliation of GAAP Revenue Growth to Non-GAAP Organic Revenue Growth

    CHARLES RIVER LABORATORIES INTERNATIONAL, INC. RECONCILIATION OF GAAP REVENUE GROWTH TO NON-GAAP REVENUE GROWTH, ORGANIC (UNAUDITED) (1) Three Months Ended June 27, 2026 Total CRL RMS Segment DSA Segment MS Segment Revenue growth, reported (2.7)% (1.8)% (1.9)% (6.3)% (Increase) decrease due to forei

  21. Slide 21: Reconciliation of GAAP to Non-GAAP Revenue and EPS Guidance

    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) CURRENT PRIOR Revenue growth/(decrease), reported (3.5)% - (2.5)% (5.5)% - (4.0)% Less: Contribution from a

  22. Slide 22: 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 Six Months Ended June 27, 2026 March 28, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Income (loss) before income taxes & noncontrolling interests $

  23. Slide 23: Reconciliation of GAAP to Non-GAAP Interest Expense

    CHARLES RIVER LABORATORIES INTERNATIONAL, INC. RECONCILIATION OF GAAP TO NON-GAAP INTEREST EXPENSE (UNADUTED) (1) (in thousands) Three Months Ended Six Months Ended June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Interest expense, net $ (29,308) $ (28,870) $ (55,017) $ (55,350) Exclude: Accr

  24. Slide 24: Reconciliation of Gross/Net Leverage Ratio to Adjusted EBITDA

    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) June 27, 2026 March 28, 2026 December 27, 2025 December 28, 2024 December 30, 2023 December 31, 20

  25. Slide 25: Reconciliation of Free Cash Flow (Non-GAAP)

    CHARLES RIVER LABORATORIES INTERNATIONAL, INC. RECONCILIATION OF FREE CASH FLOW (NON-GAAP) (UNAUDITED) (1) (in thousands) Three Months Ended Six Months Ended 2026 Guidance June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 FYE December 26, 2026E Net cash provided by operating activities $ 179,7

  26. Slide 26: © 2026 Charles River Laboratories International, Inc.

    © 2026 Charles River Laboratories International, Inc.

Charles River Laboratories International — Q2 2026 Earnings Presentation on 6ix