Charles River Laboratories International, Inc. · NYSE:CRL
Charles River Laboratories International — Q1 2026 Earnings Presentation
25 slides from Charles River Laboratories International's earnings presentation, May 7, 2026
Slide 1: Charles River Laboratories 1Q 2026 Results
Charles River Laboratories 1Q 2026 Results May 7, 2026 © 2026 Charles River Laboratories International, Inc.
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
Slide 3: Our Strategy: Pathway to Purpose
Our Strategy: Pathway to Purpose A solid foundation that will enable CRL to drive profitable revenue growth, optimize its financial performance, and unlock additional shareholder value Modernize our Company and our Industry MODERNIZE Building a future version of CRL that will be faster, more agile a
Slide 4: Progress on our Pathway to Purpose
Progress on our Pathway to Purpose ▪ Substantial progress to drive greater operating efficiency and optimize processes ̶ Expect to generate >$100M in incremental cost savings in 2026 ̶ Cumulatively expect to generate >$300M in annualized cost savings from actions taken in recent years (including res
Slide 5: Progress on our Pathway to Purpose, cont.
Progress on our Pathway to Purpose, cont. ▪ Our client-centric approach leverages technology, including AI, to improve sales effectiveness, KPI transparency, and lead generation ▪ Investing in collaborative tools that enhance client engagement and generate better insights from their data ̶ Apollo cl
Slide 6: Artificial Intelligence (AI) in Biopharma R&D
Artificial Intelligence (AI) in Biopharma R&D AI will lead to more regulated drug development opportunities including an increase in IND approvals Research Models and Services (RMS) Discovery and Safety Assessment (DSA) Manufacturing Solutions Basic Drug Non-Clinical Clinical Market Commercial Resea
Slide 7: Recent Biopharma End Market Trends
Recent Biopharma End Market Trends Biopharma demand environment stabilized and currently seeing pockets of improvement for both global biopharmaceutical and small and mid-sized biotechnology clients ▪ Global Biopharma: Revenue to our global biopharmaceutical clients increased in 1Q26 ̶ Many of these
Slide 8: 1Q26 Results
1Q26 Results ($ in millions, except per share amounts) 1Q26 1Q25 YOY Δ Organic Δ Revenue $995.8 $984.2 1.2% (1.5)% GAAP OM% 12.0% 7.6% 440 bps Non-GAAP OM% 16.3% 19.1% (280) bps GAAP EPS $(0.30) $0.50 NM Non-GAAP EPS $2.06 $2.34 (12.0)% ▪ Highlights from the quarter: 1. Delivered 1Q26 results despit
Slide 9: RMS 1Q26 Performance
RMS 1Q26 Performance ($ in millions, except per share amounts) 1Q26 1Q25 YOY Δ Organic Δ RMS Revenue $208.4 $213.1 (2.2)% (5.5)% RMS GAAP OM% 23.9% 20.5% 340 bps RMS Non-GAAP OM% 24.7% 27.1% (240) bps ▪ Small models: Lower revenue for small models primarily driven by lower sales volume in North Amer
Slide 10: DSA 1Q26 Performance
DSA 1Q26 Performance ($ in millions, except per share amounts) 1Q26 1Q25 YOY Δ Organic Δ DSA Revenue $596.9 $592.6 0.7% (1.4)% DSA GAAP OM% 17.4% 15.9% 150 bps DSA Non-GAAP OM% 21.0% 23.9% (290) bps ▪ Revenue: Decline (organic) primarily driven by lower revenue for discovery services ̶ Discovery: De
Slide 11: DSA 1Q26 Performance, cont.
DSA 1Q26 Performance, cont. ▪ DSA proposal activity posted a healthy increase in 1Q26 ̶ Signal that positive bookings momentum may continue ▪ Remain cautiously optimistic that net book-to-bill will average >1x for FY26 and support the upper end of DSA outlook ̶ As a reminder, our business isn’t line
Slide 12: Manufacturing 1Q26 Performance
Manufacturing 1Q26 Performance ($ in millions, except per share amounts) 1Q26 1Q25 YOY Δ Organic Δ MFG Revenue $190.5 $178.5 6.8% 2.9% MFG GAAP OM% 24.6% (4.8)% NM MFG Non-GAAP OM% 25.9% 23.1% 280 bps ▪ Microbial Solutions: Strong revenue growth for Microbial Solutions, primarily driven by Endosafe®
Slide 13: Updated 2026 Guidance
Updated 2026 Guidance(1) GAAP Non-GAAP RMS revenue Mid-single-digit decline Low- to mid-single-digit organic decline Low-single-digit decline to DSA revenue Low to mid-single-digit decline slightly positive organic growth Manufacturing revenue Mid-single-digit decline Low-single-digit organic growth
Slide 14: Non-Operating Results/Guidance Summary
Non-Operating Results/Guidance Summary 2026 ($ in millions) 1Q26 1Q25 Comments Guidance ~6.5% Unallocated corporate - GAAP $80.6 $54.3 of revenue • Anticipated 1Q26 non-GAAP increase to 6.4% of revenue primarily due to timing of stock compensation expense related to the CEO transition ~5.5% Unalloca
Slide 15: 2Q26 Outlook
2Q26 Outlook 2Q26 Outlook Reported revenue (YOY) Mid- to high-single-digit decline Organic revenue (YOY) Low-single-digit decline Non-GAAP EPS (Sequential) At least 30% sequential growth vs. $2.06 in 1Q26 ▪ Expect 2Q26 financial results to improve substantially on a sequential basis over 1Q26 ̶ Prim
Slide 16: 1Q26 Regulation G Financial Reconciliations & Appendix
1Q26 Regulation G Financial Reconciliations & Appendix © 2026 Charles River Laboratories International, Inc.
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 March 28, 2026 March 29, 2025 Research Models and Services Revenue $ 208,367 $ 213,073 Operating income 49,773
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 March 28, 2026 March 29, 2025 CONTINUED FROM PREVIOUS SLIDE Unallocated Corporate Overhead $ (80,590) $ (54,26
Slide 19: Reconciliation of GAAP Earnings (Loss) to Non-GAAP Earnings
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. (1) RECONCILIATION OF GAAP EARNINGS (LOSS) TO NON-GAAP EARNINGS (UNAUDITED) (in thousands, except per share data) Three Months Ended March 28, 2026 March 29, 2025 Net income (loss) available to Charles River Laboratories International, Inc. common share
Slide 20: 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 March 28, 2026 Total CRL RMS Segment DSA Segment MS Segment Revenue growth, reported 1.2 % (2.2)% 0.7 % 6.8 % (Increase) decrease due to foreign
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 (5.5)% - (4.0)% (5.0)% - (3.5)% Less: Contribution from a
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 March 28, 2026 March 29, 2025 Income (loss) before income taxes & noncontrolling interests $ (29,942) $ 35,978 Add back: Amortization related to acqui
Slide 23: 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) March 28, 2026 December 27, 2025 December 28, 2024 December 30, 2023 December 31, 2022 December 25
Slide 24: 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 2026 Guidance March 28, 2026 March 29, 2025 FYE December 26, 2026E Net cash provided by operating activities $ 41,077 $ 171,697 $575,000-$600,000 Less: Capital
Slide 25: © 2026 Charles River Laboratories International, Inc.
© 2026 Charles River Laboratories International, Inc.
Charles River Laboratories International — Q1 2026 Earnings Presentation on 6ix