CRL · Earnings call · 2026Q2T · Full report
DSA Order Trends
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. · 2026-08-05 · Importance 56 · Surprise 32 · Contradicted
DSA net bookings increased significantly year-over-year and 12.6% sequentially to $701 million in the second quarter. The DSA backlog rose to $1.97 billion, producing a 1.19x net book-to-bill, the highest level in nearly four years and the third consecutive quarter above 1x. Improvement was broad-based across global biopharmaceutical and small and midsized biotechnology clients, multiple study types and modalities, and included a more discernible uptick in IND-enabling studies. Proposal activity also increased strongly, supporting management’s cautious optimism that positive demand momentum will continue.
Key facts
- DSA net bookings increased significantly year-over-year and by 12.6% sequentially to $701 million in the second quarter, increasing DSA backlog to $1.97 billion and net book-to-bill to 1.19x.
- CHARLES RIVER LABORATORIES INTERNATIONAL, INC. still needs to see a book-to-bill of 1 or greater for the rest of the year, which will largely impact 2027.
- The DSA net book-to-bill rose to nearly 1.2x in the second quarter, the third consecutive quarter it has been above 1x and the highest level in nearly 4 years.
- The company stated that regulatory required safety assessment studies utilizing NHPs reflect clients' focus on complex biologics and drive continued strength for NHP-related studies.
- CHARLES RIVER LABORATORIES INTERNATIONAL, INC. observed a shift in bookings over the last quarter from more post-IND work to more pre-IND work.
- CHARLES RIVER LABORATORIES INTERNATIONAL, INC. reports an internal uptick in its capture rate over the last few months.
- CHARLES RIVER LABORATORIES INTERNATIONAL, INC. states pre-IND work leads into later-stage, more complex and specialty work and is important for profitability and capacity utilization.
- CHARLES RIVER LABORATORIES INTERNATIONAL, INC. cites net book-to-bill, proposal volumes and capture rate as key lead indicators supporting confidence.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | probable | +98.1% | DSA net bookings increased significantly year-over-year and by 12.6% sequentially to $701 million in the second quarter, increasing DSA… |
| revenue | negative | contingent | — | CHARLES RIVER LABORATORIES INTERNATIONAL, INC. still needs to see a book-to-bill of 1 or greater for the rest of the year, which will… |