CRL · Earnings call · 2026Q2T · Full report
RMS Geographic Demand
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. · 2026-08-05 · Importance 14 · Surprise 6 · In source text
RMS revenue declined organically primarily because of lower volumes for small research models in North America and weaker research model services, including GEMS. These declines were largely offset by continued robust demand for research models in China from mid-tier biotechnology and CRO clients. Academic and government demand in North America remains constrained by flat NIH budgets and slower grant processing. Management described China as an important, evolving market where Charles River has a strong, well-established research models and services position.
Key facts
- For the year, Charles River expects a low to mid-single-digit organic revenue decline in the RMS segment, driven largely by lower volumes for research models in North America.
- CHARLES RIVER LABORATORIES INTERNATIONAL, INC. states that academic and government is about 10% of the total company and is primarily serviced by its research models and services business.
- Charles River is seeing continued robust demand for research models in China from mid-tier biotech and CRO clients, partially offsetting declines in North America.
- CHARLES RIVER LABORATORIES INTERNATIONAL, INC. says current academic and government demand is stable but not growing, holding the research models business back compared to historical.
- Organic revenue from small and midsized biotechs was essentially flat in the second quarter.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | negative | committed | — | For the year, Charles River expects a low to mid-single-digit organic revenue decline in the RMS segment, driven largely by lower volumes… |