CRL · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

CHARLES RIVER LABORATORIES INTERNATIONAL, INC. · 2026-08-05 · Importance 65 · Surprise 82 · Matches filing data

The second-quarter effective tax rate increased to 101.4% from 26.2%, while income tax expense increased $35.2 million to $53.9 million despite pretax income declining 25.6% to $53.2 million. For the first half, the effective tax rate increased to 167.0% from 26.8%, and tax expense increased $10.0 million to $38.8 million. The elevated rates primarily reflected tax effects of the European Discovery and CDMO and Cell Solutions divestitures, nondeductible transaction costs, and higher accrued interest on acquired uncertain tax positions. Pretax income for the first half declined 78.4% to $23.2 million from $107.4 million.

Key facts

• Provision for income taxes for the three months ended June 27, 2026: $53.93 million; income before income taxes: $53.17 million; effective tax rate: 101.4% compared to 26.2% in the prior-year period. source
• Provision for income taxes for the six months ended June 27, 2026: $38.79 million; income before income taxes: $23.228 million; effective tax rate: 167.0% compared to 26.8% in the prior-year period. source
• Increase in effective tax rate for the three months ended June 27, 2026 was primarily attributable to the tax effects of the European Discovery and CDMO and Cell Solutions Divestitures, non-deductible transaction costs, and higher accrued interest relating to acquired uncertain tax positions. source

Impact estimates