CRL · 10-Q · 2026Q3 · Full report

Operating Margin Drivers

CHARLES RIVER LABORATORIES INTERNATIONAL, INC. · 2026-11-04 · Importance 60 · Surprise 74 · No source text

Consolidated operating income increased 43.4% to $442.4 million for the nine months ended September 26, 2026, and operating margin rose 460 basis points to 14.8%. Manufacturing operating income rose $132.9 million to $176.3 million, with margin increasing from 7.6% to 31.6%, primarily reflecting the CDMO divestiture. DSA operating margin rose 350 basis points to 22.3%, benefiting from a foreign non-income-tax benefit, lower amortization after the European Discovery divestiture, lower legal costs, and reduced restructuring activity. RMS operating margin increased 260 basis points to 20.4%, helped by lower site consolidation charges, the Wilmington asset-sale gain, and lower amortization, partly offset by lower revenue and increased asset impairments.

Key facts

• Operating income was $202.6 million, or 20.6% of revenue, for the three months ended September 26, 2026, compared with $133.8 million, or 13.3%, in the comparable 2025 period. source
• Operating income was $442.4 million, or 14.8% of revenue, for the nine months ended September 26, 2026, compared with $308.6 million, or 10.2%, in the comparable 2025 period. source
• The three- and nine-month operating income and margin increases were primarily driven by the CDMO divestiture benefit, the Wilmington asset-sale gain, lower accelerated amortization, 2025 third-party legal costs, and a non-income tax benefit; partially offset by lower revenue and higher acquisition, integration and divestiture costs. source

Impact estimates