CRL · 10-Q · 2026Q2
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Filed 2026-08-05 · Other · View original filing on EDGAR
USD 1,004,078KTotal Revenue
USD 7,532,145KTotal Assets
19Topics
79Top Importance
Ranked Events
- Liquidity and Debt PositionImportance 79 · Surprise 66Cash and cash equivalents totaled $192.0 million at June 27, 2026, down from $213.8 million at December 27, 2025. Total debt increased to $2.620 billion from $2.117 billion, including $1.120 billion outstanding under…
- Operating Expense TrendsImportance 72 · Surprise 74Six-month unallocated corporate costs increased $62.2 million, or 49.9%, to $187.0 million, raising corporate costs to 9.3% of revenue from 6.2%. The increase primarily reflected higher acquisition, integration, and…
- Interest Rate and Refinancing ExposureImportance 71 · Surprise 48Charles River’s debt outstanding increased to $2.62 billion as of June 27, 2026, from $2.12 billion as of December 27, 2025, including $1.12 billion drawn on its revolving facility. The $2.0 billion multi-currency…
- Acquisition / Partnership / DivestitureImportance 71 · Surprise 60Charles River acquired an additional 79% interest in PathoQuest SAS on April 17, 2026, for $67.6 million, funded with cash and Credit Facility proceeds. It also acquired a Cambodian non-human-primate supplier on…
- Acquisitions and DivestituresImportance 71 · Surprise 60Charles River acquired an additional 79% equity interest in PathoQuest SAS on April 17, 2026 for $67.6 million, funding the transaction with cash and Credit Facility proceeds. On January 14, 2026, it acquired Cambodian…
- Income Tax Rate ChangesImportance 65 · Surprise 82The 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…
- Headcount / RestructuringImportance 64 · Surprise 42The company is implementing workforce right-sizing, site optimization, process improvements, procurement synergies, and a global business services model in response to demand conditions. These initiatives are expected…
- Operating Cash Flow TrendsImportance 64 · Surprise 56Six-month operating cash flow decreased 41.3% to $220.8 million from $376.3 million in the prior-year period. The decline primarily reflected higher annual incentive bonus payments made in the first quarter and higher…
- Headcount and RestructuringImportance 64 · Surprise 42The company continues workforce right-sizing and site-optimization actions implemented over the past three years, including severance, transition costs, asset impairments, accelerated depreciation, and…
- Operating Margin DriversImportance 64 · Surprise 56Six-month operating income increased 37.2% to $239.8 million and operating margin expanded 330 basis points to 12.0% from 8.7%. Second-quarter operating income increased 19.7% to $119.9 million and operating margin…
- Capital Return ProgramImportance 58 · Surprise 42The board authorized a $1.0 billion stock repurchase program on October 29, 2025. During the six months ended June 27, 2026, Charles River repurchased 1.7 million shares for $300.0 million under the program, leaving…
- Market Demand TrendsImportance 55 · Surprise 32Charles River reported a cautious but improving client spending environment, with challenging demand persisting principally in the Discovery and Safety Assessment (DSA) segment during 2026. DSA backlog increased to…
- End-Market Demand TrendsImportance 55 · Surprise 32Charles River reported a cautious but improving client spending environment, with the most persistent demand challenges concentrated in the Discovery and Safety Assessment (DSA) segment. DSA backlog increased slightly…
- Revenue Performance and MixImportance 49 · Surprise 32Six-month revenue decreased 0.8% year over year to $1,999.9 million from $2,016.3 million, while second-quarter revenue decreased 2.7% to $1,004.1 million from $1,032.1 million. Six-month service revenue declined 2.0%…
- FX / Currency HeadwindsImportance 44 · Surprise 24Charles River operates globally with principal foreign-currency exposures in the Euro, Canadian Dollar, and British Pound, as well as the Mauritian Rupee, Chinese Yuan, and Hungarian Forint. Management estimates that a…
- Regulatory RiskImportance 37 · Surprise 42The company continues to incur costs related to investigations by the U.S. government into its non-human-primate (NHP) supply chain. Third-party legal costs associated with those investigations declined in the first…
- FX / Currency ImpactImportance 35 · Surprise 22The company estimates that a 10% strengthening of the U.S. dollar would have reduced six-month revenue by $91.6 million and operating income by $21.6 million, holding other variables constant. Foreign-currency…
- Products and TechnologyImportance 26 · Surprise 24Charles River’s Microbial Solutions business saw increased demand for endotoxin products during the quarter and first six months of 2026. The business provides in vitro lot-release testing products, microbial detection…
- Geographic Market CommentaryImportance 13 · Surprise 6Research Models and Services (RMS) experienced weaker demand in North America, including lower service revenue and lower large and small research model product revenue. This weakness was partially offset by increased…
Revenue by Product (in thousands)
| Q2 2025 | segment | Q2 2026 | YTD 2025 | YTD 2026 |
|---|---|---|---|---|
| 213,271 | RMS | 209,475 | 426,344 | 417,842 |
| 618,029 | DSA | 606,507 | 1,210,638 | 1,203,430 |
| 200,835 | Manufacturing | 188,096 | 379,321 | 378,636 |
Revenue by Geography (in thousands)
| YTD 2025 | YTD 2026 | region | Q2 2025 | Q2 2026 |
|---|---|---|---|---|
| 1,086,815 | 1,083,670 | United States | 549,860 | 539,861 |
| 545,109 | 540,651 | Europe | 281,859 | 263,074 |
| 260,938 | 237,075 | Asia-Pacific | 135,585 | 127,508 |
| 96,445 | 115,998 | Other | 54,503 | 60,517 |
| 26,996 | 22,514 | Other (additional category) | 10,328 | 13,118 |