Charles River Laboratories International Inc

Latest Results (14.11.2025):

Charles River Laboratories International Inc reported its Q2 2022 financial results with revenue reaching $973.1 million, reflecting a 6.4% increase from the same period in 2021. The company achieved GAAP diluted earnings per share of $2.13 and non-GAAP diluted earnings per share of $2.77, driven by strong organic growth in its Discovery and Safety Assessment (DSA) and Research Models and Services (RMS) segments, despite challenges from foreign currency fluctuations and headwinds in the CDMO business. The company also revised its full-year 2022 guidance to account for these headwinds.

Revenue Growth

Q2 2022 revenue of $973.1 million grew by 6.4% year-over-year, with organic revenue growth of 9.5% after accounting for acquisitions, divestitures, and foreign currency impacts. Contributions from acquisitions added 2.3% to overall revenue, while divestitures and foreign exchange effects moderated the growth pace.

Earnings and Profitability

On a GAAP basis, net income attributable to common shareholders increased by 23.6% to $109.3 million, with GAAP EPS rising from $1.72 to $2.13. Non-GAAP net income also increased by 6.0% to $141.9 million, corresponding to a non-GAAP EPS of $2.77, with improvements primarily coming from higher revenue and operating margin gains despite higher interest expenses and tax rates.

Segment Highlights

The RMS segment reported revenue of $186.4 million, up 5.5% year-over-year, with organic growth of 8.5% driven by its Insourcing Solutions and GEMS businesses. The DSA segment saw revenue rise by 9.6% to $591.9 million, bolstered by strong demand and price increases, while the Manufacturing segment experienced a slight decline in revenue to $194.8 million but showed improvement in GAAP operating margins.

Guidance Revision

Due to escalating headwinds from the CDMO business, unfavorable foreign exchange trends, and higher interest expenses, Charles River Laboratories reduced its guidance for 2022. The updated outlook reflects lower reported revenue and organic revenue growth rates, as well as reduced GAAP and non-GAAP EPS guidance compared to earlier estimates.