Charles River Laboratories International, Inc. operates as a contract research organization (CRO), providing essential preclinical services to the pharmaceutical and biotechnology industries. ...
Charles River Laboratories International, Inc. operates as a leading contract research organization (CRO) that supports the pharmaceutical, biotechnology, and medical device industries in the discovery, development, and safe manufacture of novel therapies. Founded in 1947 by Henry Foster, the company has grown from a one-person laboratory supplying research animals to ...Charles River Laboratories International, Inc. operates as a leading contract research organization (CRO) that supports the pharmaceutical, biotechnology, and medical device industries in the discovery, development, and safe manufacture of novel therapies. Founded in 1947 by Henry Foster, the company has grown from a one-person laboratory supplying research animals to a global entity with approximately 20,000 employees and operations in over 20 countries. Its core services are organized into three primary segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions. The RMS segment provides high-quality rodent research models, including genetically engineered models, along with diagnostic services and insourcing solutions for facility management. The DSA segment offers early-phase discovery services, safety assessment, toxicology, pathology, pharmacokinetics, and bioanalysis to advance drug candidates. The Manufacturing Solutions segment delivers in vitro testing for pharmaceutical quality control, biologics testing, and avian vaccine services, including SPF eggs and chickens. Beyond these, the company manages contract vivarium operations, providing animal housing and care. Financially, Charles River reported a market cap of about $12.88 billion, a price of $267.49 per share, and enterprise value of $15.72 billion. The company has faced some financial headwinds with negative profitability metrics, including a net profit margin of -6% and negative return on equity, reflecting challenges in the current market. However, it maintains a strong revenue per share of $82.48 and free cash flow per share of $7.64. The company has a debt-to-equity ratio of 1.066, indicating moderate leverage. Key personnel include CEO Birgit Girshick, and former long-time leader James C. Foster, who will retire in May 2026. The company is headquartered in Wilmington, Massachusetts, and listed on the New York Stock Exchange under the symbol CRL. With a focus on expediting drug development, Charles River continues to be a vital partner for clients worldwide, emphasizing innovation and quality in every aspect of its services.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$4.0B
-0.9%
+0.8%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-144.3M
-1501.7%
+90.0%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+30.5%
-7.2%
+29.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+12.6%
+125.3%
-0.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-3.6%
-1513.8%
+90.1%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$518.5M
+3.4%
+1102.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+12.9%
+4.3%
+1093.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
96.9%
+23.1%
+2.6%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.29x
-8.5%
-1.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Charles River Laboratories Second Quarter 2026 Earnings Conference Call. This call is being recorded. [Operator Instructions] I would now like to turn the conference over to our host, Todd Spencer, Vice President of Investor Relations. Please go ahead.
Todd Spencer: Good morning, and welcome to Charles River Laboratories Second Quarter 2026 Earnings Conference Call and Webcast. This morning, I am pleased to be joined by Birgit Girshick, our Chief Executive Officer; and by Glenn Coleman, our Executive Vice President and Chief Financial Officer. They will comment on our results for the second quarter of 2026 as well as our financial guidance. Following the presentation, they will respond to questions. There is a slide presentation associated with today's remarks, which will be posted on the Investor Relations section of our website at ir.criver.com. A webcast replay of this call will be available beginning approximately 2 hours after the call today and can be accessed on our Investor Relations website. The replay will be available through next quarter's conference call. I'd like to remind you of our safe harbor. All remarks that we make about future expectations, plans and prospects for the company constitute forward-looking statements under the Private Securities Litigation Act of 1995. Actual results may differ materially from those indicated. During this call, we will primarily discuss non-GAAP financial measures, which we believe help investors gain a meaningful understanding of our core operating results and guidance. The non-GAAP financial measures are not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. In accordance with Regulation G, you can find the comparable GAAP measures and the reconciliation on the Investor Relations section of our website. I will now turn the call over to Birgit Girshick.
Birgit Girshick: Thank you, Todd, and good morning. Today, I would like to discuss the progress that we made during the second quarter, both financially and on our refreshed strategic framework pathway to purpose. I'm pleased to report that we delivered on our second quarter financial targets, exceeding our prior outlook for the quarter and that we are raising our financial guidance for the year. We continue to remain focused on execution on achieving our financial targets and driving increased shareholder value as well as executing on our pathway to purpose strategy which includes working to modernize our company and the industry, strengthening our world-class scientific portfolio and offering a customized client-centric approach to drive growth. Execution of our pathway to purpose strategic initiatives and our financial goals will be the key to our future success. Let me now provide you with the recent highlights that demonstrate our progress on our pathway to purpose initiatives as well as our second …