Charles River Posts Q2 Revenue of $1.0B, Net Loss Driven by $63.7M Divestiture Charge

summarizeSummary

Charles River reported Q2 revenue of $1.0 billion and a net loss of $1.5 million, driven by a $63.7 million divestiture loss. The company is restructuring, acquiring a key NHP supplier, and the CEO adopted a 10b5-1 trading plan.

check_boxKey Events · Earnings and Guidance · CRL

• Q2 Revenue $1.0B, Net Loss $1.5M

  Revenue of $1.004 billion was down 2.7% year-over-year, while a net loss of $1.5 million was driven by a $63.7 million loss on the CDMO and Cell Solutions divestiture.

• Divestiture Losses Reshape Portfolio

  The CDMO and Cell Solutions sale to GI Partners resulted in a $63.7 million pre-tax loss this quarter ($181.7 million YTD). The European Discovery sale to IQVIA yielded a $0.3 million gain.

• Cambodian NHP Supplier Acquired for $507M

  The acquisition of a Cambodian non-human primate supplier closed in January 2026 for $507.3 million, securing a critical supply chain for the DSA segment.

• Restructuring Charges Continue

  Restructuring costs were $23.1 million in Q2 and $54.6 million YTD, part of a plan to achieve $300 million in annualized savings by end of 2026.

auto_awesomeAnalysis · CRL · Industrial Applications And Services

Charles River's Q2 results present a mixed picture: revenue held at $1.0 billion, but a net loss of $1.5 million was driven by a $63.7 million loss on the CDMO and Cell Solutions divestiture. Operating income improved to $119.9 million from $100.1 million a year ago, helped by lower amortization and a gain on a sale-leaseback. The company is actively reshaping its portfolio—selling underperforming businesses while acquiring a Cambodian NHP supplier for $507 million to secure a critical supply chain. Restructuring charges of $23.1 million this quarter reflect ongoing cost-cutting. The CEO adopted a 10b5-1 plan to sell up to 14,000 shares starting September 1, which may weigh on sentiment despite the operational improvements.