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Charles River Sees Limited Impact From NIH Cuts, Tariffs, Drug Pricing

Charles River Laboratories International Inc. (NYSE:CRL) stock is trading lower on Wednesday after the company released second-quarter 2025 earnings.

The life science tools company reported:

Revenue of $1.03 million, a marginal increase of 0.6% year-over-year, beating the consensus estimate of $984.65 million.

The impact of foreign currency translation increased reported revenue by 1.2%. Excluding this impact, revenue declined 0.5% on an organic basis.

Operating margin decreased to 9.7% from 14.8% in the second quarter of 2024. Net income reached $52.3 million, or $1.06 per share, a decrease from net earnings of $90.0 million, or $1.74 per diluted share.

The decreases were primarily driven by higher amortization expense related to accelerated amortization of certain CDMO client relationships, costs associated with the company’s restructuring activities, and certain third-party legal and advisory costs.

Adjusted operating margin increased to 22.1% from 21.3%.

Adjusted earnings were 3.12 per share, up 11.4%, surpassing the consensus estimate of $2.50.

Revenue for the Research Models and Services (RMS) segment was $213.3 million, an increase of 3.3% year over year.

Organic revenue increased by 2.3%, ...