Charles River Q4 Revenue Falls 2.6% to $994.2M, Margin Drops 100bps
Charles River reported Q4 2025 revenue of $994.2M, down 2.6% organically, and operating margin fell 100 basis points to 18.1% due to lower DSA volumes and higher NHP sourcing costs. Management named Glenn Coleman CFO, Carrie Daly CLO and outlined divestitures representing 7% of 2025 revenue, accretive $0.30 EPS annually.
1. Q4 Financial Results
Charles River posted Q4 2025 revenue of $994.2 million, down 2.6% organically year-on-year, and non-GAAP EPS of $2.39, down 10.2%. Consolidated operating margin declined 100 basis points to 18.1%, driven by lower DSA volumes, higher staffing and non-human primate sourcing costs, and timing shifts in RMS shipments.
2. Leadership Changes & Divestiture Plan
Management named Glenn Coleman as CFO effective April 6 and Carrie Daly as Chief Legal Officer on March 30, and announced CEO Jim Foster will retire in May, succeeded by COO Birgit Girshick. The company plans to divest businesses comprising roughly 7% of 2025 revenue, expected to add $0.30 in annual non-GAAP EPS.
3. 2026 Guidance and Segment Outlook
For 2026, management targets organic revenue flat to down 1% with a 20–50 basis point operating margin improvement and non-GAAP EPS of $10.70–$11.20, including a $0.25 boost from the K.F. Cambodia acquisition. Segment forecasts include mid-single-digit DSA declines with a return to growth in H2, low-digit RMS declines, and stable manufacturing margins.