Charles River Laboratories Reports Revenue Decline and Net Loss in Q2 2026

Charles River Laboratories International, Inc. reported a decline in financial performance for the second quarter of 2026, with total revenue of $1.004 billion, a decrease of 2.7% from $1.032 billion in the same period last year. For the first half of 2026, revenue also fell by 0.8% to $1.999 billion compared to $2.016 billion in the prior year. The decrease was primarily attributed to lower revenue in the Manufacturing and Discovery and Safety Assessment (DSA) segments, driven by the divestiture of the contract development and manufacturing organization (CDMO) business and the sale of certain European Discovery Services.

The company's operating income for the second quarter increased to $119.9 million, or 11.9% of revenue, compared to $100.1 million, or 9.7% of revenue, in the prior year. This improvement was largely due to a gain from the sale of assets at the Wilmington, Massachusetts site and reduced amortization expenses. However, the net loss attributable to common shareholders was $1.5 million for the quarter, a significant decline from a net income of $52.3 million in the same quarter of 2025. For the first half of 2026, the net loss was $16.3 million, compared to a net income of $77.8 million in the previous year.

In terms of strategic developments, Charles River completed two significant acquisitions in early 2026. The company acquired a 100% interest in PathoQuest SAS for $67.6 million and certain assets of K.F. Cambodia Ltd, a supplier of non-human primates, for $507.3 million. These acquisitions are expected to enhance the company's capabilities in the drug development process. Additionally, the company divested its CDMO and Cell Solutions businesses, resulting in a loss of $181.7 million for the first half of 2026.

Operationally, the company reported a slight increase in its DSA backlog, which rose to $2.0 billion as of June 27, 2026, compared to $1.9 billion at the end of 2025. The total employee headcount was not disclosed, but the company has been implementing restructuring actions aimed at optimizing operations and reducing costs, which included workforce right-sizing. The company anticipates achieving approximately $300 million in annualized cost savings by the end of 2026.

Looking ahead, Charles River Laboratories remains focused on executing its strategic initiatives, including enhancing operational efficiencies and pursuing growth through targeted acquisitions. The company expects to navigate the current macroeconomic challenges while continuing to provide essential services to its clients in the pharmaceutical and biotechnology sectors.