Janel Corporation Reports 20.4% Revenue Growth to $50.7 Million in Latest Quarter

Janel Corporation reported significant financial growth in its latest quarterly filing, with consolidated revenues reaching $50.7 million for the three months ended March 31, 2025, a 20.4% increase from $42.1 million in the same period last year. For the six months ended March 31, 2025, revenues totaled $102.1 million, up 22.8% from $83.2 million in the prior year. The company attributed this growth primarily to its Logistics segment, which saw increased demand and higher freight rates. Net income for the quarter was $1.4 million, or $1.19 per diluted share, compared to $219,000, or $0.18 per diluted share, in the prior year. For the six-month period, net income was $2.1 million, or $1.74 per diluted share, compared to $495,000, or $0.41 per diluted share, in the previous year.

The company’s Logistics segment generated revenues of $44.0 million for the three months ended March 31, 2025, a 22.0% increase from $36.1 million in the same period last year. This segment's growth was bolstered by the acquisition of Airschott, which contributed approximately $1.0 million in gross profit. The Life Sciences segment also reported revenue growth, with $4.2 million for the quarter, an 18.2% increase from $3.5 million in the prior year, driven by higher sales of diagnostic and research reagents. However, the Manufacturing segment's revenues remained relatively stable, with a slight increase to $2.5 million from $2.5 million year-over-year.

Janel Corporation has made strategic moves to enhance its market position, including the acquisition of Airschott, a freight forwarder, in June 2024, and ViraQuest, a biotechnology service provider, in February 2024. These acquisitions are expected to expand Janel's service offerings and contribute to long-term growth. The company also reported an increase in its investment in Rubicon Technology, with the fair value of this investment rising to $2.4 million as of March 31, 2025, up from $1.5 million at the end of the previous fiscal year.

Operationally, Janel's Logistics segment has seen a rise in gross profit margins, although the overall margin decreased slightly due to increased revenues from higher freight prices. The company reported a gross profit of $11.9 million for the Logistics segment in the latest quarter, reflecting a gross profit margin of 26.9%. The Life Sciences segment maintained a high gross profit margin of 80.9%, while the Manufacturing segment reported a gross profit margin of 53.4%. The company’s total employee headcount has also increased, reflecting its growth strategy and expansion efforts.

Looking ahead, Janel Corporation remains focused on organic growth and further acquisitions to enhance its market presence. The company plans to continue investing in its subsidiaries and expanding its service offerings, particularly in the Logistics and Life Sciences segments. Management expressed optimism about future performance, citing strong demand in the logistics sector and the potential for increased profitability from recent acquisitions.