# Charles River Laboratories (CRL) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/CRL/thesis · /stocks/CRL/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: CRL
step: "04"
title: Financial Snapshot — 3-Year P&L Summary
created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### Income Statement Summary (FY2022–FY2024)

| Metric | FY2022 | FY2023 | FY2024E |
|--------|--------|--------|---------|
| **Revenue** | $3,946M | $3,872M | ~$3,790M |
| Revenue Growth YoY | +14.1% | (1.9)% | ~(2.1)% |
| **Gross Profit** | $1,269M | $1,177M | ~$1,110M |
| Gross Margin | 32.2% | 30.4% | ~29.3% |
| **Adjusted Operating Income** | ~$770M | ~$710M | ~$640M |
| Adjusted Operating Margin | ~19.5% | ~18.3% | ~16.9% |
| **GAAP Operating Income** | $571M | $423M | ~$330M |
| **GAAP Net Income** | $385M | $253M | ~$195M |
| **Adjusted Net Income** | ~$600M | ~$545M | ~$520M |
| **GAAP EPS (diluted)** | $7.57 | $5.07 | ~$4.00 |
| **Adjusted EPS (diluted)** | $12.29 | $11.21 | ~$10.55 |
| Adjusted EPS Growth | +9.0% | (8.8)% | ~(5.9)% |
| **D&A** | ~$200M | ~$200M | ~$195M |
| **Adjusted EBITDA** | ~$960M | ~$900M | ~$820M |
| Adjusted EBITDA Margin | ~24.3% | ~23.2% | ~21.6% |

*Note: "Adjusted" figures exclude amortization of intangibles (~$140–160M/year from acquisitions), restructuring charges, and non-recurring items. FY2024 figures are estimates based on reported Q1–Q3 actuals and Q4 2024 guidance.*

#### Key P&L Observations

##### Revenue Trajectory
- FY2022 represented the post-COVID peak — exceptional biotech funding drove elevated study demand, particularly in DSA
- FY2023 saw first revenue decline in over a decade as biotech funding collapsed
- FY2024 decline continued, but rate of decline moderated; sequential improvement in H2 2024 as biotech funding conditions improved
- Manufacturing Solutions partially offset DSA/RMS weakness

##### Gross Margin Compression
- Gross margins declined ~290 bps FY2022→FY2024
- Drivers: (1) fixed cost deleverage from lower DSA volumes; (2) elevated NHP costs in RMS; (3) CGT CDMO scale-up costs before revenue materialized; (4) restructuring-related inefficiencies
- Partially offset by pricing increases and mix shift toward Manufacturing Solutions

##### Adjusted vs. GAAP Divergence
CRL carries substantial acquisition intangibles (~$2.3B gross, ~$1.4B net as of FY2023) from decades of M&A. Amortization is ~$140–160M/year, creating a persistent gap between GAAP and adjusted earnings. Restructuring charges further widened this gap in FY2023–FY2024 (~$100–150M in non-recurring charges).

##### Restructuring Impact
The "Fit for Purpose" restructuring program (announced mid-2023):
- ~$200M+ in pre-tax charges over 2023–2024
- ~3,400 headcount reductions (~13%)
- Facility closures/consolidations in North America and Europe
- Annual run-rate savings targeted at ~$150–200M; expected to benefit FY2025 margins

#### Segment Profitability (Approximate, FY2023)

| Segment | Revenue | Operating Margin (Adj.) |
|---------|---------|------------------------|
| RMS | $813M | ~22–24% |
| DSA | $2,379M | ~18–20% |
| Manufacturing | $680M | ~15–18% |
| Corporate/Unallocated | — | (~$130M) |

*Manufacturing Solutions margins impacted by CGT CDMO ramp-up losses in 2022–2023.*

#### Below-the-Line Items

| Item | FY2022 | FY2023 |
|------|--------|--------|
| Interest Expense | ~$108M | ~$145M |
| Effective Tax Rate (adj.) | ~23% | ~22% |
| Minority Interest | ~$20M | ~$15M |

Rising interest expense reflects higher rates on floating-rate debt (CRL has a mix of term loans and revolving credit).

#### Consensus Estimates (FY2025E–FY2026E)

| Metric | FY2025E | FY2026E |
|--------|---------|---------|
| Revenue | ~$3,900M | ~$4,100M |
| Adj. EPS | ~$10.80 | ~$12.00 |
| Revenue Growth | ~+3% | ~+5% |
| Adj. EBITDA Margin | ~22–23% | ~23–24% |

*Consensus expects a modest recovery as biotech funding normalizes and restructuring savings flow through.*

#### Cash Flow Generation

| Metric | FY2022 | FY2023 |
|--------|--------|--------|
| Operating Cash Flow | ~$680M | ~$575M |
| Capex | ~$340M | ~$290M |
| Free Cash Flow | ~$340M | ~$285M |
| FCF Conversion (adj. net income) | ~57% | ~52% |

FCF conversion has been below historical norms due to elevated capex (CGT facility buildout 2021–2023) and restructuring cash outflows. Management targets improving FCF conversion to ~50–55% normalized as capex normalizes.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/CRL/fundamental

## Navigation

- Overview: /stocks/CRL
- Financials (this page): /stocks/CRL/financials
- Thesis: /stocks/CRL/thesis
- Investment Memo: /stocks/CRL/memo
- Coverage universe: /stocks