Azenta, Inc. ((AZTA)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Azenta, Inc. recently held its earnings call, revealing a resilient performance amidst a challenging macroeconomic environment. The company achieved revenue growth and margin expansion, with record performance in its Multiomics segment and a strong cash position. Despite facing macroeconomic challenges and specific segment weaknesses, Azenta remains optimistic about its growth prospects in fiscal 2026.
Revenue Growth and Margin Expansion
Azenta reported a fourth-quarter revenue of $159 million, marking a 6% increase year over year on a reported basis and a 4% organic growth. For the fiscal year 2025, the company achieved $594 million in revenue, reflecting a 4% increase on a reported basis and a 3% organic growth. The adjusted EBITDA margin expanded by 310 basis points for the full year, showcasing the company’s ability to enhance profitability.
Record Performance in Multiomics
The Multiomics segment delivered a record revenue of $73 million in the quarter, representing an 11% growth on a reported basis and a 10% organic growth. The sequence volume in this segment rose by an impressive 50% year over year, highlighting the strong demand and performance in this area.
Strong Cash Position
Azenta ended the year with a robust cash position, holding $546 million in cash, cash equivalents, and marketable securities. This financial strength provides the company with the flexibility to invest in growth opportunities and return value to shareholders.
Positive Outlook for Fiscal 2026
Looking ahead to fiscal 2026, Azenta anticipates core revenue growth between 3% to 5% and expects an adjusted EBITDA margin expansion of 300 basis points. The company also projects higher free cash flow generation, driven by operational improvements and a focus on productivity, organic growth, and capital optimization.
Impact of Macroeconomic Challenges
The macroeconomic environment posed challenges, with softer academic and NIH funding, shifting biopharma priorities, and geopolitical uncertainties affecting customer capital expenditure decisions. These factors have influenced the company’s performance and strategic planning.
Sanger Sequencing Revenue Decline
The Sanger sequencing segment experienced a revenue decline by low double-digit percentages year over year. This trend has been consistent with previous quarters, indicating ongoing challenges in this area.
Challenges in Automated Storage
Azenta faced slower bookings in cryogenic stores due to ongoing customer budget constraints and macroeconomic uncertainty. These challenges have impacted capital expenditures and the performance of the automated storage segment.
Forward-Looking Guidance
In their guidance for fiscal year 2026, Azenta anticipates core revenue growth between 3% to 5% and projects an adjusted EBITDA margin expansion of 300 basis points. The company expects higher free cash flow generation, supported by operational improvements and strategic investments in innovation and commercial capabilities. Despite macroeconomic uncertainties, Azenta remains committed to operational excellence and value creation.
In conclusion, Azenta, Inc. demonstrated resilience in its recent earnings call, achieving revenue growth and margin expansion despite macroeconomic challenges. The company remains optimistic about its future growth prospects, with a strong cash position and strategic focus on innovation and operational excellence.