Strategic Review and Portfolio Strengthening
The strategic review led to a focus on strengthening core markets, divesting underperforming assets, and a new $1 billion stock repurchase authorization. The board supports the strategic direction, aiming to increase non-GAAP earnings by at least $0.30 per share through divestitures by mid-2026.
Improvement in Biotech Funding Environment
Biotech funding showed significant improvement in Q3, with October being the second-highest month in biotech history. This indicates an upward trend in potential client demand.
RMS Segment Performance
RMS revenue increased by 6.5% on an organic basis compared to the third quarter of 2024, driven by favorable timing of NHP shipments.
DSA Proposal Activity and Bookings
Proposal activity improved, particularly for biotech clients, with high single-digit increases both year-over-year and sequentially.
Free Cash Flow Improvement
Free cash flow improved sequentially by $8.9 million, reflecting disciplined capital spending and working capital management.
NAMs Capabilities Development
Charles River is developing NAMs capabilities, including next-generation sequencing solutions and animal-free products, indicating a forward-looking approach in innovation.