Company: CRL
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001100682-25-000043
Chunk: 38

Company: CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 38
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331,530 (4,563)(1.4)%Selling, general and administrative99,004 99,397 (393)(0.4)%Amortization of intangible assets100,676 32,363 68,313 211.1 %Operating income$43,367 $111,099 $(67,732)(61.0)%0.7 %Operating income % of revenue7.6 %19.3 %(1,170) bps

Manufacturing revenue decreased $4.4 million primarily due to decreased revenue in our Biologics Solutions business, driven by decreased demand for CDMO and Biologics Testing services; partially offset by an increase in our Microbial Solutions business driven by higher product revenue associated with endotoxin product revenue and identification services revenue and the effect of changes in foreign currency exchange rates.

Manufacturing operating income decreased $67.7 million compared to the corresponding period in 2024. Manufacturing operating income as a percentage of revenue for the nine months ended September 27, 2025 was 7.6%, a decrease of 1,170 bps from 19.3% for the corresponding period in 2024. Operating income and operating income as a percentage of revenue decreased primarily due to accelerated amortization expense as a result of a decrease in the remaining useful life of certain client relationships due to a loss of key customers within the CDMO business and restructuring activities, including asset impairments and site consolidation charges, and due to the lower revenue described above compared to the corresponding period in 2024.

33 

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.

Unallocated Corporate

Nine Months EndedSeptember 27, 2025September 28, 2024$ change% changeImpact of FX(in thousands, except percentages)Unallocated corporate$188,595 $196,357 $(7,762)(4.0)%0.2 %Unallocated corporate % of revenue6.2 %6.4 %(20) bps

Unallocated corporate costs consist of selling, general and administrative expenses that are not directly related or allocated to the reportable segments. The decrease in unallocated corporate costs of $7.8 million, or 4.0%, compared to the corresponding period in 2024 is primarily due to lower employee compensation and benefits related costs; partially offset by higher third-party legal and advisory costs incurred in connection with