Q2 FY26 · Ended Jun 27, 2026 · View SEC filing
Selling CDMO left the smallest segment the most profitable
Manufacturing brings in 18.7% of revenue but 29.0% of segment profit, a shift the filing credits to the CDMO sale.
For investorsWhat the cleaner margin depends on after the sales
For foundersOwning the step a regulator requires
The segments earned $226.3M, but unallocated corporate costs, swollen by deal and efficiency work, left $119.9M of operating income.
Operating income rose 19.7%, yet a divestiture loss and the tax effects of the sales left shareholders with a net loss.
Free cash flow reached 14.8% of revenue in a loss-making quarter, repeating last year's split between cash and reported profit.
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Business Lens describes Charles River Laboratories from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing is linked above.