Overview
- Neogen reported third-quarter revenue of $211.2 million, with Food Safety at $156.7 million up 4% on a core basis and Animal Safety at $54.5 million down 8.7% on a core basis.
- Leaders blamed the Animal Safety decline on third-party supplier transitions, raw material shortages such as vitamin A, and paperwork issues at partners rather than lost customer demand.
- Adjusted earnings before interest, taxes, depreciation and amortization rose to $48.2 million for a 22.8% margin, helped by a 9% quarter-over-quarter drop in adjusted operating costs.
- The company lifted full‑year revenue guidance to $857–$860 million and kept its $175 million adjusted EBITDA target, while cautioning that recent foreign-exchange tailwinds are likely to turn into headwinds.
- Operational plans advanced as the Petrifilm food testing line’s manufacturing move stayed on track for November 2026 with equipment and SKU validation in progress, and the planned sale of the genomics unit in Q2 fiscal 2027 is aimed at cutting debt to less than three times earnings.