Neogen (NEOG) investor relations material

Executive summary

• Fiscal Q3 2026 revenue was $211.2 million, down 4.4% year-over-year, primarily due to divestitures and discontinued product lines, but core revenue grew 0.1% excluding currency and divestitures.

• Food Safety segment core revenue grew 4% year-over-year, maintaining momentum, while Animal Safety core revenue declined 8.7% due to supplier challenges.

• Adjusted EBITDA margin reached 22.8%, up 110 basis points sequentially, driven by strong cost control and operational efficiency initiatives.

• Net loss for the quarter was $17.0 million (GAAP EPS $(0.08)), while adjusted net income was $19.4 million (adjusted EPS $0.09).

• Transformation and innovation initiatives, including commercial strategy and manufacturing automation, are underway to drive future growth.

Financial highlights

• Q3 FY26 revenue was $211.2 million, with Food Safety revenue at $156.7 million (up 2.6% year-over-year, core growth 4%) and Animal Safety revenue at $54.5 million (core down 8.7%, total down 20.1%).

• Gross margin for Q3 was 46.9%, down from 49.9% last year; adjusted gross margin was 51.7%.

• Adjusted EBITDA was $48.2 million (22.8% margin); adjusted net income was $19.4 million, EPS $0.09.

• Free cash flow for the quarter was $11.1 million; cash and cash equivalents stood at $159.9 million.

• Net debt as of February 28, 2026, was $640 million, with gross debt of $800 million.

Outlook and guidance

• FY26 revenue guidance raised to $857–$860 million (from $845–$855 million); adjusted EBITDA guidance maintained at ~$175 million.

• Expect positive free cash flow for FY26 and improved cash flow trends as CapEx declines.

• Net debt-to-adjusted EBITDA expected to fall below 3x by end of CY2026 after Genomics divestiture.

• Genomics business sale expected to close by Q2 FY27, with net proceeds of ~$140 million for debt reduction.

• Ongoing restructuring and cost reduction initiatives to further right-size the cost base.