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Neogen (NEOG) investor relations material

Neogen Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary9 Oct, 2025

Executive summary

  • Q1 FY26 revenue was $209.2 million, down 3.6% year-over-year, with core revenue up 0.3% after adjusting for divestitures and currency impacts.

  • Net income reached $36.3 million, driven by a $76.4 million gain on the Cleaners & Disinfectants business sale; adjusted net income was $9.4 million.

  • Adjusted EBITDA was $35.5 million (17.0% margin), down from $43.7 million (20.1% margin) in the prior year.

  • A global headcount reduction of about 10% was implemented to improve efficiency and cost structure.

  • New CEO Mike Nassif appointed, with a focus on operational improvement, cost control, and innovation.

Financial highlights

  • Product revenues were $184.1 million and service revenues $25.1 million for the quarter.

  • Gross margin was 45.4%, down from 48.4% year-over-year, mainly due to integration costs, lower revenue, and higher tariffs.

  • Adjusted net income per diluted share was $0.04, down from $0.07 in the prior year.

  • Cash and cash equivalents at quarter-end were $138.9 million, with $201.5 million available under the revolving credit facility.

  • Operating cash flow for the quarter was $10.9 million, a $28.8 million improvement year-over-year.

Outlook and guidance

  • Full-year FY26 revenue expected between $820 million and $840 million, with adjusted EBITDA guidance reaffirmed at $165 million to $175 million.

  • Sequential revenue growth and margin improvement are anticipated as cost actions and process improvements take effect.

  • Capital expenditures projected at approximately $50 million for the year, with $35 million for integration.

  • Effective tax rate anticipated at ~21%.

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Frequently asked questions

Neogen Corporation, together with its subsidiaries, develops, manufactures, and markets various products for food and animal safety worldwide. The company offers rapid tests to detect foodborne pathogens using a variety of modes; and laboratory systems to conduct real-time monitoring of animal drinking water to prevent disease. It also provides systems for environmental monitoring, such as for water quality; and multiplex PCR instruments that perform high-throughput amplification. In addition, the company offers kits to detect various pathogens in foods, such as Listeria monocytogenes; its products include Listeria Meter, Listeria reagent set (CARO kit), FoodCulture™ kits for detection of specific foodborne pathogens; vegetarian/vegan kits for use with non-animal media; and SwineSwab™ kit for detection of salmonella.

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