Bio-Techne (TECH) Q1 2027 earnings summary

Executive summary

• Q1 FY27 net sales rose 5% YoY to $299.7M; organic revenue increased 7%, with held-for-sale businesses reducing growth by 2% and FX impact immaterial.

• Shareholders approved the proposed Merck KGaA acquisition on Sept. 23; closing is expected by late 2026 or early 2027, subject to customary conditions.

Financial highlights

• Net earnings were $28.3M vs. $38.2M YoY; operating income was $36.6M vs. $47.7M, while revenue was $299.7M vs. $286.6M.

• Adjusted net earnings were $70.1M vs. $66.0M YoY; adjusted diluted EPS was $0.44 vs. $0.42.

• Operating cash flow was $73.1M vs. $27.6M YoY, primarily reflecting timing of payments on operating assets and liabilities.

• Royalty revenue was $14.5M vs. $5.6M YoY; consumables revenue was $237.3M vs. $231.6M, instruments $25.5M vs. $21.8M, and services $22.5M vs. $27.5M.

Outlook and guidance

• FY27 remaining capital expenditures are expected to be ~$28M, focused on capacity expansion to support expected sales growth.

• Excluding discrete items, the expected consolidated income tax rate for the remainder of FY27 is 23%–27%.

• Management expects available cash, operating cash generation, and remaining credit to cover operating needs, facility expansion, capital additions, and dividends for at least the next 12 months.

• Merger closing is expected by late 2026 or early 2027, contingent on customary closing conditions, including regulatory approvals.