Bio-Techne (TECH) investor relations material

Executive summary

• Second quarter revenue was $295.9 million, flat year-over-year on both reported and organic bases, with foreign currency providing a 2% benefit and a business held-for-sale reducing revenue by 2%.

• Large pharma demand remained robust, with double-digit growth in Asia/APAC, while biotech and U.S. academia were soft but showed signs of stabilization and improvement.

• Strategic growth verticals—cell therapy, proteomic analytical instrumentation, spatial biology, and precision diagnostics—now comprise 47% of total revenue, up from 32% in 2020.

• Adjusted operating margin expanded by 100 basis points year-over-year to 31.1%, driven by productivity and cost containment initiatives.

• The company is celebrating its 50th anniversary in 2026, highlighting its durable and differentiated portfolio.

Financial highlights

• Q2 total revenue was $295.9 million, flat year-over-year on both organic and reported basis.

• Adjusted EPS was $0.46, up from $0.42; GAAP EPS was $0.24, up from $0.22.

• Adjusted gross margin was 68.5%, down from 70.5% last year, due to unfavorable product and customer mix.

• Adjusted operating income was $92.0 million, up from $88.7 million year-over-year.

• Cash and cash equivalents at quarter-end were $172.9 million, up from $162.2 million at June 30, 2025.

Outlook and guidance

• Q3 organic growth expected to be consistent with Q2, with mid-single-digit underlying growth excluding cell therapy and OEM headwinds.

• Headwinds from two large cell therapy customers expected to moderate in Q3 and Q4, and be absent in fiscal 2027.

• Full-year guidance remains at low single-digit growth, requiring mid-single-digit growth in Q4.

• Margin mix expected to improve in the back half of the year, supporting continued operating margin expansion.

• Gross margins expected to remain impacted by product mix; forecasted tax rate for fiscal 2026 before discrete items is 26.2%.