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A LEGACY AND FOUNDATION FOR THE FUTURE CHARLES RIVER LABORATORIES | ANNUAL REPORT 2025
Jim Foster: A Career Dedicated to Growth, Business Transfor mation, and Culture Earlier this year, James C. Jim Foster announced his planned retirement as Chair, President, and Chief Executive Officer of Charles River Laboratories following a distinguished career spanning five decades with the Company, including more than 30 years as CEO. Jim s leadership has been instrumental in transforming Charles River into one of the world s leading partners for non-clinical drug development and manufacturing support. He will remain on Charles River s Board as a non-executive director. During his tenure as CEO, Charles River evolved from a research models business into a diversified, global drug development company with a comprehensive portfolio spanning research models, safety assessment, and manufacturing solutions capabilities. He led the Company through a leveraged buyout in 1999, and then one year later, to an initial public offering on the NYSE, and eventually to its place as a respected member of the S&P 500. Under Jim s leadership, Charles River has grown an average of more than 10% annually since its IPO to achieve annual revenue of approximately $4.0 billion today, with operations in more than 20 countries. Through disciplined capital allocation and more than 50 strategic acquisitions, the Company significantly expanded its scientific capabilities, geographic footprint, and integrated service offering, while maintaining a strong balance sheet and consistent free cash flow generation. Over the course of Jim s tenure, Charles River became a critical contributor to the development of innovative medicines, having supported more than 80% of the novel drugs approved by the CHARLES RIVER 01 U.S. Food and Drug Administration (FDA) over the past decade. Under his leadership, the Company enabled advances for a wide range of lifesaving therapies, supporting approximately 1,500 Investigational New Drug (IND) programs annually. Beyond growth and scale, Jim s leadership contributed greatly to the broader healthcare ecosystem through his emphasis on scientific rigor, ethical responsibility, and patient safety. He reinforced Charles River s long-standing commitment to animal welfare, regulatory compliance, and quality, while also guiding thoughtful investment in both expansion and emerging scientific capabilities to create a leading partner in nearly every market sector that the Company serves. His leadership ensured that innovation was pursued responsibly and in alignment with regulatory and client expectations. Jim also played a pivotal role in shaping Charles River s culture. He championed integrity, collaboration, and accountability, fostering an environment where new ideas, scientific excellence, and operational discipline could thrive. As Jim prepares for retirement, we recognize a legacy defined by transformation, growth, and purpose. The Company he helped build stronger, more diversified, and globally respected stands as a testament to his vision and leadership. On behalf of the Board of Directors, our employees, and our shareholders, we extend our deepest gratitude to Jim Foster for his extraordinary service and lasting impact on Charles River Laboratories and the healthcare community.
To Our Shareholders When I joined Charles River five decades ago, we were a niche yet bestin-class research models company. Clients relied on us for the highest quality and most scientifically characterized models, and we have lived by that standard throughout my tenure. We have strived to be the best in class in all of our endeavors and will continue to do so in the future: our portfolio of essential products and services, our outstanding scientific expertise, our exceptional client service, our innovative technology, and our broad, global network. Following a period when biopharmaceutical clients worked through their own challenges resulting in significant pipeline prioritization and restructuring activities, demand trends stabilized in 2025 and we are beginning to see early signs of improvement. Demand trends from larger biopharmaceutical clients began to improve early in 2025 as budget constraints eased, and a more favorable funding environment led to improved demand trends for small and mid-sized biotechnology clients as the year progressed. It was the goal to be a trusted partner and essential to our clients that led us to build Charles River into a global industry leader for regulatory-required drug development solutions. We accomplished this by leveraging our expertise in animal science and client service and through more than 50 strategic acquisitions and significant internal investments, and as a result, we were able to vertically integrate and become the leader in regulated safety assessment services. This strategy proved successful, and today, we generate approximately $4.0 billion in annual revenue with operations in over 20 countries. As I reflect on my career at Charles River, I am proud that we have continuously evolved to meet the needs of the industry and our clients, while remaining grounded in a clear and enduring purpose: helping our clients to bring life-changing therapies to patients safely and efficiently. As a measure of our success, the value we bring to clients, and the importance of our contributions, we have worked on more than 80% of the FDA-approved drugs since 2017. At the same time, to strengthen our long term foundation for growth and to enhance shareholder value, we undertook a comprehensive strategic business review. We have already begun executing on priorities identified by the review, including refining our portfolio, investing in our core capabilities, driving greater efficiencies that will culminate in the achievement of over $300 million in cumulative, annualized cost savings in 2026, and reinforcing our commitment to maintain a balanced approach to capital deployment. These actions will strengthen our leading scientific portfolio, enabling us to drive profitable growth and support the evolving biopharmaceutical landscape. 2025 was a pivotal time in the Company s evolution, as we navigated a dynamic market environment while continuing to strengthen our foundation. As I begin my retirement this May, I am confident that these actions have helped to prepare the Company for its next chapter of growth. We have made tremendous progress over the last twelve months and this is the right time to welcome Birgit Girshick as our next Chief Executive Officer. Birgit is a deeply respected leader within Charles River and the drug development community, with a proven track record of driving operational excellence, strengthening client relationships, and championing our culture. I have every confidence in her ability to drive Charles River s strategic direction forward. We have strived to be the best in class in all of our endeavors and will continue to do so in the future: our portfolio of essential products and services, our outstanding scientific expertise, our exceptional client service, our innovative technology, and our broad, global network. 2025 ANNUAL REPORT 02
Maximizing Our Financial Performance While scientific leadership is central to our mission, financial discipline remains critical to our success. In 2025, our results reflected both the dynamic biopharmaceutical demand environment and the benefits of the decisive actions we took over the last three years to streamline our cost structure. These actions enabled us to support our profitability, and although organic revenue was moderately lower in 2025, the non-GAAP operating margin remained essentially unchanged from the previous year. For fiscal year 2025, revenue was $4.02 billion, representing a 0.9% decline from the prior year. Organic revenue declined 1.6%, driven primarily by lower CDMO (Contract Development and Manufacturing Organization) commercial revenue in our Manufacturing Solutions segment and lower sales volume for discovery services in our Discovery and Safety Assessment segment. Despite the lower revenue, the non-GAAP operating margin was 19.8%, essentially unchanged from 2024, primarily reflecting the benefit of cost savings from restructuring initiatives. Non-GAAP earnings per share were $10.28, a 0.4% decrease from the prior year. Free cash flow generation remained strong at $518.5 million in 2025, supported by disciplined capital expenditures and working capital management. We also continued to return capital to shareholders through share repurchases, buying $350 million in shares during the year. As part of the strategic business review, the Board also approved a new, $1.0 billion stock repurchase authorization in October, reinforcing our commitment to a balanced capital deployment strategy. Our Distinct Portfolio Our portfolio spans three distinct yet interconnected segments, each contributing to the seamless and efficient development of new therapies: The scientific rigor, genetic integrity, and reliability of our research models are essential to generating reproducible data and identifying safety risks early in the development process. CHARLES RIVER 03 Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions. Together, these three segments form a powerful, integrated portfolio that allows us to support drug development needs and capture a greater share of wallet from our clients. Discovery and Safety Assessment (DSA) Discovery and Safety Assessment (DSA) is our largest business segment, representing 60% of total revenue. The DSA segment plays a critical role in evaluating the safety and efficacy of new drug candidates before and concurrent with clinical trials. The segment provides regulatory-required preclinical services to help clients make informed, science-based decisions that protect patients and clinical trial participants. In 2025, DSA revenue was $2.40 billion, representing an organic decrease of 2.6% from 2024. Many clients continued to take a cautious view with regard to early-stage research and development (R&D) spending, resulting in lower study volumes in both discovery and safety assessment services, driven by both large biopharmaceutical and small and mid-sized biotechnology clients. Although revenue declined in 2025, DSA demand trends, including net bookings, meaningfully improved during the year, as large biopharmaceutical clients worked through their restructuring and pipeline reprioritization efforts. The improvement in DSA bookings in the second half of the year was led largely by small and mid sized biotechnology clients as the funding environment rebounded. As the pace of scientific innovation accelerates and therapeutic modalities grow more complex, demand for high quality preclinical research is becoming even more essential. Our global scale, scientific expertise, and comprehensive service portfolio position us to partner closely with clients as they advance their most critical programs.
AS THE PACE OF SCIENTIFIC INNOVATION ACCELERATES AND THERAPEUTIC MODALITIES GROW MORE COMPLEX, DEMAND FOR HIGH-QUALITY PRECLINICAL RESEARCH IS BECOMING EVEN MORE ES SENTIAL. OUR GLOBAL SCALE, SCIENTIFIC EXPERTISE, AND COMPREHENSIVE SERVICE PORTFOLIO POSITION US TO PARTNER CLOSELY WITH CLIENTS AS THEY ADVANCE THEIR MOST CRITICAL PROGRAMS. 2025 ANNUAL REPORT 04
 • shareholder letter icon 3/31/2026 Letter Continued (Full PDF)
 • stockholder letter icon 3/30/2023 CRL Stockholder Letter
 • stockholder letter icon 3/29/2024 CRL Stockholder Letter
 • stockholder letter icon 4/2/2025 CRL Stockholder Letter
 • stockholder letter icon More "Biotechnology" Category Stockholder Letters
 • Benford's Law Stocks icon CRL Benford's Law Stock Score = 87


CRL Shareholder/Stockholder Letter Transcript:

A LEGACY AND FOUNDATION FOR THE FUTURE
CHARLES RIVER LABORATORIES | ANNUAL REPORT 2025

Jim Foster:
A Career Dedicated to Growth, Business Transfor mation, and Culture
Earlier this year, James C.    Jim    Foster announced his planned
retirement as Chair, President, and Chief Executive Officer of Charles
River Laboratories following a distinguished career spanning five
decades with the Company, including more than 30 years as CEO.
Jim   s leadership has been instrumental in transforming Charles
River into one of the world   s leading partners for non-clinical drug
development and manufacturing support. He will remain on Charles
River   s Board as a non-executive director.
During his tenure as CEO, Charles River evolved from a research models
business into a diversified, global drug development company with a
comprehensive portfolio spanning research models, safety assessment,
and manufacturing solutions capabilities. He led the Company through
a leveraged buyout in 1999, and then one year later, to an initial public
offering on the NYSE, and eventually to its place as a respected member
of the S&P 500.
Under Jim   s leadership, Charles River has grown an average of
more than 10% annually since its IPO to achieve annual revenue of
approximately $4.0 billion today, with operations in more than 20
countries. Through disciplined capital allocation and more than 50
strategic acquisitions, the Company significantly expanded its scientific
capabilities, geographic footprint, and integrated service offering,
while maintaining a strong balance sheet and consistent free cash flow
generation.
Over the course of Jim   s tenure, Charles River became a critical
contributor to the development of innovative medicines, having
supported more than 80% of the novel drugs approved by the
CHARLES RIVER 01
U.S. Food and Drug Administration (FDA) over the past decade. Under
his leadership, the Company enabled advances for a wide range of lifesaving therapies, supporting approximately 1,500 Investigational New
Drug (IND) programs annually.
Beyond growth and scale, Jim   s leadership contributed greatly to the
broader healthcare ecosystem through his emphasis on scientific rigor,
ethical responsibility, and patient safety. He reinforced Charles River   s
long-standing commitment to animal welfare, regulatory compliance,
and quality, while also guiding thoughtful investment in both expansion
and emerging scientific capabilities to create a leading partner in
nearly every market sector that the Company serves. His leadership
ensured that innovation was pursued responsibly and in alignment with
regulatory and client expectations.
Jim also played a pivotal role in shaping Charles River   s culture. He
championed integrity, collaboration, and accountability, fostering an
environment where new ideas, scientific excellence, and operational
discipline could thrive.
As Jim prepares for retirement, we recognize a legacy defined by
transformation, growth, and purpose. The Company he helped build
    stronger, more diversified, and globally respected     stands as a
testament to his vision and leadership.
On behalf of the Board of Directors, our employees, and our
shareholders, we extend our deepest gratitude to Jim Foster for his
extraordinary service and lasting impact on Charles River Laboratories
and the healthcare community.

To Our Shareholders
When I joined Charles River five decades ago, we were a niche     yet bestin-class     research models company. Clients relied on us for the highest
quality and most scientifically characterized models, and we have lived by that
standard throughout my tenure. We have strived to be the best in class in all of
our endeavors and will continue to do so in the future: our portfolio of essential
products and services, our outstanding scientific expertise, our exceptional
client service, our innovative technology, and our broad, global network.
Following a period when biopharmaceutical clients worked through their own
challenges resulting in significant pipeline prioritization and restructuring
activities, demand trends stabilized in 2025 and we are beginning to see early
signs of improvement. Demand trends from larger biopharmaceutical clients
began to improve early in 2025 as budget constraints eased, and a more
favorable funding environment led to improved demand trends for small and
mid-sized biotechnology clients as the year progressed.
It was the goal to be a trusted partner and essential to our clients that led us
to build Charles River into a global industry leader for regulatory-required
drug development solutions. We accomplished this by leveraging our
expertise in animal science and client service and through more than 50
strategic acquisitions and significant internal investments, and as a result,
we were able to vertically integrate and become the leader in regulated safety
assessment services. This strategy proved successful, and today, we generate
approximately $4.0 billion in annual revenue with operations in over 20
countries. As I reflect on my career at Charles River, I am proud that we have
continuously evolved to meet the needs of the industry and our clients, while
remaining grounded in a clear and enduring purpose: helping our clients to
bring life-changing therapies to patients safely and efficiently. As a measure
of our success, the value we bring to clients, and the importance of our
contributions, we have worked on more than 80% of the FDA-approved drugs
since 2017.
At the same time, to strengthen our long term foundation for growth and to
enhance shareholder value, we undertook a comprehensive strategic business
review. We have already begun executing on priorities identified by the review,
including refining our portfolio, investing in our core capabilities, driving
greater efficiencies that will culminate in the achievement of over $300
million in cumulative, annualized cost savings in 2026, and reinforcing our
commitment to maintain a balanced approach to capital deployment. These
actions will strengthen our leading scientific portfolio, enabling us to drive
profitable growth and support the evolving biopharmaceutical landscape.
2025 was a pivotal time in the Company   s evolution, as we navigated a
dynamic market environment while continuing to strengthen our foundation.
As I begin my retirement this May, I am confident that these actions have
helped to prepare the Company for its next chapter of growth. We have made
tremendous progress over the last twelve months and this is the right time to
welcome Birgit Girshick as our next Chief Executive Officer. Birgit is a deeply
respected leader within Charles River and the drug development community,
with a proven track record of driving operational excellence, strengthening
client relationships, and championing our culture. I have every confidence in
her ability to drive Charles River   s strategic direction forward.
We have strived to be the best in
class in all of our endeavors and
will continue to do so in the future:
our portfolio of essential products
and services, our outstanding
scientific expertise, our exceptional
client service, our innovative
technology, and our broad,
global network.
2025 ANNUAL REPORT 02

Maximizing Our Financial Performance
While scientific leadership is central to our mission, financial discipline
remains critical to our success. In 2025, our results reflected both the
dynamic biopharmaceutical demand environment and the benefits of the
decisive actions we took over the last three years to streamline our cost
structure. These actions enabled us to support our profitability, and although
organic revenue was moderately lower in 2025, the non-GAAP operating
margin remained essentially unchanged from the previous year.
For fiscal year 2025, revenue was $4.02 billion, representing a 0.9% decline
from the prior year. Organic revenue declined 1.6%, driven primarily by lower
CDMO (Contract Development and Manufacturing Organization) commercial
revenue in our Manufacturing Solutions segment and lower sales volume for
discovery services in our Discovery and Safety Assessment segment. Despite
the lower revenue, the non-GAAP operating margin was 19.8%, essentially
unchanged from 2024, primarily reflecting the benefit of cost savings from
restructuring initiatives. Non-GAAP earnings per share were $10.28, a 0.4%
decrease from the prior year.
Free cash flow generation remained strong at $518.5 million in 2025,
supported by disciplined capital expenditures and working capital
management. We also continued to return capital to shareholders through
share repurchases, buying $350 million in shares during the year. As part of
the strategic business review, the Board also approved a new, $1.0 billion
stock repurchase authorization in October, reinforcing our commitment to a
balanced capital deployment strategy.
Our Distinct Portfolio
Our portfolio spans three distinct yet interconnected segments, each
contributing to the seamless and efficient development of new therapies:
The scientific rigor, genetic
integrity, and reliability of our
research models are essential to
generating reproducible data and
identifying safety risks early in the
development process.
CHARLES RIVER 03
Research Models and Services (RMS), Discovery and Safety Assessment
(DSA), and Manufacturing Solutions. Together, these three segments form
a powerful, integrated portfolio that allows us to support drug development
needs and capture a greater share of wallet from our clients.
Discovery and Safety Assessment (DSA)
Discovery and Safety Assessment (DSA) is our largest business segment,
representing 60% of total revenue. The DSA segment plays a critical role
in evaluating the safety and efficacy of new drug candidates before and
concurrent with clinical trials. The segment provides regulatory-required
preclinical services to help clients make informed, science-based decisions
that protect patients and clinical trial participants.
In 2025, DSA revenue was $2.40 billion, representing an organic decrease of
2.6% from 2024. Many clients continued to take a cautious view with regard
to early-stage research and development (R&D) spending, resulting in lower
study volumes in both discovery and safety assessment services, driven by
both large biopharmaceutical and small and mid-sized biotechnology clients.
Although revenue declined in 2025, DSA demand trends, including net
bookings, meaningfully improved during the year, as large biopharmaceutical
clients worked through their restructuring and pipeline reprioritization
efforts. The improvement in DSA bookings in the second half of the year
was led largely by small and mid sized biotechnology clients as the funding
environment rebounded.
As the pace of scientific innovation accelerates and therapeutic modalities
grow more complex, demand for high quality preclinical research is
becoming even more essential. Our global scale, scientific expertise, and
comprehensive service portfolio position us to partner closely with clients as
they advance their most critical programs.

AS THE PACE OF SCIENTIFIC INNOVATION ACCELERATES AND THERAPEUTIC
MODALITIES GROW MORE COMPLEX, DEMAND FOR HIGH-QUALITY PRECLINICAL
RESEARCH IS BECOMING EVEN MORE ES SENTIAL. OUR GLOBAL SCALE, SCIENTIFIC
EXPERTISE, AND COMPREHENSIVE SERVICE PORTFOLIO POSITION US TO PARTNER
CLOSELY WITH CLIENTS AS THEY ADVANCE THEIR MOST CRITICAL PROGRAMS.
2025 ANNUAL REPORT 04


shareholder letter icon 3/31/2026 Letter Continued (Full PDF)
 

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