Q1 2026 Neogen Corp Earnings Call Transcript
Key Points
- Neogen Corp (NEOG) delivered revenue of approximately $209 million, up 0.3% year-over-year on a core basis, which was in line with expectations.
- The company has taken actions to reduce operating expenses by approximately $20 million annually through a global headcount reduction and non-labor cost reductions.
- Neogen Corp (NEOG) is focusing on driving top-line growth by targeting higher growth markets, particularly in the United States.
- The company is reinvigorating innovation by strengthening its R&D pipeline in core food safety and animal health categories.
- Neogen Corp (NEOG) has made significant progress in reducing back orders in its sample collection product line, which should improve cash flow.
- Neogen Corp (NEOG) experienced a mid-single-digit decline in Petrifilm core revenue in the first quarter due to changes within its distributor base.
- The company's adjusted EBITDA margin was negatively impacted by lower revenue, higher tariff costs, and higher operating expenses.
- Neogen Corp (NEOG) continues to face challenges with elevated inventory write-offs, tying up a large amount of cash.
- The integration of the sample collection product line has been a meaningful drag on cash over the last several quarters.
- The company has lost market share in certain product lines due to execution challenges related to the 3M integration and supply inconsistencies.
Good morning, ladies and gentlemen, and welcome to Neogen Corporation first-quarter FY 2026 earnings conference call. (Operator Instructions)
This call is being recorded on Thursday, October 9, 2025. I would now like to turn the conference over to Bill Waelke. Please go ahead.
Thank you for joining us this morning for the discussion of the first quarter of our 2026 fiscal year. I'll briefly cover the non-GAAP and forward-looking language before passing the call over to our new CEO, Mike Nassif, who will be followed by our CFO, Dave Naemura.
Before the market opened today, we published our first quarter results as well as a presentation with both documents available in the Investor Relations section of our website. On our call this morning, we will refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance.
Reconciliations of historical non-GAAP financial measures are included in our earnings release
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