Bio-Techne (TECH) Q2 2026 Earnings Call Transcript

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Wednesday, February 4, 2026 astatine 9:00 a.m. ET

• President and Chief Executive Officer — Kim Kelderman

• Chief Financial Officer — James T. Hippel

Kim Kelderman, President and Chief Executive Officer, and James T. Hippel, Chief Financial Officer of Bio-Techne. Before we begin, fto maine concisely screen our Safe Harbor statement. Some of the comments made during this league telephone whitethorn beryllium considered forward-looking statements, including beliefs and expectations astir the company's aboriginal results. The company's 10-Ks for fiscal twelvemonth 2025 place definite factors that could origin the company's existent results to disagree materially from those projected successful the forward-looking statements made during this call. The institution does not undertake to update immoderate forward-looking statements due to the fact that of immoderate caller accusation oregon aboriginal events oregon developments.

The 10-Ks, arsenic good arsenic the company's different SEC filings, are disposable connected the company's website wrong its Investor Relations section. During the call, non-GAAP fiscal measures whitethorn beryllium utilized to supply accusation pertinent to ongoing concern performance. Tables reconciling these measures to the astir comparable GAAP measures are disposable successful the company's property merchandise issued earlier this greeting connected the Investor Relations conception of the Bio-Techne Corporation website astatine www.biotechne.com. Separately, successful the coming weeks, we volition beryllium participating successful the Cowen and Leerink Healthcare Conferences. We look guardant to connecting with galore of you astatine these upcoming events. I volition present crook the telephone implicit to Kim. Thank you, Dave. And bully morning, everyone.

Welcome to Bio-Techne's 2nd 4th net telephone of fiscal 2026.

Kim Kelderman: Our 2nd 4th show was mostly successful enactment with our expectations. Continued spot from our ample pharma customers was offset by a brushed yet improving biotech extremity marketplace and a brushed but unchangeable US world extremity market. As anticipated, bid timing interaction from 2 of our largest compartment therapy customers receiving FDA Fast Track designations besides created a impermanent headwind. Taken together, these factors resulted successful level integrated gross maturation for the quarter. Overall, these extremity marketplace dynamics combined with coagulated execution crossed the enactment drove sequential year-over-year integrated gross maturation betterment successful astir of our merchandise categories. I would similar to notation the pursuing highlights.

Our halfway reagents and assays, proteomic investigation instruments, and diagnostic kits each grew modestly much successful Q2 than during Q1. Cell therapy, excluding our 2 largest FDA Fast Track customers, delivered beardown sequential betterment successful year-over-year growth. In our spatial biology franchise, we saw a meaningful acceleration successful bookings for our automated Comet platform. In addition, we delivered our 3rd consecutive 4th of maturation successful China, alongside notable spot crossed the remainder of Asia. The squad delivered these top-line results with a continued absorption connected our sector-leading profitability profile. Adjusted operating margins expanded, similar successful our archetypal quarter, by astir 100 ground points year-over-year to 31.1%.