Azenta, Inc. reported first‑quarter fiscal 2026 results on February 4 2026, showing revenue of $149 million—up 1% year‑over‑year—and diluted earnings per share of $0.09 for continuing operations. Adjusted EBITDA for the quarter was $13 million, giving an adjusted EBITDA margin of 8.5%, down from 9.0% in the same period a year earlier. Free cash flow reached $15 million, underscoring the company’s continued focus on cash generation.
Revenue was driven by the Sample Management Solutions segment, which generated $81 million and remained flat year‑over‑year, and the Multiomics segment, which produced $67 million, up 1% year‑over‑year. Organic revenue declined 1% overall, reflecting softer North American volumes and quality issues in the Automated Stores line of business.
Margin compression to 8.5% versus 9.0% a year earlier was largely caused by underutilized laboratory capacity, rework costs associated with Automated Stores, and the loss of cost leverage from lower sales volumes. A one‑time restructuring charge related to the sale of B Medical Systems also weighed on profitability.
Adjusted EBITDA fell 39% from the prior quarter (Q4 FY2025) because of $2 million in stores‑quality costs, $1 million in lab inefficiencies, $0.7 million in inventory‑related charges, and a $3 million restructuring charge tied to the B Medical Systems divestiture.
CEO John Marotta described 2026 as a “transitional year” for the life sciences sector, noting the 1% organic revenue decline and acknowledging that the turnaround will not be a straight line. He highlighted progress in resolving quality issues in Automated Stores and emphasized the company’s role as a trusted partner. CFO Lawrence Lin cited a 2% foreign‑exchange headwind, underutilized capacity, and rework costs, while reaffirming a target of approximately 300 basis points of adjusted EBITDA margin expansion.
Management reiterated fiscal 2026 guidance, maintaining expectations of 3%‑5% organic revenue growth and roughly 300 basis points of margin expansion. The company also confirmed a $250 million share‑repurchase program authorized through 2028, signaling confidence in its intrinsic value.
Following the announcement, Azenta’s stock fell 12.6%, with investors focusing on the EPS miss, the organic revenue decline, and the margin compression. Analysts noted the company’s cautious outlook and the need for continued operational improvements to regain momentum.
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