Azenta Q1 Earnings Call Highlights

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Azenta (NASDAQ:AZTA) reported fiscal first-quarter 2026 gross of $149 million, up 1% connected a reported ground but down 1% organically, arsenic continued macro uncertainty and cautious superior spending weighed connected parts of its portfolio. Management reaffirmed full-year guidance calling for 3% to 5% integrated gross maturation and astir 300 ground points of adjusted EBITDA borderline expansion, portion acknowledging that the turnaround “will not beryllium a consecutive line” and that the 2nd fractional of the twelvemonth is expected to transportation much of the maturation and profitability improvement.

Chief Executive Officer John Marotta said integrated gross declined astir 1% successful enactment with expectations, citing uneven marketplace conditions, weakness successful superior spending, and uncertainty tied to academia and authorities funding. He added that bookings were impacted by “weak superior spending and the authorities shutdown astatine the extremity of the calendar year,” which helium characterized arsenic a timing contented expected to displacement into aboriginal quarters alternatively than alteration the full-year outlook.

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Chief Financial Officer Lawrence Lin said overseas speech was a 2% headwind. Non-GAAP EPS was $0.09, and adjusted EBITDA borderline was 8.5%, down astir 230 ground points twelvemonth implicit year. Lin attributed profitability unit chiefly to little gross margin, driven by underutilized laboratory capableness tied to softer North America volumes and added costs related to rework connected respective Automated Stores projects.

Gross borderline was 44.1% successful the quarter, down 360 ground points from the anterior year. Lin said the borderline diminution included the interaction of “additional costs related to rework” and little leverage from volume, though helium emphasized ongoing efforts nether the company’s Azenta Business System (ABS) to amended efficiency.

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In Sample Management Solutions (SMS), gross was $81 million, level reported and down 2% organically. Lin said maturation successful biorepositories and humble maturation successful consumables and instruments were offset by declines successful Automated Stores and Cryo, which absorption tied to macro-driven fund constraints and slower bookings.

SMS gross borderline was 45.4%, down 370 ground points twelvemonth implicit year. Lin said the diminution was chiefly driven by higher rework costs connected Automated Stores projects and a “non-recurring item.” He estimated the full-year interaction from Automated Stores remediation astatine $3 cardinal to $5 million, with remediation efforts expected to beryllium completed by the extremity of the 2nd quarter.