Neogen (NEOG) Reports Third-Quarter 2025 Earnings Results

Neogen Corporation (NEOG) today announced its financial results for the most recent quarter. The company reported a quarterly revenue of $220.98 million, meeting market expectations. Additionally, Neogen’s earnings per share also aligned with analysts’ forecasts, reflecting a stable financial performance for the period.

Key Highlights:

• Neogen Corporation reported third-quarter revenue of $221.0 million, a decrease of 3.4% from the previous year.
• The company experienced a net loss of $11.0 million, or $(0.05) per diluted share.
• Adjusted Net Income was $20.9 million, or $0.10 per diluted share.
• Adjusted EBITDA was $48.5 million, with a margin of 22.0%.
• Core revenue in the Food Safety segment grew by 7%.
• The company is updating its full-year guidance due to macroeconomic uncertainties and expected tariff impacts.

Summary:

Neogen Corporation announced its third-quarter results, highlighting a revenue of $221.0 million, which marks a 3.4% decrease compared to the previous year. The company reported a net loss of $11.0 million, or $(0.05) per diluted share, while the Adjusted Net Income stood at $20.9 million, or $0.10 per diluted share. The Adjusted EBITDA was reported at $48.5 million, representing a margin of 22.0%. The Food Safety segment showed a core revenue growth of 7%, driven by strong performance in biosecurity and bacterial & general sanitation product categories. John Adent, Neogen’s President and CEO, noted the company’s progress in integrating its operations and achieving solid performance in the Food Safety segment. However, the quarter was impacted by lower sample collection revenue and global trade policy uncertainties, which affected distributor inventory commitments.

Despite these challenges, Adent expressed optimism about the company’s future trajectory, emphasizing the focus on improved execution and long-term growth opportunities. The company is updating its full-year outlook due to the third-quarter results and rising macroeconomic uncertainties, with expected revenue of approximately $895 million and Adjusted EBITDA of around $195 million.

Neogen Corporation (NEOG) has experienced a tumultuous period, with its stock price plummeting by 16.09% over the past week and a staggering 32.31% in the last month. Over the past three months, the stock has lost 46.14% of its value, culminating in a 52.08% decline over six months and a 51.04% drop over the past year. These sharp declines in stock price are mirrored by concerning fundamental metrics. The company’s price-to-earnings ratio stands at a negative 3.16, indicating significant losses. Neogen’s earnings per share (EPS) two-year compound annual growth rate (CAGR) is also negative at -16.23%, reflecting a troubling trend in profitability. Despite a robust revenue two-year CAGR of 20.37%, the company’s return on invested capital is negative at -10.80%, and its net profit margin is a dismal -51.57%. These figures suggest that while Neogen is growing its top line, it is struggling to convert this growth into profitability, raising concerns about its financial health and future prospects.

Neogen Corporation, together with its subsidiaries, develops, manufactures, and markets various products for food and animal safety worldwide. It operates through two segments, Food Safety and Animal Safety. The Food Safety segment offers diagnostic test kits and related products to detect dangerous and unintended substances in food and animal feed, including foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, meat speciation, drug residues, pesticide residues, and general sanitation concerns; and AccuPoint Advanced rapid sanitation test to detect the presence of adenosine triphosphate, a chemical found in living cells. This segment offers its products primarily to food and feed producers and processors; grain producers and processors; producers of cookies, crackers, candy, ice cream, and other processed foods; meat and poultry processors, seafood processors, fruit and vegetable producers, and dairies; laboratories; and producers of pharmaceuticals, cosmetics, and veterinary vaccines. The Animal Safety segment provides veterinary instruments, pharmaceuticals, vaccines, topicals, parasiticides, diagnostic products, rodenticides, cleaners, disinfectants, insecticides, and genomics testing services for the animal safety market. This segment offers various products for researchers to detect biologically active substances. Its drug detection immunoassay test kits are used for the detection of abused and therapeutic drugs in farm and racing animals; detection of drug residues in meat and meat products; and human forensic toxicology drug screening applications. In addition, this segment’s products are used to maintain sanitary conditions and limit the potential hazards of bacteria, fungi, and viruses. Neogen Corporation was incorporated in 1981 and is headquartered in Lansing, Michigan.