Repligen Corporation Q2 FY2025 earnings call

• Q2 '25 had 17% organic non-COVID growth, the highest since 2022, with highlights across the portfolio including Chromatography leading, Filtration mid-teens growth, Capital equipment high teens growth, CDMOs strong performance, and Biopharma revenues growing 20%.
• Orders grew over 20% year-over-year and high teens organically, marking the eighth quarter of orders exceeding non-COVID revenue and fifth quarter of sequential order growth.
• Invested in manufacturing labor to serve customers.
• Strategic planning focuses on innovation, customer centricity, growth in Asia, modalities like ADCs and cell therapy, and digitization.
• China orders picked up in Q2, with optimism about China returning to growth in 2026, and APAC orders nearly doubling sequentially.
• New modalities revenue grew mid-teens in Q2, but guidance assumes muted demand in the second half due to a gene therapy headwind.

Filtration revenue grew mid-teens excluding COVID in Q2 '25. Chromatography had a record quarter with greater than 40% revenue growth. Proteins posted high single-digit growth in Q2, driven by chromatography resins and ligands. Process Analytics grew over 30% in Q2, including $3 million from the 908 bioprocessing acquisition and 12% organic growth. Filtration represented a significant portion of revenue, with Chromatography showing strong growth, Proteins contributing through resin sales, and Process Analytics benefiting from the 908 acquisition.

• Revenue guidance: $715 million to $735 million, reflecting 12.5% to 15.5% organic non-COVID growth. The organic growth midpoint was increased.
• Franchise growth expectations: Filtration to grow 10% to 12% (13.5% to 15.5% non-COVID), Chromatography >20%, Proteins 10% to 15%, and Process Analytics ~25% including the 908 acquisition.
• Adjusted gross margins expected to be in the range of 52% to 53%, adjusted income from operations between $98 million to $103 million, and adjusted fully diluted earnings per share between $1.65 and $1.72.

• Macro headlines and pricing pressure could impact the business.
• Tariff dynamics present uncertainties.
• Headwinds from specific gene therapy programs are affecting growth in new modalities.

Q: Elaborate on growth in clinical vs commercial trials and pull forward due to tariffs A: Olivier Loeillot stated there was very little pull forward outside China, with clinical still being a significant portion.

Q: Talk about capital equipment and China A: Olivier Loeillot mentioned capital equipment saw strong performance due to differentiated systems, and China orders rebounded in Q2 with a new team in place, with plans to invest for future growth.

Q: Clarify new modalities expectations A: Olivier Loeillot explained a 1% headwind from a specific gene therapy program, but portfolio strength compensates, and new modalities growth is muted in the back half but other segments compensate.

Q: Market growth and 5% outperformance A: Olivier Loeillot said market growth is estimated at 8%-12%, and the company is confident in achieving 5% outperformance even with new modality headwinds.

Q: Equipment trends and AAV exposure A: Olivier Loeillot noted equipment strength across regions, and AAV exposure is lower than previous estimates, with new modalities like cell therapy showing growth.

Q: New product launches and margin expansion A: Olivier Loeillot mentioned new launches in Protein franchises, and Jason Garland explained margin expansion via volume, productivity, pricing, and sourcing efforts.