Repligen Corporation Q3 FY2025 earnings call

• Achieved 18% organic growth in Q3, with every franchise growing double digits. • Total company orders grew sequentially for the sixth straight quarter and over 20% year-over-year, with double-digit order growth across all franchises. • Digitization is a key pillar, with analytics franchise being the foundation. For example, the launch of SoloVPE PLUS drove analytics growth. • Service revenue grew strongly, currently representing 5% of consolidated revenue. • Strategic account strategy is a success, covering 20 large pharma and CDMO accounts, with these accounts being accretive to growth. • Working to have dual manufacturing for the vast majority of the portfolio by the end of next year to leverage global footprint.

In the third quarter of 2025, Repligen achieved an 18% organic growth. Analytics led the way with over 50% growth, including more than 30% growth at CTech. Filtration grew over 20%. Consumable demand had greater than 20% growth, and capital equipment also saw over 20% growth. Regionally, Asia Pacific grew nearly 50% year-over-year, Americas grew 20%, and EMEA grew low double digits. North America represented approximately 50% of total revenue, Europe 30%, and Asia Pacific and the rest of the world 20%.

• Raised the midpoint of organic growth guidance for 2025. • Revised 2025 revenue guidance to $729 million to $737 million. • Adjusted gross margin expected to be in the range of 52% to 53%. • Adjusted income from operations expected to be between $98 million to $100 million. • Adjusted fully diluted earnings per share expected to be between $1.65 and $1.68. • Expect CapEx to be down 20% to 25% versus 2024.

• Risks related to business including market uncertainties, foreign currency fluctuations, and tariff impacts. • Uncertainties in new modality trends and potential impact on revenue.

Q: Dan Arias asked about the cadence of order momentum across the quarter and out of the quarter, including China trajectory.

A: Olivier Loeillot responded that orders grew more than 20% in Q3, with every franchise growing double digit, China grew nicely but orders were softer, and expected to be back to growth in China next year.

Q: Dan Leonard asked about reconciling sales guidance increase versus narrowing EBIT margin.

A: Jason Garland responded that margin performance was favorable, gross margin moved with sales mix, operating income up with leverage, and there were onetime expenses and investments impacting margin.

Q: Matt Larew asked about onshoring activity and customer conversations.

A: Olivier Loeillot responded that they are receiving RFPs for big hardware investments, expecting first orders in second half of 2026 and sales from 2027 onwards.

Q: Doug Schenkel asked about Q4 revenue guidance and filtration growth.

A: Olivier Loeillot responded that Q4 revenue growth is due to seasonality and comp, filtration growth at lower end with mix impact.

Q: Puneet Souda asked about 2026 organic growth and new modality trends.

A: Olivier Loeillot responded that 2026 guidance to be provided end of February, expecting to outpace industry growth, and new modality playing out as expected.

Q: Steven Etoch asked about Asia Pacific investments.

A: Olivier Loeillot responded that they are making investments in Asia Pacific, opening offices in Singapore and Japan, and looking at further investments.

Q: Casey Woodring asked about ATF hardware revenue and emerging biotech orders.

A: Olivier Loeillot responded that ATF hardware revenue timing uncertain, emerging biotech revenue highest in 3 years due to biotech funding and M&A.

Q: Daniel Markowitz asked about equipment strength and ATF consumable pull-through.

A: Olivier Loeillot responded that equipment strength is broad-based, not just ATF, and ATF has long runway with diversified customers.

Q: Brendan Smith asked about process analytics integration.

A: Olivier Loeillot responded that integration is progressing, SoloVPE PLUS driving analytics growth, and 908 integration on track.

Q: Anna Snopkowski asked about CDMOs and protein launches.

A: Olivier Loeillot responded that large-scale CDMOs drove growth, protein growth due to custom projects and upcoming launches.

Q: Tom DeBourcy asked about strategic accounts trends.

A: Olivier Loeillot responded that strategic accounts are accretive, cross-selling portfolio, and key account team successful.

Q: Luke Sergott asked about orders for new modalities vs mAbs and margin expansion.

A: Olivier Loeillot responded that new modalities muted as expected, Jason Garland mentioned margin expansion to continue.

Q: Brandon Couillard asked about net pricing and tariff surcharges.

A: Jason Garland responded that net pricing low single digit, tariffs minimal impact in 2025 with potential marginal impact in 2026.