Repligen Corporation Q1 FY2026 earnings call

• Launched transformation office to accelerate fit for growth journey and path to 30% adjusted EBITDA margin by 2030, with key focus areas including optimizing manufacturing footprint, improving product line profitability, enhancing customer service, capturing value of differentiated products, and accelerating IT modernization and AI implementation. • Sold Polymem business, which was non-core and low-margin. • Signed OEM partnership in China to expand capabilities and local presence, multi-phase and multi-product arrangement starting in 2027. • Strong franchise-level performance: Filtration mid-single digit reported growth, Chromatography over 25% growth in Q1, Proteins mid-teens growth, Analytics over 50% growth in Q1.

Filtration: Reported revenue grew mid-single digits in Q1, driven by Freed management, ETF, and other consumables. Excluding gene therapy headwind, would have been double-digit growth. Post Polymem sale, 2026 reported growth expected mid-single digits. Chromatography: Revenue increased over 25% in Q1 driven by Opus columns, expected over 20% growth in 2026. Proteins: Mid-teens growth in Q1, expected at least low double digits for 2026. Analytics: Over 50% growth in Q1, expected over 20% growth for 2026. Services: Over 30% growth in Q1.

• Reiterating organic growth guidance for full-year 2026 at 9-13%, updating revenue guidance to exclude Polymem revenue, now guiding 803-833 million in revenue. • Raising adjusted earnings per share guidance to $1.97-$2.05. • Expecting 110-160 basis points of gross margin expansion for 2026, with adjusted operating income guidance at $124-$132 million.

• Risks related to business goals and financial performance expectations subject to uncertainties, including those from new information, future events, or changes in market conditions. • Impact of new modalities on growth, such as gene therapy headwinds. • Customer decision-making timing affecting order intake and revenue recognition. • Potential impact of tariffs or charges in 2026.

Q: Dan Arias with Stiefel asked about incidental elements in the quarter and transformation office impact.

A: Olivier and Jason responded about margin drivers in Q1, transformation office as an initiative to accelerate fit for growth and margin improvement, with one point of annualized margin benefit by end of 2027.

Q: Doug Schenkel with Wolf Research asked about equipment strength in March.

A: Olivier and Jason said capital equipment increased in Q1 driven by analytics and mixers, with pickup in order intake towards end of Q1 and some RFP wins.

Q: Matt LaRue with William Blair asked about emerging biotech growth.

A: Olivier said emerging biotech had 20%+ growth in Q1, fourth quarter in a row of strong growth, with biotech funding numbers looking good and expecting sustainable growth.

Q: Philip Song with Lyric Partners asked about China's growth.

A: Olivier said China nearly doubled in Q1, with strong funnel and OEM partnership signed recently but no immediate impact, focusing on local demand market.

Q: Casey Woodring with JP Morgan asked about ATF moderated view.

A: Jason said Q2 expected similar growth to Q1, ATF moderated view due to customer timing dynamics, but confident in pickup in 2027.

Q: Daniel Markowitz with Evercore asked about emerging biotech benefit timing.

A: Olivier said emerging biotech growth expected to be stronger from Q2 onwards, exposure still lower than historical levels.

Q: Mac Etoc with Stevens asked about order environment change.

A: Olivier said strong order intake in Q1, high probability funnel at highest level ever, but decision-making still a factor.

Q: Paul Knight with KeyBank asked about China market demand.

A: Olivier said majority of China growth is local demand, collaborating with local partner to gain market back.

Q: Brendan Smith with TD Cowen asked about transformation office margin efforts.

A: Jason said transformation office focuses on manufacturing footprint optimization, product line profitability improvement, customer service enhancement, and IT modernization and AI implementation.

Q: Matt Stanton with Jefferies asked about equipment order book turnaround.

A: Olivier said different turnaround times for different equipment, depending on type and customization.

Q: Matt Hewitt with Craig Hallam Capital Group asked about analytics investment.

A: Olivier said investing in R&D for analytics, including PAT technologies, and considering M&A for augmentation.

Q: Justin Bowers from Deutsche Bank asked about proteins growth.

A: Olivier said proteins had mid-teens growth in Q1, driven by collaboration with PureLight and strong demand for non-monoclonal antibody products, bullish on long-term growth.