Azenta Stock Earnings Reports

Azenta delivered a solid Q2 FY25: revenue was $143M (reported +5% YoY, organic +6%), non-GAAP EPS $0.05, and adjusted EBITDA margin expanded ~400 bps to 10%. Segment highlights: Sample Management Solutions (SMS) grew ~8% organic driven by Consumables, Instruments, Product Services and Sample Storage; Multiomics grew ~3% organic with Next-Generation Sequencing up ~20% and continued price stabilization, while Gene Synthesis and Sanger Sequencing were softer. B Medical is now treated as discontinued operations and a $24M non-cash loss on assets held for sale was recorded; management expects the B Medical transaction to be announced in H2 FY25. The company finished the quarter with $540M cash, no debt, and generated $7M free cash flow in the quarter ($26M YTD) and reiterated an LRP free-cash-flow target of ~$100M. Management reaffirmed FY25 guidance: organic revenue growth of 3–5% and adjusted EBITDA margin expansion of ~300 bps, incorporating identified headwinds (including an estimated ~1% NIH funding impact and tariffs) and described specific countermeasures that largely mitigate margin risk. Operationally, Azenta is executing a company-wide Azenta Business System (lean) rollout, completed corporate and operating company restructurings (reducing ~10% of workforce) and is reinvesting in sales, R&D and digital/e-commerce capabilities. Management signaled disciplined capital deployment: actively evaluating tuck-in M&A to accelerate growth, while remaining open to buybacks if valuation dislocation persists. Key risks called out: macro/geopolitical uncertainty, NIH funding reductions, tariffs and potential order timing impacts; management says it is monitoring these weekly and has taken targeted countermeasures.