5 Revealing Analyst Questions From Bio-Techne's Q1 Earnings Call

Yahoo

09-07-2025

Bio-Techne's first quarter results were met with a positive market reaction as the company delivered both organic revenue growth and adjusted profit above Wall Street expectations. Management attributed this momentum to robust demand from large pharmaceutical customers, particularly in its core reagents and protein analysis tools, as well as continued execution on cost control and operational efficiency. CEO Kim Kelderman highlighted the company's ability to manage profitability despite an uncertain macro environment, pointing to "strong execution across our product portfolio" and initiatives to drive operational efficiencies. The team noted that these gains were achieved even as the academic research market in the United States faced headwinds related to changes in federal funding policies.
Is now the time to buy TECH? Find out in our full research report (it's free).
Revenue: $316.2 million vs analyst estimates of $317.4 million (4.2% year-on-year growth, in line)
Adjusted EPS: $0.56 vs analyst estimates of $0.51 (10.4% beat)
Adjusted EBITDA: $119.1 million vs analyst estimates of $114.1 million (37.7% margin, 4.3% beat)
Operating Margin: 12.2%, down from 22.1% in the same quarter last year
Organic Revenue rose 5.7% year on year (2.3% in the same quarter last year)
Market Capitalization: $8.26 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Puneet Souda (Leerink Partners) asked about the impact of academic funding uncertainty and potential pull-forward in pharma orders. CFO Jim Hippel clarified that pharma growth was sustained, not the result of early demand, and academic headwinds were most pronounced after policy announcements.
Dan Leonard (UBS) questioned the company's tariff exposure and manufacturing flexibility. CEO Kim Kelderman explained that regional manufacturing and supply chain adjustments largely insulated Bio-Techne from tariff impacts, especially regarding instruments and consumables exported to China.
Matt Larew (William Blair) sought clarity on the sustainability of organic growth rates and margin outperformance. Hippel responded that recent margin improvements were due to disciplined cost controls, and any temporary slowdown from macro headwinds should reverse once uncertainty resolves.
Daniel Markowitz (Evercore ISI) asked whether projected academic headwinds would meaningfully impact long-term growth assumptions. Hippel stated that even in severe budget cut scenarios, academic exposure is limited and the company's strategic plan still targets double-digit growth.
Patrick Donnelly (Citi) inquired about trends among biotech customers and the performance of the Wilson Wolf joint venture. Kelderman noted that biotech demand was flat, reflecting sensitivity to broader capital markets, while Wilson Wolf continued to deliver solid double-digit growth.
Over the next few quarters, our analyst team will be monitoring (1) clarity in NIH funding and U.S. academic research budgets, (2) the pace and effectiveness of tariff mitigation efforts on global operations, and (3) further adoption of new product platforms in organoid solutions and spatial biology. Progress in margin improvement initiatives and the performance of China and biotech customer segments will also be important indicators.
Bio-Techne currently trades at $53, up from $47.64 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free).
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