Overview

* Mesa Labs ( MLAB ) fiscal Q1 revenue grows 2.4% yr/yr, driven by strong SDC growth

* Operating income declines 45.1% due to FX impacts and stock-based compensation

* Co expects improved AOI as percentage of revenues in fiscal Q2

Outlook

* Company expects 2Q26 revenue boost from delayed BPD orders

* Mesa sees AOI percentage improving in 2Q26

* Company aims to reduce past-due backlog in FY26

* Mesa expects BPD gross profit to improve as mix normalizes

Result Drivers

* SDC GROWTH - Sterilization and Disinfection Control division saw 7.5% core organic revenue growth, driven by strong commercial execution and reduced backlog

* BPD DELAYS - Biopharmaceutical Development division faced a 7.0% decline in core organic revenues due to order timing delays and shipping issues

* CG CHINA CONTRACTION - Clinical Genomics division experienced a 69% revenue contraction in China, attributed to macroeconomic and regulatory challenges

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 EPS $0.85

Q1 Net $4.74

Income mln

Q1 Basic $0.87

EPS

Q1 Gross $36.94

Profit mln

Q1 $33.88

Operatin mln

g

Expenses

Q1 $3.06

Operatin mln

g Income

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)