Financial Analysis

COMMITMENTS AND CONTINGENCIES Insurance The Company maintains certain insurance policies that maintain large deductibles up to approximately $2 million, some with or without stop-loss limits, depending on market availability. Insurance policies at certain locations are based on a percentage of the insured assets, for which deductibles for certain property may exceed $15.0 million in the event of a catastrophic event. In addition, the Company purchased representation and warranty insurance in support of some acquisitions, in which deductibles could reach $4.4 million. Litigation On February 17, 2023, the Company received a grand jury subpoena requesting certain documents related to an investigation by the U.S. Department of Justice (DOJ) and the U.S. Fish and Wildlife Service (USFWS) into the Companys conduct regarding several shipments of non-human primates from Cambodia in late 2022 and early 2023 (the NHP Shipments). The DOJ also undertook a parallel civil investigation related to the NHP Shipments. Due to a number of factors, including the age of these NHPs, during the fourth quarter of fiscal year 2024, the Company recorded a charge of $27 million to costs of products sold within the accompanying consolidated statements of income (loss) to reflect the reduction in carrying value of this inventory to zero. In July 2025, the Company was informed that USFWS had determined to clear the NHP Shipments for legal entry into the United States. Furthermore, in August 2025 the Compa …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT AND OTHER FINANCING ARRANGEMENTS Long-term debt, net and finance leases consists of the following: December 27, 2025 December 28, 2024 (in thousands) Revolving credit facility $ 616,503 $ 714,948 4.25% Senior Notes due 2028 500,000 500,000 3.75% Senior Notes due 2029 500,000 500,000 4.00% Senior Notes due 2031 500,000 500,000 Other debt 7,842 15,603 Finance leases 27,876 28,444 Total debt and finance leases 2,152,221 2,258,995 Less: Current portion of long-term debt 166 155 Current portion of finance leases 3,228 2,774 Current portion of long-term debt and finance leases 3,394 2,929 Long-term debt and finance leases 2,148,827 2,256,066 Debt discount and debt issuance costs (12,467) (15,861) Long-term debt, net and finance leases $ 2,136,360 $ 2,240,205 As of December 27, 2025 and December 28, 2024, the weighted average interest rate on the Companys debt was 4.05% and 4.48%, respectively. Revolving Credit Facility In fiscal 2024, the Company modified its revolving credit facility Credit Facility. The Credit Facility provides for up to $2.0 billion (reduced from $3.0 billion) and has a maturity date of December 2029 (previously April 2026), with no required scheduled payment before that date. The terms of the Credit Facility are substantially the same with the interest rates equal to (A) for revolving loans denominated in U.S. dollars, at the Companys option, either the base rate (which is the higher of (1) the prime rate, (2) the federal funds rate plus 0.50%, or (3) the …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates the Companys revenue by reportable segment and timing of transfer of products or services: Timing of Revenue Recognition: 2025 2024 2023 (in thousands) RMS Services and products transferred over time $ 389,091 $ 380,899 $ 377,947 Services and products transferred at a point in time 456,991 448,478 414,396 Total RMS revenue 846,082 829,377 792,343 DSA Services and products transferred over time 2,400,414 2,446,751 2,611,564 Services and products transferred at a point in time 2,477 4,529 4,059 Total DSA revenue 2,402,891 2,451,280 2,615,623 Manufacturing Services and products transferred over time 383,682 407,474 381,942 Services and products transferred at a point in time 382,727 361,858 339,501 Total Manufacturing revenue 766,409 769,332 721,443 Total revenue $ 4,015,382 $ 4,049,989 $ 4,129,409 Revenue by geographic area is as follows: U.S. Europe Canada Asia Pacific Other (1) Consolidated (in thousands) Fiscal Year 2025 $ 2,141,773 $ 1,102,696 $ 501,025 $ 205,023 $ 64,865 $ 4,015,382 2024 2,239,977 1,078,146 482,093 196,952 52,821 4,049,989 2023 2,347,486 1,076,937 487,305 200,833 16,848 4,129,409 (1) The Other category represents operations located in Brazil, Israel, and Mauritius. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

STOCK-BASED COMPENSATION The Company has stock-based compensation plans under which employees and non-employee directors are granted stock-based awards such as stock options, RSUs, and PSUs. During fiscal years 2025, 2024, and 2023, the primary share-based awards and their general terms and conditions are as follows: Stock options, which entitle the holder to purchase a specified number of shares of common stock at an exercise price equal to the closing market price of common stock on the date of grant; typically vest over 4 years; and typically expire 10 years from date of grant. RSUs, which represent an unsecured promise to grant at no cost a set number of shares of common stock upon the completion of the vesting schedule, and principally vest over 4 years. With respect to RSUs, recipients are not entitled to cash dividends and have no voting rights on the stock during the vesting period. PSUs, which entitle the holder to receive at no cost, a specified number of shares of common stock within a range of shares from zero to a specified maximum and typically vest over 3 years. Payout of this award is contingent upon achievement of certain performance and market conditions. As of December 27, 2025, approximately 2.2 million shares were authorized for future grants under the Companys share-based compensation plans. The Company settles employee share-based compensation awards with newly issued shares. The following table provides stock-based compensation by the financial stateme …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE Assets and liabilities measured at fair value on a recurring basis are summarized below: December 27, 2025 Level 1 Level 2 Level 3 Total Current assets measured at fair value: (in thousands) Other assets: Life insurance policies 58,427 58,427 Total assets measured at fair value $ $ 58,427 $ $ 58,427 Accrued liabilities measured at fair value: Contingent consideration $ $ $ 30,000 $ 30,000 Total liabilities measured at fair value $ $ $ 30,000 $ 30,000 December 28, 2024 Level 1 Level 2 Level 3 Total Current assets measured at fair value: (in thousands) Cash equivalents $ $ 30 $ $ 30 Other assets: Life insurance policies 48,152 48,152 Total assets measured at fair value $ $ 48,182 $ $ 48,182 Accrued liabilities measured at fair value: Contingent consideration $ $ $ 25,000 $ 25,000 Other long-term liabilities measured at fair value: Contingent consideration 24,311 24,311 Total liabilities measured at fair value $ $ $ 49,311 $ 49,311 During fiscal years 2025 and 2024, there were no transfers between fair value levels. Contingent Consideration The following table provides a rollforward of the contingent consideration related to the Companys acquisitions. Fiscal Year 2025 2024 2023 (in thousands) Beginning balance $ 49,311 $ 33,265 $ 13,431 Additions 33,265 Payments (25,000) (15,130) Total gains or losses (realized/unrealized): Adjustment of previously recorded contingent liability 5,689 16,046 1,810 Foreign currency translation (111) Ending balance $ 30,000 $ 49,311 $ 33 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND INTANGIBLE ASSETS Goodwill The following table provides a rollforward of the changes in the carrying amount of the Companys goodwill: RMS DSA (1) Manufacturing (2) Total (in thousands) December 30, 2023 $ 497,474 $ 1,662,434 $ 935,137 $ 3,095,045 Acquisitions 17,675 17,675 Impairment (215,000) (215,000) Foreign exchange (734) (44,458) (5,920) (51,112) December 28, 2024 496,740 1,635,651 714,217 2,846,608 Divestitures (4,000) (4,000) Impairment (165,000) (165,000) Foreign exchange 14,104 46,867 25,674 86,645 December 27, 2025 $ 510,844 $ 1,678,518 $ 574,891 $ 2,764,253 (1) DSA includes accumulated impairment losses of $1 billion, which were recognized in fiscal years 2008 and 2010. (2) Manufacturing includes accumulated impairment losses of $380 million, which were recognized in fiscal years 2024 and 2025. As of the beginning of fiscal 2025, the Company has combined the Discovery Services and Safety Assessment reporting units into a single reporting unit consistent with recent changes to the DSA integrated operating structure. The decrease in goodwill during fiscal year 2025 is primarily related to the $165.0 million impairment charge recognized in the Manufacturing reportable segment partially offset by the effect of foreign exchange. The decrease in goodwill during fiscal year 2024 is primarily related to the $215.0 million impairment charge recognized in the Manufacturing reportable segment and foreign exchange impacts; partially offset by measurement period ad …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES The components of income from operations before income taxes and the related provision for income taxes are presented below: Fiscal Year 2025 2024 2023 (in thousands) Income (loss) before income taxes: U.S. $ (290,645) $ (290,308) $ 185,667 Non-U.S. 191,142 383,422 395,617 Total income (loss) before income taxes $ (99,503) $ 93,114 $ 581,284 Income tax provision (benefit): Current: Federal $ 10,872 $ 36,349 $ 49,090 Foreign 97,428 86,493 85,356 State 9,729 12,175 17,817 Total current 118,029 135,017 152,263 Deferred: Federal (40,755) (50,555) (42,987) Foreign (22,415) (6,922) 779 State (12,199) (9,717) (9,141) Total deferred (75,369) (67,194) (51,349) Total provision for income taxes $ 42,660 $ 67,823 $ 100,914 Reconciliations of the statutory U.S. federal income tax rate to effective tax rates are as follows: Fiscal Year 2025 (in thousands) U.S. federal statutory tax rate (20,896) 21.0 % State and local income taxes, net of federal income tax effect (1) (4,653) 4.7 % Effect of cross-border tax laws Global intangible low-taxed income, net of foreign tax credits 6,284 (6.3) % Other 17 % Tax credits Research and development credit (2,721) 2.7 % Change in valuation allowance 2,040 (2.1) % Nontaxable or nondeductible Items Stock-based compensation 4,468 (4.5) % Goodwill impairment 8,032 (8.1) % Nondeductible compensation 4,961 (5.0) % Impact of acquisition and restructuring 5,541 (5.6) % Other 3,888 (3.5) % Foreign tax effects Canada Effect of rates different than st …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES Operating and Finance Leases Right-of-use lease assets and lease liabilities are reported in the Companys consolidated balance sheets as follows: December 27, 2025 December 28, 2024 (in thousands) Operating leases Operating lease right-of-use assets, net $ 361,415 $ 412,490 Other current liabilities $ 57,663 $ 54,159 Operating lease right-of-use liabilities 434,048 483,789 Total operating lease liabilities $ 491,711 $ 537,948 Finance leases Property, plant and equipment, net $ 24,664 $ 28,900 Current portion of long-term debt and finance leases $ 3,228 $ 2,774 Long-term debt, net and finance leases 24,648 25,670 Total finance lease liabilities $ 27,876 $ 28,444 The following table presents the components of operating and finance lease costs within the Companys consolidated statements of income (loss): Fiscal Year 2025 2024 2023 (in thousands) Operating lease costs $ 70,800 $ 71,058 $ 65,380 Finance lease costs: Amortization of right-of-use assets 3,084 3,111 2,745 Interest on lease liabilities 1,391 1,548 1,477 Short-term lease costs 1,322 3,904 3,581 Variable lease costs 40,134 29,192 22,159 Sublease income (2,804) (2,156) (2,067) Total lease costs $ 113,927 $ 106,657 $ 93,275 Other information related to leases was as follows: Supplemental cash flow information Fiscal Year 2025 2024 2023 (in thousands) Cash flows included in the measurement of lease liabilities: Operating cash flows from operating leases $ 78,730 $ 74,732 $ 60,239 Operating cash flows from finance le …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Newly Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740). ASU 2023-09 requires enhanced disclosures on income taxes paid, adds disaggregation of continuing operations before income taxes between foreign and domestic earnings and defines specific categories for the reconciliation of jurisdictional tax rate to effective tax rate. This ASU is effective for fiscal years beginning after December 15, 2024, and can be applied on a prospective basis. The Company adopted this new standard on a prospective basis for fiscal year 2025 and is reflected in Note 13, Income Taxes. Newly Issued Accounting Pronouncements In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350 - 40) - Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025-06 improves the operability of the guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods, including the methods that entities may use to develop software in the future. The ASU is effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted, and the amendments in this ASU may be adopted using either a prospective transition approach, a modified transition approach or a retrospective transition approach. The C …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

EMPLOYEE BENEFIT PLANS Pension Plans The Charles River Pension Plan (U.K. Pension Plan) is a defined contribution and defined benefit pension plan covering certain U.K. employees. Benefits are based on participants final pensionable salary and years of service. Participants rights vest immediately. The plan was previously amended to exclude new participants from joining the defined benefit section of the plan and a defined contribution section was established for new entrants. Contributions under the defined contribution plan are determined as a percentage of gross salary. Additionally, the U.K. Pension Plan was amended such that the members of the defined benefit section of the plan ceased to accrue additional benefits; however, their benefits continue to be adjusted for changes in their final pensionable salary or a specified inflation index, as applicable. During fiscal 2025, the Company made no contributions to the U.K. Pension Plan. As of fiscal 2025 year-end, this plan was in a funded status of $36.3 million. In addition, the Company has several defined benefit plans in certain other countries in which it maintains an operating presence, including Canada, France, Germany, Italy, Mauritius, Netherlands, and Japan. The net periodic benefit cost (income) associated with these plans for fiscal years 2025, 2024 and 2023 totaled $4.2 million, $4.8 million and $2.8 million, respectively. Charles River Laboratories Deferred Compensation Plan and Executive Supplemental Life Insu …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following table disaggregates the Companys revenue by reportable segment and timing of transfer of products or services: Timing of Revenue Recognition: 2025 2024 2023 (in thousands) RMS Services and products transferred over time $ 389,091 $ 380,899 $ 377,947 Services and products transferred at a point in time 456,991 448,478 414,396 Total RMS revenue 846,082 829,377 792,343 DSA Services and products transferred over time 2,400,414 2,446,751 2,611,564 Services and products transferred at a point in time 2,477 4,529 4,059 Total DSA revenue 2,402,891 2,451,280 2,615,623 Manufacturing Services and products transferred over time 383,682 407,474 381,942 Services and products transferred at a point in time 382,727 361,858 339,501 Total Manufacturing revenue 766,409 769,332 721,443 Total revenue $ 4,015,382 $ 4,049,989 $ 4,129,409 Contract Balances from Contracts with Customers The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers: December 27, 2025 December 28, 2024 (in thousands) Assets from contracts with customers Client receivables $ 518,728 $ 527,705 Unbilled revenue 200,591 211,511 Total 719,319 739,216 Less: Allowance for credit losses (10,463) (18,301) Trade receivables and contract assets, net $ 708,856 $ 720,915 Liabilities from contracts with customers Current deferred revenue $ 210,418 $ 248,322 Long term deferred reve …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT AND GEOGRAPHIC INFORMATION The Company operates in three reportable segments (RMS, DSA, and Manufacturing). The reportable segments comprise the structure used by the Companys Chief Executive Officer, who is the Chief Operating Decision Maker (CODM), to make key operating decisions and assess performance. These segments are strategic business units with differing products and services. The Companys CODM evaluates the segments operating performance based on operating income (loss). Operating income (loss) is the measure of profit or loss regularly provided to and used by the CODM to assess performance and allocate resources. Operating income (loss) is defined as revenue less costs of revenue; selling, general, and administrative expenses; amortization of intangible assets; goodwill impairments; and intangible asset impairments. For each segment, the CODM uses operating income (loss) in the annual budgeting and quarterly forecasting process when comparing to actual results. Asset information on a reportable segment basis is not disclosed as this information is not separately identified and internally reported to the Companys CODM. The following table presents the results of operations by reportable segment: Fiscal Year December 27, 2025 December 28, 2024 December 30, 2023 RMS Revenue $ 846,082 $ 829,377 $ 792,343 Cost of revenue (excluding amortization of intangible assets) 576,250 580,491 509,970 Selling, general and administrative 101,529 110,982 105,965 Amortization …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

EQUITY AND NONCONTROLLING INTERESTS Earnings (Loss) Per Share The following table reconciles the numerator and denominator in the computations of basic and diluted earnings (loss) per share: Fiscal Year 2025 2024 2023 (in thousands) Numerator: Net income (loss) $ (142,163) $ 25,291 $ 480,370 Less: Net income attributable to noncontrolling interests 2,175 3,088 5,746 Net income (loss) attributable to Charles River Laboratories International, Inc. $ (144,338) $ 22,203 $ 474,624 Calculation of net income (loss) per share attributable to Charles River Laboratories International, Inc. common shareholders Net income (loss) attributable to Charles River Laboratories International, Inc. $ (144,338) $ 22,203 $ 474,624 Less: Incremental dividends attributed to noncontrolling interest holders (1) 11,906 Net income (loss) available to Charles River Laboratories International, Inc. common shareholders $ (144,338) $ 10,297 $ 474,624 Denominator: Weighted-average shares outstanding - Basic 49,564 51,380 51,227 Effect of dilutive securities: Stock options, restricted stock units and performance share units 248 224 Weighted-average shares outstanding - Diluted 49,564 51,628 51,451 Anti-dilutive common stock equivalents (2)(3) 918 530 652 (1) Represents incremental declared dividends attributable to Noveprim noncontrolling interest holders who are entitled to preferential dividends for fiscal year 2024. (2) Anti-dilutive common stock equivalents represent amounts outstanding related to employe …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing