Neogen Corp

F:NG2

Growth: Neogen reported first-quarter revenue of $222.8 million, with 8.1% core growth. Management said order timing and a prior-year distributor inventory adjustment together benefited reported core growth by approximately 300 basis points.

Outlook: The company raised fiscal 2027 revenue guidance to $885 million to $890 million and adjusted EBITDA guidance to $181 million to $183 million.

Margins: Adjusted EBITDA margin expanded 170 basis points to 18.7%. Management expects first-half margins to be in line with Q1, with margin-program benefits more weighted to the second half.

Segments: Food Safety revenue was $163.2 million and Animal Safety revenue was $59.6 million; each segment reported 8.1% and 8% core growth, respectively.

Execution: Management cited progress in commercial discipline, strategic-account coverage, inventory planning, and innovation, while emphasizing that execution improvements are still a work in progress.

Petrifilm: The first SKU has been fully validated, and the planned multi-quarter manufacturing transfer is expected to begin next month. Management said the transition remains a priority and is monitoring customer continuity, safety stock, suppliers, and sequencing.

Cash and debt: Free cash flow was $4.7 million, up approximately $18 million year over year. The company said expected net proceeds of approximately $140 million from the genomics divestiture are intended primarily for debt reduction.