Neogen Corp
NASDAQ:NEOG
Neogen Corp
Founded in 1982, Neogen Corp. has steadily carved out its niche at the intersection of food safety and animal health, positioning itself as a vital player in agricultural diagnostics. The company's journey began in Lansing, Michigan, where it initially focused on innovative solutions to meet the growing demands of food safety and quality testing. By developing rapid tests for detecting foodborne bacteria and allergens, Neogen tapped into a critical market, addressing the increasing concerns about food safety amidst a complex global supply chain. This foundation in diagnostics set the stage for the growth Neogen would see over the ensuing decades.
As Neogen expanded, it strategically diversified its offerings, moving beyond food safety into the broader realm of animal health. This expansion was not merely about developing products; it was about advancing the means by which farms and food producers monitor and ensure the health of their livestock and crops. The company's profits flow from the sale of its diagnostic products, which help minimize risks associated with food contamination and animal diseases. By providing a suite of solutions, from DNA testing for genetic traits and diseases in cattle to disinfectants and rodenticides that maintain farm hygiene, Neogen creates value for its clients by increasing their operational efficiency and safeguarding public health. This strategic blend of food safety and animal health products places Neogen at the heart of modern agricultural and food production systems, where safety and efficiency are paramount.
Founded in 1982, Neogen Corp. has steadily carved out its niche at the intersection of food safety and animal health, positioning itself as a vital player in agricultural diagnostics. The company's journey began in Lansing, Michigan, where it initially focused on innovative solutions to meet the growing demands of food safety and quality testing. By developing rapid tests for detecting foodborne bacteria and allergens, Neogen tapped into a critical market, addressing the increasing concerns about food safety amidst a complex global supply chain. This foundation in diagnostics set the stage for the growth Neogen would see over the ensuing decades.
As Neogen expanded, it strategically diversified its offerings, moving beyond food safety into the broader realm of animal health. This expansion was not merely about developing products; it was about advancing the means by which farms and food producers monitor and ensure the health of their livestock and crops. The company's profits flow from the sale of its diagnostic products, which help minimize risks associated with food contamination and animal diseases. By providing a suite of solutions, from DNA testing for genetic traits and diseases in cattle to disinfectants and rodenticides that maintain farm hygiene, Neogen creates value for its clients by increasing their operational efficiency and safeguarding public health. This strategic blend of food safety and animal health products places Neogen at the heart of modern agricultural and food production systems, where safety and efficiency are paramount.
Revenue Growth: Neogen returned to positive core growth, with Q2 revenue of $224.7 million, up 2.9% on a core basis.
Margin Expansion: Adjusted EBITDA margin improved by nearly 500 basis points sequentially, reaching 21.7%.
Cost Savings: Recent cost structure improvements are expected to deliver around $20 million in annualized savings.
Raised Guidance: Management raised fiscal 2026 revenue guidance to $845–$855 million and expects adjusted EBITDA of ~$175 million, reflecting a cautious outlook despite Q2 outperformance.
Operational Progress: Petrifilm manufacturing transfer is on track; sample collection profitability is expected to turn positive in the second half.
Leadership Changes: Several senior leaders were added recently, with new commercial and operational processes already showing positive impact.
Genomics Divestiture: Sale of the genomics business is progressing and anticipated to be announced in Q4, with proceeds to reduce debt.
