Mesa Laboratories reported higher revenue and profitability for the quarter ended September 30, with growth led by its Sterilization and Disinfection Control business and Calibration Solutions. The life-sciences tools maker also issued its first full-year fiscal 2027 outlook, while continuing to address operating issues and pay down debt.
Revenue rose 2.6% to $62.3 million. Operating income and net income increased sharply from a year earlier, and adjusted EBITDA grew faster than revenue. Performance varied by division: gains in sterilization and calibration were partly offset by declines in biopharmaceutical development and clinical genomics.
Key details
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Fiscal 2027 outlook: Mesa expects full-year revenue of $250 million to $255 million and adjusted EBITDA of $66 million to $68 million. The company said the guidance is based on six months of results under its recent operational changes and was set conservatively.
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Quarterly earnings: Operating income increased 77.6% to $8.4 million, while net income rose 75.3% to $4.3 million. Diluted earnings were 75 cents per share, compared with 45 cents a year earlier.
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Adjusted EBITDA and revenue growth: Adjusted EBITDA increased 21.1% to $17.3 million, equal to 27.8% of revenue versus 23.5% in the prior-year quarter. Organic revenue growth was 2.6%, or 3.1% after adjusting for currency movements.
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Debt reduction: Mesa repaid $11.4 million of debt during the quarter. Its total net leverage ratio stood at 1.75 as of September 30.
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Sterilization and Disinfection Control (SDC): Revenue rose 14.6% to $25.3 million, representing about 41% of company revenue for the quarter. Mesa attributed much of the increase to comparison with a year-earlier period affected by production and fulfillment delays. It said underlying production problems had been resolved for most product lines and shipments had increased. SDC’s revenue for the trailing 12 months reached $103.9 million, a record for the division. Its quarterly gross profit percentage improved by 2.6 percentage points, helped by lower contract labor and consulting costs and higher revenue spread across a partly fixed-cost base.
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Calibration Solutions (CS): Revenue was $14.1 million, up 3.5% organically. For the first six months of the fiscal year, revenue was $27.3 million, up 5.5%.
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Biopharmaceutical Development (BPD): Revenue was $12.8 million, down 8.2% organically for the quarter. Mesa said the division continued to face export-control processing delays. First-half revenue was $24.8 million, down 2.2%.
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Clinical Genomics (CG): Revenue was $10.2 million, down 8.8% organically. For the first half, revenue was $20.5 million, down 4.6%.
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Revenue excluding Clinical Genomics: On a non-GAAP basis, revenue excluding CG increased 5.2% to $52.2 million in the quarter, or 5.8% after adjusting for currency. For the first six months, it increased 3.2% to $102.0 million, or 3.3% on a constant-currency basis.
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Operational changes: CEO Siddhartha Kadia said the company’s savings plan, announced in October, was underway. He also said SDC was shipping more reliably across most product lines.
Plain-English implications
The quarter showed a mixed operating picture: SDC’s recovery and growth in Calibration Solutions outweighed declines in BPD and Clinical Genomics, supporting modest overall organic growth. Higher adjusted EBITDA and debt repayment indicate improved profitability alongside a lower debt burden. Mesa’s new full-year outlook gives investors a revenue and earnings range for fiscal 2027, rather than relying only on quarterly results.