Bio-Techne Organic Sales Rebound After a Third-Quarter Drop
Fourth-quarter organic revenue rose 3% to $321.2 million as the company agreed to be bought by Merck KGaA for $73 a share.
Bio-Techne Corporation (TECH) reported fourth-quarter organic revenue of $321.2 million, a 3% increase that reversed a 2% reported and organic decline in the third quarter. Reported net sales rose 1% from a year earlier.
The life-sciences company had non-recurring prior-year revenue from a business held for sale that had an unfavorable 2% impact on the quarter. Foreign currency was not material.
GAAP earnings were $0.35 a share, compared with a loss of $0.11 a share a year earlier. GAAP operating income was $74.3 million, versus an operating loss of $23.9 million, and GAAP operating margin was 23.1%, versus (7.5)%. The current-quarter GAAP operating margin was favorably impacted by a non-recurring impairment charge in the prior year.
Adjusted EPS was $0.52 a share, down from $0.53. Adjusted operating income increased to $103.4 million, and adjusted operating margin was 32.2%, versus 32.0%. Adjusted operating margin was favorably impacted by profitability initiatives and the Exosome Diagnostics divestiture, partially offset by unfavorable product mix.
Adjusted operating margin had expanded from 31.1% in the second quarter to 34.2% in the third quarter before compressing to 32.2% in the fourth.
Protein Sciences, the company’s largest reportable segment, posted fourth-quarter net sales of $231.2 million, up 2% from $226.5 million. Organic revenue in the segment increased 1%, with a 1% favorable foreign-currency impact. Segment operating margin decreased to 42.0% from 43.6%, primarily because of unfavorable volume and product mix. A business within the segment that met held-for-sale criteria as of December 31, 2023, was excluded from both periods.
Diagnostics and Spatial Biology net sales remained flat at $90.1 million. Organic revenue in that segment increased 8%, while a held-for-sale business had an unfavorable 8% impact. Segment operating margin increased to 11.2% from 6.0%, favorably impacted by the Exosome Diagnostics divestiture, favorable volume growth, and ongoing profitability initiatives. A business in the segment that met held-for-sale criteria as of June 30, 2025, was excluded from fiscal 2026 operating results.
For the full year ended June 30, 2026, net sales remained flat at $1.2 billion, and organic revenue remained flat. Foreign currency had a favorable 2% impact and a business held for sale had an unfavorable 2% impact. Full-year GAAP EPS was $1.16 a share, versus $0.46. GAAP operating income was $251.9 million, and GAAP operating margin was 20.7%, versus 8.4%. Full-year GAAP operating margin was favorably impacted by a non-recurring impairment charge in the prior year, a non-recurring arbitration award in the prior year, and a recovery of assets held for sale. Full-year adjusted EPS was $1.93 a share, versus $1.92. Adjusted operating income was $386.1 million, up 1%.
Protein Sciences full-year net sales were $874.6 million, up 1%. Organic revenue in the segment decreased 1%, with a 2% favorable foreign-currency impact. Segment operating margin was 41.1%, versus 42.6%. Diagnostics and Spatial Biology full-year net sales were $336.4 million, down 3%. Organic growth in the segment was 4%, with a 1% favorable foreign-currency impact and an 8% unfavorable impact from a business held for sale. Segment operating margin was 11.2%, versus 6.2%.
Cash and equivalents were $264.7 million at June 30, 2026, versus $162.2 million a year earlier. Long-term debt obligations were $200.0 million, versus $346.0 million.
As previously announced on June 25, 2026, Bio-Techne entered into an agreement to be acquired by Merck KGaA, Darmstadt, Germany, for $73 a share in cash, representing a total enterprise value of approximately $11.3 billion. President and Chief Executive Officer Kim Kelderman said the company ended fiscal 2026 with improved performance and solid execution, and that it continues to make progress toward completing the acquisition. In light of the transaction, Bio-Techne is no longer holding investor conference calls for quarterly results.