Key Points
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Q2 results improved: Revenue rose 2.6% to $62.3 million, while adjusted EBITDA increased 21.1% to $17.3 million and adjusted EBITDA margin expanded to 27.8% from 23.5%. Mesa forecast fiscal 2027 revenue of $250 million to $255 million and adjusted EBITDA of $66 million to $68 million.
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Clinical Genomics is being restructured: Mesa plans to focus the division on select markets and reduce costs, even as it expects revenue to decline. Its savings plan targets about $9.3 million in annualized cost reductions, offset by $4.3 million of reinvestment, for a net reduction of roughly $5 million.
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Operational and capital-allocation priorities remain in focus: SDC grew 14.6%, though a key manufacturing fix is still incomplete, while Biopharmaceutical Development revenue fell 8.2% due to delayed shipments. Mesa also authorized up to $40 million in share repurchases through December 2028 and continued reducing debt.
Mesa Laboratories (NASDAQ:MLAB) reported higher revenue and earnings for its fiscal 2027 second quarter and issued full-year guidance, while outlining plans to restructure its Clinical Genomics business and repurchase up to $40 million in shares.
The company expects fiscal 2027 revenue of $250 million to $255 million and adjusted EBITDA of $66 million to $68 million. That implies adjusted EBITDA growth of approximately 5% to 8% from about $63 million in fiscal 2026, on revenue growth of approximately 0% to 2%, Chief Executive Officer Siddhartha Kadia said.
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Second-quarter revenue rose 2.6% to $62.3 million. Net income was $4.3 million, or $0.75 per diluted share, compared with $0.45 per share a year earlier. Adjusted EBITDA increased 21.1% to $17.3 million, with its margin rising to 27.8% from 23.5%.
Kadia said the full-year outlook incorporates lower Clinical Genomics revenue and reinvestment under the company’s savings plan. It excludes restructuring charges. Mesa expects third-quarter revenue to be approximately flat year over year, mainly because of the Clinical Genomics changes.
Manufacturing Fixes Remain Incomplete
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Sterilization and Disinfection Control, or SDC, grew organic revenue 14.6% in the quarter. Kadia cautioned that much of the increase reflected a comparison with the prior-year quarter, when delivery delays had caused past-due backlog to build. First-half growth was approximately 5%.
