Bio-Techne (TECH) investor relations material

Quarterly performance and strategic execution

• Reported Q3 growth of -2%, impacted by a large order timing shift and suppressed early-stage biotech demand.

• Core product lines, proteins and antibodies, grew low single digits, outperforming the market.

• Growth verticals: cell and gene therapy showed 50% underlying growth, protein analysis grew mid-single digits, and spatial biology grew mid-teens.

• China delivered its fourth consecutive positive quarter, confirming a broad-based recovery.

• EBITDA margin reached 34.2%, slightly ahead of expectations.

End market dynamics and outlook

• Early-stage biotech demand remained weak despite strong funding and M&A, as spending focused on late-stage programs.

• Large pharma R&D budgets increased mid-single digits, supporting double-digit growth for six consecutive quarters.

• Academic markets stabilized, with U.S. academic flipping to positive growth driven by instrumentation and chronic disease research grants.

• China’s recovery is broad-based, supported by government’s five-year plan and increased biotech/pharma activity.

• Cell therapy vertical experienced a temporary revenue dip due to Fast Track approvals, but underlying growth remains strong.

Forward-looking statements and market trends

• Q4 guidance implies flat year-over-year growth, with a 150 basis point headwind from Fast Track customers.

• Fiscal 2027 is expected to see a recovery, with biotech stabilization and easier comps in biotech and academic markets.

• Biotech funding is expected to translate into spending soon, with instrument order funnels building.

• AI adoption is accelerating, driving demand for high-quality, reproducible data and automation in research.

• The company’s portfolio is well-aligned with trends in AI, automation, and high-throughput screening, validated by customer surveys.