Azenta targets faster organic growth and wider margins in 2027
The life-sciences services company forecasts $648 million to $660 million of annual revenue after a quarter of uneven growth across its businesses.
Azenta expects fiscal-2027 revenue from continuing operations of $648 million to $660 million and organic revenue growth of 3% to 5%. Management discussed the outlook on Wednesday's earnings call after releasing results Tuesday.
The forecast and the latest quarter
The company also targets adjusted EBITDA margin expansion of 200 to 250 basis points, equivalent to 2 to 2.5 percentage points, from fiscal 2026. These are management forecasts, not results already earned, and adjusted EBITDA is a non-GAAP measure.
Fourth-quarter revenue from continuing operations was about $167 million, up 5% from a year earlier, or 2% on an organic basis. Sample Management Solutions revenue rose 9% to $94 million, while Multiomics revenue was flat at $73 million.
The organic measure excludes acquisition and currency effects. It should not be confused with the faster reported growth rate, which includes those effects.
Profit measures point in different directions
Adjusted diluted earnings per share from continuing operations rose to 28 cents from 21 cents a year earlier. Reported diluted EPS from continuing operations fell to 14 cents from $1.12.
Quarterly adjusted EBITDA was $19.4 million, with an 11.6% margin, down from 13% a year earlier. A higher adjusted EPS figure therefore does not mean every profit measure improved.
The useful test for the coming year is whether organic revenue growth and margin expansion follow management's targets while it integrates its recent technology investments. The outlook remains subject to execution and customer-demand risks.
