Charles River Targets 5%-7% Growth, $300M Savings in 2030 Plan

Charles River Laboratories International NYSE: CRL outlined a strategy to accelerate growth, expand margins and modernize its operations during its 2026 Investor Day, setting financial targets through 2030 that include 5% to 7% organic revenue growth, an approximately 24% non-GAAP operating margin and low-double-digit non-GAAP earnings-per-share growth.

Chief Executive Officer Birgit Girshick said the company’s refreshed strategic framework, called “Pathway to Purpose,” centers on three priorities: modernizing the company and industry, strengthening its scientific portfolio and growing through a customized client-centric approach.

“I want to simplify the company, invest where we can win, and translate this into revenue growth, margin expansion, and long-term shareholder value creation,” Girshick said.

Charles River said its “Create the Future” modernization initiative is expected to produce at least $300 million in cumulative incremental savings between 2027 and 2030, in addition to $300 million in cost savings implemented in recent years, primarily through restructuring.

Mark Mintz, the company’s chief information officer and head of global shared services, said the program will focus on AI, automation, digitization, workflow simplification and enterprise optimization.

The company has identified more than 15 core business processes for simplification and has more than 50 AI-enabled projects supporting the transformation, according to Mintz.

The company plans to use digital tools to support functions including scientific reporting, study design, commercial processes, financial processes, laboratory operations and manufacturing workflows.

It also highlighted Apollo, its digital client engagement platform, which supports research-model purchases, vivarium management, study visibility and biologics-testing sample tracking.

Mintz said Apollo has more than 18,000 client users and that about 92% of eligible users utilize the platform.

Girshick identified bioanalysis, or BioA, as one of Charles River’s clearest growth opportunities. The company currently performs BioA work primarily in the preclinical setting but is expanding capabilities to support clinical sample testing, rather than clinical trials.

Management said that expansion could shift the company’s revenue mix from approximately 60% pre-IND and 40% post-IND toward a roughly even split.

The company expects BioA revenue to rise organically from approximately $300 million in 2025 to $450 million in 2030, according to Shannon Parisotto, corporate executive vice president of global Discovery and Safety.