Key Highlights

  • Revenue was USD 62.3 million, compared with USD 60.7 million.
  • Net income was USD 4.3 million; diluted EPS was USD 0.75.
  • Organic revenues grew 2.6%, up from 1% in the first quarter.
  • Net Leverage was 1.75 times, down from 1.85 at June.

Mesa Laboratories, Inc. (NASDAQ:MLAB) reported fiscal second quarter 2027 revenues of USD 62.3 million, compared with USD 60.7 million a year earlier. Reported EPS was USD 0.75 and Revenue was USD 62.34 million, compared with estimates of EPS of USD 2.29 and revenue of USD 62.20 million.

Net income was USD 4.3 million, compared with USD 2.5 million, and Diluted Earnings per Share were USD 0.75, compared with USD 0.45. For the six months, revenues were USD 122.5 million, compared with USD 120.3 million, and Net Income was USD 7.2 million in both periods.

Growth and Franchise Performance

Management said organic revenues grew 2.6% in the second quarter, up from 1% in the first quarter. Excluding clinical genomics, which the company is reshaping, revenues grew about 5% in the quarter and about 3% in the first half. The Sterilization and Disinfection Control Business grew 14.6% organically in the second quarter. Trailing twelve month revenues for that franchise were USD 104 million, up 8.5% and the highest twelve months in the franchise's history. Management also said the next Gyrolab platform launches in fiscal 2028.

In the first half, adjusted EBITDA grew 20.9% on revenues up about 1.8%.

Savings Plan and Clinical Genomics

On October 13, the company announced a savings plan to reduce annualized operating cost by approximately USD 9.3 million through a global restructuring program, a smaller facilities footprint in San Diego and lower third party spending. It plans to reinvest approximately USD 4.3 million, primarily in commercial capacity in calibration solutions, Asia and key corporate positions, for a net annualized cost reduction of about USD 5 million. Management said the actions are underway and are described as substantially complete by the end of the fiscal year, with the full benefit in the cost base by the end of fiscal 2028.

The same announcement moved Capital out of clinical genomics and into the businesses with the highest returns. The company continues to report four segments. Management also noted that a new general counsel joined on November 2, and that it reports existing Operating Income alongside adjusted EBITDA through the end of the fiscal year, with a reconciliation of the two measures provided on the call.

Balance Sheet and Capital Allocation

The company paid USD 20.1 million of Debt in the first half. Net leverage was 1.75 times, down from 1.85 at the end of June and within the 1.5 to 1.75 turns range cited for the end of the fiscal year. The board authorized a share repurchase program of up to USD 40 million through December 31, 2028.

Fiscal 2027 Guidance

The guidance covers the full fiscal year 2027 and was restated on the call alongside the second quarter results. The company cited fiscal 2027 guidance of revenues of USD 250 million to USD 255 million and adjusted EBITDA of USD 66 million to USD 68 million, compared with adjusted EBITDA of about USD 63 million in fiscal 2026. Management said guidance for adjusted EBITDA growth of 5% to 8% includes the reinvestment and lower clinical genomics revenues.