Azenta Sales Grow; The Eastern Company’s Profit Jump Faces Tests

By Olivia Hart

Azenta generated $622 million in fiscal 2026 revenue, up 5%, but recorded a $158 million loss from continuing operations after impairment and other charges. The Eastern Company separately reported third-quarter 2026 net income from continuing operations of $3.4 million, up from approximately $579,000. Both updates leave a common test: whether reported growth becomes durable profit and cash.

What did Azenta report in its fiscal fourth quarter?

Azenta reported fiscal fourth-quarter 2026 revenue from continuing operations of $167 million, up 5% year over year and 2% organically. The segment results diverged: Sample Management Solutions grew, while Multiomics stayed nearly flat.

• Sample Management Solutions revenue rose 9% to $94 million. Organic growth was 4%, driven by repository services and consumables and instruments, partly offset by lower revenue from services.
• Multiomics revenue was $73 million, approximately unchanged from the prior-year quarter. Organic revenue declined 1% as lower Sanger and next-generation sequencing activity offset growth elsewhere in the portfolio.
• Net income from continuing operations fell to $6 million from $52 million. Diluted earnings from continuing operations dropped to $0.14 from $1.12, while total diluted earnings were $0.16, versus $1.11.
• Adjusted EBITDA declined 7% to $19.4 million, and its margin narrowed to 11.6% from 13%. Adjusted diluted earnings increased to $0.28 from $0.21.
• Azenta generated $22 million of operating cash flow, spent $10 million on capital expenditures, and reported approximately $12 million in free cash flow.

For fiscal 2026, Azenta reported revenue of $622 million, up 5%, including organic growth of 2%. Sample Management Solutions revenue rose 6% to $344 million, while Multiomics increased 3% to $277 million.

Azenta’s full-year adjusted EBITDA was $58.3 million. Its $158 million loss from continuing operations included impairment and other charges, compared with $24 million of net income from continuing operations in fiscal 2025; the figures provided did not separate those charges.

Takeaway: Azenta produced more revenue and cash, but quarterly net income, EBITDA and margin fell despite a higher adjusted diluted earnings result.

What must Azenta deliver in fiscal 2027?

Azenta expects fiscal 2027 revenue of $648 million to $660 million and organic growth of 3% to 5%. The forecast calls for organic growth above fiscal 2026’s 2%.

Azenta expects adjusted EBITDA margin to expand by approximately 200 to 250 basis points, equivalent to two to two-and-a-half percentage points. It also anticipates improved free cash flow while focusing on profitable organic growth and operating efficiency.

The figures provided did not include a free-cash-flow target or a breakdown of the fiscal 2026 impairment and other charges. Those omissions leave the forecast margin and cash-flow improvements without a quantified baseline.

Takeaway: The outlook requires faster organic growth and wider margins, while leaving the expected cash-flow improvement unquantified.

What changed at The Eastern Company?

The Eastern Company reported third-quarter 2026 net income from continuing operations of $3.4 million, up from approximately $579,000 a year earlier. Higher sales and a full-quarter contribution from an acquired aerospace and defense business supported the result.

Revenue and operating contributions improved across The Eastern Company’s engineered products portfolio. Working-capital requirements associated with higher sales partly offset those gains, and the acquisition expanded The Eastern Company’s exposure to aerospace and defense customers.

• Adjusted net income from continuing operations was $3.6 million, or $0.60 per diluted share.
• Adjusted EBITDA from continuing operations increased to $7.6 million from $3.5 million in the prior-year quarter.
• For the first nine months of 2026, net income from continuing operations reached $9.7 million, compared with $6 million in the prior-year period.
• Adjusted EBITDA for the first nine months fell to $14 million from $15.2 million. Acquisition-related and other items affected comparisons between reported and adjusted earnings.

Mark Hernandez, President and Chief Executive Officer of The Eastern Company, said: “The full-quarter contribution to our results added revenue from the aerospace and defense market, while we generated earnings, maintained our dividend, and preserved ample liquidity despite the additional working capital required to support higher sales.”

Takeaway: The quarter improved sharply, but lower nine-month adjusted EBITDA shows the gain has not translated into a year-to-date increase.

Can backlog support The Eastern Company’s next phase?

At the end of the third quarter, The Eastern Company reported backlog of $126.1 million across transportation, logistics, commercial, and aerospace and defense markets. Management said the backlog provides revenue visibility.

The company did not state how much backlog would convert within a specific period. Its near-term priorities are converting the backlog, protecting margins and maintaining disciplined operating execution.

• The Eastern Company maintained its quarterly dividend at $0.11 per share. Dividends totaled $0.33 per share during the first nine months, unchanged from the comparable 2025 period.
• Cash and cash equivalents were approximately $7.9 million, compared with $7.4 million at the end of the prior fiscal year.
• Management said the company maintained sufficient liquidity despite additional working-capital use to support higher revenue.

Continued execution depends on integrating the acquired operation, delivering orders on schedule and managing production costs. The Eastern Company must also turn backlog into profitable revenue and cash flow.

Takeaway: The Eastern Company’s $126.1 million backlog offers visibility, but working capital and acquisition integration will determine whether it becomes profitable cash.