Neogen Corporation (NEOG): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed assessment of Neogen Corporation's (NEOG) portfolio, especially after the 3M Food Safety merger and recent divestitures, so let's map their business units onto the classic BCG Growth-Share Matrix using the latest fiscal year 2025 data. The picture is complex: while the core Food Safety segment acts as a massive 71.3% revenue Cash Cow at $638.1 million, high-growth Stars like Biosecurity are emerging, yet the entire Animal Safety segment and a $1.09 billion net loss cast a long shadow, making the Genomics unit a major Question Mark you need to understand now.

Background of Neogen Corporation (NEOG)

You're looking at Neogen Corporation (NEOG), which, at its core, develops, makes, and sells a variety of products and services focused on keeping both food and animals safe across the globe. The company, headquartered in Lansing, Michigan, operates primarily through two distinct segments: Food Safety and Animal Safety. Honestly, their whole mission centers on fueling a brighter future for global food security by advancing animal and human well-being.

The Food Safety segment is definitely the bigger piece of the pie; it brought in 71.3% of Neogen Corporation's total revenues for the fiscal year that ended on May 31, 2025. This part of the business sells diagnostic test kits and related items, like culture media, to food and animal feed producers. They help customers check for things like foodborne pathogens, spoilage organisms, natural toxins, and allergens, plus they cover general hygiene in the manufacturing spaces. Despite some specific challenges with their sample collection product line, the core revenue for Food Safety actually grew at a mid-single digit rate for the full fiscal year 2025.

Next up is the Animal Safety segment, which is a bit more diverse, covering animal health, agricultural biosecurity, and genetic progress. This includes everything from life sciences and veterinary instruments to disinfectants and genomics testing services. For the full fiscal year 2025, this segment generated revenues of $256.5 million, which was a decrease of 4.6% compared to the prior year. It's worth noting that the company's Genomics business within this segment saw a core revenue decline in the low-to-mid single digits, though the bovine market showed some strength internationally.

Neogen Corporation has been making some decisive strategic moves lately, especially following the integration of the massive 3M Food Safety business combination which closed back in 2022. In fiscal 2025, the company completed the divestiture of its global Cleaners and Disinfectants business in July 2025, with plans to use the proceeds to pay down debt. They also refinanced their credit facilities during that fiscal year. Furthermore, the company saw a leadership change, with John Adent stepping down around April 2025, and Mike Nassif, a diagnostics industry veteran, taking the CEO role to focus on disciplined execution.

Looking at the top line for the full fiscal year 2025 (ending May 31, 2025), Neogen Corporation reported total revenues of $894.7 million, marking a 3.2% drop year-over-year. The gross margin for that full year came in at 47.1%. You should also know that capital expenditures were quite high at $105 million for fiscal 2025, but the company is projecting a significant drop to about $50 million for fiscal 2026 as they work to simplify the business.

Neogen Corporation (NEOG) - BCG Matrix: Stars

You're looking at the areas within Neogen Corporation that are leading the charge in fast-growing markets. These are the business units that, despite consuming cash for promotion and placement, are expected to become the future Cash Cows if they maintain their leadership.

Biosecurity and Pathogen Detection Solutions showed strong core momentum in the third quarter of fiscal year 2025. The core growth for the entire Food Safety segment in Q3 FY2025 was 1.5%, but this was held back by sample collection issues. The strength in biosecurity and the bacterial & general sanitation product categories, which includes pathogen detection products, was a key driver of this underlying performance.

Advanced Food Safety Diagnostics, which includes the combined entity's scale, is operating in a market where regulators and consumers are showing an increasing focus on food safety. Excluding the headwinds from the sample collection product line, the core revenue in the Food Safety segment grew by 7% in Q3 FY2025, signaling robust underlying demand for core diagnostic offerings.

For the full fiscal year 2025, new product introductions in Food Quality and Nutritional Analysis were significant contributors. These new products, alongside strength in indicator and pathogen testing, drove some of the $8.0 million of business growth recorded in the Food Safety segment for FY2025, even with currency headwinds.

Digital and Software Systems integration for food testing represents a high-growth area that requires capital investment to secure market share. While specific capital allocation for this unit isn't broken out, the overall company context shows a need for investment to drive future growth, with total capital expenditures for FY2025 anticipated to be approximately $100 million. The company is also making progress on bringing Petrifilm production in-house, with the first of two production lines nearly installed, targeting initial test production in the fall of 2025.

Here is a quick look at the segment performance that frames these Star candidates:

The company's liquidity position as of February 28, 2025, included $127.7 million in cash and cash equivalents, supporting the necessary capital deployment for these growth areas.

You should watch the execution on the Petrifilm plant standup, as successful integration here directly impacts the profitability of these high-growth diagnostic products.

• Food Safety Segment Q3 FY2025 Revenue: $152.7 million.
• Total Company Revenue Q3 FY2025: $221.0 million.
• FY2025 Updated Revenue Guidance: Approximately $895 million.
• Gross Margin Q3 FY2025: 49.9%.

Finance: draft 13-week cash view by Friday.

Neogen Corporation (NEOG) - BCG Matrix: Cash Cows

You're looking at the engine room of Neogen Corporation's portfolio, the segment that consistently out-earns its required investment-the Cash Cow. For Neogen Corporation, this role is firmly held by the Food Safety segment. This unit is the market leader, generating the necessary capital to fund other parts of the business, including those riskier Question Marks. Honestly, this is where the stability comes from.

The numbers for fiscal year 2025 clearly show this dominance. The Core Food Safety Platform brought in $638.1 million in revenue for the year ended May 31, 2025. That figure represents a substantial 71.3% of Neogen Corporation's total reported revenue of $894.7 million for the same period. While the overall segment experienced a low 1.2% core growth in FY2025, its sheer scale and market penetration mean it still consumes less in promotion and placement than it spits out in profit, making it a classic cash generator. Defintely, you want to maintain this position.

The stability comes from the recurring nature of the consumables and the established product lines, many of which were integrated from the 3M Food Safety Division. You see this in the performance of staples like Petrifilm and Culture Media, which provide high-volume, predictable sales. Even with near-term headwinds, the segment's essential nature means customers keep ordering. The company is still working on the final integration piece, with management noting that the establishment of its own Petrifilm production was progressing well as of Q3 FY2025.

To maintain this cash flow, investments are focused on efficiency, not aggressive market share expansion, which is typical for a Cash Cow. For instance, supporting infrastructure improvements help keep the margins high. Here's a quick look at the segment's top-line performance in FY2025:

The products driving this segment's consistent cash generation are those essential for daily testing and sanitation protocols. These are the items that must be reordered regularly, regardless of minor economic fluctuations. The focus here is on milking the gains passively while ensuring operational excellence.

• Indicator Testing and Pathogen Detection products showed continued strength.
• Sales of new products in the Food Quality and Nutritional Analysis line in the US and Canada contributed to growth.
• General Sanitation products are essential, recurring consumables supporting the segment's base load.
• Culture Media product lines provide stable, high-volume sales from the 3M acquisition base.

Neogen Corporation (NEOG) - BCG Matrix: Dogs

You're looking at the units in Neogen Corporation that are tying up capital without offering much growth or return right now. In the BCG framework, these are the Dogs-low market share in low-growth markets. Honestly, these are the businesses you want to minimize or, ideally, divest, because expensive turn-around plans rarely pay off here.

The most definitive action Neogen Corporation took to shed a Dog was the divestiture of its Cleaners & Disinfectants business. This unit was sold to Kersia Group in July 2025 for $130 million in cash at closing, plus contingent payments. The immediate, concrete result of this move was the plan to use net proceeds to repay $100 million of debt within the current quarter, which was expected to reduce the company's net leverage by approximately 0.4x on a pro forma basis. This action aligns perfectly with the strategy of avoiding cash traps.

Within the remaining portfolio, certain legacy Animal Safety product lines clearly fit this quadrant profile due to market share and growth stagnation. Specifically, traditional products like needles, syringes, and vitamin injectables showed clear weakness. For the fourth quarter of fiscal year 2025, the entire Animal Safety segment revenue fell by 8.9%, dropping to $63.6 million from $69.9 million in the prior year period. This decline was directly attributed to lower sales in those specific product categories. For the full fiscal year 2025, the Animal Safety segment revenue was $256.5 million, a 4.6% decrease year-over-year. The segment remained near what management believed were cyclical lows.

Here's a quick look at the financial impact of these low-performing areas in the most recent full fiscal year data available:

Furthermore, other parts of the Animal Safety business faced headwinds that characterize a Dog. You saw this in product lines that were directly affected by external market forces. Specifically, the segment dealt with:

• Channel inventory movements at distribution partners, which depressed core revenue growth in prior periods.
• End-market cyclical lows within the U.S. agriculture sector, keeping the segment near its trough.
• Lower genomics volume due to restructuring actions and weakness in the companion animal market in FY2025.

Even within the Food Safety segment, which generally holds stronger positions, certain product lines were explicitly flagged as Dogs due to discontinuation. Product lines that were discontinued in fiscal year 2025 accounted for a negative impact of $1.2 million on Food Safety revenue for that year. This is a clear example of pruning the portfolio to remove low-return assets. For instance, in Q1 of fiscal 2026, the combined impact of divestitures and discontinued product lines represented a 4.4% negative impact on total revenue, which was $209.2 million for the quarter.

If you look at the most recent quarter, Q1 FY2026, the Animal Safety segment revenue was $57.1 million, slightly below the $57.6 million from the prior year, even though core revenue grew 5.8%. The negative 6.4% impact from divestitures and discontinued lines clearly shows the drag these units had. Finance: draft the cash flow impact analysis for the remaining low-growth Animal Safety SKUs by next Tuesday.

Neogen Corporation (NEOG) - BCG Matrix: Question Marks

You're looking at the parts of Neogen Corporation (NEOG) that are burning cash while operating in markets that should, theoretically, be winners. These are the classic Question Marks: high growth potential markets where Neogen currently holds too small a slice of the pie.

The entire Animal Safety segment fits this profile, showing a core revenue decline of 3.5% for the full fiscal year 2025, falling to total revenues of $256.5 million from $268.9 million in the prior year. Still, this segment contains the Genomics business, which operates in an advanced genetic testing market that is supposed to be growing. The reality for Genomics in FY2025 was a struggle; for the third quarter, its core revenue declined by a mid-single-digit percentage year-over-year, and in the fourth quarter, it was still declining by a low-single-digits sequentially. This unit consumes cash to try and capture market share in a high-growth area, but right now, it's not delivering returns.

The operational struggles are clear when you look at the specific product lines and the cash drain associated with fixing them. Sample Collection products are a prime example of a Question Mark facing execution risk. Production constraints at the relocated facility caused a decline in sales, which ties directly into the high cash burn. The company spent $105 million on capital expenditures in fiscal year 2025, a figure that is expected to decline significantly to approximately $50 million in fiscal year 2026, suggesting a large portion of that FY2025 spend was necessary to fix these production issues.

The overall financial result for Neogen Corporation in fiscal year 2025 paints a picture of significant uncertainty, which is the hallmark of a portfolio heavy with Question Marks. The company posted a full-year net loss of $1,092.0 million, or $(5.03) per diluted share. A massive portion of this loss is directly tied to the value realization of the 3M merger, which is now a major question mark itself. The Food Safety segment's operating income decline was primarily due to a non-cash goodwill impairment charge of $1,059.3 million incurred in fiscal year 2025. At the end of the fiscal year, the total goodwill balance stood at $1.065 billion, with $0.997 billion allocated to the Food Safety reporting unit, signaling that the market is questioning the value paid for that acquisition.

Here is a quick look at the segment performance that defines these Question Marks:

• Animal Safety Segment Core Revenue Decline (FY2025): 3.5%
• Genomics Business Core Revenue Decline (Q3 FY2025): mid-single-digit
• FY2025 Total Capital Expenditures: $105 million
• FY2025 Total Net Loss: $1,092.0 million
• Goodwill Impairment Charge (FY2025): $1,059.3 million

The strategy here must be decisive. You either pour significant investment into the Genomics business to quickly gain share in the advanced testing market, or you accept that these units will become Dogs. The high capex in FY2025 suggests heavy investment was already underway, but the revenue decline shows it hasn't yet translated to market adoption.

Consider the cash consumption versus return:

Finance: draft 13-week cash view by Friday.