Mike Tokich announced his retirement after 18 years with the company, with Karen, his long-time colleague, set to succeed him as CFO.
Mike expressed confidence in Karen's leadership and financial capabilities, highlighting their 20-year working relationship and her preparation for the role.
The company will benefit from a smooth transition, with Mike remaining as a special financial adviser to support continuity.
This leadership change underscores the company's stability and strategic focus on long-term growth and governance.
Capital expenditures totaled $94 million, and depreciation and amortization were $119 million.
EBIT margin increased 50 basis points to 22.8% due to gross margin improvement and operating expense leverage.
Free cash flow was strong at $327 million, supported by earnings growth and working capital improvements.
Gross margin improved by 20 basis points to 45.3%, with positive price and productivity gains offsetting inflation and tariff costs.
Net income from continuing operations was $231.2 million, with adjusted EPS of $2.34, a 15% increase year-over-year.
The company announced its 20th consecutive year of dividend increases, raising the quarterly dividend by 10% to $0.63.
Total debt was reduced to $1.9 billion, with a gross debt to EBITDA ratio of 1.2x.
Total reported revenue grew 9% in Q1 2026, with constant currency organic revenue growth of 8%, driven by volume and 230 basis points of price increases.
Leadership Transition and Strategic Reassessment Under New CEO
Bernd Brust emphasized his recent appointment as CEO and outlined a comprehensive review of the company's strategy, structure, and financial plans within his first 60 days.
The new leadership identified the need for organizational change, cost reduction, and operational discipline to unlock Maravai's full potential.
Brust's background includes leading successful life sciences companies and focusing on innovation, which signals a strategic shift for Maravai.
The CEO's approach involves realigning the company around core assets, streamlining operations, and focusing on high-impact initiatives.
Management acknowledged the heavy organizational layers and excess expenditure, leading to a plan to reduce costs by over $50 million annually.
Leadership expressed confidence that these changes will position the company for sustainable, profitable growth in the future.
Commercial Transformation and Sales Process Overhaul
The commercial transformation aims to capitalize on large enterprise and IDN opportunities, with a focus on moving from early-stage to later-stage deals.
The company has retooled its sales team to target hospital CNOs and other key decision-makers, emphasizing change management and clinical benefits.
Progress includes a more disciplined approach to sales forecasting, pipeline management, and deal closure, setting the stage for sustained growth.
Dafinchi