Avantor® Reports First Quarter 2025 Results
Avantor (NYSE: AVTR) reported Q1 2025 financial results with net sales of $1.58 billion, showing a 6% decrease (2% organic decline) from Q1 2024. The company posted net income of $64.5 million and Adjusted EBITDA of $269.5 million.
Key financial metrics include diluted GAAP EPS of $0.09, adjusted EPS of $0.23, operating cash flow of $109.3 million, and free cash flow of $82.1 million. The Laboratory Solutions segment saw an 8% decrease in net sales to $1.07 billion, while Bioscience Production segment reported a 1% decrease to $516.4 million.
In response to ongoing funding and policy-related headwinds, Avantor announced an expanded cost transformation initiative targeting $400 million in gross run-rate savings by the end of 2027. The company's adjusted net leverage stood at 3.2x as of March 31, 2025.
Avantor (NYSE: AVTR) ha comunicato i risultati finanziari del primo trimestre 2025 con vendite nette pari a 1,58 miliardi di dollari, registrando una diminuzione del 6% (2% in termini organici) rispetto al primo trimestre 2024. L'azienda ha riportato un utile netto di 64,5 milioni di dollari e un EBITDA rettificato di 269,5 milioni di dollari.
I principali indicatori finanziari includono un utile per azione diluito GAAP di 0,09 dollari, un utile per azione rettificato di 0,23 dollari, un flusso di cassa operativo di 109,3 milioni di dollari e un flusso di cassa libero di 82,1 milioni di dollari. Il segmento Laboratory Solutions ha registrato una diminuzione dell'8% delle vendite nette, scendendo a 1,07 miliardi di dollari, mentre il segmento Bioscience Production ha riportato una diminuzione dell'1% a 516,4 milioni di dollari.
In risposta alle difficoltà legate a finanziamenti e politiche in corso, Avantor ha annunciato un'iniziativa ampliata di trasformazione dei costi con l'obiettivo di raggiungere 400 milioni di dollari di risparmi lordi a regime entro la fine del 2027. La leva finanziaria netta rettificata della società era pari a 3,2x al 31 marzo 2025.
Avantor (NYSE: AVTR) presentó los resultados financieros del primer trimestre de 2025 con ventas netas de 1,58 mil millones de dólares, mostrando una disminución del 6% (2% orgánico) respecto al primer trimestre de 2024. La compañía registró un ingreso neto de 64,5 millones de dólares y un EBITDA ajustado de 269,5 millones de dólares.
Los principales indicadores financieros incluyen ganancias diluidas por acción GAAP de 0,09 dólares, ganancias ajustadas por acción de 0,23 dólares, flujo de efectivo operativo de 109,3 millones de dólares y flujo de caja libre de 82,1 millones de dólares. El segmento de Laboratory Solutions tuvo una disminución del 8% en ventas netas, alcanzando 1,07 mil millones de dólares, mientras que el segmento de Bioscience Production reportó una caída del 1% a 516,4 millones de dólares.
En respuesta a los desafíos continuos relacionados con financiamiento y políticas, Avantor anunció una iniciativa ampliada de transformación de costos con el objetivo de lograr 400 millones de dólares en ahorros brutos recurrentes para finales de 2027. El apalancamiento neto ajustado de la compañía se situó en 3,2x al 31 de marzo de 2025.
Avantor (NYSE: AVTR)는 2025년 1분기 재무 실적을 발표하며 순매출액이 15억 8천만 달러로 2024년 1분기 대비 6%(유기적 감소 2%) 감소했다고 밝혔습니다. 회사는 순이익 6,450만 달러와 조정 EBITDA 2억 6,950만 달러를 기록했습니다.
주요 재무 지표로는 희석 GAAP 주당순이익 0.09달러, 조정 주당순이익 0.23달러, 영업 현금 흐름 1억 930만 달러, 잉여 현금 흐름 8,210만 달러가 포함됩니다. Laboratory Solutions 부문은 순매출이 8% 감소하여 10억 7천만 달러를 기록했고, Bioscience Production 부문은 1% 감소한 5억 1,640만 달러를 보고했습니다.
지속되는 자금 조달 및 정책 관련 어려움에 대응하여 Avantor는 2027년 말까지 4억 달러의 총 절감 효과를 목표로 하는 비용 혁신 확대 계획을 발표했습니다. 2025년 3월 31일 기준 회사의 조정 순부채 비율은 3.2배였습니다.
Avantor (NYSE : AVTR) a publié ses résultats financiers du premier trimestre 2025 avec un chiffre d'affaires net de 1,58 milliard de dollars, soit une baisse de 6 % (2 % en organique) par rapport au premier trimestre 2024. La société a enregistré un bénéfice net de 64,5 millions de dollars et un EBITDA ajusté de 269,5 millions de dollars.
Les principaux indicateurs financiers incluent un BPA dilué GAAP de 0,09 $, un BPA ajusté de 0,23 $, un flux de trésorerie opérationnel de 109,3 millions de dollars et un flux de trésorerie disponible de 82,1 millions de dollars. Le segment Laboratory Solutions a vu ses ventes nettes diminuer de 8 % à 1,07 milliard de dollars, tandis que le segment Bioscience Production a enregistré une baisse de 1 % à 516,4 millions de dollars.
En réponse aux vents contraires persistants liés au financement et aux politiques, Avantor a annoncé une initiative élargie de transformation des coûts visant 400 millions de dollars d'économies brutes récurrentes d'ici la fin 2027. L'endettement net ajusté de la société s'élevait à 3,2 fois au 31 mars 2025.
Avantor (NYSE: AVTR) meldete die Finanzergebnisse für das erste Quartal 2025 mit Nettoumsätzen von 1,58 Milliarden US-Dollar, was einem Rückgang von 6 % (organisch 2 %) gegenüber dem ersten Quartal 2024 entspricht. Das Unternehmen erzielte einen Nettogewinn von 64,5 Millionen US-Dollar und ein bereinigtes EBITDA von 269,5 Millionen US-Dollar.
Wichtige Finanzkennzahlen umfassen einen verwässerten GAAP-Gewinn je Aktie von 0,09 US-Dollar, einen bereinigten Gewinn je Aktie von 0,23 US-Dollar, einen operativen Cashflow von 109,3 Millionen US-Dollar und einen freien Cashflow von 82,1 Millionen US-Dollar. Das Segment Laboratory Solutions verzeichnete einen Rückgang der Nettoumsätze um 8 % auf 1,07 Milliarden US-Dollar, während das Segment Bioscience Production einen Rückgang um 1 % auf 516,4 Millionen US-Dollar meldete.
Als Reaktion auf anhaltende Herausforderungen bei Finanzierung und politischen Rahmenbedingungen kündigte Avantor eine ausgeweitete Kostenoptimierungsinitiative an, die bis Ende 2027 400 Millionen US-Dollar an Bruttoeinsparungen im laufenden Jahr erzielen soll. Die bereinigte Nettoverschuldung des Unternehmens lag zum 31. März 2025 bei dem 3,2-fachen des EBITDA.
- Net income increased to $64.5 million from $60.4 million YoY
- Bioscience Production segment showed continued growth in bioprocessing
- Implementing comprehensive cost savings initiative targeting $400M in savings
- Generated positive free cash flow of $82.1 million
- Net sales declined 6% (2% organic decline) to $1.58 billion
- Laboratory Solutions segment revenue dropped 8% due to reduced demand
- Adjusted EBITDA margin decreased to 17.0%
- Ongoing funding and policy-related headwinds affecting outlook
Insights
Avantor reported declining revenue but maintained profitability through cost discipline while expanding transformation efforts to offset market headwinds.
Avantor's Q1 2025 performance presents a mixed financial picture as the company navigates significant market challenges. Net sales declined
The segment breakdown reveals divergent trajectories: Laboratory Solutions (comprising
Profitability metrics remained relatively stable with Adjusted EBITDA of
Most notably, management has significantly expanded their cost transformation initiative, now targeting
Avantor's strategic pivot combines aggressive cost-cutting with targeted segment strengthening to counter policy-driven market headwinds affecting core business.
Avantor is executing a decisive strategic response to market disruptions that have disproportionately impacted their largest business segment. The company has identified specific external factors - notably policy changes affecting Education and Government funding - as primary drivers behind the underperformance in Laboratory Solutions, which represents two-thirds of total revenue but delivers significantly lower margins (
Management's two-pronged strategy addresses both immediate performance issues and long-term competitiveness. First, they're implementing a "comprehensive strategy" to revitalize the struggling Lab Solutions segment, though specific tactical elements weren't disclosed. Second, they've significantly expanded their cost transformation target to
The continued growth in bioprocessing and building order momentum within Bioscience Production represents a crucial bright spot that management can leverage while addressing broader challenges. This segment's resilience (flat organic performance versus Lab Solutions'
CEO Stubblefield's acknowledgment that they are "not satisfied with our current growth trajectory" signals appropriate urgency while maintaining confidence in long-term value creation. The updated full-year outlook reflecting "ongoing funding and policy-related headwinds" indicates these challenges aren't expected to quickly dissipate, necessitating the more aggressive cost initiatives now underway.
This balanced approach of segment-specific growth strategies coupled with enterprise-wide cost discipline positions Avantor to weather current market dynamics while creating a more efficient operational foundation for when market conditions improve.
- Net sales of
$1.58 billion 6% ; organic decline of2% - Net income of
$64.5 million $269.5 million - Diluted GAAP EPS of
$0.09 $0.23 - Operating cash flow of
$109.3 million $82.1 million - Announces significant actions across the business to accelerate growth and enhance cost structure; increasing cost transformation target to
$400 million
"Our first quarter results demonstrate disciplined execution and a continued focus on cost management in a dynamic macro environment," said Michael Stubblefield, President and Chief Executive Officer. "While earnings and margin performance were in line with our plan, Lab Solutions revenue was impacted by reduced demand – particularly in our Education and Government end market - following recent policy changes. In our Bioscience Production segment, we delivered another quarter of growth in bioprocessing and order book momentum continues."
"We are updating our full-year outlook to reflect ongoing funding and policy-related headwinds. While we are not satisfied with our current growth trajectory, we are implementing a comprehensive strategy to strengthen our Lab Solutions segment and are committed to moving with urgency to improve performance across the business. In addition, we are expanding our cost transformation initiative and now expect to deliver
"With these actions to accelerate growth and enhance our cost structure, we remain confident in Avantor's ability to drive long-term value creation," Stubblefield concluded.
First Quarter 2025
For the three months ended March 31, 2025, net sales were
Net income increased to
Diluted earnings per share on a GAAP basis was
Operating cash flow was
First Quarter 2025 – Segment Results
Laboratory Solutions
- Net sales were
$1,065.0 million 8% , as compared to$1,157.1 million 3% on an organic basis. - Adjusted Operating Income was
$139.0 million $148.2 million 13.1% .
Bioscience Production
- Net sales were
$516.4 million 1% , as compared to$522.7 million - Adjusted Operating Income was
$123.4 million $126.9 million 23.9% .
Adjusted Operating Income is Avantor's segment reporting profitability measure under generally accepted accounting principles and is used by management to measure and evaluate the performance of our Company's business segments.
Conference Call
We will host a conference call to discuss our results today, April 25, 2025, at 8:00 a.m. Eastern Time. The live webcast and presentation, as well as a replay, will be available on the investor section of Avantor's website.
About Avantor
Avantor® is a leading life science tools company and global provider of mission-critical products and services to the life sciences and advanced technology industries. We work side-by-side with customers at every step of the scientific journey to enable breakthroughs in medicine, healthcare, and technology. Our portfolio is used in virtually every stage of the most important research, development and production activities at more than 300,000 customer locations in 180 countries. For more information, visit avantorsciences.com and find us on LinkedIn, X (Twitter) and Facebook.
Use of Non-GAAP Financial Measures
To evaluate our performance, we monitor a number of key indicators. As appropriate, we supplement our results of operations determined in accordance with
The non-GAAP financial measures used in this press release are sales growth (decline) on an organic basis, Adjusted Operating Income, Adjusted Operating Income margin, Adjusted EBITDA, Adjusted EBITDA margin, adjusted net income, adjusted EPS, adjusted net leverage, free cash flow and free cash flow conversion.
- Organic net sales growth (decline) eliminates from our reported net sales change the impacts of revenues from acquisitions and divestitures that occurred in the last year and changes in foreign currency exchange rates. We believe that this measurement is useful to investors as a way to measure and evaluate our underlying commercial operating performance consistently across our segments and the periods presented. This measure is used by our management for the same reason.
- Adjusted Operating Income is our net income or loss adjusted for the following items: (i) interest expense, (ii) income tax expense, (iii) amortization of acquired intangible assets, (iv) losses on extinguishment of debt, (v) charges associated with the impairment of certain assets, (vi) gain on sale of business, and (vii) certain other adjustments. Adjusted Operating Income margin is Adjusted Operating Income divided by net sales as determined under GAAP. We believe that these measures are useful to investors as ways to analyze the underlying trends in our business consistently across the periods presented. These measures are used by our management for the same reason. Additionally, Adjusted Operating Income is our segment reporting profitability measure under GAAP.
- Adjusted EBITDA is our net income or loss adjusted for the following items: (i) interest expense, (ii) income tax expense, (iii) amortization of acquired intangible assets, (iv) depreciation expense, (v) losses on extinguishment of debt, (vi) charges associated with the impairment of certain assets, (vii) gain on sale of business, and (viii) certain other adjustments. Adjusted EBITDA margin is Adjusted EBITDA divided by net sales as determined under GAAP. We believe that these measures are useful to investors as ways to analyze the underlying trends in our business consistently across the periods presented. These measures are used by our management for the same reason.
- Adjusted net income is our net income or loss first adjusted for the following items: (i) amortization of acquired intangible assets, (ii) losses on extinguishment of debt, (iii) charges associated with the impairment of certain assets, (iv) gain on sale of business, and (v) certain other adjustments. From this amount, we then add or subtract an assumed incremental income tax impact on the above-noted pre-tax adjustments, using estimated tax rates, to arrive at Adjusted Net Income. We believe that this measure is useful to investors as a way to analyze the business consistently across the periods presented. This measure is used by our management for the same reason.
- Adjusted EPS is our adjusted net income divided by our diluted GAAP weighted average share count adjusted for anti-dilutive instruments. We believe that this measure is useful to investors as an additional way to analyze the underlying trends in our business consistently across the periods presented. This measure is used by our management for the same reason.
- Adjusted net leverage is equal to our gross debt, reduced by our cash and cash equivalents, divided by our trailing 12-month Adjusted EBITDA (excluding stock-based compensation expense and including the expected run-rate effect of cost synergies and the incremental results of completed acquisitions and divestitures as if those acquisitions and divestitures had occurred on the first day of the trailing 12-month period). We believe that this measure is useful to investors as a way to evaluate and measure the Company's capital allocation strategies and the underlying trends in the business. This measure is used by our management for the same reason.
- Free cash flow is equal to our cash flows from operating activities, less capital expenditures, plus direct transaction costs and income taxes paid related to acquisitions and divestitures (as applicable) in the period. Free cash flow conversion is free cash flow divided by adjusted net income. We believe that these measures are useful to investors as they provide a view on the Company's ability to generate cash for use in financing or investing activities. These measures are used by our management for the same reason.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this release.
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, including our cost transformation initiative, objectives, future performance and business. These statements may be preceded by, followed by or include the words "aim," "anticipate," "assumption," "believe," "continue," "estimate," "expect," "forecast," "goal," "guidance," "intend," "likely," "long-term," "near-term," "objective," "opportunity," "outlook," "plan," "potential," "project," "projection," "prospects," "seek," "target," "trend," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning.
Forward-looking statements are inherently subject to risks, uncertainties and assumptions; they are not guarantees of performance. You should not place undue reliance on these statements. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that our assumptions made in connection with the forward-looking statements are reasonable, we cannot assure you that the assumptions and expectations will prove to be correct. Factors that could contribute to these risks, uncertainties and assumptions include, but are not limited to, the factors described in "Risk Factors" in our most recent Annual Report on Form 10-K, and subsequent quarterly reports on Form 10-Q, as such risk factors may be updated from time to time in our periodic filings with the SEC.
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. In addition, all forward-looking statements speak only as of the date of this press release. We undertake no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise other than as required under the federal securities laws.
Investor Relations Contact
Allison Hosak
Senior Vice President, Global Communications
Avantor
908-329-7281
Allison.Hosak@avantorsciences.com
Media Contact
Eric Van Zanten
Head of External Communications
Avantor
610-529-6219
Eric.Vanzanten@avantorsciences.com
Avantor, Inc. and subsidiaries Unaudited condensed consolidated statements of operations | |||
(in millions, except per share data) | Three months ended | ||
2025 | 2024 | ||
Net sales | $ 1,581.4 | $ 1,679.8 | |
Cost of sales | 1,046.5 | 1,109.3 | |
Gross profit | 534.9 | 570.5 | |
Selling, general and administrative expenses | 387.5 | 424.2 | |
Operating income | 147.4 | 146.3 | |
Interest expense, net | (42.2) | (64.3) | |
Loss on extinguishment of debt | — | (2.5) | |
Other (expense) income, net | (19.5) | 1.1 | |
Income before income taxes | 85.7 | 80.6 | |
Income tax expense | (21.2) | (20.2) | |
Net income | $ 64.5 | $ 60.4 | |
Earnings per share: | |||
Basic | $ 0.09 | $ 0.09 | |
Diluted | $ 0.09 | $ 0.09 | |
Weighted average shares outstanding: | |||
Basic | 681.1 | 678.1 | |
Diluted | 682.4 | 681.4 | |
Avantor, Inc. and subsidiaries | |||
(in millions) | March 31, 2025 | December 31, 2024 | |
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 315.7 | $ 261.9 | |
Accounts receivable, net | 1,096.3 | 1,034.5 | |
Inventory | 750.1 | 731.5 | |
Other current assets | 120.3 | 118.7 | |
Total current assets | 2,282.4 | 2,146.6 | |
Property, plant and equipment, net | 736.3 | 708.1 | |
Other intangible assets, net | 3,331.1 | 3,360.2 | |
Goodwill, net | 5,609.1 | 5,539.2 | |
Other assets | 367.5 | 360.4 | |
Total assets | $ 12,326.4 | $ 12,114.5 | |
Liabilities and stockholders' equity | |||
Current liabilities: | |||
Current portion of debt | $ 827.5 | $ 821.1 | |
Accounts payable | 680.1 | 662.8 | |
Employee-related liabilities | 140.6 | 168.2 | |
Accrued interest | 39.3 | 48.6 | |
Other current liabilities | 346.9 | 306.8 | |
Total current liabilities | 2,034.4 | 2,007.5 | |
Debt, net of current portion | 3,279.2 | 3,234.7 | |
Deferred income tax liabilities | 550.0 | 557.3 | |
Other liabilities | 364.6 | 358.3 | |
Total liabilities | 6,228.2 | 6,157.8 | |
Stockholders' equity: | |||
Common stock including paid-in capital | 3,948.4 | 3,937.7 | |
Accumulated earnings | 2,267.5 | 2,203.0 | |
Accumulated other comprehensive loss | (117.7) | (184.0) | |
Total stockholders' equity | 6,098.2 | 5,956.7 | |
Total liabilities and stockholders' equity | $ 12,326.4 | $ 12,114.5 | |
Avantor, Inc. and subsidiaries | |||
(in millions) | Three months ended March 31, | ||
2025 | 2024 | ||
Cash flows from operating activities: | |||
Net income | $ 64.5 | $ 60.4 | |
Reconciling adjustments: | |||
Depreciation and amortization | 99.7 | 99.6 | |
Stock-based compensation expense | 12.4 | 12.7 | |
Provision for accounts receivable and inventory | 12.0 | 24.0 | |
Deferred income tax benefit | (12.4) | (17.9) | |
Amortization of deferred financing costs | 2.2 | 3.0 | |
Loss on extinguishment of debt | — | 2.5 | |
Foreign currency remeasurement loss | 1.9 | 5.3 | |
Pension termination charges | 18.1 | — | |
Changes in assets and liabilities: | |||
Accounts receivable | (43.2) | 2.7 | |
Inventory | (17.6) | (11.0) | |
Accounts payable | 8.2 | (43.6) | |
Accrued interest | (9.3) | (9.5) | |
Other assets and liabilities | (29.1) | 9.3 | |
Other | 1.9 | 4.1 | |
Net cash provided by operating activities | 109.3 | 141.6 | |
Cash flows from investing activities: | |||
Capital expenditures | (28.0) | (34.7) | |
Other | (0.9) | 0.5 | |
Net cash used in investing activities | (28.9) | (34.2) | |
Cash flows from financing activities: | |||
Debt borrowings | — | 41.2 | |
Debt repayments | (31.3) | (210.3) | |
Proceeds received from exercise of stock options | 2.6 | 45.5 | |
Shares repurchased to satisfy employee tax obligations for vested stock-based awards | (4.9) | (6.6) | |
Net cash used in financing activities | (33.6) | (130.2) | |
Effect of currency rate changes on cash and cash equivalents | 7.0 | (5.7) | |
Net change in cash, cash equivalents and restricted cash | 53.8 | (28.5) | |
Cash, cash equivalents and restricted cash, beginning of period | 264.7 | 287.7 | |
Cash, cash equivalents and restricted cash, end of period | $ 318.5 | $ 259.2 | |
Avantor, Inc. and subsidiaries | |||||||
Reconciliations of non-GAAP measures | |||||||
Adjusted EBITDA and Adjusted EBITDA Margin | |||||||
(dollars in millions, % based on net sales) | Three months ended March 31, | ||||||
2025 | 2024 | ||||||
$ | % | $ | % | ||||
Net income | $ 64.5 | 4.1 % | $ 60.4 | 3.6 % | |||
Amortization | 73.9 | 4.7 % | 75.3 | 4.5 % | |||
Loss on extinguishment of debt | — | — % | 2.5 | 0.1 % | |||
Restructuring and severance charges1 | 4.4 | 0.3 % | 23.2 | 1.4 % | |||
Transformation expenses2 | 15.4 | 1.0 % | 13.3 | 0.8 % | |||
Other3 | 4.0 | 0.2 % | (0.5) | — % | |||
Pension termination charges4 | 18.1 | 1.1 % | — | — % | |||
Income tax benefit applicable to pretax adjustments | (25.1) | (1.6) % | (23.6) | (1.4) % | |||
Adjusted net income | 155.2 | 9.8 % | 150.6 | 9.0 % | |||
Interest expense, net | 42.2 | 2.7 % | 64.3 | 3.8 % | |||
Depreciation | 25.8 | 1.6 % | 24.3 | 1.4 % | |||
Income tax provision applicable to Adjusted Net income | 46.3 | 2.9 % | 43.8 | 2.6 % | |||
Adjusted EBITDA | $ 269.5 | 17.0 % | $ 283.0 | 16.8 % | |||
1. | Reflects the incremental expenses incurred in the period related to restructuring initiatives to increase profitability and productivity. Costs included in this caption are specific to employee severance, site-related exit costs, and contract termination costs. These expenses represent costs incurred to achieve the Company's publicly-announced cost transformation initiative. | |||||||||||||||||||
2. | Represents incremental expenses directly associated with the Company's publicly-announced cost transformation initiative, primarily related to the cost of external advisors. | |||||||||||||||||||
3. | Represents net foreign currency (gain) loss from financing activities, other stock-based compensation expense (benefit) and a purchase price adjustment related to the sale of our Clinical Services business in 2024. | |||||||||||||||||||
4. | Represents pension termination charges related to termination of our | |||||||||||||||||||
Avantor, Inc. and subsidiaries | |||||||
Reconciliations of non-GAAP measures (continued) | |||||||
Adjusted Operating Income and Adjusted Operating Income Margin | |||||||
(dollars in millions, % based on net sales) | Three months ended March 31, | ||||||
2025 | 2024 | ||||||
$ | % | $ | % | ||||
Net income | $ 64.5 | 4.1 % | $ 60.4 | 3.6 % | |||
Interest expense, net | 42.2 | 2.7 % | 64.3 | 3.8 % | |||
Income tax expense | 21.2 | 1.3 % | 20.2 | 1.2 % | |||
Loss on extinguishment of debt | — | — % | 2.5 | 0.1 % | |||
Other (expense) income, net | 19.5 | 1.2 % | (1.1) | — % | |||
Operating income | 147.4 | 9.3 % | 146.3 | 8.7 % | |||
Amortization | 73.9 | 4.7 % | 75.3 | 4.5 % | |||
Restructuring and severance charges1 | 4.4 | 0.3 % | 23.2 | 1.4 % | |||
Transformation expenses2 | 15.4 | 1.0 % | 13.3 | 0.8 % | |||
Other3 | 1.7 | 0.1 % | 0.3 | — % | |||
Adjusted Operating Income | $ 242.8 | 15.4 % | $ 258.4 | 15.4 % | |||
1. | Reflects the incremental expenses incurred in the period related to restructuring initiatives to increase profitability and productivity. Costs included in this caption are specific to employee severance, site-related exit costs, and contract termination costs. These expenses represent costs incurred to achieve the Company's publicly-announced cost transformation initiative. | |||||||||||||||||||
2. | Represents incremental expenses directly associated with the Company's publicly-announced cost transformation initiative, primarily related to the cost of external advisors. | |||||||||||||||||||
3. | Represents other stock-based compensation expense (benefit) and a purchase price adjustment related to the sale of our Clinical Services business in 2024. | |||||||||||||||||||
Avantor, Inc. and subsidiaries | |||
Reconciliations of non-GAAP measures (continued) | |||
Adjusted earnings per share | |||
(shares in millions) | Three months ended March 31, | ||
2025 | 2024 | ||
Diluted earnings per share (GAAP) | $ 0.09 | $ 0.09 | |
Dilutive impact of convertible instruments | — | — | |
Fully diluted earnings per share (non-GAAP) | 0.09 | 0.09 | |
Amortization | 0.11 | 0.11 | |
Restructuring and severance charges | 0.01 | 0.03 | |
Transformation expenses | 0.02 | 0.02 | |
Other | 0.01 | — | |
Pension termination charges | 0.03 | — | |
Income tax benefit applicable to pretax adjustments | (0.04) | (0.03) | |
Adjusted EPS (non-GAAP) | $ 0.23 | $ 0.22 | |
Weighted average diluted shares outstanding: | |||
Share count for Adjusted EPS (non-GAAP) | 682.4 | 681.4 | |
Free cash flow | |||
(in millions) | Three months ended March 31, | ||
2025 | 2024 | ||
Net cash provided by operating activities | $ 109.3 | $ 141.6 | |
Capital expenditures | (28.0) | (34.7) | |
Divestiture-related transaction expenses and taxes paid | 0.8 | — | |
Free cash flow (non-GAAP) | $ 82.1 | $ 106.9 | |
Adjusted net leverage | |
(dollars in millions) | March 31, 2025 |
Total debt, gross | $ 4,126.9 |
Less cash and cash equivalents | (315.7) |
$ 3,811.2 | |
Trailing twelve months Adjusted EBITDA(1) | $ 1,150.2 |
Trailing twelve months ongoing stock-based compensation expense | 47.6 |
$ 1,197.8 | |
Adjusted net leverage (non-GAAP) | 3.2 x |
1. | Represents the Adjusted EBITDA of Avantor for the trailing twelve-month period minus the results attributable to the divested business as if such divestiture had been completed on the 1st day of such trailing twelve-month period, as contemplated by our debt covenants. | |||||||||||||||||||
Avantor, Inc. and subsidiaries | |||||||||||
Reconciliations of non-GAAP measures (continued) | |||||||||||
Net sales by segment | |||||||||||
(in millions) | March 31, | Reconciliation of net sales growth (decline) to | |||||||||
Net sales | Foreign | Divestiture | Organic | ||||||||
2025 | 2024 | ||||||||||
Three months ended: | |||||||||||
Laboratory Solutions | $ 1,065.0 | $ 1,157.1 | $ (92.1) | $ (14.5) | $ (44.1) | $ (33.5) | |||||
Bioscience Production | 516.4 | 522.7 | (6.3) | (4.5) | — | (1.8) | |||||
Total | $ 1,581.4 | $ 1,679.8 | $ (98.4) | $ (19.0) | $ (44.1) | $ (35.3) | |||||
(dollars in millions, % based on net sales) | March 31, | Reconciliation of net sales growth (decline) to | |||||||||
Net sales | Foreign | Divestiture | Organic | ||||||||
2025 | 2024 | ||||||||||
$ | $ | % | % | % | % | ||||||
Three months ended: | |||||||||||
Laboratory Solutions | $ 1,065.0 | $ 1,157.1 | (8.0) % | (1.3) % | (3.8) % | (2.9) % | |||||
Bioscience Production | 516.4 | 522.7 | (1.2) % | (0.9) % | — % | (0.3) % | |||||
Total | $ 1,581.4 | $ 1,679.8 | (5.9) % | (1.1) % | (2.6) % | (2.2) % | |||||
Adjusted Operating Income by segment | |||||||
(dollars in millions, % represent Adjusted | Three months ended March 31, | ||||||
2025 | 2024 | ||||||
$ | % | $ | % | ||||
Laboratory Solutions | $ 139.0 | 13.1 % | $ 148.2 | 12.8 % | |||
Bioscience Production | 123.4 | 23.9 % | 126.9 | 24.3 % | |||
Corporate | (19.6) | — % | (16.7) | — % | |||
Total | $ 242.8 | 15.4 % | $ 258.4 | 15.4 % | |||
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SOURCE Avantor and Financial News
FAQ
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