Profits fall as Avantor (NYSE: AVTR) keeps 2026 outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Avantor reported mixed first-quarter 2026 results with weaker profitability but steady sales and reaffirmed guidance. Net sales were $1,581.4 million, flat with a year earlier, while foreign currency tailwinds meant organic net sales declined 4.1%.
Net income fell to $43.3 million from $64.5 million, and diluted GAAP EPS declined to $0.06 from $0.09. Adjusted net income was $114.0 million versus $155.2 million, with adjusted EPS down to $0.17 from $0.23 and adjusted EBITDA decreasing to $219.4 million, a 13.9% margin versus 17.0%.
Segment results showed lower adjusted operating income in both VWR Distribution & Services and Bioscience & Medtech Products. Operating cash flow was $58.7 million compared with $109.3 million, and free cash flow was $25.2 million versus $82.1 million. As of March 31, 2026, adjusted net leverage was 3.3x. The company reaffirmed its full-year 2026 financial guidance.
Positive
- None.
Negative
- Sharp profitability decline: Net income fell to $43.3 million from $64.5 million, with adjusted EBITDA down to $219.4 million and margin compressing to 13.9% from 17.0%.
- Weaker underlying demand and cash generation: Organic net sales declined 4.1%, while operating cash flow dropped to $58.7 million and free cash flow to $25.2 million compared with the prior-year quarter.
Insights
Avantor’s Q1 2026 shows margin and cash flow pressure despite flat sales and reaffirmed guidance.
Avantor delivered Q1 2026 net sales of $1,581.4 million, unchanged year over year, but organic net sales declined 4.1% as volume softness offset foreign exchange benefits. This indicates underlying demand remains weaker than headline sales suggest.
Profitability compressed meaningfully: net income dropped to $43.3 million from $64.5 million, adjusted EBITDA fell to $219.4 million with a 13.9% margin versus 17.0%, and adjusted EPS declined to $0.17 from $0.23. Both major segments reported lower adjusted operating income and margins.
Cash generation also softened, with operating cash flow down to $58.7 million and free cash flow to $25.2 million. Even so, adjusted net leverage stood at 3.3x as of March 31, 2026, and management reaffirmed its fiscal 2026 guidance, signaling confidence in the full-year outlook despite a weaker first quarter.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales: $1,581.4 million
Net income: $43.3 million
Adjusted EBITDA: $219.4 million (13.9% margin)
+5 more
8 metrics
Net sales
$1,581.4 million
Three months ended March 31, 2026; flat vs Q1 2025
Net income
$43.3 million
Q1 2026 vs $64.5 million in Q1 2025
Adjusted EBITDA
$219.4 million (13.9% margin)
Q1 2026 vs $269.5 million and 17.0% in Q1 2025
Diluted GAAP EPS
$0.06
Three months ended March 31, 2026; $0.09 in 2025
Adjusted EPS
$0.17
Q1 2026 adjusted EPS vs $0.23 in Q1 2025
Free cash flow
$25.2 million
Three months ended March 31, 2026; $82.1 million in 2025
Adjusted Operating Income
$190.6 million (12.1% margin)
Q1 2026 vs $242.8 million and 15.4% in Q1 2025
Adjusted net leverage
3.3x
As of March 31, 2026, based on adjusted EBITDA
Key Terms
Adjusted EBITDA, organic net sales growth (decline), free cash flow, Adjusted net leverage, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $219.4 million, with an adjusted EBITDA margin of 13.9%."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
organic net sales growth (decline) financial
"Foreign currency translation had a positive impact of 4.1%, resulting in a 4.1% decline in net sales on an organic basis."
free cash flow financial
"Operating cash flow was $58.7 million, while free cash flow was $25.2 million."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Adjusted net leverage financial
"GAAP net leverage was (6.5x), and adjusted net leverage was 3.3x, as of March 31, 2026."
Adjusted net leverage measures a company’s debt load relative to its ongoing cash earnings after making standard accounting tweaks — for example, removing one‑time cash items or adding persistent obligations like leases. Think of it as a household’s mortgage balance compared with steady monthly income: it shows how comfortably a company can service debt from regular operations. Investors use it to compare financial risk across businesses and to gauge creditworthiness.
non-GAAP financial measures financial
"we supplement our results of operations determined in accordance with U.S. GAAP with certain non-GAAP financial measures"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
forward-looking statements regulatory
"This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Earnings Snapshot
Net sales: $1,581.4 million · Guidance included
Q1 2026
Net sales
$1,581.4 million
0% vs Q1 2025
Net income
$43.3 million
down from $64.5 million
Diluted GAAP EPS
$0.06
down from $0.09
Adjusted EPS
$0.17
down from $0.23
Adjusted EBITDA
$219.4 million (13.9% margin)
down from $269.5 million (17.0% margin)
Free cash flow
$25.2 million
down from $82.1 million
Guidance
Avantor reaffirmed the fiscal 2026 financial guidance it previously provided during its fourth quarter 2025 earnings call.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 29, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). ☐ Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 29, 2026, Avantor, Inc. issued a press release announcing its financial results for the quarter ended March 31, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information contained in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Exchange Act of 1933, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |||||||
99.1 | Press release dated April 29, 2026 | |||||||
| 104 | Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Avantor, Inc. | |||||||||||
| Date: April 29, 2026 | By: | /s/ Steven Eck | |||||||||
| Name: | Steven Eck | ||||||||||
| Title: | Senior Vice President, Chief Accounting Officer (Principal Accounting Officer) | ||||||||||
Exhibit 99.1
Avantor® Reports First Quarter 2026 Results
•Net sales of $1,581 million
•Net income of $43 million; Adjusted EBITDA of $219 million
•Diluted GAAP EPS of $0.06; adjusted EPS of $0.17
•Operating cash flow of $59 million; free cash flow of $25 million
•Reaffirms FY 2026 guidance
RADNOR, Pa. – April 29, 2026 –Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries, today reported financial results for its first fiscal quarter ended March 31, 2026.
“First quarter results exceeded our expectations due to improved execution in Bioscience and Medtech Products, and we saw stabilization in VWR,” said Emmanuel Ligner, President and Chief Executive Officer. “Revival is already having a positive impact, and I am encouraged by the momentum and positive energy across the organization,” Ligner concluded.
First Quarter 2026
For the three months ended March 31, 2026, net sales were $1,581.4 million, which was flat compared to the first quarter of 2025. Foreign currency translation had a positive impact of 4.1%, resulting in a 4.1% decline in net sales on an organic basis.
Net income decreased to $43.3 million from $64.5 million in the first quarter of 2025, and net income margin was 2.7%; adjusted net income was $114.0 million compared to $155.2 million in the prior-year period. Adjusted EBITDA was $219.4 million, with an adjusted EBITDA margin of 13.9%.
Operating income was $99.5 million, with an operating income margin of 6.3%; adjusted operating income was $190.6 million, with an adjusted operating income margin of 12.1%.
Diluted earnings per share on a GAAP basis were $0.06, and adjusted diluted earnings per share was $0.17.
Operating cash flow was $58.7 million, while free cash flow was $25.2 million. GAAP net leverage was (6.5x), and adjusted net leverage was 3.3x, as of March 31, 2026.
First Quarter 2026 – Segment Results
VWR Distribution & Services
•Net sales were $1,150.0 million, a reported decrease of 0.4%, as compared to $1,155.0 million in the first quarter of 2025. Foreign currency translation had a positive impact of 4.4%, resulting in a sales decline of 4.8% on an organic basis.
•Adjusted Operating Income was $105.4 million as compared to $147.9 million in the comparable prior period. Adjusted Operating Income margin was 9.2%.
Bioscience & Medtech Products
•Net sales were $431.4 million, a reported increase of 1.2%, as compared to $426.4 million in the first quarter of 2025. Foreign currency translation had a positive impact of 3.2%, resulting in a 2.0% sales decline on an organic basis.
•Adjusted Operating Income was $102.7 million, as compared to $114.5 million in the comparable prior period. Adjusted Operating Income margin was 23.8%.
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.
Reaffirms 2026 Guidance
Avantor reaffirmed the fiscal 2026 financial guidance it provided during its fourth quarter 2025 earnings call on February 11, 2026.
Conference Call
We will host a conference call to discuss our results today, April 29, 2026 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 U.S. generally accepted accounting principles (“GAAP”) with certain non-GAAP financial measures that we believe are useful to investors, creditors and others in assessing our performance. These measures should not be considered in isolation or as a substitute for reported GAAP results because they may include or exclude certain items as compared to similar GAAP-based measures, and such measures may not be comparable to similarly titled measures reported by other companies. Rather, these measures should be considered as an additional way of viewing aspects of our operations that provide a more complete understanding of our business. We strongly encourage investors to review our consolidated financial statements included in reports filed with the SEC in their entirety and not rely solely on any one single financial measure or communication.
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 (as applicable) 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 operating income or loss adjusted for the following items: (i) amortization of acquired intangible assets, (ii) charges associated with the impairment of certain assets, (iii) gain on sale of business, and (iv) 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, 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.
Avantor, Inc. and subsidiaries
Unaudited condensed consolidated statements of operations
| (in millions, except per share data) | Three months ended March 31, | ||||||||||
2026 | 2025 | ||||||||||
| Net sales | $ | 1,581.4 | $ | 1,581.4 | |||||||
| Cost of sales | 1,080.7 | 1,046.5 | |||||||||
| Gross profit | 500.7 | 534.9 | |||||||||
| Selling, general and administrative expenses | 401.2 | 387.5 | |||||||||
Operating income | 99.5 | 147.4 | |||||||||
| Interest expense, net | (42.9) | (42.2) | |||||||||
| Loss on extinguishment of debt | (0.6) | — | |||||||||
Other expense, net | (0.5) | (19.5) | |||||||||
Income before income taxes | 55.5 | 85.7 | |||||||||
Income tax expense | (12.2) | (21.2) | |||||||||
Net income | $ | 43.3 | $ | 64.5 | |||||||
Earnings per share: | |||||||||||
| Basic | $ | 0.06 | $ | 0.09 | |||||||
| Diluted | $ | 0.06 | $ | 0.09 | |||||||
| Weighted average shares outstanding: | |||||||||||
| Basic | 675.7 | 681.1 | |||||||||
| Diluted | 676.8 | 682.4 | |||||||||
Avantor, Inc. and subsidiaries
Unaudited condensed consolidated balance sheets
| (in millions) | March 31, 2026 | December 31, 2025 | |||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 279.3 | $ | 365.4 | |||||||
| Accounts receivable, net | 1,104.8 | 1,074.6 | |||||||||
| Inventory | 810.3 | 818.2 | |||||||||
| Other current assets | 209.9 | 193.0 | |||||||||
| Total current assets | 2,404.3 | 2,451.2 | |||||||||
| Property, plant and equipment, net | 766.2 | 766.8 | |||||||||
| Other intangible assets, net | 3,098.7 | 3,193.8 | |||||||||
| Goodwill, net | 4,952.1 | 4,986.9 | |||||||||
| Other assets | 441.7 | 396.0 | |||||||||
| Total assets | $ | 11,663.0 | $ | 11,794.7 | |||||||
| Liabilities and stockholders' equity | |||||||||||
| Current liabilities: | |||||||||||
| Current portion of debt | $ | 37.0 | $ | 30.8 | |||||||
| Accounts payable | 735.5 | 741.7 | |||||||||
| Employee-related liabilities | 161.7 | 162.7 | |||||||||
| Accrued interest | 31.6 | 47.3 | |||||||||
| Other current liabilities | 401.5 | 396.4 | |||||||||
| Total current liabilities | 1,367.3 | 1,378.9 | |||||||||
| Debt, net of current portion | 3,779.3 | 3,915.5 | |||||||||
| Deferred income tax liabilities | 550.4 | 557.1 | |||||||||
| Other liabilities | 377.3 | 378.2 | |||||||||
| Total liabilities | 6,074.3 | 6,229.7 | |||||||||
| Stockholders’ equity: | |||||||||||
| Common stock including paid-in capital | 3,992.0 | 3,984.8 | |||||||||
| Treasury stock at cost | (75.7) | (75.7) | |||||||||
Accumulated earnings | 1,716.1 | 1,672.8 | |||||||||
Accumulated other comprehensive loss | (43.7) | (16.9) | |||||||||
| Total stockholders’ equity | 5,588.7 | 5,565.0 | |||||||||
| Total liabilities and stockholders' equity | $ | 11,663.0 | $ | 11,794.7 | |||||||
Avantor, Inc. and subsidiaries
Unaudited condensed consolidated statements of cash flows
| (in millions) | Three months ended March 31, | ||||||||||
2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
Net income | $ | 43.3 | $ | 64.5 | |||||||
| Reconciling adjustments: | |||||||||||
| Depreciation and amortization | 105.0 | 99.7 | |||||||||
Stock-based compensation expense | 8.6 | 12.4 | |||||||||
| Provision for accounts receivable and inventory | 11.8 | 12.0 | |||||||||
Deferred income tax benefit | (10.2) | (12.4) | |||||||||
| Amortization of deferred financing costs | 1.8 | 2.2 | |||||||||
| Loss on extinguishment of debt | 0.6 | — | |||||||||
Foreign currency remeasurement (gain) loss | (1.4) | 1.9 | |||||||||
| Pension termination charges | — | 18.1 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts receivable | (40.8) | (43.2) | |||||||||
| Inventory | (12.2) | (17.6) | |||||||||
| Accounts payable | 5.4 | 8.2 | |||||||||
| Accrued interest | (15.7) | (9.3) | |||||||||
| Other assets and liabilities | (37.1) | (29.1) | |||||||||
| Other | (0.4) | 1.9 | |||||||||
Net cash provided by operating activities | 58.7 | 109.3 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (33.5) | (28.0) | |||||||||
| Other | 0.8 | (0.9) | |||||||||
Net cash used in investing activities | (32.7) | (28.9) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Debt repayments | (105.4) | (31.3) | |||||||||
| Proceeds received from exercise of stock options | 1.9 | 2.6 | |||||||||
| Shares repurchased to satisfy employee tax obligations for vested stock-based awards | (3.6) | (4.9) | |||||||||
| Other | (0.1) | — | |||||||||
Net cash used in financing activities | (107.2) | (33.6) | |||||||||
| Effect of currency rate changes on cash and cash equivalents | (4.9) | 7.0 | |||||||||
| Net change in cash, cash equivalents and restricted cash | (86.1) | 53.8 | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 368.3 | 264.7 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 282.2 | $ | 318.5 | |||||||
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, | ||||||||||||||||||||||
2026 | 2025 | ||||||||||||||||||||||
| $ | % | $ | % | ||||||||||||||||||||
Net income | $ | 43.3 | 2.7 | % | $ | 64.5 | 4.1 | % | |||||||||||||||
| Amortization | 75.7 | 4.8 | % | 73.9 | 4.7 | % | |||||||||||||||||
| Loss on extinguishment of debt | 0.6 | — | % | — | — | % | |||||||||||||||||
Restructuring and severance charges1 | 15.1 | 1.0 | % | 4.4 | 0.3 | % | |||||||||||||||||
Transformation expenses2 | — | — | % | 15.4 | 1.0 | % | |||||||||||||||||
Reserve for certain legal matters, net3 | 0.4 | — | % | — | — | % | |||||||||||||||||
Other4 | (0.1) | — | % | 4.0 | 0.2 | % | |||||||||||||||||
Pension termination charges5 | — | — | % | 18.1 | 1.1 | % | |||||||||||||||||
Income tax benefit applicable to pretax adjustments | (21.0) | (1.3) | % | (25.1) | (1.6) | % | |||||||||||||||||
Adjusted net income | 114.0 | 7.2 | % | 155.2 | 9.8 | % | |||||||||||||||||
| Interest expense, net | 42.9 | 2.7 | % | 42.2 | 2.7 | % | |||||||||||||||||
| Depreciation | 29.3 | 1.8 | % | 25.8 | 1.6 | % | |||||||||||||||||
| Income tax provision applicable to Adjusted Net income | 33.2 | 2.2 | % | 46.3 | 2.9 | % | |||||||||||||||||
| Adjusted EBITDA | $ | 219.4 | 13.9 | % | $ | 269.5 | 17.0 | % | |||||||||||||||
━━━━━━━━━
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.
2.Represents incremental expenses directly associated with the Company’s former cost transformation initiative, which concluded in 2025. These expenses are primarily related to the cost of external advisors.
3.Represents charges and legal costs, net of recoveries, incurred in connection with certain litigation and other contingencies that management evaluates separately from core operating performance.
4.Represents net foreign currency (gain) loss from financing activities, other stock-based compensation expense (benefit) and a purchase price adjustment in 2025 related to the sale of our Clinical Services business in 2024.
5.Represents pension termination charges related to termination of our U.S. Pension Plan.
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, | ||||||||||||||||||||||
2026 | 2025 | ||||||||||||||||||||||
| $ | % | $ | % | ||||||||||||||||||||
Net income | $ | 43.3 | 2.7 | % | $ | 64.5 | 4.1 | % | |||||||||||||||
| Interest expense, net | 42.9 | 2.7 | % | 42.2 | 2.7 | % | |||||||||||||||||
Income tax expense | 12.2 | 0.9 | % | 21.2 | 1.3 | % | |||||||||||||||||
| Loss on extinguishment of debt | 0.6 | — | % | — | — | % | |||||||||||||||||
Other expense, net | 0.5 | — | % | 19.5 | 1.2 | % | |||||||||||||||||
Operating income | 99.5 | 6.3 | % | 147.4 | 9.3 | % | |||||||||||||||||
| Amortization | 75.7 | 4.8 | % | 73.9 | 4.7 | % | |||||||||||||||||
Restructuring and severance charges1 | 15.1 | 1.0 | % | 4.4 | 0.3 | % | |||||||||||||||||
Transformation expenses2 | — | — | % | 15.4 | 1.0 | % | |||||||||||||||||
Reserve for certain legal matters, net3 | 0.4 | — | % | — | — | % | |||||||||||||||||
Other4 | (0.1) | — | % | 1.7 | 0.1 | % | |||||||||||||||||
| Adjusted Operating Income | $ | 190.6 | 12.1 | % | $ | 242.8 | 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.
2.Represents incremental expenses directly associated with the Company’s former cost transformation initiative, which concluded in 2025. These expenses are primarily related to the cost of external advisors.
3.Represents charges and legal costs, net of recoveries, incurred in connection with certain litigation and other contingencies that management evaluates separately from core operating performance.
4.Represents other stock-based compensation expense (benefit) and a purchase price adjustment in 2025 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, | ||||||||||
2026 | 2025 | ||||||||||
Diluted earnings per share (GAAP) | $ | 0.06 | $ | 0.09 | |||||||
| Amortization | 0.11 | 0.11 | |||||||||
| Restructuring and severance charges | 0.02 | 0.01 | |||||||||
| Transformation expenses | — | 0.02 | |||||||||
| Other | 0.01 | 0.01 | |||||||||
| Pension termination charges | — | 0.03 | |||||||||
Income tax benefit applicable to pretax adjustments | (0.03) | (0.04) | |||||||||
| Adjusted EPS (non-GAAP) | $ | 0.17 | $ | 0.23 | |||||||
| Weighted average diluted shares outstanding: | |||||||||||
| Share count for Adjusted EPS (non-GAAP) | 676.8 | 682.4 | |||||||||
Free cash flow
| (in millions) | Three months ended March 31, | ||||||||||
2026 | 2025 | ||||||||||
Net cash provided by operating activities | $ | 58.7 | $ | 109.3 | |||||||
| Capital expenditures | (33.5) | (28.0) | |||||||||
Divestiture-related transaction expenses and taxes paid | — | 0.8 | |||||||||
| Free cash flow (non-GAAP) | $ | 25.2 | $ | 82.1 | |||||||
GAAP net leverage
| (dollars in millions) | March 31, 2026 | ||||
| Total debt, gross | $ | 3,835.9 | |||
| Less cash and cash equivalents | (279.3) | ||||
| $ | 3,556.6 | ||||
| Trailing twelve months net loss | $ | (551.4) | |||
| GAAP net leverage | (6.5) x | ||||
Adjusted net leverage
| (dollars in millions) | March 31, 2026 | ||||
| Total debt, gross | $ | 3,835.9 | |||
| Less cash and cash equivalents | (279.3) | ||||
| $ | 3,556.6 | ||||
| Trailing twelve months Adjusted EBITDA | $ | 1,019.3 | |||
| Trailing twelve months ongoing stock-based compensation expense | 43.6 | ||||
| $ | 1,062.9 | ||||
| Adjusted net leverage (non-GAAP) | 3.3 x | ||||
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 organic net sales growth (decline) | |||||||||||||||||||||||||||
| Net sales growth (decline) | Foreign currency impact | Organic net sales growth (decline) | |||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | |||||||||||||||||||||||||
Three months ended: | |||||||||||||||||||||||||||||
| Bioscience & Medtech Products | $ | 431.4 | $ | 426.4 | $ | 5.0 | $ | 13.6 | $ | (8.6) | |||||||||||||||||||
| VWR Distribution & Services | 1,150.0 | 1,155.0 | (5.0) | 50.7 | (55.7) | ||||||||||||||||||||||||
| Total | $ | 1,581.4 | $ | 1,581.4 | $ | — | $ | 64.3 | $ | (64.3) | |||||||||||||||||||
| (dollars in millions, % based on net sales) | March 31, | Reconciliation of net sales growth (decline) to organic net sales growth (decline) | |||||||||||||||||||||||||||
| Net sales growth (decline) | Foreign currency impact | Organic net sales growth (decline) | |||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||
| $ | $ | % | % | % | |||||||||||||||||||||||||
Three months ended: | |||||||||||||||||||||||||||||
| Bioscience & Medtech Products | $ | 431.4 | $ | 426.4 | 1.2 | % | 3.2 | % | (2.0) | % | |||||||||||||||||||
| VWR Distribution & Services | 1,150.0 | 1,155.0 | (0.4) | % | 4.4 | % | (4.8) | % | |||||||||||||||||||||
| Total | $ | 1,581.4 | $ | 1,581.4 | — | % | 4.1 | % | (4.1) | % | |||||||||||||||||||
Adjusted Operating Income by segment
| (dollars in millions, % represent Adjusted Operating Income margin) | Three months ended March 31, | ||||||||||||||||||||||
2026 | 2025 | ||||||||||||||||||||||
| $ | % | $ | % | ||||||||||||||||||||
| Bioscience & Medtech Products | $ | 102.7 | 23.8 | % | $ | 114.5 | 26.9 | % | |||||||||||||||
| VWR Distribution & Services | 105.4 | 9.2 | % | 147.9 | 12.8 | % | |||||||||||||||||
| Corporate | (17.5) | — | % | (19.6) | — | % | |||||||||||||||||
| Total | $ | 190.6 | 12.1 | % | $ | 242.8 | 15.4 | % | |||||||||||||||
Investor Relations Contact
Chris Fidyk
Vice President, Investor Relations
Avantor
chris.fidyk@avantorsciences.com
Global Media Contact
Eric Van Zanten
Head of External Communications
Avantor
610-529-6219
eric.vanzanten@avantorsciences.com
Source: Avantor and Financial News
FAQ
How did Avantor (AVTR) perform financially in Q1 2026?
Avantor reported Q1 2026 net sales of $1,581.4 million, flat year over year. Net income declined to $43.3 million, and diluted GAAP EPS fell to $0.06, reflecting margin pressure despite steady reported revenue.
What were Avantor (AVTR) Q1 2026 adjusted earnings and EBITDA?
In Q1 2026, Avantor posted adjusted net income of $114.0 million and adjusted EPS of $0.17. Adjusted EBITDA was $219.4 million, representing a 13.9% margin, down from $269.5 million and a 17.0% margin a year earlier.
How did Avantor’s Q1 2026 organic sales compare to the prior year?
Avantor’s Q1 2026 net sales were flat year over year at $1,581.4 million, but foreign currency translation added 4.1%. On this basis, organic net sales declined 4.1%, indicating lower underlying volumes versus the first quarter of 2025.
What were Avantor (AVTR) Q1 2026 cash flow and free cash flow figures?
Avantor generated Q1 2026 operating cash flow of $58.7 million and free cash flow of $25.2 million. Both metrics decreased compared with the prior-year quarter, when operating cash flow was $109.3 million and free cash flow was $82.1 million.
How leveraged is Avantor after Q1 2026 results?
As of March 31, 2026, Avantor reported adjusted net leverage of 3.3x, based on total debt net of cash divided by trailing twelve months adjusted EBITDA. The company also disclosed a GAAP net leverage ratio of (6.5)x using trailing net loss.
Did Avantor change its full-year 2026 guidance after Q1 2026?
Avantor reaffirmed its fiscal 2026 financial guidance originally provided during its fourth quarter 2025 earnings call. Management maintained its outlook despite weaker first-quarter profitability and cash flow compared with the prior-year period.