Avantor® Reports First Quarter 2026 Results

Avantor® Reports First Quarter 2026 Results RADNOR, Pa., April 29, 2026 /PRNewswire/ -- 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

Bioscience & Medtech Products

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 corporate.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.

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.

Investor Relations Contact

Chris Fidyk

Vice President, Investor Relations

Avantor

[email protected]

Global Media Contact

Eric Van Zanten

Head of External Communications

Avantor

610-529-6219

[email protected]

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

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)

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 charges 1

15.1

1.0 %

4.4

0.3 %

Transformation expenses 2

—

— %

15.4

1.0 %

Reserve for certain legal matters, net 3

0.4

— %

—

— %

Other 4

(0.1)

— %

4.0

0.2 %

Pension termination charges 5

—

— %

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 %

_________________

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.

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.

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.

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.

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 charges 1

15.1

1.0 %

4.4

0.3 %

Transformation expenses 2

—

— %

15.4

1.0 %

Reserve for certain legal matters, net 3

0.4

— %

—

— %

Other 4

(0.1)

— %

1.7

0.1 %

Adjusted Operating Income

$ 190.6

12.1 %

$ 242.8

15.4 %

________________

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.

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

Restructuring and severance charges

0.02

0.01

Transformation expenses

—

0.02

Other

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

$ —

$ 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

— %

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 %

SOURCE Avantor and Financial News