Avantor® Reports First Quarter 2026 Results

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Apr 29, 2026, 06:05 ET

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 /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

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 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.

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.

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,
(in millions, except per share data)	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,
(in millions)	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,
(shares in millions)	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,
(in millions)	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)
	March 31,		Net sales growth (decline)	Foreign currency impact	Organic net sales growth (decline)
	2026	2025	Net sales growth (decline)	Foreign currency impact	Organic net sales growth (decline)
	$	$	$	$	$
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)
	March 31,		Net sales growth (decline)	Foreign currency impact	Organic net sales growth (decline)
	2026	2025	Net sales growth (decline)	Foreign currency impact	Organic net sales growth (decline)
	$	$	%	%	%
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 %