#USA #Radnor #financial results #Q3 2025 #Avantor

Avantor Reports Significant Losses in Q3 2025

Overview
Avantor, Inc. (NYSE: AVTR), a global leader in mission-critical products and services for life sciences and advanced technology sectors, released its financial results for the third quarter of 2025, revealing a challenging quarter with notable declines in net sales and profit.

Q3 Financial Performance
For the three months ending September 30, 2025, Avantor reported net sales of $1.62 billion, representing a 5% decrease compared to the same period in the previous year. The decline can be primarily attributed to adverse market conditions affecting the company’s operating segments. Furthermore, the company experienced a net loss of $712 million and a diluted loss per share of $1.04.

Included in these loss figures was a non-cash goodwill impairment charge of $785 million, impacting the Distribution reporting unit. Market forces, along with actual and projected financial performance trends, compelled this adjustment.

Despite the downturn, Avantor achieved an adjusted EBITDA of $268 million and managed a modest adjusted EPS of $0.22. The operating cash flow stood at $207 million, with free cash flow of $172 million, showcasing some degree of operational resilience amidst financial challenges.

Strategic Measures
Emmanuel Ligner, the President and CEO of Avantor, highlighted that the company’s diverse portfolio and robust production capabilities lay a solid foundation for future value creation. However, he recognized the need for decisive changes to bolster execution, accountability, and financial performance.

In light of the current macroeconomic uncertainties, Avantor plans to refine its go-to-market strategy, enhance its customer value propositions, and strategically invest in its manufacturing and supply chain processes. A $500 million share repurchase authorization has been established, which reflects management's confidence in the company's cash generation potential and commitment to enhancing long-term shareholder value.

Segment Performance Insights

• - Laboratory Solutions:

- Reported net sales were $1,096.5 million, a decrease of 6.4% year-over-year. Currency translation positively impacted sales by 2.6%, but this was outweighed by a 4.1% negative impact from market adjustments. Adjusted Operating Income in this segment declined to $123.6 million, yielding an adjusted margin of 11.3%.

• - Bioscience Production:

- This segment saw net sales of $527.3 million, down 2.9% from the previous year. With foreign currency translation accounting for a modest positive impact of 1.4%, the overall organic basis reflected a 4.3% decline. Adjusted Operating Income decreased to $127.7 million with a margin of 24.2%.

Future Outlook and Conference Call
In the face of these results, Avantor will hold a conference call on October 29, 2025, at 8:00 a.m. ET to discuss the outcomes and outline future strategies. This event aims to provide stakeholders with clarity on how the company plans to navigate the complexities of the current economic climate. For more details, visit Avantor’s investor website.

About Avantor
Avantor, Inc. is a premier life science tools company and global supplier of critical products and services across a wide range of scientific disciplines. With a presence in 180 countries, Avantor caters to over 300,000 customer locations, facilitating groundbreaking advancements in medicine and technology.

Conclusion
The third quarter results highlight both the challenges faced by Avantor in a turbulent market as well as the company's initiatives to adapt and overcome these obstacles. The recent strategic decisions, especially regarding share repurchase, underscore a commitment to fostering long-term shareholder value and operational efficiency as Avantor strives for recovery and growth in the coming quarters.