Avantor Announces Q3 2026 Financial Results
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1h ago
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Avantor Announces Third Quarter 2026 Results: Net Sales of $1.6983 Billion, Up 4.6% Year-on-Year, with 5.2% Organic Growth; Diluted Earnings Per Share of $0.30, and Adjusted Earnings Per Share of $0.22. The company also raised its guidance for organic revenue growth, adjusted earnings per share, and free cash flow for the fiscal year 2026.
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[PR Newswire] Avantor, Inc. (New York Stock Exchange ticker: AVTR) announced that as of the third quarter of 2026, the company's performance exceeded management's expectations for revenue and adjusted earnings per share.

Avantor, President and CEO, Emmanuel Ligner stated: "We are very pleased to see a return to year-over-year growth in the third quarter. Our Revival journey is not over yet, but this achievement reflects the commitment of our employees, as well as the progress we have made in strengthening our strategic focus and improving execution. The results for the third quarter exceeded our expectations in terms of revenue and adjusted earnings per share. At the same time, we generated strong free cash flow, which allows us to further strengthen our balance sheet."

“VWR Distribution & Services have once again achieved improved revenue performance in this quarter, with organic growth accelerating to 5.8%; Bioscience & Medtech Products also resumed organic growth as expected. We believe that improved execution and a stronger end-market environment have laid the foundation for sustainable revenue growth, and we will continue to focus on execution to maintain this positive momentum,” Ligner added.

In the three months up to September 30, 2026, net sales amounted to 1.6983 billion US dollars, representing a growth of 4.6% compared to the third quarter of 2025. Exchange rate fluctuations had a negative impact of 0.6%, so on an organic basis, net sales grew by 5.2%.

Net profit turned from a net loss of $711.8 million in the third quarter of 2025 to $203.4 million, with a net profit margin of 12.0%; adjusted net profit was $146.4 million, lower than the $151.1 million in the same period last year. The adjusted EBITDA was $256.9 million, and the adjusted EBITDA profit margin was 15.1%.

Operating profit was $139.5 million, with an operating profit margin of 8.2%; adjusted operating profit was $227.6 million, with an adjusted operating profit margin of 13.4%.

Calculated according to GAAP, the diluted earnings per share are $0.30; after adjustment, the diluted earnings per share are $0.22.

Third Quarter 2026 Segment Performance

VWR Distribution & Services

  • Net sales amounted to $1.2338 billion, representing a 5.0% increase from $1.1750 billion in the third quarter of 2025. Exchange rate fluctuations had a negative impact of 0.8%, so on an organic basis, sales growth was 5.8%.
  • The adjusted operating profit was $119.4 million, lower than the $132.0 million in the same period of the previous year. The adjusted operating margin was 9.7%. Due to an unfavorable product mix and increased SG &A expenses, this was partially offset by higher sales volumes, resulting in a decrease in the adjusted operating margin compared to last year.

Bioscience & Medtech Products

  • Net sales amounted to $464.5 million, representing a 3.5% increase from $448.8 million in the third quarter of 2025. Exchange rate fluctuations had a negative impact of 0.1%, so when calculated on an organic basis, sales growth was 3.6%.
  • The adjusted operating profit was $123.4 million, higher than the $119.3 million in the same period of the previous year. The adjusted operating margin was 26.6%. Due to increased sales volume and improved business execution, this was partially offset by higher SG &A expenses, resulting in an adjusted operating margin that remained the same as last year.

Avantor indicates that the adjusted operating profit is an indicator used by the company under the GAAP framework to measure the profitability of business segments, and management also uses it to evaluate the performance of these business segments.

Balance Sheet and Cash Flow

As of September 30, 2026, the company's total debt amounted to $3.6997 billion, while cash and cash equivalents were $464.3 million.

As of September 30, 2026, the net leverage ratio of GAAP was 9.6 times, and after adjustment, it was 3.1 times.

In the three months up to September 30, 2026, the operating cash flow was $195.1 million, and the free cash flow was $156.2 million.

Updated 2026 Guidelines

Avantor has updated its financial guidance for the fiscal year 2026.

Assumptions for the fiscal year 2026 include:

  • The reported revenue growth range is between 1.5% and 2.0%, of which 0.75% is attributed to the favorable effects of foreign exchange.
  • The euro/dollar exchange rate is 1.15.
  • Net interest expense is expected to decline slightly compared to the fiscal year 2025.
  • The adjusted effective tax rate ranges from 22.0% to 22.5%.
  • After full dilution, the number of shares is 679 million.

Teleconference

The company will hold a teleconference on October 28, 2026, at 8:00 a.m. Eastern Time to discuss financial results. Live webcast and presentation materials, as well as replays, will be available on the Avantor investor relations website.

About Avantor

Avantor is a leading life science tools company and also a global provider of key products and services for the life sciences and advanced technology industries. The company collaborates side by side with its customers at every step of scientific exploration, driving breakthroughs in the fields of medicine, healthcare, and technology. Its product portfolio covers all stages of important research and development and production activities at over 300,000 customer locations in more than 180,000 countries/regions. For more information, please visit corporate.avantorsciences.com, and follow the company on LinkedIn, X ( Twitter ), and Facebook.

Use of non-GAAP financial indicators

To evaluate performance, the company monitors several key indicators. Where appropriate, in addition to the operating results determined in accordance with Generally Accepted Accounting Principles (GAAP) in the United States ( GAAP ), the company also uses certain non-GAAP financial indicators. The company believes that these indicators are helpful for investors, creditors, and other stakeholders to assess its performance. These indicators should not be considered in isolation, nor should they replace the reported GAAP results, as they may include or exclude different items from similar indicators, and they may not be comparable to indicators with the same names used by other companies. Instead, these indicators should be viewed as a supplementary means of observing the company's operating conditions to gain a more comprehensive understanding of its business. The company strongly recommends that investors read in their entirety the consolidated financial statements submitted to the U.S. Securities and Exchange Commission (SEC) ( SEC ), rather than relying solely on any single financial indicator or communication content.

The financial indicators used in this press release that are not GAAP include: organic sales growth (decline), adjusted operating profit, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net profit, adjusted earnings per share, adjusted net leverage ratio, free cash flow, and free cash flow conversion rate.

Growth (or decline) in organic net sales excludes the impact of revenues from acquisitions and divestitures in the past year, as well as the effects of foreign exchange fluctuations, on the changes in net sales during the reporting period. The company believes that this indicator helps investors to continuously measure and evaluate the underlying business performance of each division and for the respective periods, and management also uses this indicator for the same reason.

Adjusted operating profit refers to the operating profit or loss, adjusted for the following items: (i) amortization of acquired intangible assets, ( ii ) expenses related to impairment of certain assets, ( iii ) gains or losses from the sale of businesses, and ( iv ) other adjustments. The adjusted operating profit margin is calculated by dividing the adjusted operating profit by the net sales amount under the GAAP measurement. The company believes that these indicators are helpful for investors to continuously analyze the underlying trends of the business, and management also uses these indicators for the same reason. In addition, adjusted operating profit is the profit indicator used by the company for segment reporting under GAAP.

After adjustment, EBITDA refers to the following items adjusted on the basis of net profit or loss: (i) interest expenses, ( ii ) income tax expenses, ( iii ) amortization of acquired intangible assets, ( iv ) depreciation expenses, (v) losses on debt settlement, ( vi ) expenses related to impairment of certain assets, ( vii ) gains or losses from the sale of business operations, and ( viii ) other adjustments. The adjusted EBITDA profit margin is calculated by dividing the adjusted EBITDA by the net sales amount under the GAAP scope. The company believes that these indicators are helpful for investors to continuously analyze the underlying trends of the business, and management also uses these indicators for the same reason.

Adjusted net profit refers to the net profit or loss, after making adjustments for the following items: (i) amortization of acquired intangible assets, ( ii ) losses from debt settlement, ( iii ) expenses related to impairment of certain assets, ( iv ) gains or losses from the sale of business operations, and (v) other adjustments; subsequently, based on the aforementioned pre-tax adjustments, the estimated impact of additional income tax is added or subtracted to determine the adjusted net profit. The company believes that this indicator is helpful for investors to continuously analyze the business, and management also uses this indicator for the same reason.

The adjusted earnings per share is calculated by dividing the adjusted net profit by the GAAP diluted weighted average number of shares after adjusting for anti-dilution instruments. The company believes that this indicator helps investors to continuously analyze the underlying trends of the business, and management also uses this indicator for the same reason.

The adjusted net leverage ratio is calculated by subtracting cash and cash equivalents from total debt, and then dividing by the adjusted EBITDA of the past 12 months (excluding equity incentive costs, and taking into account the expected impact on cost synergies as well as the incremental results of completed acquisitions and divestitures, assuming these transactions occurred on the first day of the past 12-month period). The company believes that this indicator helps investors evaluate and measure the company's capital allocation strategy and underlying business trends, and management also uses this indicator for the same reason.

Free cash flow is equal to operating cash flow minus capital expenditures, plus direct transaction costs related to acquisitions and divestitures, as well as paid income taxes (if applicable). The free cash flow conversion ratio is calculated by dividing free cash flow by adjusted net profit. The company believes that these indicators help investors understand the company's ability to generate cash for financing or investment activities, and management also uses these indicators for the same reason.

A comparison table between these non-GAAP financial indicators and the most directly comparable GAAP financial indicators is included in the table attached to this press release.

Forward-looking and Cautionary Statements

This press release contains forward-looking statements as defined by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is protected by the safe harbor provisions established by the Private Securities Litigation Reform Act of 1995. Except for historical facts stated in this press release, all other statements are forward-looking statements. Forward-looking statements involve the company's current expectations and projections regarding financial conditions, operating results, plans, objectives, future performance, and business. These statements may contain words such as “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”, and their negative forms, as well as other similar terms.

Forward-looking statements are inherently subject to risks, uncertainties, and assumptions and do not constitute a guarantee of performance. Please do not rely excessively on these statements. The company makes these forward-looking statements based on current expectations and forecasts regarding future events. Although the company believes that the assumptions underlying these forward-looking statements are reasonable, it cannot guarantee that these assumptions and expectations will necessarily be correct. Factors that may give rise to such risks, uncertainties, and assumptions include, but are not limited to, those described in the “Risk Factors” section of the company’s most recent 10-K annual report and subsequent 10-Q quarterly reports. Relevant risk factors may be updated from time to time in the periodic documents submitted by the company to SEC.

All forward-looking statements attributable to the company or persons acting on its behalf are subject to the limitations stated in the aforementioned cautionary notice. Furthermore, all forward-looking statements are valid only as of the date of issuance of this press release. Except as required by federal securities laws, the company assumes no obligation to publicly update or revise any forward-looking statements due to new information, future events, or other reasons.

Investor Relations Contact Person

Chris Fidyk

Vice President of Investor Relations
Avantor
[ email protected ]

Global Media Contacts

Valerie Collado

Director of External Communications and Community Impact
Avantor
484-885-9338
[ email protected ]

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