1. 1Q 2025 sales declined 6% year-over-year to $1.58 billion. 2. Lab Solutions revenue impacted by reduced demand in Education and Government sectors. 3. Net income increased to $64.5 million; adjusted EPS rose to $0.23. 4. Full-year outlook updated due to ongoing funding and policy headwinds. 5. Cost transformation initiative aims for $400 million in savings by 2027.
The decline in sales and reduced revenue expectations reflect weakening demand, particularly in educational sectors, impacting AVTR. Historical declines in similar segments often precede negative market reactions.
The significant decline in Q1 sales and updates to full-year guidance are crucial indicators for investors. AVTR's operational initiatives and financial health through adjusted earnings will heavily influence market reactions in the near term.
Given the immediate update on revenue expectations and operational metrics, negative impacts on AVTR may be felt quickly, as market sentiment often reacts rapidly to poor quarterly results.
RADNOR, Pa., April 25, 2025 /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, 2025.
"Our first quarter results demonstrate disciplined execution and a continued focus on cost management in a dynamic macro environment," said Michael Stubblefield, President and Chief Executive Officer. "While earnings and margin performance were in line with our plan, Lab Solutions revenue was impacted by reduced demand – particularly in our Education and Government end market - following recent policy changes. In our Bioscience Production segment, we delivered another quarter of growth in bioprocessing and order book momentum continues."
"We are updating our full-year outlook to reflect ongoing funding and policy-related headwinds. While we are not satisfied with our current growth trajectory, we are implementing a comprehensive strategy to strengthen our Lab Solutions segment and are committed to moving with urgency to improve performance across the business. In addition, we are expanding our cost transformation initiative and now expect to deliver $400 million in gross run-rate savings exiting 2027."
"With these actions to accelerate growth and enhance our cost structure, we remain confident in Avantor's ability to drive long-term value creation," Stubblefield concluded.
For the three months ended March 31, 2025, net sales were $1,581.4 million, a decrease of 6% compared to the first quarter of 2024. Foreign currency translation had a negative impact of 1%, resulting in a sales decline of 2% on an organic basis.
Net income increased to $64.5 million from $60.4 million in the first quarter of 2024, and adjusted net income was $155.2 million as compared to $150.6 million in the comparable prior period. Net Income margin was 4.1%. Adjusted EBITDA was $269.5 million, and Adjusted EBITDA margin was 17.0%. Adjusted Operating Income was $242.8 million, and Adjusted Operating Income margin was 15.4%.
Diluted earnings per share on a GAAP basis was $0.09, while adjusted EPS was $0.23.
Operating cash flow was $109.3 million, while free cash flow was $82.1 million. Adjusted net leverage was 3.2x as of March 31, 2025.
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.
We will host a conference call to discuss our results today, April 25, 2025, 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.
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.
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...
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...
Allison Hosak
Senior Vice President, Global Communications
Avantor
908-329-7281
[email protected]
Eric Van Zanten
Head of External Communications
Avantor
610-529-6219
[email protected]