RADNOR, PA — Avantor, Inc. (NYSE: AVTR) reported first-quarter 2025 financial results, highlighting mixed performance amid a challenging economic landscape. The company posted net sales of $1.58 billion, a decline of 6% compared to the same period in 2024, with organic sales falling by 2%. Net income rose slightly to $64.5 million, while adjusted EBITDA reached $269.5 million, reflecting an adjusted margin of 17.0%.
Michael Stubblefield, Avantor’s President and CEO, stated, “Our first quarter results demonstrate disciplined execution and a continued focus on cost management in a dynamic macro environment. While earnings and margin performance were in line with our plan, Lab Solutions revenue was impacted by reduced demand…following recent policy changes.”
Net income margin for the quarter stood at 4.1%, with diluted GAAP EPS at $0.09 and adjusted EPS at $0.23. Free cash flow for the quarter totaled $82.1 million, and adjusted net leverage was reported at 3.2x as of March 31, 2025.
Segment Breakdown
- Laboratory Solutions: This segment reported net sales of $1.07 billion, an 8% decline compared to Q1 2024. Organic sales decreased by 3%, while adjusted operating income reached $139 million, representing a margin of 13.1%.
- Bioscience Production: Net sales for this segment were $516.4 million, reflecting a modest decrease of 1% year-over-year. Organic sales remained flat, with adjusted operating income at $123.4 million and a margin of 23.9%.
Strategic Initiatives and Outlook
To address headwinds in growth and funding, Avantor announced expanded efforts to improve its cost structure. The company raised its cost transformation target to $400 million in gross run-rate savings by the end of 2027. “We are not satisfied with our current growth trajectory,” Stubblefield remarked, emphasizing the urgency of strengthening the Lab Solutions segment.
Outlining the company’s path forward, Stubblefield concluded, “With these actions to accelerate growth and enhance our cost structure, we remain confident in Avantor’s ability to drive long-term value creation.”
Avantor’s focus on disciplined execution and strategic cost management spotlights its effort to adapt to macroeconomic challenges while positioning itself for sustainable growth.
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