Emmanuel Ligner Leads Avantor Through Strategic Transformation Amid Challenging Quarter – CEO Confirms $500 Million Share Repurchase Plan

Avantor Reports Q3 2025 Financial Results; CEO Emmanuel Ligner Highlights Strategic Actions for Long-Term Value Creation

Avantor, Inc., a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries, announced its financial results for the third fiscal quarter ended September 30, 2025. The company detailed a series of strategic initiatives under the leadership of President and Chief Executive Officer Emmanuel Ligner, aimed at driving operational excellence, improving financial performance, and delivering sustainable shareholder value.

“Avantor’s diverse portfolio, strong production capabilities, and long-standing customer relationships provide a strong foundation for sustained value creation,” said Emmanuel Ligner, President and CEO of Avantor. “To position Avantor for success in any macroeconomic environment, we are making decisive, meaningful changes aimed at improving execution, accountability, and financial performance.”

Ligner added that the company is actively evolving its go-to-market strategy, sharpening its customer value proposition, and investing strategically in manufacturing and supply chain infrastructure to strengthen its long-term growth prospects.

“We are carefully scrutinizing our portfolio to ensure our focus is on the opportunities that will drive the greatest value creation for our customers and shareholders,” Ligner continued. “I strongly believe in Avantor’s growth and profitability potential, and this conviction is reflected in the new $500 million share repurchase program authorized by our Board.”

Third Quarter 2025 Financial Highlights

For the three months ended September 30, 2025, Avantor reported net sales of $1.62 billion, representing a 5.3% decrease compared to the same period in 2024. Foreign currency translation had a positive impact of 2.2%, while mergers and acquisitions had a negative impact of 2.8%, leading to an organic sales decline of 4.7%.

The company reported a net loss of $711.8 million, compared to net income of $57.8 million in Q3 2024. The loss was primarily driven by a non-cash goodwill impairment charge of $785 million related to the company’s Distribution reporting unit. This impairment reflects market conditions and performance trends affecting the segment.

Adjusted net income stood at $151.1 million, compared to $175.2 million in the prior-year period. Adjusted EBITDA was $267.9 million, with an Adjusted EBITDA margin of 16.5%, while Adjusted Operating Income was $237.3 million with a margin of 14.6%.

Diluted loss per share (GAAP) was $1.04, and adjusted earnings per share (EPS) were $0.22.

Despite the headline loss, Avantor demonstrated solid cash generation, reporting operating cash flow of $207.4 million and free cash flow of $171.7 million during the quarter. The company’s adjusted net leverage ratio was 3.1x as of September 30, 2025, reflecting prudent financial management in a challenging environment.

Laboratory Solutions

Avantor’s Laboratory Solutions segment, which supports customers across pharmaceuticals, biotechnology, education, and diagnostics, reported net sales of $1.1 billion, a 6.4% decline compared to $1.17 billion in the prior-year quarter. Foreign currency translation provided a positive 2.6% impact, while M&A had a negative 4.1% impact, resulting in an organic sales decline of 4.9%.

Adjusted Operating Income was $123.6 million, down from $151.5 million in the same period last year, with an Adjusted Operating Income margin of 11.3%. The decline reflects a softer demand environment and ongoing macroeconomic headwinds impacting research and industrial spending.

Bioscience Production

In the Bioscience Production segment, which serves biopharmaceutical manufacturers and advanced materials producers, net sales were $527.3 million, a 2.9% decline from $542.9 million in Q3 2024. Foreign currency translation provided a 1.4% benefit, resulting in an organic sales decrease of 4.3%.

Adjusted Operating Income for the segment was $127.7 million, compared to $138.1 million in the prior-year period, yielding an Adjusted Operating Income margin of 24.2%. The margin performance reflects the segment’s resilience and operational efficiency amid softer industry demand.

Strategic and Operational Updates

Under Emmanuel Ligner’s leadership, Avantor is advancing a multi-faceted transformation program designed to improve efficiency and sharpen its competitive positioning. Key actions include:

• Evolving the Go-to-Market Approach: Streamlining customer engagement strategies to deliver greater responsiveness and value.

• Investing in Supply Chain Resilience: Enhancing manufacturing and distribution capabilities to support global demand.

• Portfolio Optimization: Assessing business segments to focus investment and resources on high-growth, high-margin opportunities.

• Capital Allocation Discipline: Launching a $500 million share repurchase program to return value to shareholders while maintaining flexibility for strategic investments.