AptarGroup (ATR) investor relations material

Executive summary

• Q3 2025 reported sales grew 6% year-over-year to $961 million, with core sales up 1% and adjusted EPS up 4% to $1.62; diluted EPS rose 30% to $1.92.

• Pharma segment growth was driven by 18% higher injectables sales, strong demand for proprietary drug delivery systems, and active material science; consumer healthcare declined due to destocking.

• Beauty segment saw 8% reported sales growth, with regional gains in Asia and Latin America, but flat core sales and lower sales in certain U.S. markets.

• Closures segment reported 1% sales growth, with higher product volumes offset by lower tooling sales and resin pricing.

• Announced acquisition of Sommaplast in Brazil to strengthen pharma packaging presence in Latin America.

Financial highlights

• Q3 2025 adjusted EBITDA margin was 23.2%, up from 22.9% prior year; adjusted EBITDA reached $223 million.

• Q3 2025 net income was $127.9 million, up from $100 million in Q3 2024; nine-month net income was $318 million.

• Year-to-date, reported sales were $2.81 billion, adjusted EPS was $4.48, and adjusted EBITDA was $624 million.

• Free cash flow for the first nine months was $206 million, with higher working capital and pension contributions offset by lower capex.

• Ended Q3 with $265 million in cash, $936 million net debt, and a leverage ratio of 1.22.

Outlook and guidance

• Q4 2025 adjusted EPS expected in the range of $1.20 to $1.28, with an effective tax rate of 19.5% to 21.5%.

• Pharma pipeline expected to contribute 7–10% of annual revenue; injectables growth driven by GLP-1, biologics, and regulatory changes.

• Emergency-use delivery systems to represent about 5% of 2025 sales; 2026 revenue from this category expected to decline, compressing margins.

• Capital expenditures for 2025 projected at $250–$270 million, mainly for pharma.

• All segments expected to contribute positively in Q4.