Avantor (AVTR) Q3 2026 earnings summary

Executive summary

• Q3 net sales grew 4.6% reported and 5.2% organically, exceeding management expectations as VWR and BMP both returned to organic growth.

• FY2026 organic revenue, Adjusted EPS and free cash flow guidance increased; Adjusted EBITDA margin guidance was unchanged.

• Strong cash generation supported investment and debt reduction; adjusted net leverage ended Q3 at 3.1x.

Financial highlights

• Q3 net sales were $1,698.3M, up 4.6% reported and 5.2% organically YoY.

• Adjusted EBITDA was $256.9M, down 4.1% YoY, with a 15.1% margin versus 16.5%; Adjusted EPS was $0.22.

• Free cash flow was $156.2M; excluding $13M of cash restructuring costs, it was $169M.

• Gross profit rose to $534.8M, while gross margin contracted 90 bps to 31.5% amid unfavorable mix and inflation.

• GAAP net income was $203.4M versus a $711.8M loss YoY; adjusted net income was $146.4M versus $151.1M.

Outlook and guidance

• FY2026 organic revenue growth guidance rose to 0.75%-1.25% from -0.5%-0.5%; reported revenue growth guidance is 1.5%-2.0%.

• Adjusted EPS guidance increased to $0.81-$0.83 and free cash flow guidance to $525M-$550M; Adjusted EBITDA margin guidance remained 14.8%-15.3%.

• Guidance assumptions include a 22.0%-22.5% adjusted tax rate, 679M diluted shares, EUR/USD of 1.15 and a 0.75% FX tailwind to reported revenue growth.

• Q4 VWR growth is expected in the mid-single digits; BMP is expected flat to slightly positive YoY, with ~400 bps of discrete comparison headwinds.