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Sep 30, 2025
Avantor Q3 2025 Earnings Report
Avantor reported its financial results for the third fiscal quarter ended September 30, 2025, including a net loss of $712 million due to a significant goodwill impairment charge.
Key Takeaways
Avantor experienced a challenging third quarter in 2025, with net sales decreasing by 5% to $1.62 billion. The company reported a substantial net loss of $712 million, primarily driven by a $785 million non-cash goodwill impairment charge related to its Distribution reporting unit. Despite the loss, adjusted EPS was $0.22, and the company generated $207 million in operating cash flow.
Net sales for Q3 2025 were $1.62 billion, a 5.3% decrease compared to Q3 2024, with a 4.7% organic sales decline.
The company reported a net loss of $711.8 million and a diluted GAAP loss per share of $1.04, largely due to a $785 million goodwill impairment charge.
Adjusted EBITDA was $267.9 million with an Adjusted EBITDA margin of 16.5%, while adjusted EPS stood at $0.22.
Operating cash flow was strong at $207.4 million, and free cash flow was $171.7 million, demonstrating solid cash generation.
Revenue by Segment
Forward Guidance
Avantor's management expressed confidence in the company's long-term potential, highlighting strategic changes to improve execution and financial performance, backed by a new share repurchase program.
Positive Outlook
- Company announced a new $500 million share repurchase authorization, reflecting confidence in cash generation.
- Management is implementing decisive changes to improve execution, accountability, and financial performance.
- Efforts are underway to evolve the go-to-market approach and sharpen the customer value proposition.
- Strategic investments are planned for manufacturing and supply chain to enhance capabilities.
- Portfolio scrutiny is ongoing to focus on opportunities that drive the greatest value creation.
Challenges Ahead
- The report does not explicitly state negative forward guidance, but the significant goodwill impairment charge indicates past challenges.
- Macroeconomic environment impacts are acknowledged, suggesting potential headwinds.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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