Financial Data and Key Metrics Changes - In Q4, reported revenue was $1.66 billion, down 4% year-over-year on an organic basis, aligning with guidance [13] - Adjusted EBITDA margin was 15.2%, and adjusted EPS for the quarter was $0.22, reflecting a decline of $0.05 year-over-year [14] - For the full year 2025, reported revenues were $6.552 billion, down 3% on an organic basis, with adjusted gross profit of $2.14 billion, representing a 32.7% adjusted gross margin [16] Business Line Data and Key Metrics Changes - Laboratory Solutions revenue for Q4 was $1.116 billion, a decline of 4% year-over-year on an organic basis [17] - Bioscience production revenue for Q4 was $548 million, reflecting an organic decline of 4% versus the prior year [19] - The VWR Distribution and Services segment represented about 72% of enterprise revenue in 2025, with an adjusted operating margin of 11.5% [23] Market Data and Key Metrics Changes - The biopharma end market remains healthy, with production levels growing and many companies planning investments to expand capacity [9] - Early-stage biotech, education, and government markets faced challenges in 2025, but there are signs of improvement in funding environments, particularly in Europe and Japan [11] - The company noted a book-to-bill ratio of more than one for process chemicals, indicating a positive order book [20] Company Strategy and Development Direction - The Avantor Revival program focuses on five pillars: evolving go-to-market strategy, improving operations, optimizing the portfolio, simplifying processes, and strengthening talent [4] - The company plans to operate with two new business units: a product-agnostic channel and a channel-agnostic product business, enhancing customer focus [5] - Significant investments will be made in 2026 to drive sustainable, profitable top-line growth, with a focus on organic revenue growth rate as a key metric [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, noting that 2026 will be a year of transition and investment [8] - The company anticipates organic revenue growth of -2.5% to -0.5% for 2026, with expectations for VWR growth to outpace that of Bioscience and Medtech Products [25] - Management highlighted the importance of executing the revival plan to achieve improved operating leverage and margin improvement [31] Other Important Information - The company welcomed new board members with global leadership and financial expertise [12] - A significant focus will be on enhancing digital capabilities, with a commitment to invest $10 million-$15 million in e-commerce upgrades in 2026 [6] Q&A Session Summary Question: Expectations for segment growth in 2026 - Management indicated that growth in VWR is expected to outpace that of Bioscience and Medtech Products due to difficult comps in the latter [37] Question: Balancing investments and cost-saving initiatives - Management emphasized that cost discipline will remain a priority, and investments will be self-funded through optimization [40][41] Question: Margin guidance and stress-testing assumptions - Management described the guidance as prudent, reflecting a balance of various moving parts impacting the P&L in 2026 [45][46] Question: Impact of investments on margins - Management noted that investments in operations and e-commerce will have a significant impact on margins, but specific quantification was not provided [47][48] Question: Clarification on book-to-bill ratio - The book-to-bill ratio greater than one was specifically related to process chemicals, indicating a positive outlook despite existing operational bottlenecks [63][65]

分组1 - Avantor, Inc. reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, but down from $0.27 per share a year ago, representing an earnings surprise of +2.85% [1] - The company posted revenues of $1.66 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.00%, although this is a decrease from year-ago revenues of $1.69 billion [2] - Avantor has surpassed consensus revenue estimates two times over the last four quarters, while it has only beaten consensus EPS estimates once during the same period [2] 分组2 - The stock has underperformed the market, losing about 2.6% since the beginning of the year compared to the S&P 500's gain of 1.4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.20 on $1.57 billion in revenues, and for the current fiscal year, it is $0.89 on $6.51 billion in revenues [7] 分组3 - The Zacks Industry Rank indicates that the Medical Services sector is currently in the top 36% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Avantor's estimate revisions trend was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6]

Q4 & FY 2025 Earnings Earnings Presentation February 11, 2026 Disclaimer Forward-looking statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this presentation are forward-looking statements. Forward-l ...

Financial Performance - Fourth Quarter 2025 net sales were $1,664 million, a decrease of 1.4% compared to Q4 2024, with an organic decline of 4.1%[4] - Full Year 2025 net sales were $6,552 million, a decrease of 3.4% compared to 2024, with an organic decline of 2.8%[8] - Net income for Q4 2025 decreased to $52 million from $500 million in Q4 2024, with an adjusted net income of $146 million compared to $184 million in the prior period[5] - Full Year 2025 net loss was $530 million compared to net income of $712 million in 2024, with adjusted net income of $614 million compared to $678 million in the prior period[9] - Gross profit for Q4 2025 was $523.9 million, down 6.9% from $562.9 million in Q4 2024[23] - Net income for the year ended December 31, 2025, was a loss of $530.2 million compared to a profit of $711.5 million in 2024[23] - Total net sales for Q4 2025 were $1,663.6 million, a decrease of 1.4% from $1,686.6 million in Q4 2024, with organic net sales growth declining by $69.3 million[38] - For the year ended December 31, 2025, total net sales were $6,552.2 million, a decrease of 3.4% from $6,783.6 million in 2024[40] Cash Flow and Expenses - Operating cash flow for Q4 2025 was $153 million, while free cash flow was $117 million[6] - Full Year 2025 operating cash flow was $624 million, with free cash flow of $496 million[10] - Cash provided by operating activities for Q4 2025 was $152.7 million, down from $173.3 million in Q4 2024[26] - Capital expenditures for the year ended December 31, 2025, were $128.8 million, a decrease from $148.8 million in 2024[26] - Free cash flow for Q4 2025 was $117.2 million, a decline from $222.1 million in Q4 2024, while full year free cash flow was $496.4 million compared to $768.3 million in 2024[36] Adjusted Metrics - Adjusted EBITDA for Q4 2025 was $252 million, with an adjusted EBITDA margin of 15.2%[5] - Full Year 2025 adjusted EBITDA was $1,069 million, with an adjusted EBITDA margin of 16.3%[9] - Adjusted EBITDA for Q4 2025 was $252.2 million, representing a 15.2% margin, down from $307.7 million and an 18.2% margin in Q4 2024[32] - Adjusted Operating Income for Q4 2025 was $225.4 million, a decrease from $279.4 million in Q4 2024, with an adjusted operating income margin of 13.5%[32] - The total adjusted operating income for the year ended December 31, 2025, was $957.8 million, with a margin of 14.6%, down from $1,089.8 million and 16.1% in 2024[41] Segment Performance - The Laboratory Solutions segment reported Q4 2025 net sales of $1,116.1 million, a decline from $1,125.8 million in Q4 2024, while the Bioscience Production segment saw sales drop to $547.5 million from $560.8 million[38] - Adjusted Operating Income for Laboratory Solutions was $114.4 million, representing a margin of 10.2%, down from $147.4 million and 13.1% in the prior year[41] - Adjusted Operating Income for Bioscience Production was $127.0 million, with a margin of 23.2%, compared to $149.2 million and 26.6% in the previous year[41] - Bioscience Production experienced an organic net sales decline of (1.8)% for the year ended December 31, 2025[40] - Organic net sales growth for Laboratory Solutions was reported at (4.1)% for the three months ended December 31, 2025[40] Strategic Initiatives - The company is executing a Revival program aimed at driving top line growth and improving operational efficiency[2] - The relaunch of the VWR brand and upgrades to the e-commerce channel are key components of the company's strategic priorities[2] Balance Sheet and Liabilities - Total current assets increased to $2,451.2 million in 2025 from $2,146.6 million in 2024, reflecting a growth of 14.2%[24] - Total liabilities rose to $6,229.7 million in 2025, compared to $6,157.8 million in 2024, marking an increase of 1.2%[24] - The company reported a gross debt of $3,967.9 million as of December 31, 2025, with adjusted net leverage at 3.2x[37] Shareholder Metrics - The weighted average shares outstanding for diluted earnings per share were 679.3 million in Q4 2025, down from 682.7 million in Q4 2024[23] - Diluted earnings per share (EPS) for Q4 2025 was $0.08, compared to $0.73 in Q4 2024, while adjusted EPS was $0.22, down from $0.27[35]

Sales and Revenue - Avantor's net sales in 2025 were significantly driven by recurring product and service offerings, with over 85% of sales categorized as recurring [28]. - For the fiscal year ended December 31, 2025, the company recorded net sales of $6,552.2 million, a decline of 3.4% compared to the previous year, with an organic net sales decrease of 2.8% [168]. - Net sales for the year ended December 31, 2025, decreased by $231.4 million or 3.4% to $6,552.2 million, impacted by a divestiture and reduced customer demand [188]. - In the Laboratory Solutions segment, net sales decreased by $210.4 million or 4.6%, with organic sales down by $148.5 million or 3.2% [189]. - The Bioscience Production segment saw a net sales decrease of $21.0 million or 1.0%, with organic sales down by $39.7 million or 1.8% [190]. Customer Relationships - Approximately 45% of Avantor's 2025 net sales came from customers with relationships lasting 15 years or more, indicating strong customer loyalty [32]. - The company serves more than 300,000 customer locations across approximately 180 countries, highlighting its extensive global footprint [23]. Digital Transformation - In 2025, around 80% of transactions were conducted through digital channels, showcasing the importance of e-commerce in Avantor's business model [36]. - The company has made significant investments in ERP systems to enhance customer experience and integrate new acquisitions effectively [39]. Operational Efficiency - The Avantor Business System underpins all operations, driving execution and continuous improvement across various processes [30]. - A new operating model was implemented effective January 1, 2024, aiming for approximately $400 million in annual gross run-rate savings by the end of 2027 [70]. - The company expects to generate approximately $400 million in run rate gross savings by the end of 2027 through a global cost transformation initiative aimed at enhancing productivity [176]. Financial Performance - The company reported a net loss of $530.2 million and an Adjusted EBITDA of $1,069.4 million, with Adjusted Operating Income at $957.8 million [168]. - Gross margin declined by 90 basis points to 32.7%, primarily due to inflationary pressures and higher freight costs [191]. - Operating loss income was $(246.2) million, a decrease of $1,331.0 million compared to the previous year, largely due to a non-cash goodwill impairment charge [192]. - Adjusted EBITDA decreased by $129.4 million or 10.8% to $1,069.4 million, with a margin of 16.3% [194]. - The company incurred impairment charges of $785.0 million in 2025, which significantly impacted operating results [206]. Regulatory Compliance - The company is subject to extensive regulations by U.S. and global authorities, including the FDA and EMA, impacting manufacturing and distribution operations [55]. - Compliance with various quality and safety standards is necessary to maintain certifications, including ICH Q7 and U.S. Pharmacopeia [56]. - The company faces significant costs associated with regulatory compliance, and noncompliance could adversely affect its reputation and financial condition [58]. - The company is subject to various environmental regulations, including the Clean Air Act and the Resource Conservation and Recovery Act, which govern its operations [61]. - The company is subject to evolving regulatory requirements related to sustainability and corporate responsibility, which could increase compliance costs and risks of non-compliance [121]. Supply Chain and Production - Supply chain constraints and inflationary pressures have impacted sourcing of products and raw materials, affecting overall costs [68]. - The company has experienced challenges in production and logistics, which could harm customer relationships and financial results [67]. - The complexity of the company's offerings necessitates strict quality control, as failures could result in lost sales and damage to reputation [78]. - The company relies on high-quality raw materials, and any disruption in supply could negatively impact production and profitability [96]. - Maintaining favorable supplier relationships is crucial for sustaining gross margins and operational efficiency [98]. Strategic Initiatives - The company may pursue strategic acquisitions, which could expose it to various risks, including potential adverse effects on business relationships and financial performance [72]. - The company relies on collaborative partnerships for product development, and failures by partners could delay or adversely affect commercialization efforts [110]. Environmental and Sustainability Efforts - Avantor received a Bronze Medal from EcoVadis for sustainability efforts for the third consecutive year, reflecting its commitment to corporate responsibility [45]. - The company is focused on reducing greenhouse gas emissions and packaging waste to address climate change, with established goals for carbon footprint reduction [102]. - The company monitors sustainability regulations, which may expose it to increased costs associated with additional reporting obligations [102]. Risks and Challenges - Customers' research budgets and government funding are unpredictable, which could lead to delays or reductions in purchases of the company's products [76]. - The company faces inherent risks associated with the use of chemicals in manufacturing, which could lead to significant liabilities [99]. - The evolving regulatory landscape surrounding AI and data privacy may impose restrictions that could affect product usability and expose the company to legal risks [95]. - The company faces risks related to health epidemics and pandemics, which could lead to unpredictable reductions in supply and demand for its offerings [107]. - Changes in trade policy, including new tariffs and import/export regulations, may adversely affect the company's business and financial results [122]. - The company faces risks from tariffs and trade restrictions that could adversely affect its business and financial condition, with uncertain impacts on operations and pricing [123]. Debt and Liquidity - The company has significant indebtedness, which may restrict its ability to make strategic acquisitions and could require a substantial portion of cash flow for debt payments, reducing funds available for other purposes [125]. - The company issued €400.0 million and €550.0 million of senior secured term loans in Q4 2025, increasing liquidity and refinancing existing debt [177]. - The company amended its revolving credit facility to increase total availability to $1,400.0 million, adding $425.0 million in funding [178]. - Total liquidity as of December 31, 2025, was $1,745.9 million, including $1,380.5 million in unused availability under the revolving credit facility and $365.4 million in cash and cash equivalents [215]. Management and Governance - The company has experienced changes in senior management, which may disrupt its ability to implement strategy and negatively affect financial performance [104]. - The company is committed to maintaining effective internal controls to ensure accurate financial reporting, but acknowledges the risk of future deficiencies [129]. - The company has a dedicated team for cybersecurity risk management, led by a Chief Information Security Officer with over 25 years of experience [140]. Shareholder Relations - The company may incur additional costs and operational disruptions due to shareholder activism, which could impact its strategic plans [133]. - The company has no current plans to pay cash dividends on its common stock, meaning returns on investment depend solely on stock price appreciation [128].

Core Insights - Avantor reported a decrease in net sales for both the fourth quarter and full year of 2025, with net sales of $1.66 billion for Q4, down 1.4% year-over-year, and $6.55 billion for the full year, down 3.4% compared to 2024 [1][3] - The company is implementing a "Revival program" aimed at improving agility and customer focus, which includes relaunching the VWR brand and enhancing e-commerce capabilities [1][2] - Despite the challenges, Avantor's management expressed confidence in the strategic initiatives to drive top-line growth and create sustainable shareholder value in 2026 [1][2] Financial Performance - For Q4 2025, Avantor reported a net income of $52 million, a significant decrease from $500 million in Q4 2024, with an adjusted EBITDA of $252 million and a margin of 15.2% [1][3] - The full year 2025 saw a net loss of $530 million, compared to a net income of $712 million in 2024, with an adjusted EBITDA of $1.07 billion and a margin of 16.3% [1][3] - Operating cash flow for Q4 was $153 million, while free cash flow was $117 million; for the full year, operating cash flow was $624 million and free cash flow was $496 million [1][3] Segment Performance - In Q4 2025, the Laboratory Solutions segment reported net sales of $1.12 billion, a decrease of 0.9%, while the Bioscience Production segment had net sales of $548 million, down 2.4% [1][3] - For the full year, Laboratory Solutions net sales were $4.40 billion, down 4.6%, and Bioscience Production net sales were $2.15 billion, down 1.0% [1][3] - Adjusted Operating Income for the Laboratory Solutions segment was $114 million with a margin of 10.2%, and for Bioscience Production, it was $127 million with a margin of 23.2% in Q4 2025 [1][3] Strategic Initiatives - The Revival program includes optimizing the go-to-market strategy and implementing critical manufacturing and supply chain improvements [1][2] - Management emphasized the urgency of executing the Revival program to enhance business performance and competitiveness in the marketplace [1][2] - The company aims to position itself for sustainable growth and shareholder value creation through these strategic initiatives [1][2]

Core Insights - The article emphasizes the importance of value investing as a strategy to identify strong stocks, particularly in varying market conditions [2] - Avantor (AVTR) is highlighted as a stock to watch, currently holding a Zacks Rank 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4][7] Valuation Metrics - Avantor's P/E ratio stands at 12.27, significantly lower than the industry average of 15.89, suggesting it may be undervalued [4] - The P/B ratio for Avantor is 1.36, compared to the industry's average of 2.09, indicating a favorable valuation relative to its book value [5] - Avantor's P/CF ratio is 7.73, which is attractive when compared to the industry average of 13.47, further supporting the notion of undervaluation [6] Investment Outlook - The combination of Avantor's strong earnings outlook and favorable valuation metrics positions it as a compelling value stock at the current time [7]

Core Viewpoint - Investors are evaluating which stock between Avantor, Inc. (AVTR) and Alignment Healthcare (ALHC) offers better value for investment at the current time [1] Group 1: Zacks Rank and Earnings Outlook - AVTR has a Zacks Rank of 2 (Buy), while ALHC has a Zacks Rank of 3 (Hold), indicating a more favorable earnings outlook for AVTR [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that AVTR's earnings outlook is improving more significantly than ALHC's [3] Group 2: Valuation Metrics - AVTR has a forward P/E ratio of 12.47, significantly lower than ALHC's forward P/E of 213.30, indicating that AVTR may be undervalued [5] - The PEG ratio for AVTR is 3.86, while ALHC's PEG ratio is 5.62, further suggesting that AVTR offers better value considering expected earnings growth [5] - AVTR's P/B ratio is 1.36 compared to ALHC's P/B of 26.37, reinforcing the notion that AVTR is more attractively priced relative to its book value [6] Group 3: Value Grades - Based on the aforementioned valuation metrics, AVTR has earned a Value grade of A, while ALHC has a Value grade of C, indicating a stronger value proposition for AVTR [6][7]

Group 1 - The article does not contain any relevant content regarding company or industry insights [1]

Core Viewpoint - Kuehn Law, PLLC is investigating potential breaches of fiduciary duties by certain officers and directors of Avantor, Inc. related to misrepresentation of the company's competitive positioning and operational challenges [1][2]. Group 1: Allegations of Misrepresentation - A federal securities lawsuit claims that insiders at Avantor misrepresented the company's competitive positioning, indicating it was weaker than publicly stated [2]. - The lawsuit also alleges that Avantor faced negative impacts from increased competition, which were not disclosed to shareholders [2]. - As a result of these issues, the representations regarding Avantor's business, operations, and future prospects were deemed materially false and misleading [2]. Group 2: Shareholder Actions - Shareholders who purchased AVTR shares prior to March 5, 2024, are encouraged to contact Kuehn Law for potential legal action, as the firm covers all case costs [3]. - The firm emphasizes the importance of shareholder participation in maintaining the integrity and fairness of financial markets [4].