Core Viewpoint - Aptar has announced an increase in its quarterly dividend by nearly 7%, indicating continued momentum and long-term strength in its financial performance [1] Financial Performance - The increase in the quarterly dividend reflects the company's robust financial health and commitment to returning value to shareholders [1] - The specific percentage increase in the dividend is nearly 7%, showcasing a positive trend in the company's profitability [1] Market Position - The decision to raise the dividend signals confidence in the company's ongoing operational performance and market position [1] - This move may attract more investors looking for stable dividend-paying stocks, potentially enhancing the company's market appeal [1]

Core Viewpoint - The FDA upheld the De Novo denial for CytoSorbents' DrugSorb-ATR device but found no safety issues, proposing a potential path forward for market authorization [2][3]. Regulatory Status - On August 14, 2025, the FDA issued a decision following an appeal regarding the De Novo application for DrugSorb-ATR, which was initially denied on April 25, 2025, due to the need for additional information [2][7]. - The FDA's appeal decision confirmed the device's safety but maintained the denial, indicating that further information is required to support the desired label indication [2][3]. - The FDA suggested a potential path forward for market authorization and noted that the company could appeal to a higher level within the FDA [2][7]. Company Insights - CytoSorbents Corporation specializes in blood purification technologies aimed at treating life-threatening conditions in intensive care and cardiac surgery [4][5]. - The company’s lead product, CytoSorb®, is already approved in the EU and has been used in nearly 300,000 devices globally [5]. - DrugSorb-ATR is designed to reduce perioperative bleeding in high-risk surgeries for patients on blood thinners, having received two FDA Breakthrough Device Designations [7][9]. Market Need - There is a significant need for solutions addressing perioperative bleeding in patients undergoing urgent coronary artery bypass graft (CABG) surgery, particularly those on ticagrelor [3][4]. - The technology aims to mitigate risks associated with blood thinners, which are increasingly common among patients, thereby addressing a critical issue faced by surgeons and patients alike [3][4].

Core Viewpoint - AptarGroup reported strong Q2 2025 earnings, with adjusted EPS of $1.66 exceeding estimates and GAAP revenue of $966 million surpassing forecasts, driven by margin improvement and sales growth in key segments despite macroeconomic uncertainties [1][2][5]. Financial Performance - Adjusted EPS for Q2 2025 was $1.66, up 18% from $1.41 in Q2 2024 [2] - GAAP revenue reached $966 million, a 6% increase from $910 million in the prior year [2] - Adjusted EBITDA was $218 million, reflecting a 13% year-over-year growth [2] - Adjusted EBITDA margin improved to 22.6%, up 1.4 percentage points from 21.2% in Q2 2024 [2] - Free cash flow was reported at $65.8 million, down 12.7% from $75.4 million in the previous year [2] Company Overview and Strategic Focus - AptarGroup specializes in packaging and dispensing systems for pharmaceuticals, beauty, food, and beverages, with products including nasal sprays and closures for food containers [3] - The company prioritizes innovation, regional manufacturing, and sustainability, focusing on R&D for advanced packaging solutions [4] Segment Performance - The Pharma segment accounted for 46% of sales, with a 7% revenue increase year-over-year and an adjusted EBITDA margin of 35.4% [5][8] - The Beauty segment saw a 4% revenue rise, with an adjusted EBITDA margin of 14.1% [6] - The Closures segment reported an 8% sales growth, achieving an adjusted EBITDA margin of 16.9% [7][8] Innovation and Product Development - New product launches included proprietary drug delivery systems and recyclable dispensers, with a focus on localizing supply chains to mitigate trade risks [10] - The Active Material Science division experienced an 11% increase in core sales, driven by demand for advanced drug delivery solutions [5] Capital Allocation and Shareholder Returns - The company returned $100 million to shareholders through buybacks and dividends, with year-to-date returns totaling $210 million [11] - Ongoing investments in plant and equipment highlight the company's commitment to expansion and operational improvement [11] Outlook - For Q3 2025, management projects adjusted EPS between $1.53 and $1.61, indicating flat performance compared to Q3 2024 [12] - Anticipated challenges include normalizing sales of naloxone and elevated cough and cold inventory in Europe [12] - The company continues to focus on sustainable packaging solutions to meet industry demands [13]

Company Overview - AptarGroup is a global supplier of innovative dispensing, sealing, and active packaging solutions for various markets including beauty, personal care, home care, prescription drugs, consumer health care, injectables, food, and beverages [12] - The company manufactures products such as dispensing pumps, closures, aerosol valves, and elastomeric primary packaging components, with facilities located in North America, Europe, Asia, and South America [12] Investment Analysis - AptarGroup currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a solid position in the market [13] - The company is projected to experience year-over-year earnings growth of 4.3% for the current fiscal year, supported by upward revisions in earnings estimates from three analysts in the last 60 days [13] - The Zacks Consensus Estimate for AptarGroup's earnings has increased by $0.01 to $5.88 per share, with an average earnings surprise of +8.3% [13][14]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-11846 AptarGroup, Inc. Delaware 36-3853103 (State of Incorporation) (I.R.S. Employer Identification No.) 265 EXCHANGE DRIVE, ...

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $1.66, an increase of 18% compared to the prior year quarter [4] - Reported sales increased by 6%, with core sales growing by 3% year-over-year [15] - Adjusted EBITDA was $218 million, reflecting a 13% increase from the previous year [15] - The effective tax rate for the second quarter was 20%, down from 23.5% in the prior year [16] Business Segment Performance - The Pharma segment's core sales increased by 3%, with prescription sales up 8% and injectables up 9% [18] - Consumer Healthcare core sales decreased by 14% due to inventory management issues in Europe [18] - The Beauty segment saw core sales increase by 1%, driven by stronger tooling sales, while fragrance and skincare sales decreased by 4% [20] - The Closures segment's core sales increased by 7%, with food sales up 13% and beverage sales up 7% [22] Market Data and Key Metrics Changes - North America experienced solid growth in Consumer Healthcare, while Europe struggled with excess inventory from a weaker cold and flu season [6] - The company noted that the visibility into future European demand for cold and cough medications has not improved significantly [7] - The Prestige Beauty market faced headwinds from trade uncertainties, impacting demand recovery [10] Company Strategy and Industry Competition - The acquisition of Mod3 Pharma's clinical trial manufacturing capabilities is expected to enhance the company's position in the Pharma sector [8] - The company aims to expand its services into dermal, ophthalmic, injectable, and packaging solutions [9] - Cost management remains a priority across all segments, with ongoing initiatives to enhance earnings per share [34] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the resilience and adaptability of the teams despite a complex macroeconomic backdrop [28] - The company anticipates challenges in the cough and cold markets in Europe and expects ongoing legal expenses related to intellectual property rights [30][32] - The management remains optimistic about the Pharma pipeline and the potential for systemic nasal drug delivery as a growth platform [31] Other Important Information - The company repurchased approximately 1 million shares for about $150 million in the first half of the year [14] - The company was recognized as one of Time Magazine's World Most Sustainable Companies for the second consecutive year [11] Q&A Session Summary Question: Can you provide more details on naloxone sales normalizing and its impact on core sales growth? - Management indicated that naloxone sales are expected to grow more mutedly in the coming quarters due to uncertainty and inventory issues [38] Question: What caused the significant inventory buildup in Consumer Healthcare? - Management explained that post-COVID demand spikes led to over-ordering, resulting in excess inventory that is now being worked off [52] Question: Can you elaborate on the legal expenditures related to intellectual property rights? - Management confirmed ongoing litigation to protect intellectual property, with expected legal costs of approximately $5 million to $6 million per quarter [82] Question: How is the acquisition in New Jersey expected to impact the business? - The acquisition is aimed at enhancing early-stage development capabilities, not for large-scale contract manufacturing [90] Question: What is the outlook for the Prestige Beauty market? - Management noted that while there are uncertainties, recent trade agreements may provide clarity for European clients, potentially boosting sales in the future [66]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $1.66, an increase of 18% compared to the prior year quarter [4][16] - Reported sales increased by 6%, with core sales growing by 3% year-over-year [15][22] - Adjusted EBITDA was $218 million, reflecting a 13% increase from the previous year [15] Business Line Data and Key Metrics Changes - Pharma segment core sales increased by 3%, with prescription sales up 8% and injectables up 9% [17][18] - Consumer Healthcare core sales decreased by 14% due to inventory management issues in Europe [17] - Beauty segment core sales increased by 1%, driven by stronger tooling sales, while fragrance and skincare saw a 4% decline [19] - Closures segment core sales increased by 7%, with food sales up 13% [20][21] Market Data and Key Metrics Changes - North America saw growth in Consumer Healthcare, while Europe struggled with excess inventory from a weaker cold and flu season [6][17] - The beverage market remained strong, with no significant issues reported despite competitor challenges [74] Company Strategy and Development Direction - The company announced the acquisition of Mod3 Pharma's clinical trial manufacturing capabilities, expanding its services in the Pharma sector [7] - Focus on innovation in drug delivery systems and expansion into new markets, including systemic nasal drug delivery [30] - Continued emphasis on cost management and operational efficiencies across all segments [22][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the Pharma segment, despite challenges in the Consumer Healthcare division [27][30] - Anticipated continued growth in the Injectables market and a strong pipeline of new products [28][30] - Legal expenses related to intellectual property rights are expected to increase, impacting short-term profitability [25][84] Other Important Information - The company repurchased approximately 1 million shares for about $150 million in the first half of the year [14] - Recognized as one of Time Magazine's World Most Sustainable Companies for the second consecutive year [11] Q&A Session Summary Question: Can you provide more details on naloxone sales normalizing? - Management indicated that naloxone sales are expected to grow more slowly due to uncertainty in nontraditional distribution channels and recent federal guidance affecting funding [38][40] Question: What caused the extended downturn in Consumer Healthcare? - Management explained that post-COVID demand spikes led to inventory buildup, which is now being worked off, contributing to the downturn [54] Question: Can you elaborate on the legal expenditures related to intellectual property? - Management confirmed ongoing litigation to protect intellectual property rights, which is expected to continue for several quarters [61][84] Question: What is the outlook for the Beauty segment? - Management noted that while the Prestige Beauty market has faced challenges, recent tariff clarity may improve conditions moving forward [68][70]

Financial Performance - Q2 2025 reported sales grew by 6% to $966 million[7, 14], with core sales growth of 3%[7, 14] - Q2 2025 reported earnings per share (EPS) increased by 25% to $167[7, 16] - Q2 2025 adjusted EPS grew by 18% to $166[7, 19] - Q2 2025 adjusted EBITDA increased by 13% to $218 million[21] - Year-to-date 2025 reported sales increased by 2% to $1853 million[33], with core sales growth of 2%[33] - Year-to-date 2025 reported EPS increased by 10% to $283[35] - Year-to-date 2025 adjusted EBITDA increased by 8% to $402 million[41] Segment Performance - Aptar Pharma's Q2 2025 sales increased by 7% to $443 million[24], with a 130 basis point improvement in adjusted EBITDA margin to 354%[24] - Aptar Beauty's Q2 2025 sales increased by 4% to $335 million[27], with a 20 basis point improvement in adjusted EBITDA margin to 141%[27] - Aptar Closures' Q2 2025 sales increased by 8% to $189 million[30], with a 130 basis point improvement in adjusted EBITDA margin to 169%[30] Outlook - The company expects Q3 2025 adjusted EPS to be between $153 and $161[44]

Core Insights - AptarGroup (ATR) reported quarterly earnings of $1.66 per share, exceeding the Zacks Consensus Estimate of $1.58 per share, and up from $1.37 per share a year ago, representing an earnings surprise of +5.06% [1] - The company achieved revenues of $966.01 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.10% and increasing from $910.06 million year-over-year [2] - The stock has underperformed the market, losing about 0.2% since the beginning of the year compared to the S&P 500's gain of 8.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.62 on revenues of $948.99 million, and for the current fiscal year, it is $5.88 on revenues of $3.69 billion [7] - The estimate revisions trend for AptarGroup was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Containers - Paper and Packaging industry, to which AptarGroup belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Executive Summary & Highlights](index=1&type=section&id=1_Executive_Summary_Highlights) AptarGroup delivered strong financial results for both Q2 and year-to-date 2025, marked by sales growth, increased profitability, and significant shareholder returns [Second Quarter 2025 Highlights](index=1&type=section&id=1.1_Second_Quarter_2025_Highlights) AptarGroup reported strong second quarter 2025 results with positive contributions from all segments, particularly Pharma and Closures, driven by increased volumes and sales of higher value products. The company also returned $100 million to shareholders through dividends and share repurchases Second Quarter 2025 Key Financial Highlights | Metric | Value | Change (YoY) | | :-------------------------- | :---------- | :----------- | | Reported Sales Growth | 6% | +6% | | Core Sales Growth | 3% | +3% | | Reported Net Income | $112 million | +24% | | Adjusted EBITDA | $218 million | +13% | | Adjusted EBITDA Margin | 22.6% | +140 bps | | Reported Earnings Per Share | $1.67 | +25% | | Adjusted Earnings Per Share | $1.66 | +18% | | Shareholder Returns | $100 million | N/A | [Six Months Year-to-Date 2025 Highlights](index=1&type=section&id=1.2_Six_Months_Year_to_Date_2025_Highlights) For the first half of 2025, AptarGroup achieved reported and core sales growth of 2%, with significant increases in net income and adjusted EBITDA, and returned a total of $210 million to shareholders Six Months Year-to-Date 2025 Key Financial Highlights | Metric | Value | Change (YoY) | | :-------------------------- | :---------- | :----------- | | Reported Sales Growth | 2% | +2% | | Core Sales Growth | 2% | +2% | | Reported Net Income | $191 million | +10% | | Adjusted EBITDA | $402 million | +8% | | Reported Earnings Per Share | $2.83 | +10% | | Adjusted Earnings Per Share | $2.86 | +8% | | Shareholder Returns | $210 million | N/A | [Second Quarter 2025 Financial Results](index=1&type=section&id=2_Second_Quarter_2025_Financial_Results) AptarGroup's second quarter 2025 financial results show consolidated sales growth and strong performance across all segments, particularly Pharma and Closures [Consolidated Performance](index=1&type=section&id=2.1_Consolidated_Performance_Q2) AptarGroup's consolidated sales for Q2 2025 increased 6% to $966 million compared to the prior year, with core sales increasing 3%, demonstrating overall growth despite currency effects Second Quarter 2025 Consolidated Sales Analysis | Metric | Q2 2025 Sales | Q2 2024 Sales | Reported Sales Growth | Currency Effects | Acquisitions | Core Sales Growth | | :---------------- | :------------ | :------------ | :-------------------- | :--------------- | :----------- | :---------------- | | Total AptarGroup | $966 million | $910 million | 6% | (3)% | 0% | 3% | [Segment Performance](index=2&type=section&id=2.2_Segment_Performance_Q2) All Aptar segments contributed positively to Q2 2025 results, with Pharma and Closures driving growth through increased volumes and higher-value products, while Beauty saw modest core sales growth despite mixed market conditions [Aptar Pharma](index=2&type=section&id=2.2.1_Aptar_Pharma) Aptar Pharma achieved strong Q2 2025 sales and margin growth, driven by Prescription, Injectables, and Active Material Science - Reported sales increased **7%** and core sales increased **3%** in Q2 2025[7](index=7&type=chunk) - Growth was driven by strong demand in Prescription, Injectables (**9% core sales growth**), and Active Material Science (**11% core sales growth**), offsetting a decline in Consumer Healthcare[7](index=7&type=chunk) - Adjusted EBITDA margins grew **130 basis points to 35.4%**, aided by royalty revenues[7](index=7&type=chunk) [Aptar Beauty](index=2&type=section&id=2.2.2_Aptar_Beauty) Aptar Beauty reported modest core sales growth in Q2 2025, supported by personal care, despite challenges in beauty dispensing technologies - Reported sales increased **4%** and core sales were up **1%** in Q2 2025, primarily due to higher tooling sales for personal care and beauty end markets[8](index=8&type=chunk) - Strong growth in personal care products partially offset lower demand in beauty dispensing technologies for fragrance and full pack solutions, impacted by subdued new fragrance launches and tariff-related uncertainties[8](index=8&type=chunk) - Adjusted EBITDA margins increased by **20 basis points to 14.1%**[8](index=8&type=chunk) [Aptar Closures](index=2&type=section&id=2.2.3_Aptar_Closures) Aptar Closures delivered strong Q2 2025 sales and margin improvements, fueled by increased demand in food and beverage markets - Reported sales increased **8%** and core sales increased **7%** in Q2 2025[9](index=9&type=chunk) - Solid product sales growth was mainly driven by increased demand in the food and beverage end markets across almost every region and various applications[9](index=9&type=chunk) - Adjusted EBITDA margins improved by **130 basis points to 16.9%**[9](index=9&type=chunk) [Earnings Per Share and Tax Rate](index=2&type=section&id=2.3_Earnings_Per_Share_Tax_Rate_Q2) Aptar's Q2 2025 reported earnings per share increased 25% to $1.67, and adjusted earnings per share increased 18% to $1.66, benefiting from a lower effective tax rate of 20.0% due to tax planning and greater tax benefits from share-based compensation Second Quarter Earnings Per Share and Tax Rate | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :------ | :------ | :----------- | | Reported Earnings Per Share | $1.67 | $1.34 | +25% | | Adjusted Earnings Per Share | $1.66 | $1.41 | +18% | | Effective Tax Rate | 20.0% | 23.5% | -3.5 percentage points | [Six Months Year-to-Date 2025 Financial Results](index=2&type=section&id=3_Six_Months_Year_to_Date_2025_Financial_Results) AptarGroup's year-to-date 2025 financial results show consistent consolidated sales growth and increased profitability for the first half of the year [Consolidated Performance](index=2&type=section&id=3.1_Consolidated_Performance_YTD) For the six months ended June 30, 2025, AptarGroup's reported sales increased 2% to $1.85 billion, with core sales also up 2%, reflecting consistent growth across the company Six Months Year-to-Date 2025 Consolidated Sales Analysis | Metric | YTD 2025 Sales | YTD 2024 Sales | Reported Sales Growth | Currency Effects | Acquisitions | Core Sales Growth | | :---------------- | :------------- | :------------- | :-------------------- | :--------------- | :----------- | :---------------- | | Total AptarGroup | $1.85 billion | $1.83 billion | 2% | 0% | 0% | 2% | [Earnings Per Share and Tax Rate](index=2&type=section&id=3.2_Earnings_Per_Share_Tax_Rate_YTD) Aptar's year-to-date reported earnings per share increased 10% to $2.83, and adjusted earnings per share rose 8% to $2.86, with the effective tax rate for the period at 22.5% Six Months Year-to-Date Earnings Per Share and Tax Rate | Metric | YTD 2025 | YTD 2024 | Change (YoY) | | :-------------------------- | :------- | :------- | :----------- | | Reported Earnings Per Share | $2.83 | $2.57 | +10% | | Adjusted Earnings Per Share | $2.86 | $2.64 | +8% | | Effective Tax Rate | 22.5% | 22.1% | +0.4 percentage points | [Outlook and Shareholder Returns](index=3&type=section&id=4_Outlook_Shareholder_Returns) Aptar anticipates solid third-quarter 2025 performance, particularly in Pharma, while continuing to return capital to shareholders through dividends and share repurchases [Third Quarter 2025 Outlook](index=3&type=section&id=4.1_Third_Quarter_2025_Outlook) Aptar anticipates a solid Q3 2025, with continued strength in Pharma, particularly Injectables, driven by rising demand for higher value elastomeric components. The company expects adjusted earnings per share in the range of $1.53 to $1.61, factoring in higher legal fees and a lower effective tax rate - Expected adjusted earnings per share for Q3 2025: **$1.53 to $1.61**[14](index=14&type=chunk) - Guidance includes approximately **6 to 7 cents of higher legal fees** associated with litigating pharma intellectual property rights[14](index=14&type=chunk) - Expected effective tax rate range for Q3 2025: **20.5% to 22.5%**, primarily due to a one-time tax benefit, compared to 23.8% in Q3 2024[14](index=14&type=chunk) - Anticipates continued strength in Pharma, especially Injectables, driven by growth in biologics, GLP-1 therapies, and Annex 1 compliance requirements[14](index=14&type=chunk) - Expects challenges as naloxone sales begin to normalize and elevated cough and cold inventory in Europe persists[14](index=14&type=chunk) - Modest Q3 contributions are anticipated from Closures and Beauty segments, with a continued focus on cost discipline across all segments[14](index=14&type=chunk) [Cash Dividends and Share Repurchases](index=3&type=section&id=4.2_Cash_Dividends_Share_Repurchases) Aptar's Board of Directors approved a quarterly cash dividend of $0.45 per share. In the second quarter, the company repurchased 452 thousand shares for $70 million, contributing to a total of $210 million returned to shareholders in the first half of the year - Quarterly cash dividend approved: **$0.45 per share**, payable August 14, 2025[15](index=15&type=chunk) - Q2 2025 share repurchases: **452 thousand shares for $70 million**[15](index=15&type=chunk) - Total returned to shareholders in the first half of 2025: **$210 million**[3](index=3&type=chunk)[6](index=6&type=chunk)[15](index=15&type=chunk) [Company Information and Disclosures](index=3&type=section&id=5_Company_Information_Disclosures) This section provides essential information about AptarGroup, including its business overview, conference call details, non-GAAP measure definitions, and forward-looking statement disclaimers [About Aptar](index=3&type=section&id=5.1_About_Aptar) Aptar is a global leader in drug and consumer product dosing, dispensing, and protection technologies, serving diverse end markets including pharmaceutical, beauty, food, and personal care. The company is headquartered in Crystal Lake, Illinois, with over 13,000 employees in 20 countries - Global leader in drug and consumer product dosing, dispensing, and protection technologies[17](index=17&type=chunk) - Serves pharmaceutical, beauty, food, beverage, personal care, and home care markets[17](index=17&type=chunk) - Headquartered in Crystal Lake, Illinois, with more than **13,000 dedicated employees in 20 countries**[17](index=17&type=chunk) [Open Conference Call](index=3&type=section&id=5.2_Open_Conference_Call) Aptar will host a conference call on Friday, August 1, 2025, at 8:00 a.m. Central Time to discuss the company's second quarter 2025 results. Interested parties can listen via live webcast or access a replay on the Investor Relations website - Conference call scheduled for **Friday, August 1, 2025, at 8:00 a.m. Central Time**[16](index=16&type=chunk) - Purpose: Discuss second quarter 2025 results[16](index=16&type=chunk) - Access: Live webcast and replay available on investors.aptar.com[16](index=16&type=chunk) [Presentation of Non-GAAP Information](index=4&type=section&id=5.3_Presentation_of_Non_GAAP_Information) This section defines non-GAAP financial measures used in the press release, such as adjusted earnings per share, adjusted EBITDA, and core sales. These measures exclude the impact of restructuring, acquisition costs, investment gains/losses, and foreign currency effects to provide a clearer period-over-period comparison of core operating performance for investors and management - Non-GAAP financial measures include adjusted earnings per share, adjusted EBITDA, adjusted EBITDA margin, and core sales[18](index=18&type=chunk) - These measures exclude items such as restructuring initiatives, acquisition-related costs, certain purchase accounting adjustments, net unrealized investment gains/losses, and foreign currency translation effects[18](index=18&type=chunk) - Rationale: Provide useful information for investors by allowing a better period-over-period comparison of operating results and reflecting core operating performance[18](index=18&type=chunk) - Free cash flow is calculated as cash provided by operating activities less capital expenditures plus proceeds from government grants related to capital expenditures[18](index=18&type=chunk) [Forward-Looking Statements](index=5&type=section&id=5.4_Forward_Looking_Statements) The press release contains forward-looking statements that are subject to various known and unknown risks and uncertainties, including geopolitical conflicts, cybersecurity threats, raw material availability, intellectual property litigation, economic conditions, competition, tariffs, and regulatory changes, which could cause actual results to differ materially from expectations - Forward-looking statements are based on beliefs and assumptions, and actual results may differ materially due to known or unknown risks and uncertainties[20](index=20&type=chunk) - Key risks include: geopolitical conflicts, cybersecurity threats, raw material and component availability, intellectual property rights litigation, economic conditions (inflation/recession), competition, tariffs, supply chain disruptions, foreign currency fluctuations, and changes in government regulation[20](index=20&type=chunk) - The company undertakes no obligation to update publicly any forward-looking statements, except as required by law[20](index=20&type=chunk) [Contacts](index=5&type=section&id=5.5_Contacts) Provides contact information for investor relations and media inquiries - Investor Relations Contact: Mary Skafidas, mary.skafidas@aptar.com, 815-479-5530[21](index=21&type=chunk) - Media Contact: Katie Reardon, katie.reardon@aptar.com, 815-479-5671[21](index=21&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=6_Condensed_Consolidated_Financial_Statements_Unaudited) This section presents AptarGroup's unaudited condensed consolidated financial statements, including statements of income and balance sheets, for the specified periods [Consolidated Statements of Income](index=6&type=section&id=6.1_Consolidated_Statements_of_Income) The unaudited condensed consolidated statements of income present AptarGroup's financial performance for the three and six months ended June 30, 2025 and 2024, showing increases in net sales, operating income, and net income for both periods Consolidated Statements of Income (Unaudited) | Metric (In Thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Sales | $966,009 | $910,063 | $1,853,314 | $1,825,511 | | Operating Income | $144,393 | $126,010 | $257,841 | $238,093 | | Income before Income Taxes | $139,714 | $118,246 | $245,729 | $222,564 | | Net Income | $111,732 | $90,458 | $190,395 | $173,391 | | Diluted EPS | $1.67 | $1.34 | $2.83 | $2.57 | [Consolidated Balance Sheets](index=7&type=section&id=6.2_Consolidated_Balance_Sheets) The unaudited consolidated balance sheets show AptarGroup's financial position as of June 30, 2025, compared to December 31, 2024, with total assets increasing to $4.87 billion and total stockholders' equity rising to $2.72 billion Consolidated Balance Sheets (Unaudited) | Metric (In Thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :-------------- | :---------------- | | Total Current Assets | $1,663,020 | $1,478,383 | | Property, Plant and Equipment, Net | $1,584,533 | $1,447,150 | | Goodwill | $996,489 | $936,256 | | Total Assets | $4,865,381 | $4,432,278 | | Total Current Liabilities | $1,368,884 | $1,068,281 | | Total Liabilities | $2,147,567 | $1,946,354 | | Total Stockholders' Equity | $2,717,814 | $2,485,924 | [Non-GAAP Reconciliations (Unaudited)](index=8&type=section&id=7_Non_GAAP_Reconciliations_Unaudited) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including adjusted EBIT, EBITDA, and earnings per share, for transparent financial reporting [Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income](index=8&type=section&id=7.1_Reconciliation_of_Adjusted_EBIT_and_Adjusted_EBITDA_to_Net_Income) This section provides detailed reconciliations of reported net income to adjusted EBIT and adjusted EBITDA for both the three and six months ended June 30, 2025 and 2024, highlighting adjustments for restructuring initiatives, net investment gains/losses, and transaction costs related to acquisitions [Three Months Ended June 30, 2025 & 2024](index=8&type=section&id=7.1.1_Three_Months_Ended_June_30_2025_2024) This sub-section details the reconciliation of adjusted EBIT and EBITDA to net income for the second quarter of 2025 and 2024 Adjusted EBIT and EBITDA Reconciliation (Q2) | Metric (In Thousands) | Q2 2025 (Consolidated) | Q2 2024 (Consolidated) | | :-------------------------------------------------- | :--------------------- | :--------------------- | | Reported income before income taxes | $139,714 | $118,246 | | Adjustments (Restructuring, Net investment, Transaction costs) | (179) | 2,595 | | Adjusted earnings before income taxes | $139,535 | $120,841 | | Adjusted EBIT | $148,505 | $127,800 | | Adjusted EBITDA | $218,409 | $192,768 | | Adjusted EBITDA margins | 22.6% | 21.2% | [Six Months Ended June 30, 2025 & 2024](index=9&type=section&id=7.1.2_Six_Months_Ended_June_30_2025_2024) This sub-section details the reconciliation of adjusted EBIT and EBITDA to net income for the six months ended June 30, 2025 and 2024 Adjusted EBIT and EBITDA Reconciliation (YTD) | Metric (In Thousands) | YTD 2025 (Consolidated) | YTD 2024 (Consolidated) | | :-------------------------------------------------- | :---------------------- | :---------------------- | | Reported income before income taxes | $245,729 | $222,564 | | Adjustments (Restructuring, Net investment, Transaction costs) | 2,959 | 5,483 | | Adjusted earnings before income taxes | $248,688 | $228,047 | | Adjusted EBIT | $266,195 | $242,283 | | Adjusted EBITDA | $401,746 | $371,600 | | Adjusted EBITDA margins | 21.7% | 20.4% | [Reconciliation of Adjusted Earnings Per Diluted Share (Q2 & YTD)](index=10&type=section&id=7.2_Reconciliation_of_Adjusted_Earnings_Per_Diluted_Share_Q2_YTD) This reconciliation details the adjustments made to reported diluted earnings per share to arrive at adjusted diluted earnings per share for the three and six months ended June 30, 2025 and 2024, accounting for restructuring, net investment gains/losses, acquisition costs, and foreign currency effects Adjusted Earnings Per Diluted Share Reconciliation | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------------------------- | :------ | :------ | :------- | :------- | | Reported Net Income Attributable to AptarGroup, Inc. Per Diluted Share | $1.67 | $1.34 | $2.83 | $2.57 | | Adjustments (Restructuring, Net investment, Transaction costs, FX) | (0.01) | 0.07 | 0.03 | 0.07 | | Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted Share | $1.66 | $1.41 | $2.86 | $2.64 | [Reconciliation of Free Cash Flow to Net Cash Provided by Operations](index=11&type=section&id=7.3_Reconciliation_of_Free_Cash_Flow_to_Net_Cash_Provided_by_Operations) This reconciliation shows AptarGroup's free cash flow for the three and six months ended June 30, 2025 and 2024, derived from net cash provided by operations after accounting for capital expenditures and proceeds from government grants Free Cash Flow Reconciliation (In Thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Cash Provided by Operations | $125,958 | $143,579 | $208,700 | $235,912 | | Capital Expenditures | (63,425) | (68,205) | (120,287) | (143,866) | | Proceeds from Government Grants | 3,308 | — | 3,308 | — | | Free Cash Flow | $65,841 | $75,374 | $91,721 | $92,046 | [Reconciliation of Adjusted Earnings Per Diluted Share (Q3 2025 Outlook)](index=12&type=section&id=7.4_Reconciliation_of_Adjusted_Earnings_Per_Diluted_Share_Q3_2025_Outlook) This reconciliation provides the basis for Aptar's third quarter 2025 adjusted earnings per diluted share guidance of $1.53 to $1.61, detailing adjustments to the prior year's reported earnings for restructuring, investment gains, and foreign currency effects, and noting the expected effective tax rate range Adjusted Earnings Per Diluted Share Reconciliation (Q3 Outlook) | Metric | Expected Q3 2025 (Adjusted) | Q3 2024 (Adjusted) | | :-------------------------------------------------- | :-------------------------- | :----------------- | | Adjusted Net Income Attributable to AptarGroup, Inc. | $104,192 | $104,192 | | Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted Share | $1.53 - $1.61 | $1.54 | - The expected earnings per share range for Q3 2025 is based on an effective tax rate range of **20.5% to 22.5%**, compared to the prior year's effective tax rate of 23.8%[34](index=34&type=chunk)