Q3 2025 Earnings Earnings Presentation October 29, 2025 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-looking ...

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Cambium Networks Corporation (CMBM) has seen a remarkable increase of 306%, trading at $2.51 [3] - Teradyne, Inc. (TER) is up 21%, currently priced at $176.00 [3] - Bloom Energy Corporation (BE) has risen by 18%, trading at $134.50 [3] - Jamf Holding Corp. (JAMF) is up 15%, with a price of $12.85 [3] - CSG Systems International, Inc. (CSGS) has increased by 14%, trading at $79.00 [3] - Olympic Steel, Inc. (ZEUS) is also up 14%, currently priced at $34.20 [3] - Beta Bionics, Inc. (BBNX) has risen by 12%, trading at $27.20 [3] - Sonim Technologies, Inc. (SONM) is up 10%, currently priced at $12.49 [3] - Canadian Solar Inc. (CSIQ) has increased by 9%, trading at $16.67 [3] - Interlink Electronics, Inc. (LINK) is also up 9%, currently priced at $6.85 [3] Premarket Losers - Stride, Inc. (LRN) has experienced a significant decline of 41%, trading at $89.44 [4] - Varonis Systems, Inc. (VRNS) is down 29%, currently priced at $44.71 [4] - Akebia Therapeutics, Inc. (AKBA) has decreased by 26%, trading at $2.26 [4] - Avantor, Inc. (AVTR) is down 17%, currently priced at $12.40 [4] - GlucoTrack, Inc. (GCTK) has seen a decline of 13%, trading at $6.29 [4] - Tigo Energy, Inc. (TYGO) is down 13%, currently priced at $2.20 [4] - Generac Holdings Inc. (GNRC) has decreased by 9%, trading at $172.00 [4] - Polar Power, Inc. (POLA) is down 8%, currently priced at $3.71 [4] - Caesars Entertainment, Inc. (CZR) has seen a decline of 7%, trading at $20.50 [4] - Anteris Technologies Global Corp. (AVR) is also down 7%, currently priced at $4.46 [4]

Financial Performance - Net sales for Q3 2025 were $1,623.8 million, a decrease of 5.3% compared to Q3 2024, with a 4.7% organic sales decline [4]. - Net loss was $711.8 million, compared to a net gain of $57.8 million in Q3 2024, resulting in a diluted GAAP loss per share of $1.04 [5]. - Adjusted net income for the quarter was $151.1 million, down from $175.2 million in the prior year [5]. - For the three months ended September 30, 2025, Avantor reported a net loss of $711.8 million, representing a 43.8% decline compared to a net income of $57.8 million in the same period of 2024 [25]. - Operating loss for the three months ended September 30, 2025, was $648.8 million, compared to an operating income of $124.6 million in 2024 [25]. - Adjusted Operating Income for the three months ended September 30, 2025, was $237.3 million, with an Adjusted Operating Income Margin of 14.6%, compared to $274.8 million and 16.0% in 2024 [35]. Cash Flow and Liquidity - Operating cash flow was $207.4 million, while free cash flow was $171.7 million, indicating strong cash generation capabilities [8]. - The company reported a net cash provided by operating activities of $207.4 million for Q3 2025, compared to $244.8 million in Q3 2024 [21]. - Free cash flow for the three months ended September 30, 2025, was $171.7 million, down from $204.0 million in the same period of 2024 [29]. - Cash and cash equivalents at the end of Q3 2025 were $254.7 million, down from $310.3 million at the end of Q3 2024 [21]. Debt and Leverage - Adjusted net leverage was 3.1x as of September 30, 2025, indicating the company's financial position [8]. - The company’s gross debt as of September 30, 2025, was $3,874.2 million, resulting in an adjusted net leverage ratio of 3.1x [30]. - Debt repayments in Q3 2025 totaled $439.2 million, compared to $214.3 million in Q3 2024 [21]. Impairment and Charges - The company recorded a non-cash goodwill impairment charge of $785 million related to its Distribution reporting unit [6]. - The company experienced impairment charges of $785.0 million in Q3 2025, significantly impacting overall financial performance [22]. - The company incurred impairment charges of $785.0 million for the three months ended September 30, 2025, representing 48.3% of total operating income [35]. Sales and Segment Performance - Total net sales for the three months ended September 30, 2025, were $1,623.8 million, a decline of 5.3% from $1,714.4 million in 2024 [31]. - The Laboratory Solutions segment reported net sales of $1,096.5 million for the three months ended September 30, 2025, down 6.4% from $1,171.5 million in 2024 [34]. - The Bioscience Production segment experienced a net sales decline of 2.9% for the three months ended September 30, 2025, with sales of $527.3 million compared to $542.9 million in 2024 [34]. Shareholder Actions - The Board authorized a new $500 million share repurchase program, reflecting confidence in the company's cash generation and commitment to shareholder value [3]. Asset and Equity Changes - Total current assets increased to $2,257.2 million as of September 30, 2025, up from $2,146.6 million at the end of 2024 [20]. - Total liabilities decreased slightly to $6,105.7 million from $6,157.8 million at the end of 2024 [20]. - Stockholders' equity decreased to $5,570.2 million as of September 30, 2025, down from $5,956.7 million at the end of 2024 [20]. - Inventory levels increased to $795.5 million as of September 30, 2025, from $731.5 million at the end of 2024 [20]. Other Financial Metrics - Adjusted EBITDA for the quarter was $267.9 million, with an adjusted EBITDA margin of 16.5% [5]. - Adjusted EBITDA for Q3 2025 was $267.9 million, representing a margin of 16.5%, down from 17.6% in Q3 2024 [22]. - Adjusted EPS (non-GAAP) for the three months ended September 30, 2025, was $0.22, compared to $0.26 in the same period of 2024 [28]. - Foreign currency translation positively impacted sales by 2.2%, while M&A negatively impacted sales by 2.8% [4].

Core Insights - Avantor, Inc. reported a net sales of $1,623.8 million for Q3 2025, reflecting a decrease of 5.3% compared to Q3 2024, with an organic sales decline of 4.7% after accounting for foreign currency translation and M&A impacts [4][9] - The company experienced a net loss of $711.8 million in Q3 2025, a significant decline from a net income of $57.8 million in the same quarter of the previous year [5][22] - A non-cash goodwill impairment charge of $785 million was recorded, impacting the financial results significantly [6][25] - Avantor announced a $500 million share repurchase program, indicating confidence in its cash generation capabilities and commitment to long-term shareholder value [3][8] Financial Performance - Adjusted EBITDA for Q3 2025 was $267.9 million, with an adjusted EBITDA margin of 16.5% [5][25] - Adjusted net income was reported at $151.1 million, down from $175.2 million in Q3 2024, reflecting a decrease of 13.1% [5][25] - The diluted loss per share on a GAAP basis was $1.04, while the adjusted EPS was $0.22 [5][22] Operational Changes - The company is implementing strategic changes to enhance execution, accountability, and financial performance, including evolving its go-to-market approach and investing in manufacturing and supply chain [3][8] - Avantor is scrutinizing its portfolio to focus on opportunities that will drive the greatest value creation for customers and shareholders [3][8] Segment Results - The Laboratory Solutions segment reported net sales of $1.62 billion, a decrease of 5% compared to the previous year [8][9] - Adjusted Operating Income for the segment was $123.6 million, down from $151.5 million in Q3 2024, with an adjusted operating income margin of 11.3% [9][10]

Group 1 - Avantor Inc. announced a partnership with BlueWhale Bio to enhance CAR-T cell therapy manufacturing, addressing unmet needs in production efficiency [1][3] - The collaboration leverages Avantor's bioprocessing expertise and BlueWhale Bio's Synecta platform, which mimics natural T-cell stimulation to accelerate cell expansion [2][3] - Data from BlueWhale Bio's programs suggest that the technology can lead to earlier cell division, higher yields, and fewer interventions, potentially reducing overall CAR-T process time and minimizing cell stress [3] Group 2 - Avantor provides critical products and services across various sectors including biopharma, healthcare, education, and advanced technologies globally [4]

Core Insights - Avantor, Inc. has announced a collaboration with p-Chip Corporation to develop a new generation of "Smart Consumables" that integrate microtransponder technology for enhanced traceability and digital process control in pharmaceutical and clinical workflows [1][2][3] Group 1: Collaboration Details - The partnership aims to leverage Avantor's expertise and scale alongside p-Chip's digital microtransponder technology to meet the needs of strategic customers in life sciences, diagnostics, bio-manufacturing, and healthcare [2][3] - Smart Consumables will include laboratory items such as vials, slides, cassettes, tubes, and plates, each embedded with a durable p-Chip microtransponder that provides a unique identifier for secure tracking [3][4] Group 2: Market Demand and Applications - There is a growing demand for precision and individualized therapies, which necessitates high-fidelity sample traceability and secure Chain-of-Identity (COI) compliance [4] - Personalized therapeutics, including advanced cell and gene therapies, require secure identification and monitoring of patient samples throughout their therapeutic journey [4] Group 3: Strategic Importance - The innovation aligns with Avantor's mission to enable scientific breakthroughs and meet high-value customer needs in personalized medicine [5] - The collaboration is expected to enhance traceability and compliance in laboratory workflows, streamlining quality control and accelerating digital transformation in pharmaceutical and healthcare processes [5]

Core Insights - Avantor (AVTR) has entered a strategic partnership with BlueWhale Bio to enhance CAR-T cell therapy manufacturing, combining Avantor's bioprocessing expertise with BlueWhale's Synecta cell-derived nanoparticle technology [1][8] - The collaboration aims to improve scalability, reduce variability, and shorten time-to-patient in CAR-T production, thereby expanding patient access and strengthening Avantor's position in the cell therapy market [2][10] Company Summary - The partnership is expected to deepen Avantor's role in the cell therapy manufacturing landscape by leveraging its bioprocessing capabilities to scale BlueWhale's CDNP platform, which has shown promising results in preclinical and clinical programs [9] - Avantor's market capitalization currently stands at $9.46 billion [6] - Following the announcement, Avantor's shares remained flat, with a year-to-date decline of 30.8%, contrasting with the industry's 0.5% growth and the S&P 500's 14.5% gain [3] Industry Summary - The global cell and gene therapy manufacturing market was valued at $7.28 billion in 2022 and is projected to grow at a CAGR of 26.6% from 2023 to 2030, indicating favorable industry prospects for companies like Avantor [11]

Core Insights - Avantor, Inc. has announced a strategic partnership with BlueWhale Bio to enhance CAR-T cell therapy manufacturing, addressing key challenges in the production process [1][2][3] Company Overview - Avantor is a leading global provider of mission-critical products and services for the life sciences and advanced technologies industries, supporting over 300,000 customer locations in 180 countries [4] - BlueWhale Bio focuses on transforming immune cell therapy manufacturing, aiming to accelerate the growth and adoption of cell-based therapies [5] Partnership Details - The collaboration combines Avantor's bioprocessing capabilities with BlueWhale Bio's Synecta™ cell-derived nanoparticle (CDNP) platform, which aims to streamline CAR-T production by reducing variability and shortening time-to-patient [2][3] - The partnership will produce GMP-grade CDNP materials to support next-generation manufacturing approaches, potentially expanding patient access and manufacturing capacity in the cell therapy sector [2][3] Technological Innovations - BlueWhale Bio's Synecta™ platform has shown promising results in preclinical and clinical programs, demonstrating earlier cell division, higher cell yields, and fewer process interventions, which could lead to reduced CAR-T process time and lower cell stress during manufacturing [3] - The first product from BlueWhale Bio, Synecta™ T1, is currently being used in a phase 1 clinical trial for a 3-day CAR-T manufacturing process [5]

Core Points - Gregory L. Summe will become the next Chairman of the Board for Avantor, Inc. starting January 1, 2026, succeeding Jonathan Peacock who will step down at the end of 2025 after nearly nine years of service [1] - Summe has been an independent director since 2020 and has served as Chairman of the Nominating and Governance Committee, as well as a member of the Compensation Committee [2] - Peacock expressed confidence in the new leadership under Summe and CEO Emmanuel Ligner, highlighting the Board's diverse expertise in life sciences [3] Company Overview - Avantor, Inc. is a leading global provider of mission-critical products and services to the life sciences and advanced technology industries, supporting over 300,000 customer locations in 180 countries [4]

Core Insights - Avantor, Inc. has appointed Gregory T. Lucier to its Board of Directors, bringing over 30 years of leadership experience in the life sciences industry [1][3] - Lucier is the founder and current Executive Chairman and CEO of Corza Medical, and has held significant leadership roles in other healthcare companies, including NuVasive and Life Technologies [2][4] - The appointment is expected to enhance Avantor's focus on growth and profitability in its Lab Solutions and Bioscience Production segments [3] Company Overview - Avantor is a global provider of mission-critical products and services to the life sciences and advanced technology industries, serving over 300,000 customer locations in 180 countries [6] - The company aims to enable breakthroughs in medicine, healthcare, and technology through its comprehensive portfolio [6] Leadership Background - Gregory T. Lucier has a proven track record of driving growth and innovation in the healthcare sector, having previously led Life Technologies to over $4 billion in sales before its acquisition by Thermo Fisher Scientific in 2014 [4] - Lucier holds a bachelor's degree in industrial engineering from Pennsylvania State University and an MBA from Harvard Business School [5]