Avantor(AVTR) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 net sales were $1,686.6 million, a decrease of 2% compared to Q4 2023, with organic growth of 1%[4] - Net income for Q4 2024 increased to $500.4 million from $98.5 million in Q4 2023, resulting in a net income margin of 29.7%[5] - Adjusted EBITDA for Q4 2024 was $307.7 million, with an adjusted EBITDA margin of 18.2%[5] - Full year 2024 net sales were $6,783.6 million, a decrease of 3% compared to 2023, with an organic decline of 2%[8] - Full year 2024 net income increased to $711.5 million from $321.1 million in 2023, with a net income margin of 10.5%[9] - Adjusted EBITDA for the full year 2024 was $1,198.8 million, with an adjusted EBITDA margin of 17.7%[9] - Operating income increased significantly to $638.1 million in Q4 2024, compared to $183.3 million in Q4 2023, marking a growth of 248.5%[23] - Net income for the year ended December 31, 2024, was $711.5 million, more than double the $321.1 million reported in 2023, representing a 121.5% increase[23] - Basic earnings per share rose to $1.05 for the year ended December 31, 2024, compared to $0.48 in 2023, an increase of 118.8%[23] Cash Flow and Leverage - Operating cash flow for Q4 2024 was $173.3 million, while free cash flow was $222.1 million[6] - Full year 2024 operating cash flow was $840.8 million, with free cash flow of $768.3 million[10] - The adjusted net leverage ratio was 3.2x as of December 31, 2024, indicating a focus on deleveraging[10] - Cash flows from operating activities for the year ended December 31, 2024, were $840.8 million, slightly down from $870.0 million in 2023[25] - Net cash provided by investing activities was $438.9 million for the year ended December 31, 2024, compared to a cash outflow of $143.7 million in 2023[25] - For the three months ended December 31, 2024, Avantor reported free cash flow of $222.1 million, compared to $201.0 million in the same period of 2023, representing an increase of 10.5%[30] - The adjusted net leverage ratio for Avantor as of December 31, 2024, was 3.2x, based on adjusted EBITDA of $1,196.7 million[31] Segment Performance - The Laboratory Solutions segment generated net sales of $4,610.1 million for the year ended December 31, 2024, down from $4,738.3 million in 2023, reflecting a decline of 2.7%[34] - The Bioscience Production segment saw net sales of $2,173.5 million for the year ended December 31, 2024, a decrease of 2.5% from $2,228.9 million in 2023[34] - Organic net sales growth for the total company was 0.7% for the three months ended December 31, 2024, despite a total net sales decline of 2.1%[34] - The Laboratory Solutions segment's organic net sales growth was -0.9% for the three months ended December 31, 2024, while the Bioscience Production segment achieved organic net sales growth of 4.1%[34] Expenses and Charges - The company reported a loss on the extinguishment of debt of $4.4 million in Q4 2024, compared to $1.0 million in Q4 2023[28] - Restructuring and severance charges amounted to $0.5 million in Q4 2024, down from $8.5 million in Q4 2023[28] - The company incurred transformation expenses of $12.3 million in Q4 2024, compared to $5.4 million in Q4 2023[28] - Interest expense, net for the year ended December 31, 2024, was $218.8 million, down from $284.8 million in 2023[28] Asset and Liability Changes - Total assets decreased to $12,114.5 million as of December 31, 2024, down from $12,972.7 million in 2023, a decline of 6.6%[24] - Current liabilities increased to $2,007.5 million in 2024, compared to $1,480.3 million in 2023, reflecting a rise of 35.4%[24] - Total stockholders' equity increased to $5,956.7 million in 2024, up from $5,252.6 million in 2023, an increase of 13.4%[24] Adjusted Metrics - Adjusted EBITDA for the year ended December 31, 2024, was $1,198.8 million, with a margin of 17.7%, compared to $1,309.1 million and a margin of 18.8% in 2023[28] - Adjusted net income for Q4 2024 was $183.9 million, a 10.9% increase from $166.7 million in Q4 2023[26] - Adjusted earnings per share (EPS) for Q4 2024 was $0.27, compared to $0.25 in Q4 2023[29] - Adjusted Operating Income for the total company was $279.4 million for the three months ended December 31, 2024, with a margin of 16.6%, compared to $274.8 million and a margin of 16.0% in the same period of 2023[35]