Avantor(AVTR) - 2025 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 2025 were $1,581.4 million, a decrease of 6% compared to Q1 2024, with an organic decline of 2%[4] - Net income increased to $64.5 million from $60.4 million in Q1 2024, with an adjusted net income of $155.2 million[5] - Adjusted EBITDA was $269.5 million, representing an adjusted EBITDA margin of 17.0%[5] - Adjusted EBITDA for Q1 2025 was $269.5 million, down from $283.0 million in Q1 2024, reflecting a margin of 16.8%[24] - Total net sales for Q1 2025 were $1,581.4 million, a decline of 5.9% compared to $1,679.8 million in Q1 2024[30] - Laboratory Solutions segment reported net sales of $1,065.0 million, down 8.0% year-over-year, while Bioscience Production segment saw a slight decline of 1.2% to $516.4 million[33] - Adjusted earnings per share (EPS) for Q1 2025 was $0.23, slightly up from $0.22 in Q1 2024[27] - Operating income for Q1 2025 was $147.4 million, with an operating income margin of 9.3%, compared to $146.3 million and 8.7% in Q1 2024[25] Cash Flow and Leverage - Operating cash flow was $109.3 million, while free cash flow was $82.1 million[6] - Free cash flow for Q1 2025 was $82.1 million, compared to $106.9 million in Q1 2024[28] - Adjusted net leverage was 3.2x as of March 31, 2025[6] - Adjusted net leverage ratio as of March 31, 2025, was 3.2x, calculated from total debt of $4,126.9 million minus cash and cash equivalents of $315.7 million[29] Cost Management Initiatives - The company is targeting $400 million in gross run-rate savings by the end of 2027 as part of its cost transformation initiative[7] Segment Performance - The Lab Solutions segment experienced reduced demand, particularly in the Education and Government end market, due to recent policy changes[3] - The Bioscience Production segment continued to show growth and order book momentum in process ingredients and single-use solutions[3] - Adjusted Operating Income margin for the Laboratory Solutions segment was 13.1%[13] - Adjusted Operating Income margin for the Bioscience Production segment was 23.9%[13] Other Financial Charges - Capital expenditures for Q1 2025 were $28.0 million, down from $34.7 million in Q1 2024[21] - The company incurred $18.1 million in pension termination charges during Q1 2025, which were not present in Q1 2024[24]