Avantor(US:AVTR)2025-10-29 10:13Financial 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].