Avantor(US:AVTR)2026-02-11 12:40Financial Performance - Fourth Quarter 2025 net sales were $1,664 million, a decrease of 1.4% compared to Q4 2024, with an organic decline of 4.1%[4] - Full Year 2025 net sales were $6,552 million, a decrease of 3.4% compared to 2024, with an organic decline of 2.8%[8] - Net income for Q4 2025 decreased to $52 million from $500 million in Q4 2024, with an adjusted net income of $146 million compared to $184 million in the prior period[5] - Full Year 2025 net loss was $530 million compared to net income of $712 million in 2024, with adjusted net income of $614 million compared to $678 million in the prior period[9] - Gross profit for Q4 2025 was $523.9 million, down 6.9% from $562.9 million in Q4 2024[23] - Net income for the year ended December 31, 2025, was a loss of $530.2 million compared to a profit of $711.5 million in 2024[23] - Total net sales for Q4 2025 were $1,663.6 million, a decrease of 1.4% from $1,686.6 million in Q4 2024, with organic net sales growth declining by $69.3 million[38] - For the year ended December 31, 2025, total net sales were $6,552.2 million, a decrease of 3.4% from $6,783.6 million in 2024[40] Cash Flow and Expenses - Operating cash flow for Q4 2025 was $153 million, while free cash flow was $117 million[6] - Full Year 2025 operating cash flow was $624 million, with free cash flow of $496 million[10] - Cash provided by operating activities for Q4 2025 was $152.7 million, down from $173.3 million in Q4 2024[26] - Capital expenditures for the year ended December 31, 2025, were $128.8 million, a decrease from $148.8 million in 2024[26] - Free cash flow for Q4 2025 was $117.2 million, a decline from $222.1 million in Q4 2024, while full year free cash flow was $496.4 million compared to $768.3 million in 2024[36] Adjusted Metrics - Adjusted EBITDA for Q4 2025 was $252 million, with an adjusted EBITDA margin of 15.2%[5] - Full Year 2025 adjusted EBITDA was $1,069 million, with an adjusted EBITDA margin of 16.3%[9] - Adjusted EBITDA for Q4 2025 was $252.2 million, representing a 15.2% margin, down from $307.7 million and an 18.2% margin in Q4 2024[32] - Adjusted Operating Income for Q4 2025 was $225.4 million, a decrease from $279.4 million in Q4 2024, with an adjusted operating income margin of 13.5%[32] - The total adjusted operating income for the year ended December 31, 2025, was $957.8 million, with a margin of 14.6%, down from $1,089.8 million and 16.1% in 2024[41] Segment Performance - The Laboratory Solutions segment reported Q4 2025 net sales of $1,116.1 million, a decline from $1,125.8 million in Q4 2024, while the Bioscience Production segment saw sales drop to $547.5 million from $560.8 million[38] - Adjusted Operating Income for Laboratory Solutions was $114.4 million, representing a margin of 10.2%, down from $147.4 million and 13.1% in the prior year[41] - Adjusted Operating Income for Bioscience Production was $127.0 million, with a margin of 23.2%, compared to $149.2 million and 26.6% in the previous year[41] - Bioscience Production experienced an organic net sales decline of (1.8)% for the year ended December 31, 2025[40] - Organic net sales growth for Laboratory Solutions was reported at (4.1)% for the three months ended December 31, 2025[40] Strategic Initiatives - The company is executing a Revival program aimed at driving top line growth and improving operational efficiency[2] - The relaunch of the VWR brand and upgrades to the e-commerce channel are key components of the company's strategic priorities[2] Balance Sheet and Liabilities - Total current assets increased to $2,451.2 million in 2025 from $2,146.6 million in 2024, reflecting a growth of 14.2%[24] - Total liabilities rose to $6,229.7 million in 2025, compared to $6,157.8 million in 2024, marking an increase of 1.2%[24] - The company reported a gross debt of $3,967.9 million as of December 31, 2025, with adjusted net leverage at 3.2x[37] Shareholder Metrics - The weighted average shares outstanding for diluted earnings per share were 679.3 million in Q4 2025, down from 682.7 million in Q4 2024[23] - Diluted earnings per share (EPS) for Q4 2025 was $0.08, compared to $0.73 in Q4 2024, while adjusted EPS was $0.22, down from $0.27[35]