Financial Data and Key Metrics Changes - For Q4, reported revenue was $1.66 billion, down 4% year-over-year on an organic basis, aligning with guidance [15] - Adjusted EBITDA margin was 15.2%, and adjusted EPS for the quarter was $0.22, reflecting a decline of $0.05 year-over-year [15][16] - Full-year reported revenues were $6.552 billion, down 3% on an organic basis, with adjusted gross profit of $2.14 billion, representing a 32.7% adjusted gross margin [17][18] Business Line Data and Key Metrics Changes - Laboratory Solutions revenue for Q4 was $1.116 billion, a decline of 4% year-over-year on an organic basis [18] - Bioscience production revenue for Q4 was $548 million, reflecting an organic decline of 4% versus the prior year [20] - Adjusted operating income for Laboratory Solutions was $114 million for Q4, with a 10.2% margin, down 290 basis points year-over-year [19][20] Market Data and Key Metrics Changes - The biopharma end market remains healthy, with production levels growing and investments expected to expand capacity [10] - Early-stage biotech, education, and government markets faced challenges in 2025, but there are signs of improvement in funding environments [12] - The fourth quarter saw one of the best quarters for biotech funding in recent years, indicating potential recovery [12] Company Strategy and Development Direction - The Avantor Revival program focuses on five pillars: evolving go-to-market strategy, improving operations, optimizing the portfolio, simplifying processes, and strengthening talent [5][6] - The company will operate with two new business units: product agnostic channel and channel agnostic product business, enhancing customer focus [6][7] - Significant investments will be made in 2026, with a focus on driving sustainable, profitable top-line growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, noting that 2026 will be a year of transition and investment [9][36] - The company anticipates organic revenue growth of -2.5% to -0.5% for 2026, with FX contributing 1% to the top line [27] - EBITDA margins are expected to contract by 100-150 basis points in 2026 due to various headwinds [28] Other Important Information - The company welcomed new board members with significant global leadership and financial expertise [13] - A new Chief Operating Officer has identified $20 million of investment to enhance customer service capabilities [8] Q&A Session Summary Question: Growth expectations for VWR versus bioscience and medtech - Management indicated that VWR growth is expected to outpace bioscience and medtech due to difficult comps in the latter [38][39] Question: Balancing investments and cost-saving initiatives - Management emphasized the importance of maintaining cost discipline while investing in growth opportunities [41][42] Question: Margin guidance and stress-testing assumptions - The guidance is described as prudent, reflecting a balance of various moving parts impacting the P&L [47][48] Question: Impact of investments on margins - Investments in e-commerce and operations are expected to have a significant impact on margins, but specifics were not disclosed [48][49] Question: Industry growth rate under normalized conditions - Management noted the need for further evaluation to determine future growth rates under normalized conditions [58] Question: Clarification on book-to-bill greater than one - The book-to-bill greater than one refers to process chemicals, indicating a positive order book despite operational bottlenecks [66][67]

Financial Data and Key Metrics Changes - In Q4, reported revenue was $1.66 billion, down 4% year-over-year on an organic basis, aligning with guidance [13] - Adjusted EBITDA margin was 15.2%, and adjusted EPS for the quarter was $0.22, reflecting a decline of $0.05 year-over-year [14] - For the full year 2025, reported revenues were $6.552 billion, down 3% on an organic basis, with adjusted gross profit of $2.14 billion, representing a 32.7% adjusted gross margin [16] Business Line Data and Key Metrics Changes - Laboratory Solutions revenue for Q4 was $1.116 billion, a decline of 4% year-over-year on an organic basis [17] - Bioscience production revenue for Q4 was $548 million, reflecting an organic decline of 4% versus the prior year [19] - The VWR Distribution and Services segment represented about 72% of enterprise revenue in 2025, with an adjusted operating margin of 11.5% [23] Market Data and Key Metrics Changes - The biopharma end market remains healthy, with production levels growing and many companies planning investments to expand capacity [9] - Early-stage biotech, education, and government markets faced challenges in 2025, but there are signs of improvement in funding environments, particularly in Europe and Japan [11] - The company noted a book-to-bill ratio of more than one for process chemicals, indicating a positive order book [20] Company Strategy and Development Direction - The Avantor Revival program focuses on five pillars: evolving go-to-market strategy, improving operations, optimizing the portfolio, simplifying processes, and strengthening talent [4] - The company plans to operate with two new business units: a product-agnostic channel and a channel-agnostic product business, enhancing customer focus [5] - Significant investments will be made in 2026 to drive sustainable, profitable top-line growth, with a focus on organic revenue growth rate as a key metric [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, noting that 2026 will be a year of transition and investment [8] - The company anticipates organic revenue growth of -2.5% to -0.5% for 2026, with expectations for VWR growth to outpace that of Bioscience and Medtech Products [25] - Management highlighted the importance of executing the revival plan to achieve improved operating leverage and margin improvement [31] Other Important Information - The company welcomed new board members with global leadership and financial expertise [12] - A significant focus will be on enhancing digital capabilities, with a commitment to invest $10 million-$15 million in e-commerce upgrades in 2026 [6] Q&A Session Summary Question: Expectations for segment growth in 2026 - Management indicated that growth in VWR is expected to outpace that of Bioscience and Medtech Products due to difficult comps in the latter [37] Question: Balancing investments and cost-saving initiatives - Management emphasized that cost discipline will remain a priority, and investments will be self-funded through optimization [40][41] Question: Margin guidance and stress-testing assumptions - Management described the guidance as prudent, reflecting a balance of various moving parts impacting the P&L in 2026 [45][46] Question: Impact of investments on margins - Management noted that investments in operations and e-commerce will have a significant impact on margins, but specific quantification was not provided [47][48] Question: Clarification on book-to-bill ratio - The book-to-bill ratio greater than one was specifically related to process chemicals, indicating a positive outlook despite existing operational bottlenecks [63][65]