Aptar tops Q3 estimates but lowers Q4 profit forecast
Aptar said adjusted EPS of $1.52 topped the $1.49 consensus estimate compiled by Finnhub, and revenue of $1,019.1 million topped the $994.28 million estimate. It lowered its Q4 adjusted EPS range to $1.39 to $1.47.
Key takeaways
- AptarGroup, Inc. (ATR) said on Oct. 29 that third-quarter adjusted EPS was $1.52, topping the $1.49 consensus estimate compiled by Finnhub. Sales were $1.02 billion, up 6%. It lowered its fourth-quarter adjusted EPS guidance to $1.39 to $1.47 from $1.45 to $1.53.
AptarGroup, Inc. (ATR) said on Oct. 29 that adjusted earnings per share for the third quarter were $1.52, topping the $1.49 consensus estimate compiled by Finnhub. The company also lowered its fourth-quarter adjusted EPS guidance.
The company supplies drug delivery, dosing and protection technologies and consumer product dispensing products. It is based in Crystal Lake, Illinois, and employs 14,000 people across 20 countries, according to its release.
Reported net income was $33 million, or 51 cents per diluted share, compared with $1.92 a year earlier. The results include a $58.0 million loss on the deconsolidation of its Russian subsidiary, meaning the removal of that unit from its consolidated results.
Aptar said the combined impact of the Russia matter was $61.2 million before tax, or $60.4 million after tax, which it put at 94 cents per diluted share.
Here's how the company did:
- Adjusted EPS: $1.52 vs. $1.62 a year earlier at comparable exchange rates, topping the $1.49 consensus estimate compiled by Finnhub
- Revenue: $1,019.1 million vs. $961.1 million a year earlier, topping the $994.28 million consensus estimate compiled by Finnhub
- Reported EPS: 51 cents vs. $1.92 a year earlier
- Adjusted EBITDA margin: 21.3% vs. 23.2% a year earlier
Reported sales rose 6%, while core sales, which exclude currency, acquisitions and the Russian subsidiary, rose 5%.
Currency had no net effect on total sales. Acquisitions and deconsolidation subtracted 1 percentage point.
Segment results
Pharma reported sales rose 2% to $454.0 million, and core sales rose 1%. Adjusting for emergency medicine destocking, the company said Pharma core sales grew 8%.
Pharma adjusted EBITDA margin was 36.4%, down 80 basis points. The company said it remained above its long-term target despite unfavorable product mix related to destocking.
Beauty reported sales rose 9% to $357.4 million, with core sales up 8%. Demand for prestige fragrance dispensing, color cosmetics and hair care applications rose, and pass-through of higher input costs also contributed.
Beauty adjusted EBITDA margin was 11.4%, down 70 basis points, including unfavorable mix and ongoing challenges in North American operations.
Closures reported sales rose 11% to $207.8 million, and core sales also rose 11%. Beverage and food sales grew significantly, led by bottled water and concentrates.
Closures adjusted EBITDA margin fell 60 basis points to 15.5%, as the dilutive impact of input cost pass-throughs offset their contribution to sales.
President and CEO Gael Touya said: “As I begin my tenure as CEO, our direction is clear: deepen our position with customers, accelerate innovation, execute with greater consistency and allocate capital thoughtfully.”
Nine-month results and cash returns
For the nine months, reported sales rose 8% to $3.03 billion from $2.81 billion, while core sales rose 2%. Reported EPS was $3.00, down 37% from $4.75, and adjusted EPS was $4.13, down 10% from $4.60.
Free cash flow was $98.6 million in the quarter, compared with $114.3 million a year earlier. The company repurchased about 234 thousand shares for $30 million in the quarter.
In total, the company returned $61 million to shareholders in the quarter and $272 million year to date through share repurchases and dividends.
2026 guidance
The company expects fourth-quarter adjusted EPS of $1.39 to $1.47. The range is lower than the $1.45 to $1.53 it gave on July 30.
The new range assumes an effective tax rate of 17.5% to 19.5% and a 1.12 euro to USD exchange rate. The earlier guidance assumed 22.5% to 24.5% and 1.14.
Touya said: “We expect Aptar to finish the year strong, supported by continued Pharma growth, particularly in consumer healthcare and injectables and without the headwind from emergency medicine destocking.”
Revenue has risen in each of the last three quarters, from $961.1 million in the third quarter of 2025 to $1.03 billion in the second quarter of 2026, according to its SEC filings.
Dividend and conference call
Subsequent to the quarter, the board approved an increase in the quarterly cash dividend to 50 cents per share from 48 cents. The dividend is payable Dec. 3 to holders of record as of Nov. 12.
The company will hold a conference call on Oct. 30 at 8:00 a.m. Central Time to discuss the results.