Avantor raises 2026 forecast as Q3 profit tops estimates

Avantor, Inc. (AVTR) said in a filing on Oct. 28 that third-quarter net sales rose 4.6% from a year earlier to $1,698.3 million. Its adjusted earnings per share of 22 cents topped the 21-cent consensus estimate compiled by Finnhub.

Revenue also came in above the $1.67 billion consensus estimate, and the company raised parts of its 2026 forecast.

Avantor sells products and services to customers in the life sciences and advanced technology industries. The company said its portfolio is used at more than 300,000 customer locations in 180 countries.

Here's how the company did:

• Net sales: $1,698.3 million vs. $1,623.8 million a year earlier, and above the $1.67 billion consensus estimate
• Adjusted EPS: 22 cents vs. 22 cents a year earlier, and topped the 21-cent consensus estimate, according to Finnhub
• Diluted GAAP EPS: 30 cents vs. a loss of $1.04 a year earlier
• Net income: $203.4 million vs. a loss of $711.8 million a year earlier

Net income margin was 12.0%. Adjusted net income was $146.4 million, compared with $151.1 million a year earlier.

Adjusted EBITDA was $256.9 million, a 15.1% margin. Operating income was $139.5 million, an 8.2% margin.

Foreign currency translation had a negative impact of 0.6% on sales, so organic sales rose 5.2%.

Restructuring, severance and related impairment charges were $8.1 million, against $2.2 million a year earlier.

Net income has swung from a loss of $711.8 million in the third quarter of 2025 to a profit of $52.4 million in the fourth quarter of 2025, according to its SEC filings.

Segment results

VWR Distribution & Services net sales were $1,233.8 million, up 5.0%, with organic growth of 5.8%. Its adjusted operating income was $119.4 million, down from $132.0 million a year earlier.

The segment's adjusted operating income margin fell to 9.7% from 11.2%. The company attributed the decline to unfavorable product mix and higher selling, general and administrative expenses, partly offset by higher sales volume.

Bioscience & Medtech Products net sales were $464.5 million, up 3.5%, with organic growth of 3.6%. Its adjusted operating income rose to $123.4 million from $119.3 million, and its margin was flat at 26.6%.

The company cited higher sales volume and commercial excellence for the segment, partly offset by higher selling, general and administrative expenses.

2026 guidance

Avantor said it raised its fiscal 2026 organic revenue growth, adjusted EPS and free cash flow guidance. The filing text does not state the revised figures for those three measures.

Other assumptions include reported revenue growth of +1.5% to +2.0%, including a 0.75% foreign exchange tailwind. The company also assumes a blended EUR/USD exchange rate of 1.15 and an adjusted effective tax rate of 22.0% to 22.5%.

The company expects net interest expense to decline modestly compared with fiscal 2025 and assumes a fully diluted share count of 679 million shares.

Chief Executive Officer Emmanuel Ligner said: "We are delighted to return to year-over-year growth in the third quarter." He added: "Third quarter results exceeded our expectations across revenue and adjusted EPS."

Cash flow and debt

Operating cash flow was $195.1 million in the quarter, and free cash flow was $156.2 million.

At Sept. 30, total gross debt was $3,699.7 million and cash and cash equivalents were $464.3 million. Adjusted net leverage was 3.1 times, and GAAP net leverage was 9.6 times.