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Avantor Stock Plunges as Q3 Earnings Miss Estimates, Revenues Down Y/Y
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Key Takeaways
AVTR's Q3 adjusted EPS slid 15.4% Y/Y to $0.22, missing the Zacks Consensus Estimate.
AVTR's revenue dropped 5.3% to $1.62B, with both core segments posting declines.
AVTR trimmed 2025 guidance, seeing EPS at $0.88$0.92 and organic sales down up to 3.5%.
Avantor, Inc. (AVTR - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of 22 cents, down 15.4% from the year-ago quarter. The bottom line also missed the Zacks Consensus Estimate by 4.4%.
GAAP loss per share for the quarter was $1.04 against EPS of 8 cents per share in the prior-year quarter.
AVTR Revenue Details
Revenues grossed $1.62 billion in the reported quarter, down 5.3% year over year. The metric missed the Zacks Consensus Estimate by 1.6%.
Avantor's foreign currency translation had a positive impact of 2.2% and M&A had a negative impact of 2.8%, resulting in a 4.7% sales decline on an organic basis.
Shares of this company plunged 23.2% till yesterday’s trading.
Avantor’s Segmental Analysis
The Laboratory Solutions segment’s net sales were $1.09 billion, reflecting a reported decrease of 6.4% year over year. Organic sales decreased 4.9% year over year in the reported quarter. This figure compares to our segmental projection of $1.05 billion.
Per management, the segment declined year over year primarily because customer activity remained softer than anticipated and competitive pressures persisted. The business continued to feel the impact of earlier share losses in lab services, which are still phasing through, while weakness across consumables, equipment and education markets weighed further on performance. Price actions were taken to defend the share, but they were not sufficient to offset cost pressure, resulting in margin compression. Management noted that no major accounts have been lost recently and that new wins are expected to begin contributing in 2026, but the segment still requires stronger commercial execution and improved engagement across channels to stabilize results.
Bioscience Production’s net sales were $527.3 million, reflecting a reported decrease of 2.9%, whereas organic sales decreased 4.3% year over year. This figure compares to our segmental projection of $557 million.
Per management, Bioscience Production decreased year over year due mainly to self-inflicted operational challenges rather than a demand problem. Although orders stayed healthy, several facilities faced raw-material availability issues and inconsistent equipment uptime, limiting throughput and delaying shipments that should have landed in the quarter. This pushed the backlog higher and muted revenue conversion while controlled-environment consumables faced competitive pressure. Management highlighted that these issues were particularly evident in bioprocess chemicals, where customer interest remains strong but fulfilment needs to improve.
AVTR’s Margin Analysis
In the quarter under review, Avantor’s gross profit declined 6.7% year over year to $526.5 million. The gross margin contracted 50 basis points (bps) to 32.4%. We had projected 34.3% of gross margin for the third quarter.
Selling, general and administrative expenses decreased 11.3% year over year to $390.3 million.
Adjusted operating profit totaled $237.3 million, down 13.7% from the prior-year quarter’s level. The adjusted operating margin in the quarter contracted 140 bps to 14.6%.
Avantor exited the third quarter of 2025 with cash and cash equivalents of $251.9 million compared with $449.4 million at the second-quarter end. Total debt at the end of the third quarter of 2025 was $3.86 billion compared with $4.24 billion at the second-quarter end.
Cumulative net cash provided by operating activities at the end of the third quarter of 2025 was $471.1 million compared with $667.5 million a year ago.
AVTR’s Guidance
Avantor has updated its outlook for 2025.
The company now projects its organic revenues to witness growth of negative 3.5% to negative 2.5% compared with the prior guidance of negative 2% to flat for the full year.
Management now expects negative mid-single digits to low-single digits on an organic basis growth in the Laboratory Solutions segment compared with the prior guidance of negative low-single-digit.
Per management, Bioscience Production is expected to decline in the low single digits organically for the full year, lower than earlier expectations of roughly flat performance.
The company now expects adjusted EPS to lie in the range of 88 cents to 92 cents compared with the prior guidance of 94 cents to 98 cents. The Zacks Consensus Estimate is pegged at 94 cents.
Our Take
Avantor exited the third quarter of 2025 with dismal results, wherein earnings and revenues both missed their respective estimates. Decline in both top and bottom lines also does not bode well for the stock.
Per management, Avantor’s product and innovation pipeline remains anchored in bioprocessing, where the company continues to lean into high-value categories like process chemicals, adjuvants and viral-inactivation products. These offerings are viewed by customers as mission-critical, and year-to-date order intake has remained healthy, suggesting demand is intact even as execution challenges have limited revenue conversion. Management also highlighted strategic collaborations such as the recently announced BlueWhale Bio partnership, which is expected to expand Avantor’s presence across emerging cell and gene therapy workflows. Overall, customers remain receptive to Avantor’s proprietary chemistries and specialty materials, reinforcing confidence that stronger execution could unlock better growth.
Alongside its innovation efforts, Avantor is aggressively pushing a multi-year cost-transformation program targeting roughly $400 million in run-rate savings by the end of 2027. Early traction is visible through tighter SG&A discipline and compensation resets, but management admits that much of the benefit is not yet dropping to the bottom line due to operational inefficiencies and supply-chain complexity. To accelerate progress, the company is simplifying processes, improving planning and strengthening accountability across teams so plants can run more reliably and deliver consistently on customer demand.
Management views this cost program as a key pillar of its broader “Avantor Revival” plan, which also includes reinforcing leadership talent, investing selectively in manufacturing and enhancing digital commerce capabilities. Leadership is adding a new chief operating officer to raise operational standards and a Chief Digital Officer to better support e-commerce needs, both of which should help expand margins and improve customer experience over time. While execution will take several quarters, management believes these structural actions are necessary to rebuild credibility, improve margins, and ultimately reposition Avantor for sustainable long-term growth.
Avantor’s Zacks Rank and Stocks to Consider
AVTR currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader medical space are Solventum Corporation (SOLV - Free Report) , Boston Scientific Corporation (BSX - Free Report) and HealthEquity (HQY - Free Report) .
Solventum, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 4.1%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.91%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Solventum’s shares have gained 8.2% compared with the industry’s 6.2% growth so far this year.
Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.1%.
Boston Scientific’s shares have gained 13.2% compared with the industry’s 5.6% growth so far this year.
HealthEquity, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21.7%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 11.05%.
HealthEquity’s shares have risen 0.6% compared with the industry’s 6.2% growth so far this year.
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Avantor Stock Plunges as Q3 Earnings Miss Estimates, Revenues Down Y/Y
Key Takeaways
Avantor, Inc. (AVTR - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of 22 cents, down 15.4% from the year-ago quarter. The bottom line also missed the Zacks Consensus Estimate by 4.4%.
GAAP loss per share for the quarter was $1.04 against EPS of 8 cents per share in the prior-year quarter.
AVTR Revenue Details
Revenues grossed $1.62 billion in the reported quarter, down 5.3% year over year. The metric missed the Zacks Consensus Estimate by 1.6%.
Avantor's foreign currency translation had a positive impact of 2.2% and M&A had a negative impact of 2.8%, resulting in a 4.7% sales decline on an organic basis.
Shares of this company plunged 23.2% till yesterday’s trading.
Avantor’s Segmental Analysis
The Laboratory Solutions segment’s net sales were $1.09 billion, reflecting a reported decrease of 6.4% year over year. Organic sales decreased 4.9% year over year in the reported quarter. This figure compares to our segmental projection of $1.05 billion.
Per management, the segment declined year over year primarily because customer activity remained softer than anticipated and competitive pressures persisted. The business continued to feel the impact of earlier share losses in lab services, which are still phasing through, while weakness across consumables, equipment and education markets weighed further on performance. Price actions were taken to defend the share, but they were not sufficient to offset cost pressure, resulting in margin compression. Management noted that no major accounts have been lost recently and that new wins are expected to begin contributing in 2026, but the segment still requires stronger commercial execution and improved engagement across channels to stabilize results.
Bioscience Production’s net sales were $527.3 million, reflecting a reported decrease of 2.9%, whereas organic sales decreased 4.3% year over year. This figure compares to our segmental projection of $557 million.
Per management, Bioscience Production decreased year over year due mainly to self-inflicted operational challenges rather than a demand problem. Although orders stayed healthy, several facilities faced raw-material availability issues and inconsistent equipment uptime, limiting throughput and delaying shipments that should have landed in the quarter. This pushed the backlog higher and muted revenue conversion while controlled-environment consumables faced competitive pressure. Management highlighted that these issues were particularly evident in bioprocess chemicals, where customer interest remains strong but fulfilment needs to improve.
AVTR’s Margin Analysis
In the quarter under review, Avantor’s gross profit declined 6.7% year over year to $526.5 million. The gross margin contracted 50 basis points (bps) to 32.4%. We had projected 34.3% of gross margin for the third quarter.
Selling, general and administrative expenses decreased 11.3% year over year to $390.3 million.
Adjusted operating profit totaled $237.3 million, down 13.7% from the prior-year quarter’s level. The adjusted operating margin in the quarter contracted 140 bps to 14.6%.
Avantor, Inc. Price, Consensus and EPS Surprise
Avantor, Inc. price-consensus-eps-surprise-chart | Avantor, Inc. Quote
Avantor’s Financial Position
Avantor exited the third quarter of 2025 with cash and cash equivalents of $251.9 million compared with $449.4 million at the second-quarter end. Total debt at the end of the third quarter of 2025 was $3.86 billion compared with $4.24 billion at the second-quarter end.
Cumulative net cash provided by operating activities at the end of the third quarter of 2025 was $471.1 million compared with $667.5 million a year ago.
AVTR’s Guidance
Avantor has updated its outlook for 2025.
The company now projects its organic revenues to witness growth of negative 3.5% to negative 2.5% compared with the prior guidance of negative 2% to flat for the full year.
Management now expects negative mid-single digits to low-single digits on an organic basis growth in the Laboratory Solutions segment compared with the prior guidance of negative low-single-digit.
Per management, Bioscience Production is expected to decline in the low single digits organically for the full year, lower than earlier expectations of roughly flat performance.
The company now expects adjusted EPS to lie in the range of 88 cents to 92 cents compared with the prior guidance of 94 cents to 98 cents. The Zacks Consensus Estimate is pegged at 94 cents.
Our Take
Avantor exited the third quarter of 2025 with dismal results, wherein earnings and revenues both missed their respective estimates. Decline in both top and bottom lines also does not bode well for the stock.
Per management, Avantor’s product and innovation pipeline remains anchored in bioprocessing, where the company continues to lean into high-value categories like process chemicals, adjuvants and viral-inactivation products. These offerings are viewed by customers as mission-critical, and year-to-date order intake has remained healthy, suggesting demand is intact even as execution challenges have limited revenue conversion. Management also highlighted strategic collaborations such as the recently announced BlueWhale Bio partnership, which is expected to expand Avantor’s presence across emerging cell and gene therapy workflows. Overall, customers remain receptive to Avantor’s proprietary chemistries and specialty materials, reinforcing confidence that stronger execution could unlock better growth.
Alongside its innovation efforts, Avantor is aggressively pushing a multi-year cost-transformation program targeting roughly $400 million in run-rate savings by the end of 2027. Early traction is visible through tighter SG&A discipline and compensation resets, but management admits that much of the benefit is not yet dropping to the bottom line due to operational inefficiencies and supply-chain complexity. To accelerate progress, the company is simplifying processes, improving planning and strengthening accountability across teams so plants can run more reliably and deliver consistently on customer demand.
Management views this cost program as a key pillar of its broader “Avantor Revival” plan, which also includes reinforcing leadership talent, investing selectively in manufacturing and enhancing digital commerce capabilities. Leadership is adding a new chief operating officer to raise operational standards and a Chief Digital Officer to better support e-commerce needs, both of which should help expand margins and improve customer experience over time. While execution will take several quarters, management believes these structural actions are necessary to rebuild credibility, improve margins, and ultimately reposition Avantor for sustainable long-term growth.
Avantor’s Zacks Rank and Stocks to Consider
AVTR currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader medical space are Solventum Corporation (SOLV - Free Report) , Boston Scientific Corporation (BSX - Free Report) and HealthEquity (HQY - Free Report) .
Solventum, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 4.1%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.91%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Solventum’s shares have gained 8.2% compared with the industry’s 6.2% growth so far this year.
Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.1%.
Boston Scientific’s shares have gained 13.2% compared with the industry’s 5.6% growth so far this year.
HealthEquity, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21.7%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 11.05%.
HealthEquity’s shares have risen 0.6% compared with the industry’s 6.2% growth so far this year.