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AptarGroup beat Q1 earnings and sales estimates, but profit fell Y/Y and shares dipped 1%.
ATR's Pharma unit faced destocking pressure, hurting prescription sales despite growth in injectables.
AptarGroup saw margin compression from higher costs, weaker mix and operational disruptions.
Shares of AptarGroup, Inc. (ATR - Free Report) have dipped 1% since posting first-quarter 2026 adjusted earnings of $1.19 per share on Thursday. Adjusted earnings declined 8% from $1.30 a year ago on a less favorable mix and pharma-related headwinds. However, the bottom line topped the Zacks Consensus Estimate of $1.15.
Quarterly sales rose 10.8% year over year to $983 million and beat the consensus mark of $964 million by 2%.
AptarGroup, Inc. Price, Consensus and EPS Surprise
Pharma segment sales increased 7.1% year over year to $439 million. The reported figure missed our estimate of $454 million. The reported gain was aided by currency and a small acquisition contribution, while core sales slipped 1% on tougher comparisons in the prescription business.
Within Pharma, prescription core sales declined 10% as dispensing systems tied to emergency medicine were pressured by destocking. Offsetting this, consumer healthcare core sales increased 4% on nasal decongestant and eye-care solutions, while injectables delivered 20% core growth.
The Pharma segment posted adjusted EBITDA of $146 million compared with the prior-year quarter’s $142 million. We predicted adjusted EBITDA of $140 million for the segment.
AptarGroup’s Beauty Benefits From Fragrance Demand
The Beauty segment’s sales advanced 19% year over year to $364 million. The reported figure beat our estimate of $324 million. Core sales grew 3% as demand improved across fragrance dispensing and select personal care applications, with acquisitions and currency providing additional lift.
Profitability in Beauty was softer despite sales growth. Adjusted EBITDA came in at $40 million compared with the prior-year quarter’s $37 million. We predicted adjusted EBITDA of $34.5 million for the segment.
ATR’s Closures Sees Pricing Offset Volume Gains
The Closures segment’s sales increased 5% to $181 million. The reported figure beat our estimate of $177 million. While product volumes improved, core sales were flat because results were weighed down by the pass-through of lower resin pricing.
Margins were notably weaker in the segment. Adjusted EBITDA fell to $23.6 million compared with the prior-year quarter’s $27 million, driven by maintenance issues and temporary plant closures tied to extreme weather in North America, as well as certain investment write-offs. We predicted the segment’s adjusted EBITDA to be $28 million.
On a reported basis, diluted earnings per share were $1.12 compared with $1.17 in the year-ago quarter. Operating income decreased to $107.5 million from $113.4 million as higher costs, and heavier depreciation and amortization weighed on results.
Adjusted EBITDA totaled $183 million compared with $189 million a year ago, translating to an adjusted EBITDA margin of 19.2%, down from the prior-year quarter’s 20.7%.
ATR’s Balance Sheet Updates
AptarGroup ended the quarter with cash and equivalents of $222.5 million, down from $402 million at the end of 2025. Net cash provided by operating activities increased to $119 million from $83 million in the prior-year quarter.
Capital allocation remained shareholder-friendly. ATR repurchased 707 thousand shares for $100 million, returning $131 million to shareholders. The company’s consolidated leverage ratio stood at 1.43 at the quarter-end.
AptarGroup’s Q2 View Points to Broader-Based Growth
For the second quarter of 2026, the company expects adjusted earnings per share of $1.32-$1.40.
Looking beyond the near term, AptarGroup expects 2026 capital investments of $260-$280 million, with most allocated to Pharma, and depreciation and amortization of $310-$320 million.
ATR Stock’s Price Performance
The company’s shares have lost 18.4% in the past year compared with the industry’s 8.7% decline.
Sonoco Products Company (SON - Free Report) delivered adjusted earnings of $1.20 per share in the first quarter of fiscal 2026, topping the Zacks Consensus Estimate of $1.19 by 0.84%. The figure declined 13% from $1.38 in the year-ago quarter.
Sonoco’s net sales were $1.68 billion, declining 1.9% year over year and lagging the Zacks Consensus Estimate of $1.71 billion by 1.95%. Pricing actions and productivity were key offsets to softer volume/mix during the quarter. SON’s top line dipped from the prior-year period primarily due to the absence of sales from the ThermoSafe temperature-assured packaging business, which was divested in November 2025.
Packaging Corporation of America (PKG - Free Report) posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. Packaging Corp’s results beat the Zacks Consensus Estimate of earnings $2.17 by 10.6%.
Net sales rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%. Favorable pricing and mix, along with lower fiber costs, supported Packaging Corp’s results, though special items weighed on reported profitability.
Avery Dennison Corporation (AVY - Free Report) registered adjusted earnings of $2.47 per share for the first quarter of 2026, rising 7.4% from the year-ago period and beating the Zacks Consensus Estimate of $2.41. Avery Dennison’s revenues were $2.298 billion, growing 7% year over year and surpassing the consensus mark of $2.271 billion by 1.2%.
Sales advanced 2.3%, excluding currency, as a 4.7% foreign-currency headwind weighed on reported growth. Organic sales increased 1.1%, while acquisitions were a 1.2% drag on the quarter’s growth bridge.
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AptarGroup Q1 Earnings Beat Estimates but Decline Y/Y, Shares Dip 1%
Key Takeaways
Shares of AptarGroup, Inc. (ATR - Free Report) have dipped 1% since posting first-quarter 2026 adjusted earnings of $1.19 per share on Thursday. Adjusted earnings declined 8% from $1.30 a year ago on a less favorable mix and pharma-related headwinds. However, the bottom line topped the Zacks Consensus Estimate of $1.15.
Quarterly sales rose 10.8% year over year to $983 million and beat the consensus mark of $964 million by 2%.
AptarGroup, Inc. Price, Consensus and EPS Surprise
AptarGroup, Inc. price-consensus-eps-surprise-chart | AptarGroup, Inc. Quote
ATR’s Pharma Results Reflect Destocking Headwinds
Pharma segment sales increased 7.1% year over year to $439 million. The reported figure missed our estimate of $454 million. The reported gain was aided by currency and a small acquisition contribution, while core sales slipped 1% on tougher comparisons in the prescription business.
Within Pharma, prescription core sales declined 10% as dispensing systems tied to emergency medicine were pressured by destocking. Offsetting this, consumer healthcare core sales increased 4% on nasal decongestant and eye-care solutions, while injectables delivered 20% core growth.
The Pharma segment posted adjusted EBITDA of $146 million compared with the prior-year quarter’s $142 million. We predicted adjusted EBITDA of $140 million for the segment.
AptarGroup’s Beauty Benefits From Fragrance Demand
The Beauty segment’s sales advanced 19% year over year to $364 million. The reported figure beat our estimate of $324 million. Core sales grew 3% as demand improved across fragrance dispensing and select personal care applications, with acquisitions and currency providing additional lift.
Profitability in Beauty was softer despite sales growth. Adjusted EBITDA came in at $40 million compared with the prior-year quarter’s $37 million. We predicted adjusted EBITDA of $34.5 million for the segment.
ATR’s Closures Sees Pricing Offset Volume Gains
The Closures segment’s sales increased 5% to $181 million. The reported figure beat our estimate of $177 million. While product volumes improved, core sales were flat because results were weighed down by the pass-through of lower resin pricing.
Margins were notably weaker in the segment. Adjusted EBITDA fell to $23.6 million compared with the prior-year quarter’s $27 million, driven by maintenance issues and temporary plant closures tied to extreme weather in North America, as well as certain investment write-offs. We predicted the segment’s adjusted EBITDA to be $28 million.
AptarGroup’s Profit Picture Shows Margin Compression
On a reported basis, diluted earnings per share were $1.12 compared with $1.17 in the year-ago quarter. Operating income decreased to $107.5 million from $113.4 million as higher costs, and heavier depreciation and amortization weighed on results.
Adjusted EBITDA totaled $183 million compared with $189 million a year ago, translating to an adjusted EBITDA margin of 19.2%, down from the prior-year quarter’s 20.7%.
ATR’s Balance Sheet Updates
AptarGroup ended the quarter with cash and equivalents of $222.5 million, down from $402 million at the end of 2025. Net cash provided by operating activities increased to $119 million from $83 million in the prior-year quarter.
Capital allocation remained shareholder-friendly. ATR repurchased 707 thousand shares for $100 million, returning $131 million to shareholders. The company’s consolidated leverage ratio stood at 1.43 at the quarter-end.
AptarGroup’s Q2 View Points to Broader-Based Growth
For the second quarter of 2026, the company expects adjusted earnings per share of $1.32-$1.40.
Looking beyond the near term, AptarGroup expects 2026 capital investments of $260-$280 million, with most allocated to Pharma, and depreciation and amortization of $310-$320 million.
ATR Stock’s Price Performance
The company’s shares have lost 18.4% in the past year compared with the industry’s 8.7% decline.
AptarGroup’s Zacks Rank
ATR currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performances of ATR’s Peers
Sonoco Products Company (SON - Free Report) delivered adjusted earnings of $1.20 per share in the first quarter of fiscal 2026, topping the Zacks Consensus Estimate of $1.19 by 0.84%. The figure declined 13% from $1.38 in the year-ago quarter.
Sonoco’s net sales were $1.68 billion, declining 1.9% year over year and lagging the Zacks Consensus Estimate of $1.71 billion by 1.95%. Pricing actions and productivity were key offsets to softer volume/mix during the quarter. SON’s top line dipped from the prior-year period primarily due to the absence of sales from the ThermoSafe temperature-assured packaging business, which was divested in November 2025.
Packaging Corporation of America (PKG - Free Report) posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. Packaging Corp’s results beat the Zacks Consensus Estimate of earnings $2.17 by 10.6%.
Net sales rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%. Favorable pricing and mix, along with lower fiber costs, supported Packaging Corp’s results, though special items weighed on reported profitability.
Avery Dennison Corporation (AVY - Free Report) registered adjusted earnings of $2.47 per share for the first quarter of 2026, rising 7.4% from the year-ago period and beating the Zacks Consensus Estimate of $2.41. Avery Dennison’s revenues were $2.298 billion, growing 7% year over year and surpassing the consensus mark of $2.271 billion by 1.2%.
Sales advanced 2.3%, excluding currency, as a 4.7% foreign-currency headwind weighed on reported growth. Organic sales increased 1.1%, while acquisitions were a 1.2% drag on the quarter’s growth bridge.