Life Science Tools Firm Avantor Reports Mixed Q4 Earnings, Forecasts Organic Sales Growth In 2025

2025.02.07

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On Friday, Avantor Inc AVTR reported fourth-quarter net sales of $1.69 billion, a decrease of 2% year-over-year, missing the consensus of $1.71 billion.

Foreign currency translation and Clinical Services divestiture had a negative impact, resulting in sales growth of 1% on an organic basis.

Net income increased to $500.4 million from $98.5 million a year ago, and adjusted net income was $183.9 million compared to $166.7 million in the comparable prior period.

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The life science tools company reported the adjusted EBITDA was $307.7 million, and the margin was 18.2%. Adjusted operating income was $279.4, with a margin of 16.6%.

The company reported an adjusted EPS of 27 cents, up from 29 cents a year ago, beating the consensus of 26 cents.

Operating cash flow was $173.3 million, while free cash flow was $222.1 million.

“As anticipated, we returned to growth in the fourth quarter and delivered sequential and year-over-year growth in adjusted EBITDA margin, adjusted EPS, and best-in-class free cash flow conversion. We grew our bioprocessing platform high-single-digits and expect continued strength driven by our focused execution and improving end market conditions,” said Michael Stubblefield, President and Chief Executive Officer.

Laboratory Solutions’ net sales were $1.13 billion, down 5%. Foreign currency translation and our Clinical Services divestiture had a negative impact, resulting in a 1% organic sales decline.

Bioscience Production net sales were $560.8 million, up 4%. Sales increased 4% organically.

Guidance: Avantor expects 2025 organic revenue growth of 1%-3% compared to 2024 decline of 2%, with adjusted EBITDA margin of 18%-19%

The company forecasts adjusted EPS of $1.02-$1.10 versus the consensus of $1.10 and expected free cash flow of $650 million—$700 million.

Price Action: AVTR stock is down 3.73% at $20.89 during the premarket session on last check Friday.

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