|
|
||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Exchange on which registered | ||||||||||||
|
|
|
Page | |||||
Description
|
|||||
the Company, we, us, our | Avantor, Inc. and its subsidiaries | ||||
Adjusted EBITDA | our earnings or loss before interest, taxes, depreciation, amortization and certain other adjustments | ||||
Adjusted Operating Income | our earnings or loss before interest, taxes, amortization and certain other adjustments | ||||
Annual Report | our annual report on Form 10-K for the year ended December 31, 2024 | ||||
AOCI | accumulated other comprehensive income or loss | ||||
ASC | Accounting Standards Codification | ||||
ASU | Accounting Standards Update | ||||
CODM | chief operating decision maker | ||||
EURIBOR | the basic rate of interest used in lending between banks on the European Union interbank market | ||||
FASB | the Financial Accounting Standards Board of the United States | ||||
GAAP | United States generally accepted accounting principles | ||||
long-term | period other than short-term | ||||
OCI | other comprehensive income or loss | ||||
RSU | restricted stock units represent awards that will vest annually and awards that contain performance and market conditions | ||||
SEC | the United States Securities and Exchange Commission | ||||
SG&A expenses | selling, general and administrative expenses | ||||
short-term | period less than a year from the reporting date | ||||
SOFR | secured overnight financing rate | ||||
Page | |||||
(in millions)
|
March 31, 2025
|
December 31, 2024
|
|||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ |
|
$ |
|
|||||||
Accounts receivable, net of allowances of $
|
|
|
|||||||||
Inventory |
|
|
|||||||||
Other current assets |
|
|
|||||||||
Total current assets |
|
|
|||||||||
Property, plant and equipment, net of accumulated depreciation and impairment charges of $
|
|
|
|||||||||
Other intangible assets, net (see note 7)
|
|
|
|||||||||
Goodwill, net of accumulated impairment losses of $
|
|
|
|||||||||
Other assets |
|
|
|||||||||
Total assets | $ |
|
$ |
|
|||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Current portion of debt | $ |
|
$ |
|
|||||||
Accounts payable |
|
|
|||||||||
Employee-related liabilities |
|
|
|||||||||
Accrued interest |
|
|
|||||||||
Other current liabilities |
|
|
|||||||||
Total current liabilities |
|
|
|||||||||
Debt, net of current portion |
|
|
|||||||||
Deferred income tax liabilities |
|
|
|||||||||
Other liabilities |
|
|
|||||||||
Total liabilities |
|
|
|||||||||
Commitments and contingencies (see note 8)
|
|
|
|||||||||
Stockholders’ equity: | |||||||||||
Common stock including paid-in capital,
|
|
|
|||||||||
Accumulated earnings
|
|
|
|||||||||
Accumulated other comprehensive loss
|
(
|
(
|
|||||||||
Total stockholders’ equity |
|
|
|||||||||
Total liabilities and stockholders’ equity | $ |
|
$ |
|
(in millions, except per share data)
|
Three months ended March 31,
|
||||||||||
2025
|
2024
|
||||||||||
Net sales | $ |
|
$ |
|
|||||||
Cost of sales |
|
|
|||||||||
Gross profit |
|
|
|||||||||
Selling, general and administrative expenses |
|
|
|||||||||
Operating income
|
|
|
|||||||||
Interest expense, net |
(
|
(
|
|||||||||
Loss on extinguishment of debt |
|
(
|
|||||||||
Other (expense) income, net
|
(
|
|
|||||||||
Income before income taxes
|
|
|
|||||||||
Income tax expense
|
(
|
(
|
|||||||||
Net income
|
$ |
|
$ |
|
|||||||
Earnings per share:
|
|||||||||||
Basic | $ |
|
$ |
|
|||||||
Diluted | $ |
|
$ |
|
|||||||
Weighted average shares outstanding: | |||||||||||
Basic |
|
|
|||||||||
Diluted |
|
|
(in millions)
|
Three months ended March 31,
|
||||||||||
2025
|
2024
|
||||||||||
Net income
|
$ |
|
$ |
|
|||||||
Other comprehensive income (loss):
|
|||||||||||
Foreign currency translation — unrealized gain (loss)
|
|
(
|
|||||||||
Derivative instruments: | |||||||||||
Unrealized gain
|
|
|
|||||||||
Reclassification of gain into earnings
|
(
|
(
|
|||||||||
Activity related to defined benefit plans: | |||||||||||
Unrealized gain (loss)
|
|
(
|
|||||||||
Reclassification of loss into earnings
|
|
|
|||||||||
Other comprehensive income (loss) before income taxes
|
|
(
|
|||||||||
Income tax effect |
|
(
|
|||||||||
Other comprehensive income (loss)
|
|
(
|
|||||||||
Comprehensive income | $ |
|
$ |
|
(in millions)
|
Stockholders’ equity | ||||||||||||||||||||||||||||
Common stock including paid-in capital | Accumulated earnings | AOCI | Total | ||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||
Balance on December 31, 2024
|
|
$ |
|
$ |
|
$ |
(
|
$ |
|
||||||||||||||||||||
Comprehensive income
|
— | — |
|
|
|
||||||||||||||||||||||||
Stock-based compensation expense | — |
|
— | — |
|
||||||||||||||||||||||||
Stock option exercises and other common stock transactions |
|
(
|
— | — |
(
|
||||||||||||||||||||||||
Balance on March 31, 2025
|
|
$ |
|
$ |
|
$ |
(
|
$ |
|
||||||||||||||||||||
Balance on December 31, 2023
|
|
$ |
|
$ |
|
$ |
(
|
$ |
|
||||||||||||||||||||
Comprehensive income (loss)
|
— | — |
|
(
|
|
||||||||||||||||||||||||
Stock-based compensation expense | — |
|
— | — |
|
||||||||||||||||||||||||
Stock option exercises and other common stock transactions |
|
|
— | — |
|
||||||||||||||||||||||||
Balance on March 31, 2024
|
|
$ |
|
$ |
|
$ |
(
|
$ |
|
(in millions)
|
Three months ended March 31,
|
||||||||||
2025
|
2024
|
||||||||||
Cash flows from operating activities: | |||||||||||
Net income
|
$ |
|
$ |
|
|||||||
Reconciling adjustments: | |||||||||||
Depreciation and amortization |
|
|
|||||||||
Stock-based compensation expense
|
|
|
|||||||||
Provision for accounts receivable and inventory |
|
|
|||||||||
Deferred income tax benefit
|
(
|
(
|
|||||||||
Amortization of deferred financing costs |
|
|
|||||||||
Loss on extinguishment of debt |
|
|
|||||||||
Foreign currency remeasurement loss
|
|
|
|||||||||
Pension termination charges |
|
|
|||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable |
(
|
|
|||||||||
Inventory |
(
|
(
|
|||||||||
Accounts payable |
|
(
|
|||||||||
Accrued interest |
(
|
(
|
|||||||||
Other assets and liabilities |
(
|
|
|||||||||
Other |
|
|
|||||||||
Net cash provided by operating activities
|
|
|
|||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures |
(
|
(
|
|||||||||
Other |
(
|
|
|||||||||
Net cash used in investing activities
|
(
|
(
|
|||||||||
Cash flows from financing activities: | |||||||||||
Debt borrowings |
|
|
|||||||||
Debt repayments |
(
|
(
|
|||||||||
Proceeds received from exercise of stock options |
|
|
|||||||||
Shares repurchased to satisfy employee tax obligations for vested stock-based awards |
(
|
(
|
|||||||||
Net cash used in financing activities
|
(
|
(
|
|||||||||
Effect of currency rate changes on cash and cash equivalents |
|
(
|
|||||||||
Net change in cash, cash equivalents and restricted cash |
|
(
|
|||||||||
Cash, cash equivalents and restricted cash, beginning of period |
|
|
|||||||||
Cash, cash equivalents and restricted cash, end of period | $ |
|
$ |
|
(in millions, except per share data)
|
Three months ended March 31, 2025 | ||||||||||||||||
Earnings (numerator)
|
Weighted average shares outstanding (denominator) |
Earnings per share
|
|||||||||||||||
Basic | $ |
|
|
$ |
|
||||||||||||
Dilutive effect of stock-based awards |
|
|
|||||||||||||||
Diluted | $ |
|
|
$ |
|
(in millions, except per share data)
|
Three months ended March 31, 2024 | ||||||||||||||||
Earnings (numerator) | Weighted average shares outstanding (denominator) | Earnings per share | |||||||||||||||
Basic | $ |
|
|
$ |
|
||||||||||||
Dilutive effect of stock-based awards |
|
|
|||||||||||||||
Diluted | $ |
|
$ |
|
$ |
|
(in millions)
|
Three months ended March 31,
|
||||||||||
2025
|
2024
|
||||||||||
Net sales: | |||||||||||
Laboratory Solutions | $ |
|
$ |
|
|||||||
Bioscience Production |
|
|
|||||||||
Total | $ |
|
$ |
|
|||||||
Adjusted Operating Income: | |||||||||||
Laboratory Solutions | $ |
|
$ |
|
|||||||
Bioscience Production |
|
|
|||||||||
Corporate |
(
|
(
|
|||||||||
Total | $ |
|
$ |
|
(in millions)
|
|||||||||||||||||||||||
Three months ended March 31, 2025 | Laboratory Solutions | Bioscience Production | Corporate | Total | |||||||||||||||||||
Net sales | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Adjusted cost of sales
1
|
|
|
|
|
|||||||||||||||||||
Adjusted operating expenses
2
|
|
|
|
|
|||||||||||||||||||
Adjusted Operating Income | $ |
|
$ |
|
$ |
(
|
$ |
|
(in millions)
|
|||||||||||||||||||||||
Three months ended March 31, 2024 | Laboratory Solutions | Bioscience Production | Corporate | Total | |||||||||||||||||||
Net sales | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Adjusted cost of sales
1
|
|
|
|
|
|||||||||||||||||||
Adjusted operating expenses
2
|
|
|
|
|
|||||||||||||||||||
Adjusted Operating Income | $ |
|
$ |
|
$ |
(
|
$ |
|
(in millions)
|
Depreciation and amortization
Three months ended March 31,
|
||||||||||
2025
|
2024
|
||||||||||
Laboratory Solutions | $ |
|
$ |
|
|||||||
Bioscience Production |
|
|
|||||||||
Total | $ |
|
$ |
|
(in millions)
|
Three months ended March 31,
|
||||||||||
2025
|
2024
|
||||||||||
Adjusted Operating Income | $ |
|
$ |
|
|||||||
Amortization |
(
|
(
|
|||||||||
Restructuring and severance charges
1
|
(
|
(
|
|||||||||
Transformation expenses
2
|
(
|
(
|
|||||||||
Other
3
|
(
|
(
|
|||||||||
Interest expense, net |
(
|
(
|
|||||||||
Loss on extinguishment of debt |
|
(
|
|||||||||
Other (expense) income, net
4
|
(
|
|
|||||||||
Income before income taxes
|
$ |
|
$ |
|
(in millions)
|
Three months ended March 31,
|
||||||||||
2025
|
2024
|
||||||||||
Proprietary | $ |
|
$ |
|
|||||||
Third-party |
|
|
|||||||||
Total | $ |
|
$ |
|
(in millions)
|
March 31, 2025
|
December 31, 2024 | |||||||||
Cash and cash equivalents | $ |
|
$ |
|
|||||||
Restricted cash classified as other assets |
|
|
|||||||||
Total | $ |
|
$ |
|
(in millions)
|
Three months ended March 31,
|
||||||||||
2025
|
2024
|
||||||||||
Cash flows from operating activities: | |||||||||||
Cash paid for income taxes, net | $ |
|
$ |
|
|||||||
Cash paid for interest, net, excluding financing leases |
|
|
|||||||||
Cash paid for interest on finance leases |
|
|
|||||||||
Cash paid under operating leases |
|
|
|||||||||
Cash flows from financing activities: | |||||||||||
Cash paid under finance leases | $ |
|
$ |
|
(in millions)
|
March 31, 2025
|
December 31, 2024
|
|||||||||
Merchandise inventory | $ |
|
$ |
|
|||||||
Finished goods |
|
|
|||||||||
Raw materials |
|
|
|||||||||
Work in process |
|
|
|||||||||
Total | $ |
|
$ |
|
(in millions)
|
March 31, 2025
|
December 31, 2024
|
|||||||||||||||||||||||||||||||||
Gross value |
Accumulated amortization and impairment
1
|
Carrying value | Gross value |
Accumulated amortization and impairment
1
|
Carrying value | ||||||||||||||||||||||||||||||
Customer relationships | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
Trade names |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Other |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total finite-lived | $ |
|
$ |
|
|
$ |
|
$ |
|
|
|||||||||||||||||||||||||
Indefinite-lived |
|
|
|||||||||||||||||||||||||||||||||
Total | $ |
|
$ |
|
(dollars in millions)
|
March 31, 2025
|
December 31, 2024
|
|||||||||||||||||||||
Interest terms | Rate | Amount | |||||||||||||||||||||
Receivables facility |
SOFR
1
plus
|
|
$ |
|
$ |
|
|||||||||||||||||
Senior secured credit facilities: | |||||||||||||||||||||||
Euro term loans B-4 |
EURIBOR plus
|
|
|
|
|||||||||||||||||||
Euro term loans B-5 |
EURIBOR plus
|
|
|
|
|||||||||||||||||||
U.S. dollar term loans B-6 |
SOFR
1
plus
|
|
|
|
|||||||||||||||||||
2.625% secured notes | fixed rate |
|
|
|
|||||||||||||||||||
3.875% unsecured notes | fixed rate |
|
|
|
|||||||||||||||||||
3.875% unsecured notes | fixed rate |
|
|
|
|||||||||||||||||||
4.625% unsecured notes | fixed rate |
|
|
|
|||||||||||||||||||
Finance lease liabilities |
|
|
|||||||||||||||||||||
Other |
|
|
|||||||||||||||||||||
Total debt, gross |
|
|
|||||||||||||||||||||
Less: unamortized deferred financing costs |
(
|
(
|
|||||||||||||||||||||
Total debt | $ |
|
$ |
|
|||||||||||||||||||
Classification on balance sheets: | |||||||||||||||||||||||
Current portion of debt | $ |
|
$ |
|
|||||||||||||||||||
Debt, net of current portion |
|
|
(in millions)
|
March 31, 2025
|
||||||||||||||||
Receivables facility | Revolving credit facility | Total | |||||||||||||||
Capacity | $ |
|
$ |
|
$ |
|
|||||||||||
Undrawn letters of credit outstanding |
(
|
(
|
(
|
||||||||||||||
Outstanding borrowings |
(
|
|
(
|
||||||||||||||
Unused availability | $ |
|
$ |
|
$ |
|
(in millions)
|
Foreign currency translation | Derivative instruments | Defined benefit plans | Total | |||||||||||||||||||
Balance at December 31, 2024
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
|||||||||||||||
Unrealized gain
|
|
|
|
|
|||||||||||||||||||
Reclassification of (gain) loss into earnings
|
|
(
|
|
|
|||||||||||||||||||
Change due to income taxes |
|
|
(
|
|
|||||||||||||||||||
Balance at March 31, 2025
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
|||||||||||||||
Balance at December 31, 2023
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
|||||||||||||||
Unrealized (loss) gain
|
(
|
|
(
|
(
|
|||||||||||||||||||
Reclassification of gain into earnings
|
|
(
|
|
(
|
|||||||||||||||||||
Change due to income taxes |
(
|
(
|
|
(
|
|||||||||||||||||||
Balance at March 31, 2024
|
$ |
(
|
$ |
|
$ |
|
$ |
(
|
|||||||||||||||
(in millions)
|
Classification |
Three months ended March 31,
|
|||||||||||||||
2025
|
2024
|
||||||||||||||||
Stock options | Equity | $ |
|
$ |
|
||||||||||||
RSUs | Equity |
|
|
||||||||||||||
Other | Both |
(
|
|
||||||||||||||
Total | $ |
|
$ |
|
|||||||||||||
Award classification: | |||||||||||||||||
Equity | $ |
|
$ |
|
|||||||||||||
Liability |
(
|
|
(options and intrinsic value in millions)
|
Number of options | Weighted average exercise price per option | Aggregate intrinsic value | Weighted average remaining term | |||||||||||||||||||
Balance at December 31, 2024
|
|
$ |
|
||||||||||||||||||||
Granted |
|
|
|||||||||||||||||||||
Exercised |
|
|
|||||||||||||||||||||
Forfeited |
(
|
|
|||||||||||||||||||||
Balance at March 31, 2025
|
|
$ |
|
$ |
|
|
|||||||||||||||||
Expected to vest |
|
|
|
|
|||||||||||||||||||
Vested |
|
|
|
|
(awards in millions)
|
Number of awards | Weighted average grant date fair value per award | |||||||||
Balance at December 31, 2024
|
|
$ |
|
||||||||
Granted |
|
|
|||||||||
Vested |
(
|
|
|||||||||
Forfeited |
(
|
|
|||||||||
Balance at March 31, 2025
|
|
$ |
|
(in millions)
|
Three months ended March 31,
|
||||||||||
2025
|
2024
|
||||||||||
Net foreign currency (loss) gain from financing activities
|
$ |
(
|
$ |
|
|||||||
(Expense) income related to defined benefit plans
|
(
|
|
|||||||||
Other |
|
|
|||||||||
Other (expense) income, net
|
$ |
(
|
$ |
|
(in millions)
|
Three months ended March 31,
|
||||||||||
2025
|
2024
|
||||||||||
Income before income taxes
|
$ |
|
$ |
|
|||||||
Income tax expense
|
(
|
(
|
|||||||||
Effective income tax rate |
|
% |
|
% |
(dollars in millions) | ||||||||||||||
Interest rate derivative | Number of instruments | Notional | ||||||||||||
Interest rate swaps |
|
$ |
|
(in millions) | ||||||||||||||||||||||||||||||||
Hedging relationships | Amount of gain or (loss) recognized in OCI on Derivative | Location of gain or (loss) reclassified from AOCI into income | Amount of gain or (loss) reclassified from AOCI into income | |||||||||||||||||||||||||||||
Three months ended March 31,
|
Three months ended March 31,
|
|||||||||||||||||||||||||||||||
2025
|
2024
|
2025
|
2024
|
|||||||||||||||||||||||||||||
Interest rate products
|
$ |
|
$ |
|
Interest expense, net
|
$ |
|
$ |
|
|||||||||||||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
Three months ended March 31,
|
||||||||||||||
2025
|
2024
|
|||||||||||||
(in millions) | Interest expense, net | Interest expense, net | ||||||||||||
Total amounts of line items presented in the statements of operations where the effects of cash flow hedges are recorded | $ |
(
|
$ |
(
|
||||||||||
Amount of gain reclassified from AOCI into income | $ |
|
$ |
|
||||||||||
(value in millions) | ||||||||||||||||||||
Foreign currency derivative
|
Number of instruments
|
Notional sold
|
Notional purchased
|
|||||||||||||||||
Cross-currency swaps
|
|
€ |
|
$ |
|
Effect of Net Investment Hedges on AOCI and the Income Statement
|
||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Hedging relationships
|
Amount of gain or (loss) recognized in OCI on Derivative
|
Location of gain or (loss) recognized in income on Derivative (amount excluded from effectiveness testing)
|
Amount of gain or (loss) recognized in income on Derivative (amount excluded from effectiveness testing)
|
|||||||||||||||||||||||||||||
Three months ended March 31,
|
Three months ended March 31,
|
|||||||||||||||||||||||||||||||
2025
|
2024
|
2025
|
2024
|
|||||||||||||||||||||||||||||
Cross currency swaps
|
$ |
(
|
$ |
|
Interest expense, net
|
$ |
|
$ |
|
|||||||||||||||||||||||
Total | $ |
(
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||
Derivative assets
|
Derivative liabilities
|
||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2025
|
December 31, 2024
|
March 31, 2025
|
December 31, 2024
|
||||||||||||||||||||||||||||||||||||||||||||
(in millions) |
Balance sheet location
|
Fair value
|
Balance sheet location
|
Fair value
|
Balance sheet location
|
Fair value
|
Balance sheet location
|
Fair value
|
|||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments:
|
|||||||||||||||||||||||||||||||||||||||||||||||
Interest rate products
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||||||||||||||||||||||||||||||||
Foreign exchange products
|
|
|
|
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||||||||||||
Total
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
(in millions) |
Three months ended March 31,
|
||||||||||
2025
|
2024
|
||||||||||
Net investment hedges | $ |
|
$ |
(
|
(in millions)
|
March 31, 2025
|
December 31, 2024
|
|||||||||||||||||||||
Gross amount | Fair value | Gross amount | Fair value | ||||||||||||||||||||
Receivables facility | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Senior secured credit facilities: | |||||||||||||||||||||||
Euro term loans B-4 |
|
|
|
|
|||||||||||||||||||
Euro term loans B-5 |
|
|
|
|
|||||||||||||||||||
U.S. dollar term loans B-6 |
|
|
|
|
|||||||||||||||||||
2.625% secured notes |
|
|
|
|
|||||||||||||||||||
3.875% unsecured notes |
|
|
|
|
|||||||||||||||||||
3.875% unsecured notes |
|
|
|
|
|||||||||||||||||||
4.625 % unsecured notes |
|
|
|
|
|||||||||||||||||||
Finance lease liabilities |
|
|
|
|
|||||||||||||||||||
Other |
|
|
|
|
|||||||||||||||||||
Total | $ |
|
$ |
|
$ |
|
$ |
|
(dollars in millions)
|
Three months ended March 31, | Change | |||||||||||||||
2025 | 2024 | ||||||||||||||||
Net sales | $ | 1,581.4 | $ | 1,679.8 | $ | (98.4) | |||||||||||
Gross margin | 33.8 | % | 34.0 | % | (20) bps | ||||||||||||
Operating income | $ | 147.4 | $ | 146.3 | $ | 1.1 | |||||||||||
Operating income margin | 9.3 | % | 8.7 | % | 60 bps | ||||||||||||
Net income
|
$ | 64.5 | $ | 60.4 | $ | 4.1 | |||||||||||
Net income margin
|
4.1 | % | 3.6 | % | 50 bps | ||||||||||||
Adjusted EBITDA | $ | 269.5 | $ | 283.0 | $ | (13.5) | |||||||||||
Adjusted EBITDA margin | 17.0 | % | 16.8 | % | 20 bps | ||||||||||||
Adjusted Operating Income | $ | 242.8 | $ | 258.4 | $ | (15.6) | |||||||||||
Adjusted Operating Income margin | 15.4 | % | 15.4 | % | — bps |
(in millions) |
Three months ended March 31,
|
Reconciliation of net sales growth (decline) to organic net sales growth (decline) | |||||||||||||||||||||||||||||||||
Net sales growth (decline) | Foreign currency impact | Divestiture impact | Organic net sales growth (decline) | ||||||||||||||||||||||||||||||||
2025
|
2024
|
||||||||||||||||||||||||||||||||||
Laboratory Solutions | $ | 1,065.0 | $ | 1,157.1 | $ | (92.1) | $ | (14.5) | $ | (44.1) | $ | (33.5) | |||||||||||||||||||||||
Bioscience Production | 516.4 | 522.7 | (6.3) | (4.5) | — | (1.8) | |||||||||||||||||||||||||||||
Total | $ | 1,581.4 | $ | 1,679.8 | $ | (98.4) | $ | (19.0) | $ | (44.1) | $ | (35.3) |
Three months ended March 31,
|
Change | ||||||||||||||||
2025
|
2024
|
||||||||||||||||
Gross margin | 33.8 | % | 34.0 | % | (20) bps |
(in millions)
|
Three months ended March 31,
|
Change | |||||||||||||||
2025
|
2024
|
||||||||||||||||
Gross profit | $ | 534.9 | $ | 570.5 | $ | (35.6) | |||||||||||
Operating expenses | 387.5 | 424.2 | (36.7) | ||||||||||||||
Operating income
|
$ | 147.4 | $ | 146.3 | $ | 1.1 |
(in millions)
|
Three months ended March 31,
|
Change | |||||||||||||||
2025
|
2024
|
||||||||||||||||
Operating income
|
$ | 147.4 | $ | 146.3 | $ | 1.1 | |||||||||||
Interest expense, net | (42.2) | (64.3) | 22.1 | ||||||||||||||
Loss on extinguishment of debt | — | (2.5) | 2.5 | ||||||||||||||
Other (expense) income, net
|
(19.5) | 1.1 | (20.6) | ||||||||||||||
Income tax expense
|
(21.2) | (20.2) | (1.0) | ||||||||||||||
Net income
|
$ | 64.5 | $ | 60.4 | $ | 4.1 |
(dollars in millions) |
Three months ended March 31,
|
Change | |||||||||||||||
2025
|
2024
|
||||||||||||||||
Adjusted EBITDA
|
$ | 269.5 | $ | 283.0 | $ | (13.5) | |||||||||||
Adjusted EBITDA margin | 17.0 | % | 16.8 | % | 20 bps | ||||||||||||
(dollars in millions) |
Three months ended March 31,
|
Change | |||||||||||||||
2025
|
2024
|
||||||||||||||||
Adjusted Operating Income:
|
|||||||||||||||||
Laboratory Solutions | $ | 139.0 | $ | 148.2 | $ | (9.2) | |||||||||||
Bioscience Production | 123.4 | 126.9 | (3.5) | ||||||||||||||
Corporate | (19.6) | (16.7) | (2.9) | ||||||||||||||
Total | $ | 242.8 | $ | 258.4 | $ | (15.6) | |||||||||||
Adjusted Operating Income margin | 15.4 | % | 15.4 | % | — bps | ||||||||||||
(dollars in millions, % based on net sales) |
Three months ended March 31,
|
||||||||||||||||||||||
2025
|
2024
|
||||||||||||||||||||||
$ | % | $ | % | ||||||||||||||||||||
Net income
|
$ | 64.5 | 4.1 | % | $ | 60.4 | 3.6 | % | |||||||||||||||
Interest expense, net | 42.2 | 2.7 | % | 64.3 | 3.8 | % | |||||||||||||||||
Income tax expense
|
21.2 | 1.3 | % | 20.2 | 1.2 | % | |||||||||||||||||
Depreciation and amortization | 99.7 | 6.3 | % | 99.6 | 5.9 | % | |||||||||||||||||
Loss on extinguishment of debt | — | — | % | 2.5 | 0.1 | % | |||||||||||||||||
Restructuring and severance charges
1
|
4.4 | 0.3 | % | 23.2 | 1.4 | % | |||||||||||||||||
Transformation expenses
2
|
15.4 | 1.0 | % | 13.3 | 0.8 | % | |||||||||||||||||
Other
3
|
4.0 | 0.2 | % | (0.5) | — | % | |||||||||||||||||
Pension termination charges
4
|
18.1 | 1.1 | % | — | — | % | |||||||||||||||||
Adjusted EBITDA | $ | 269.5 | 17.0 | % | $ | 283.0 | 16.8 | % |
(dollars in millions, % based on net sales) |
Three months ended March 31,
|
||||||||||||||||||||||
2025
|
2024
|
||||||||||||||||||||||
$ | % | $ | % | ||||||||||||||||||||
Net income
|
$ | 64.5 | 4.1 | % | $ | 60.4 | 3.6 | % | |||||||||||||||
Interest expense, net | 42.2 | 2.7 | % | 64.3 | 3.8 | % | |||||||||||||||||
Income tax expense
|
21.2 | 1.3 | % | 20.2 | 1.2 | % | |||||||||||||||||
Loss on extinguishment of debt | — | — | % | 2.5 | 0.1 | % | |||||||||||||||||
Other (expense) income, net
|
19.5 | 1.2 | % | (1.1) | — | % | |||||||||||||||||
Operating income
|
147.4 | 9.3 | % | 146.3 | 8.7 | % | |||||||||||||||||
Amortization | 73.9 | 4.7 | % | 75.3 | 4.5 | % | |||||||||||||||||
Restructuring and severance charges
1
|
4.4 | 0.3 | % | 23.2 | 1.4 | % | |||||||||||||||||
Transformation expenses
2
|
15.4 | 1.0 | % | 13.3 | 0.8 | % | |||||||||||||||||
Other
3
|
1.7 | 0.1 | % | 0.3 | — | % | |||||||||||||||||
Adjusted Operating Income | $ | 242.8 | 15.4 | % | $ | 258.4 | 15.4 | % |
(in millions)
|
March 31, 2025 | ||||||||||||||||
Receivables facility | Revolving credit facility | Total | |||||||||||||||
Unused availability under credit facilities: | |||||||||||||||||
Capacity | $ | 269.8 | $ | 975.0 | $ | 1,244.8 | |||||||||||
Undrawn letters of credit outstanding | (15.3) | (3.1) | (18.4) | ||||||||||||||
Outstanding borrowings | (100.0) | — | (100.0) | ||||||||||||||
Unused availability | $ | 154.5 | $ | 971.9 | $ | 1,126.4 | |||||||||||
Cash and cash equivalents | 315.7 | ||||||||||||||||
Total liquidity | $ | 1,442.1 |
(in millions)
|
Three months ended March 31,
|
Change
|
|||||||||||||||
2025 | 2024 | ||||||||||||||||
Operating activities: | |||||||||||||||||
Net income | $ | 64.5 | $ | 60.4 | $ | 4.1 | |||||||||||
Non-cash items
1
|
133.9 | 129.2 | 4.7 | ||||||||||||||
Working capital changes
2
|
(38.2) | (50.0) | 11.8 | ||||||||||||||
All other | (50.9) | 2.0 | (52.9) | ||||||||||||||
Total | $ | 109.3 | $ | 141.6 | $ | (32.3) | |||||||||||
Investing activities: | |||||||||||||||||
Capital expenditures | (28.0) | (34.7) | 6.7 | ||||||||||||||
Other | (0.9) | 0.5 | (1.4) | ||||||||||||||
Total | $ | (28.9) | $ | (34.2) | $ | 5.3 | |||||||||||
Financing activities | (33.6) | (130.2) | 96.6 |
(in millions) |
Three months ended March 31,
|
Change | |||||||||||||||
2025 | 2024 | ||||||||||||||||
Net cash provided by operating activities | $ | 109.3 | $ | 141.6 | $ | (32.3) | |||||||||||
Capital expenditures | (28.0) | (34.7) | 6.7 | ||||||||||||||
Divestiture-related transaction expenses and taxes paid
|
0.8 | — | 0.8 | ||||||||||||||
Free cash flow | $ | 82.1 | $ | 106.9 | $ | (24.8) |
Location of exhibits | ||||||||||||||||||||||||||
Exhibit no. | Exhibit description | Form | Exhibit no. | Filing date | ||||||||||||||||||||||
* | ||||||||||||||||||||||||||
* | ||||||||||||||||||||||||||
* | ||||||||||||||||||||||||||
** | ||||||||||||||||||||||||||
** | ||||||||||||||||||||||||||
101 | XBRL exhibits | * | ||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | * |
Avantor, Inc. | |||||||||||
Date: April 25, 2025 | By: | /s/ Steven Eck | |||||||||
Name: | Steven Eck | ||||||||||
Title: | Senior Vice President, Chief Accounting Officer (Principal Accounting Officer) |