Avantor Returns to Sales Growth and Raises Parts of Its 2026 Outlook

Avantor returned to year-over-year sales growth in the third quarter and raised parts of its 2026 outlook, with the life science tools supplier saying results beat its own expectations for revenue and adjusted earnings.

Net sales rose 4.6% to $1.698 billion from $1.624 billion a year earlier, and grew 5.2% on an organic basis, according to the earnings release Avantor filed with an 8-K on Wednesday. Adjusted EPS was 22 cents, and GAAP diluted EPS was 30 cents.

"Not done with our Revival journey"

"We are delighted to return to year-over-year growth in the third quarter," President and CEO Emmanuel Ligner said in the release. "We are not done with our Revival journey yet, but this achievement reflects the dedication of our associates and the progress we are making to sharpen our strategic focus and improve execution."

Ligner said improving execution and stronger end markets give the company "a foundation for sustained revenue growth."

Guidance moves higher

Avantor now expects 2026 organic revenue growth of 0.75% to 1.25%, up from a range of minus 0.5% to plus 0.5% in July. It nudged adjusted EPS guidance to 81 to 83 cents, from 80 to 83 cents, and lifted the low end of its free cash flow forecast, now $525 million to $550 million versus $500 million to $550 million. The adjusted EBITDA margin target was unchanged at 14.8% to 15.3%.

Segment picture

VWR Distribution & Services, the larger segment, grew net sales 5.0% to $1.234 billion, or 5.8% organically, which the company called another quarter of improving revenue performance. But the unit's adjusted operating income fell to $119.4 million from $132.0 million, and margin slipped to 9.7%, which Avantor attributed to unfavorable product mix and higher selling, general and administrative expenses.

Bioscience & Medtech Products returned to organic growth as expected, with sales up 3.5% to $464.5 million, or 3.6% organically. Adjusted operating income rose to $123.4 million, and margin held flat at 26.6%.

Behind the bottom line

Net income was $203.4 million, compared with a net loss of $711.8 million a year earlier, when Avantor booked a $785.0 million non-cash goodwill impairment tied to its former Distribution reporting unit. This quarter's GAAP profit was lifted by an income tax benefit of $105.4 million.

Adjusted net income, which strips out items such as amortization, restructuring and the related tax effects, was $146.4 million, down from $151.1 million. Adjusted EBITDA fell to $256.9 million, for a margin of 15.1%, from $267.9 million.

Cash and debt

Avantor generated $195.1 million of operating cash flow and $156.2 million of free cash flow in the quarter. Gross debt stood at $3.70 billion at Sept. 30, with cash of $464.3 million. Adjusted net leverage was 3.1x.

The company scheduled a conference call for 8 a.m. ET on Wednesday.

Sources

1. Avantor Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001628280-26-067710)
2. Avantor Form 10-Q for the quarter ended Sept. 30, 2026, filed Oct. 28, 2026 (accession 0001628280-26-067751)

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