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1. Company Snapshot

1.a. Company Description

Avantor, Inc.provides products and services to customers in biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa.The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips.


It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies.In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services.Avantor, Inc.


was founded in 1904 and is headquartered in Radnor, Pennsylvania.

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1.b. Last Insights on AVTR

Avantor, Inc.'s recent performance was negatively impacted by its Q3 2025 earnings miss, with adjusted earnings of $0.22 per share, below the consensus estimate of $0.23 per share. The company's net sales decreased by 5% to $1.62 billion, and it reported a net loss of $712 million. A non-cash goodwill impairment charge of $785 million also affected the company's results. Additionally, multiple securities fraud investigations have been announced on behalf of Avantor investors. The company, however, announced a $500 million share repurchase authorization.

1.c. Company Highlights

2. Avantor's Q3 2025 Earnings: A Challenging Quarter with a Revival Plan

Avantor reported revenue of $1.62 billion for Q3 2025, down 5% year-over-year on an organic basis. The adjusted EBITDA margin was 16.5%, and adjusted EPS was $0.22, slightly below estimates of $0.23. The company's financial performance was impacted by commercial complexity and operational challenges, as noted by Emmanuel Ligner, "the quarter's performance was disappointing, but fixable."

Publication Date: Nov -03

📋 Highlights
  • Revenue Decline:: Q3 organic revenue fell 5% YoY to $1.62 billion, with full-year guidance revised to -3.5% to -2.5% organic growth.
  • Adjusted EBITDA Margin:: Maintained at 16.5%, with $400 million in expected cost savings by 2027 from transformation programs.
  • Share Repurchase Program:: $500 million authorized to reflect long-term confidence, alongside debt reduction and leverage improvement.
  • Segment Performance:: Laboratory Solutions (-5% organic) and Bioscience Production (-4% organic) both saw declines, with bioprocessing order intake up high single-digits.
  • Revival Strategy Pillars:: Focus on go-to-market evolution, supply chain investment, customer service, brand leverage, and operational efficiency to address complexity and on-time delivery issues.

Segment Performance

Laboratory Solutions revenue was down 5% organically, while Bioscience Production revenue was down 4% organically. The company's cost transformation program is on track to deliver $400 million in run-rate savings by the end of 2027, which should help improve profitability.

Revival Plan

Emmanuel Ligner outlined a revival plan, "Avantor Revival," with five key pillars: evolving the go-to-market strategy, investing in manufacturing and supply chain, focusing on customer service and commercial organization, leveraging the company's brands, and improving operational efficiency. The company also announced a $500 million share repurchase program to demonstrate its long-term conviction in its platform.

Valuation

Avantor's current valuation metrics indicate that the market is pricing in significant challenges. The P/E Ratio is -98.0, and the EV/EBITDA is 14.96. The P/S Ratio is 1.63, and the Price-to-Book Ratio is 1.45. Analysts estimate next year's revenue growth at 0.4%, which suggests a slow recovery.

Outlook

The company's guidance for full-year organic revenue growth was reduced to negative 3.5% to negative 2.5%, and adjusted EPS guidance was reduced to between $0.88 and $0.92. The management team is committed to improving performance and regaining trust, but it will take time to see the impact of the revival plan.

3. NewsRoom

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Levi & Korsinsky Notifies Avantor, Inc. Investors of a Class Action Lawsuit and Upcoming Deadline – AVTR

Dec -04

Source: globenewswire.com

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Avantor® Appoints Sanjeev Mehra to its Board of Directors

Dec -04

Source: prnewswire.com

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LRN INVESTOR ALERT: Bronstein, Gewirtz & Grossman LLC Announces that Stride, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

Dec -04

Source: globenewswire.com

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AVTR Investors Have Opportunity to Lead Avantor, Inc. Securities Fraud Lawsuit with the Schall Law Firm

Dec -04

Source: globenewswire.com

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Shareholders that lost money on Avantor, Inc.(AVTR) should contact The Gross Law Firm about pending Class Action - AVTR

Dec -04

Source: prnewswire.com

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ROSEN, REGARDED INVESTOR COUNSEL, Encourages Avantor, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action - AVTR

Dec -04

Source: newsfilecorp.com

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The Gross Law Firm Notifies Shareholders of Avantor, Inc.(AVTR) of a Class Action Lawsuit and an Upcoming Deadline

Dec -03

Source: globenewswire.com

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AVANTOR, INC. (NYSE: AVTR) SHAREHOLDER ALERT Bernstein Liebhard LLP Reminds Avantor, Inc. Investors of Upcoming Deadline

Dec -03

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.87%)

6. Segments

Proprietary Materials & Consumables

Expected Growth: 5%

Avantor's Proprietary Materials & Consumables segment growth is driven by increasing demand for bioprocessing and pharmaceutical production, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation and R&D investments in high-growth areas such as gene therapy and mRNA-based vaccines contributes to its 5% growth rate.

Third Party Materials & Consumables

Expected Growth: 3%

Avantor's Third Party Materials & Consumables segment growth is driven by increasing demand for bioprocessing and pharmaceutical production, expansion into emerging markets, and strategic partnerships. Additionally, the company's ability to provide high-quality, cost-effective solutions and its strong relationships with suppliers contribute to its growth.

Services & Specialty Procurement

Expected Growth: 4%

Avantor's Services & Specialty Procurement segment growth is driven by increasing demand for bioprocessing and pharmaceutical development, expansion of research and development activities, and strategic partnerships. Additionally, the company's investments in digital platforms and e-commerce capabilities enhance customer experience, leading to increased adoption and retention.

Equipment & Instrumentation

Expected Growth: 3%

Avantor's Equipment & Instrumentation segment growth is driven by increasing demand for bioprocessing and research applications, expansion in emerging markets, and strategic acquisitions. Additionally, the segment benefits from the company's strong relationships with pharmaceutical and biotechnology customers, as well as its ability to provide customized solutions and services.

7. Detailed Products

Biotechnology Products

Avantor offers a range of biotechnology products, including nucleic acid purification kits, PCR reagents, and molecular biology enzymes.

Chemicals and Reagents

Avantor provides a wide range of chemicals and reagents, including organic and inorganic compounds, solvents, and biochemicals.

Lab Supplies and Equipment

Avantor offers a variety of lab supplies and equipment, including pipettes, tubes, and laboratory instruments.

Pharmaceutical Ingredients

Avantor provides active pharmaceutical ingredients (APIs) and excipients for the development and manufacturing of pharmaceutical products.

Custom Manufacturing Services

Avantor offers custom manufacturing services, including contract manufacturing, toll manufacturing, and private labeling.

Research and Development Services

Avantor provides research and development services, including process development, scale-up, and analytical services.

8. Avantor, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Avantor, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the availability of alternative products and services.

Bargaining Power Of Customers

Avantor, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are critical to its customers' operations, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Avantor, Inc. relies on a few large suppliers for certain raw materials, which gives these suppliers some bargaining power. However, the company's diversified supply chain and long-term contracts mitigate this risk.

Threat Of New Entrants

The biotechnology and pharmaceutical industries have high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise. This limits the threat of new entrants.

Intensity Of Rivalry

The biotechnology and pharmaceutical industries are highly competitive, with many established players and new entrants vying for market share. Avantor, Inc. faces intense competition from companies with similar product offerings and strong research and development capabilities.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.32%
Debt Cost 6.58%
Equity Weight 48.68%
Equity Cost 10.76%
WACC 8.61%
Leverage 105.41%

11. Quality Control: Avantor, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
WD-40

A-Score: 4.7/10

Value: 1.5

Growth: 6.0

Quality: 8.2

Yield: 3.0

Momentum: 1.0

Volatility: 8.7

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Axalta Coating Systems

A-Score: 4.6/10

Value: 5.8

Growth: 5.6

Quality: 6.9

Yield: 0.0

Momentum: 2.0

Volatility: 7.7

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Quaker Chemical

A-Score: 4.4/10

Value: 5.8

Growth: 6.3

Quality: 3.2

Yield: 3.0

Momentum: 2.5

Volatility: 5.3

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Avient

A-Score: 4.2/10

Value: 5.2

Growth: 3.2

Quality: 4.0

Yield: 5.0

Momentum: 1.5

Volatility: 6.0

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Albemarle

A-Score: 3.9/10

Value: 8.2

Growth: 3.6

Quality: 2.9

Yield: 3.0

Momentum: 3.0

Volatility: 2.7

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Avantor

A-Score: 3.5/10

Value: 6.3

Growth: 5.8

Quality: 5.0

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.93$

Current Price

10.93$

Potential

-0.00%

Expected Cash-Flows