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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 declining revenues, contracting margins, and a soft 2026 outlook. The company's Q4 earnings beat estimates, but revenues slipped and margins declined. A class action lawsuit and securities fraud allegations added to the pressure. The CEO signaled an investment year amid soft guidance, and unusually large options trading activity was observed. Additionally, the company's 2025 results showed a net sales decline of 3% and a net loss of $530 million.

1.c. Company Highlights

2. Avantor's 2025 Earnings Report: A Year of Transition

Avantor's Q4 2025 revenue came in at $1.66 billion, down 4% year-over-year on an organic basis, while adjusted EBITDA margin was 15.2%. Adjusted EPS for the quarter was 22¢, at the midpoint of guidance. For the full-year 2025, reported revenues were $6.552 billion, down 3% on an organic basis, and adjusted EBITDA was $1.069 billion, representing a 16.3% margin. The actual EPS for Q4 was 0.22, beating estimates of 0.21.

Publication Date: Feb -16

📋 Highlights
  • Organic Revenue Decline in 2025: Reported revenue fell 4% YoY in Q4 and 3% organically for the full year 2025, driven by market challenges and strategic repositioning.
  • Adjusted EBITDA Margin Stability: Q4 adjusted EBITDA margin held at 15.2%, with 2026 guidance expecting a 100-150 bps contraction due to mix shifts and revival investments.
  • Significant Debt Reduction: $300 million in debt repayment in 2025 and $75 million in Q4 share repurchases under the $500 million program, targeting leverage below 3x net debt/EBITDA.
  • 2026 Revival Program Investments: $10–15 million allocated to VWR digital upgrades in 2026, plus $20 million for supply chain improvements, signaling long-term growth bets.
  • Free Cash Flow Resilience: Q4 free cash flow reached $117 million, with 2026 guidance at $500–550 million, despite margin pressures from cost inflation and SG&A headwinds.

Resegmentation and Go-to-Market Strategy

Avantor is resegmenting its business into two new business units: a product-agnostic channel and a channel-agnostic product business. This new structure is expected to facilitate sharper market positioning and clarify the company's identity. As Emmanuel Ligner stated, "We are focusing on customer needs and wants to be clear about our offerings." The company is investing $10 to $15 million in 2026 to upgrade its customer's interface and enhance its digital capabilities.

Guidance and Outlook

For fiscal year 2026, Avantor expects organic revenue growth of negative 2.5% to negative 0.5%. The company expects EBITDA margins to contract by 100-150 basis points in 2026 due to various factors such as bioscience and medtech product growth, mix shifts, and revival investments. The adjusted EPS outlook for 2026 is $0.77-$0.83. Analysts estimate next year's revenue growth at 2.5%, indicating a potential upside.

Valuation Metrics

Avantor's current P/E Ratio is -11.82, and its EV/EBITDA is -24.13, indicating a potentially undervalued stock. The company's Net Debt / EBITDA is 1.36, which is in line with Emmanuel Ligner's target to sustainably reduce leverage below three times net debt to adjusted EBITDA. The Free Cash Flow Yield is 8.34%, which is a positive indicator.

Investment and Growth Prospects

The company is investing in e-commerce, talent, and other areas to drive top-line growth and profitability. These investments will be self-funded, with a focus on continuous improvement and optimization. While 2026 is expected to be a transition year, the company is optimistic about its long-term growth prospects. As Emmanuel Ligner mentioned, "It's too early to talk about future growth after the transition year."

3. NewsRoom

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New Strong Sell Stocks for February 17th

Feb -17

Source: zacks.com

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AVTR Stock Plunges Despite Q4 Earnings Beat Estimates, Margins Decline

Feb -12

Source: zacks.com

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Avantor Sees Unusually Large Options Volume (NYSE:AVTR)

Feb -12

Source: defenseworld.net

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Avantor Falls To Critical Levels As CEO Signals Investment Year Amid Soft Guidance

Feb -11

Source: benzinga.com

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Avantor, Inc. (AVTR) Q4 2025 Earnings Call Transcript

Feb -11

Source: seekingalpha.com

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Avantor (AVTR) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Feb -11

Source: zacks.com

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Avantor, Inc. (AVTR) Surpasses Q4 Earnings and Revenue Estimates

Feb -11

Source: zacks.com

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Avantor® Reports Fourth Quarter and Full Year 2025 Results

Feb -11

Source: prnewswire.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: 4.8/10

Value: 1.5

Growth: 6.0

Quality: 8.5

Yield: 3.0

Momentum: 1.0

Volatility: 8.7

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A-Score: 4.7/10

Value: 5.3

Growth: 5.6

Quality: 7.0

Yield: 0.0

Momentum: 2.5

Volatility: 7.7

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Quaker Chemical

A-Score: 4.6/10

Value: 5.9

Growth: 6.2

Quality: 3.5

Yield: 3.0

Momentum: 3.5

Volatility: 5.3

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Avient

A-Score: 4.5/10

Value: 5.4

Growth: 3.2

Quality: 4.0

Yield: 7.0

Momentum: 1.5

Volatility: 6.0

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Albemarle

A-Score: 3.8/10

Value: 4.0

Growth: 3.4

Quality: 3.3

Yield: 2.0

Momentum: 7.5

Volatility: 2.7

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Avantor

A-Score: 3.4/10

Value: 6.4

Growth: 5.8

Quality: 3.3

Yield: 0.0

Momentum: 1.0

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

9.27$

Current Price

9.27$

Potential

-0.00%

Expected Cash-Flows