10-Q · April 29, 2026
Avantor, Inc. reported Q1 2026 net sales of $1,581.4 million, flat year-over-year, with diluted GAAP EPS dropping to $0.06, missing consensus expectations of $0.16. The company noted ongoing headwinds from inflation and…
Earnings analysis · 10-Q
AVTR earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Avantor delivered Q2 sales of $1.6923 billion, up 0.5% year over year and ahead of consensus, with VWR Distribution & Services returning to 1.7% organic growth. However, consolidated organic sales fell 0.4%, gross…
Read full summary
Avantor delivered Q2 sales of $1.6923 billion, up 0.5% year over year and ahead of consensus, with VWR Distribution & Services returning to 1.7% organic growth. However, consolidated organic sales fell 0.4%, gross margin contracted 120 bps to 31.7%, and GAAP diluted EPS declined to $0.06 from $0.09 a year ago; EPS was flat sequentially versus Q1 2026. Liquidity is solid at $1.6866 billion, but the newly disclosed VWR Distribution goodwill sensitivity—only a 5.5% fair-value cushion—is a material balance-sheet risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.06
What stood out
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Revenue exceeded consensus and grew sequentially
Q2 net sales were $1.6923 billion, up $8.9 million (0.5%) from $1.6834 billion a year earlier and above the $1.6091 billion consensus estimate. Revenue also rose from $1.58 billion in Q1 2026.
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VWR returned to organic growth
VWR Distribution & Services grew $33.0 million, or 2.7%, to $1.2405 billion; its $20.0 million, or 1.7%, organic increase was driven by controlled-environment consumables and specialty procurement.
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Positive cash generation despite weaker earnings
Operating cash flow totaled $236.9 million for the first six months, while free cash flow was $168.0 million after $71.1 million of capital expenditures. Capex equaled approximately 2.2% of $3.2737 billion of six-month sales.
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Liquidity remains substantial
Liquidity was $1.6866 billion at June 30, comprising $306.8 million of cash and $1.3798 billion of unused revolver capacity. Required term-loan payments over the next 12 months are $30.8 million.
What to watch
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Margin compression drove lower GAAP earnings
Gross margin fell 120 bps year over year to 31.7%, while operating margin declined 50 bps to 7.2%, due to unfavorable mix, inflationary pressures and lower sales volumes. GAAP net income dropped $26.6 million to $38.1 million and diluted EPS was $0.06 versus $0.09 a year earlier.
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Bioscience weakness offsets VWR improvement
Bioscience & Medtech Products revenue declined $24.1 million (5.1%) to $451.8 million, including a $26.8 million (5.6%) organic decline, led by lower Fluid Handling and NuSil volumes.
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New VWR goodwill-impairment risk factor
The filing adds a risk factor that VWR Distribution is at risk of goodwill impairment: at March 31 its fair value exceeded carrying value by only approximately 5.5%, with approximately $2.8 billion of goodwill allocated to the unit. A further deterioration could produce a material non-cash charge.
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Working capital and capex reduced cash flow
Six-month operating cash flow declined $26.8 million to $236.9 million as working-capital changes consumed $103.6 million, versus $58.0 million a year ago. Free cash flow fell $39.5 million to $168.0 million as capex increased $13.5 million to $71.1 million.
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Underlying profitability remained under pressure
Adjusted EBITDA declined $25.5 million (9.1%) to $254.3 million and its margin contracted 160 bps to 15.0%. Restructuring, severance and related impairment charges were $24.0 million in the quarter.
Management's outlook
The 10-Q MD&A does not provide quantitative FY2026 revenue or EPS guidance; outlook was deferred to earnings communications outside this filing.
Earlier filings 4
10-K · February 11, 2026
Avantor's 2025 10-K emphasizes a recurring, digital-first distribution and specialty-manufacturing model ("more than 85% of our net sales" recurring; "approximately 80% of our transactions came from our digital channels…
10-K · February 14, 2024
Avantor emphasizes a customer-centric strategy serving biopharma, healthcare, education & government and advanced technologies from discovery to delivery, supported by a broad portfolio and global supply chain. The…
10-Q · July 28, 2023
Avantor reported Q2 2023 revenue of $1,743.9 million, down versus Q2 2022 ($1,910.5 million). The company booked a $160.8 million impairment (Ritter) that depressed operating income to $71.7 million and produced a Q2…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.