Avantor’s fourth quarter was marked by a negative market reaction, as investors responded to a 1.4% year-over-year revenue decline and operating margin compression. Management attributed these results to ongoing operational changes under its newly launched Revival program and highlighted external pressures, particularly in the laboratory solutions and bioscience production segments. CEO Emmanuel Ligner described 2025 as a “challenging year” and stressed that pricing actions in the lab business, combined with unfavorable mix, weighed on margins. He also noted, “2026 will be a year of transition and investment as we reinforce the foundation of this great company.”
Is now the time to buy AVTR? Find out in our full research report (it’s free for active Edge members).
Avantor (AVTR) Q4 CY2025 Highlights:
- Revenue: $1.66 billion vs analyst estimates of $1.64 billion (1.4% year-on-year decline, 1.5% beat)
- Adjusted EPS: $0.22 vs analyst estimates of $0.22 (in line)
- Adjusted EBITDA: $252.2 million vs analyst estimates of $260.5 million (15.2% margin, 3.2% miss)
- Operating Margin: 7.6%, down from 37.8% in the same quarter last year
- Organic Revenue fell 4% year on year (beat)
- Market Capitalization: $6.17 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Avantor’s Q4 Earnings Call
- Casey Woodring (JPMorgan) asked how VWR’s growth would compare to bioscience and medtech, and about phasing by quarter. CFO Brent Jones replied that challenging comparables in bioscience and medtech would drag on growth, with VWR expected to outperform, but did not provide detailed quarterly phasing.
- Brandon Couillard (Wells Fargo) questioned the level of conservatism in the 2026 outlook. Jones stated the guide was “prudent” with numerous moving parts, and not intentionally conservative or aggressive.
- Paul Knight (KeyBanc) inquired about the margin impact of revival investments and whether these pressures would dissipate in future years. CEO Emmanuel Ligner described 2026 as a “transition year” with self-funded investments, but did not provide granular margin impact details.
- Michael Ryskin (Bank of America) asked if recent pricing actions risked a “race to the bottom” and about the sustainability of margins. Jones said margin pressure was more about mix than pricing, and management is working to make Q1 the low point for margins.
- Matt Larew (William Blair) asked about the scale and focus of the company’s portfolio post-resegmentation, and if further portfolio changes were planned. Ligner stated that all options were being considered, and portfolio work was ongoing with no “taboo” areas.
Catalysts in Upcoming Quarters
Looking ahead, our analysts will be monitoring (1) the impact of digital investments—particularly enhancements to the VWR e-commerce platform—on customer adoption and order volumes, (2) progress in operational efficiency and supply chain improvements under new leadership, and (3) signs of stabilization or growth in early-stage biotech, education, and government end markets. Execution of the Revival program and clarity on the long-term margin trajectory will also be key signposts.
Avantor currently trades at $9.13, down from $11.16 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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