Avantor NYSE: AVTR said first-quarter 2026 results came in ahead of internal expectations, driven by improved execution in its Bioscience & Medtech Products (BMP) segment and early progress from its “Revival” operational and commercial program. Management reaffirmed full-year guidance and said it believes the company is “turning a corner financially,” with VWR Distribution & Services stabilizing and BMP expected to bottom in the second quarter.
First-quarter results exceed expectations
President and CEO Emmanuel Ligner said the quarter “exceeded our expectations due to improved execution in Bioscience & Medtech Products segments, and we have reaffirmed our full year guidance.” He added that adjusted earnings per share were ahead of the company’s expectations and that results provided “evidence that the VWR segment is stabilizing.”
EVP and CFO Brent Jones reported total first-quarter revenue of $1.581 billion, down 4% organically and flat year over year on a reported basis. Adjusted EBITDA was $219 million, for a 13.9% margin, and adjusted EPS was $0.17. Free cash flow was $25 million, or $39 million excluding restructuring costs. Jones said cash flow was within expectations and reflected an anticipated headwind from customer “prebates.”
Avantor repaid about $105 million of debt during the quarter and ended with an adjusted net leverage ratio of 3.3x adjusted EBITDA. Jones said leverage increased slightly due primarily to lower trailing twelve-month adjusted EBITDA.
VWR declines on volume but management cites stabilization and digital “green shoots”
VWR Distribution & Services revenue was $1.15 billion, down 5% organically year over year. Jones attributed the decline primarily to lower volumes, citing industry dynamics and European market weakness. The company estimated severe winter weather in the U.S. reduced segment revenue by about 50 basis points.
Adjusted operating income in VWR was $105 million, with a 9.2% adjusted operating margin. Jones said the margin decline year over year was driven “primarily to volume and net price capture,” with increased freight costs also a headwind.
Both Ligner and Jones emphasized improved performance in the company’s e-commerce channel following multiple upgrades and a relaunch of vwr.com. Ligner said the VWR e-commerce platform showed “green shoots of improved performance in traffic conversion and revenue growth.” Jones similarly pointed to improvement in “traffic, conversion, and revenue growth rates in the U.S. and Europe,” calling digital enhancement a top priority.
On the outlook, Senior Vice President and Chief Accounting Officer Steve Eck said the company believes “VWR’s growth rate reached a trough in the first quarter” and expects gradual improvement through 2026, with “positive organic growth in the second half.”
BMP execution improves; book-to-bill tops 1.1x
BMP revenue was $431 million, down 2% organically year over year but ahead of the company’s expectations. Jones said stronger-than-expected execution in process chemicals and NuSil drove the outperformance.
Within BMP, Jones said process chemicals grew double digits organically due to improving operations and strong orders. He said fluid handling and NuSil were down double digits, in part due to difficult comparisons the company had anticipated, while research and specialty chemicals declined about 100 basis points organically. Jones added that pricing was positive in BMP during the quarter.
BMP adjusted operating income was $103 million, for a 23.8% adjusted operating margin. Jones attributed the year-over-year margin decline to inventory provisions, lower volumes, and mix, among other factors.
Management highlighted order momentum and improving operational stability in BMP. Jones said BMP back orders declined modestly and the company had “better line of sight to improved operational performance.” He also called out “strong order performance” with a book-to-bill of more than 1.1x across BMP, and “particular strength” in the process chemicals order book.
In response to an analyst question, Ligner said many process chemical products run on “30 to 60 days, 90 days lead times,” and he linked the stronger order intake to the company’s increased commercial intensity and S&OP focus under Revival.
Revival actions: leadership refresh, Kaizen events, and CapEx council
Ligner said the company is seeing “a clear improvement in execution and increased accountability” from Revival, including a data-driven approach to measuring performance. He also detailed leadership and operational actions underway:
- Leadership changes: Ligner said Avantor has “refresh[ed] approximately 25%” of the senior leadership group, filling roles such as Chief Operating Officer, Chief Procurement Officer, Head of VWR Sourcing, and Head of VWR Pricing. He noted the hiring of Chief Digital Officer James Finn (from Medline) and said Ludovic Brellier (from Cytiva) will join to lead BMP and serve as Chief Transformation Officer.
- Headcount reduction: Ligner said year-to-date overall headcount is down about 2%, and he characterized some talent investments as “self-funded with increased productivity.”
- Operational focus: Ligner said Avantor completed more than eight weeks of Kaizen events in the first quarter and formed a monthly CapEx council to review capital commitments. He described a project to install modular automation at a North American manufacturing facility to simplify workflows, improve quality and compliance, increase throughput, reduce cost per unit, and free capacity for higher-value work.
Ligner also noted that CFO Brent Jones will depart next month and thanked him for his contributions, while Jones said he remains “completely confident in Revival and Avantor’s future prospects.”
Guidance reaffirmed; inflationary headwind monitored
Eck said Avantor reaffirmed 2026 guidance and expects second-quarter adjusted EPS of $0.19 to $0.20. He also addressed inflation and supply chain pressures linked to the Middle East conflict, saying the company is currently more concerned about raw material and services pricing than availability. Avantor estimated an incremental operating income headwind of about $10 million to $20 million for 2026, and Eck said the reaffirmed guidance incorporates that impact.
Ligner said the company has formed a task force and is evaluating inbound and outbound freight exposure as well as inflation in certain critical materials. He also said the company is monitoring what it can pass through to customers and referenced tools used during COVID-era inflation, including surcharges in certain geographies.
On the second quarter revenue outlook, Eck said BMP will face tougher comparisons, including those tied to “idiosyncratic customer ordering patterns” and the NuSil, serum, and electronic materials businesses. He said BMP’s year-over-year organic growth in Q2 will be “worse than the Q1 experience by more than 500 basis points,” which the company expects to represent the low point for BMP growth in 2026. Jones later told analysts the company was “probably talking about a decline of 500 basis points” at the enterprise level in Q2.
Eck also said Avantor expects adjusted operating margins in both segments to increase sequentially from Q1 to Q2 in line with seasonal patterns. On capital allocation, he said debt reduction remains the top priority, and Avantor remains committed to reducing adjusted net leverage sustainably below 3x.
Looking beyond near-term comparisons, Ligner said the company’s confidence in returning to positive organic growth in the second half is tied to VWR stabilizing, BMP reaching a growth trough in Q2, and Revival-driven improvements in commercial intensity and operational excellence, along with leadership additions. He added that while it is “too early” to detail 2027, he is “optimistic that 2027 will be a growth year.”
About Avantor NYSE: AVTR
Avantor, Inc NYSE: AVTR is a global provider of mission-critical products and services to customers in the biopharma, healthcare, education & government, and advanced technologies & applied materials industries. The company delivers essential solutions that support research, development, production and safety applications. Its product portfolio spans from high-purity chemicals and reagents to biologics and cell culture media, as well as lab equipment, consumables and custom manufacturing services.
Avantor's offerings are organized across two primary segments.
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