AptarGroup Reports Strong Third Quarter 2025 Results with Growth Across Pharma and Closures Divisions
CRYSTAL LAKE, Ill. — October 31, 2025 — AptarGroup, Inc. (NYSE: ATR), a global leader in drug delivery and consumer product dispensing, dosing, and protection technologies, today announced its financial results for the third quarter ended September 30, 2025. The company delivered solid growth in sales and profitability, supported by strong demand in its Pharma and Closures segments and disciplined execution across operations.
Third Quarter 2025 Highlights
- Reported sales increased 6%, with core sales (excluding currency effects and acquisitions) up 1%.
- Net income rose 28% to $128 million, while reported earnings per share (EPS) climbed 30% to $1.92.
- Adjusted EPS, which excludes non-ordinary-course litigation costs, grew 4% to $1.62.
- Adjusted EBITDA rose 7% to $223 million, reflecting a 23.2% margin, up from 22.9% a year earlier.
- Shareholder returns totaled $70 million, consisting of dividends and share repurchases.
Nine-Month 2025 Year-to-Date Highlights
- Reported sales increased 3%, and core sales rose 1% compared to the same period last year.
- Net income increased 16% to $318 million, with reported EPS up 17% to $4.75.
- Adjusted EPS grew 7% to $4.48, while Adjusted EBITDA rose 8% to $624 million.
- Adjusted EBITDA margin expanded to 22.2%, compared to 21.2% in 2024.
- Shareholder returns for the nine-month period reached $279 million.
Management Commentary
“Aptar delivered a strong third quarter, with significant growth in Pharma and Closures,” said Stephan B. Tanda, President and CEO. “Our injectables business continues its steady ramp-up, growing 18% in the quarter, and we expect a robust finish to the year driven by elastomeric components. Our ongoing focus on innovation, operational excellence, and disciplined capital allocation continues to create sustainable value for our customers and shareholders.”
Segment Performance
Pharma
Aptar Pharma’s reported sales increased 6%, with core sales up 2%, excluding a 4% positive currency impact. Growth was driven by higher volumes in prescription drug delivery systems, injectables, and active material science solutions.
- Prescription dispensing systems grew 3%, supported by strong demand in central nervous system and asthma therapies, partially offset by moderating demand for emergency medicine applications.
- Injectables surged 18%, fueled by continued momentum in GLP-1 component sales.
- Active material science solutions grew 3%, while consumer healthcare declined 11% due to softer nasal and cold product demand, especially in Europe.
The adjusted EBITDA margin for the Pharma segment improved 120 basis points to 37.2%, reflecting a favorable mix of high-value proprietary drug delivery systems and increased royalty income.
Beauty
The Beauty segment posted an 8% increase in reported sales, driven equally by currency benefits (4%) and acquisitions (4%). Core sales remained flat compared to the prior year.
- Tooling sales were strong and helped offset mixed results across categories.
- Beauty dispensing declined due to weaker indie skincare demand in North America.
- Personal care technologies saw increased sales for hair and body care applications.
Adjusted EBITDA margin decreased 120 basis points to 12.1%, primarily due to a less favorable product mix and lower tooling margins.
Closures
The Closures segment reported a 1% sales increase, with core sales down 1% and a 2% positive currency impact. Despite higher product volumes, results were offset by lower tooling sales and pass-through effects from lower resin prices.
Adjusted EBITDA margin declined 110 basis points to 16.1%, impacted by unscheduled maintenance costs and lower tooling sales.
Earnings and Tax Rate
Aptar’s reported EPS for the third quarter was $1.92, up from $1.48 in the prior year. Both reported EPS and the effective tax rate benefited from the remeasurement of a previously held minority equity interest in BTY.
Adjusted EPS was $1.62, compared with $1.56 last year, based on comparable exchange rates. The reported effective tax rate was 17.1%, while the adjusted tax rate was 20.8%, both lower than the prior year’s 23.8%.
For the nine-month period, reported EPS rose 17% to $4.75, and adjusted EPS increased 7% to $4.48. The company’s reported tax rate was 20.4%, and its adjusted rate was 21.9%, reflecting improved tax efficiencies versus 2024.
Cash Flow and Balance Sheet
Free cash flow for the first nine months of 2025 was $206 million, slightly lower than the prior year due to higher working capital requirements and pension contributions, partially offset by reduced capital expenditures.
As of September 30, Aptar held $265 million in cash and short-term investments and $936 million in net debt, resulting in a leverage ratio of 1.22—a testament to the company’s strong financial position and disciplined balance sheet management.
Outlook
Looking ahead, CEO Tanda said, “Our Pharma pipeline remains robust and continues to contribute between 7% and 10% of revenue annually. We expect ongoing growth in injectables, driven by rising demand for GLP-1, Annex-1, and biologics applications. While emergency-use delivery systems will represent around 5% of total 2025 sales, we anticipate 2026 revenues from this category to normalize following last year’s one-time naloxone ramp-up.”
Tanda added, “All three of our business segments are expected to contribute positively in the fourth quarter. We remain focused on operational excellence and efficiency, and despite a less favorable product mix in the near term, our diversified portfolio and strong innovation pipeline position Aptar for continued growth and margin resilience.”
For the fourth quarter of 2025, Aptar expects adjusted EPS in the range of $1.20 to $1.28, based on an effective tax rate of 19.5% to 21.5% and an exchange rate of 1.17 EUR/USD.
Capital Returns
Aptar’s Board of Directors approved a quarterly cash dividend of $0.48 per share, payable on November 13, 2025, to shareholders of record as of October 23, 2025. During the third quarter, the company repurchased 286,000 shares for approximately $40 million.
Aptar may continue share repurchases through open market transactions, privately negotiated deals, or other programs, depending on market conditions.
Use of Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures, such as adjusted earnings per share, adjusted EBITDA, and core sales, which exclude items like restructuring costs, acquisition-related expenses, purchase accounting adjustments, and unrealized investment gains or losses. These measures also neutralize the impact of foreign currency translation for better comparability with prior periods.
Source Link : https://www.businesswire.com/
