Avantor Reports Q2 2025 Results, Highlights Resilience Amid Market Challenges and Announces CEO Transition
Avantor,a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology sectors, today announced its financial results for the second fiscal quarter ended June 30, 2025. The company also provided strategic commentary on its segment performance and reaffirmed its long-term outlook despite near-term macroeconomic headwinds.
“In the second quarter, we continued to maintain our focus on growth acceleration, operational discipline, and driving improved leverage across the business,” said Michael Stubblefield, President and Chief Executive Officer. “While the external environment remained dynamic, our teams executed with focus and agility, helping us meet expectations in several key areas while laying the groundwork for sustained value creation.”
Stubblefield highlighted strong performance in Avantor’s Laboratory Solutions segment and sequential gains in Bioscience Production, despite temporary headwinds including planned maintenance, regulatory challenges, and disruptions at select customer accounts. The company also continued to win significant contract extensions from top pharmaceutical clients, which it views as validation of its trusted partnerships and differentiated capabilities.
“Avantor’s broad portfolio, resilient operating model, and deeply embedded customer relationships uniquely position us to navigate short-term volatility,” Stubblefield added. “We remain committed to investing in innovation, improving service capabilities, and executing mitigation strategies where needed, particularly in our production operations.”
Second Quarter 2025 Financial Highlights
For the three-month period ended June 30, 2025, Avantor reported total net sales of $1.683 billion, representing a 1% decline compared to the second quarter of 2024. The impact of foreign currency exchange rates was a positive 2%, while recent merger and acquisition (M&A) activity contributed a negative 3%, resulting in flat performance on an organic sales basis.
Net income for the quarter fell to $64.7 million, down from $92.9 million in the year-ago period. Adjusted net income, which excludes certain one-time items, was $161.2 million, compared to $168.0 million in Q2 2024. The company’s net income margin was 3.8%, while Adjusted EBITDA came in at $279.8 million, translating to a 16.6% Adjusted EBITDA margin.
Adjusted Operating Income stood at $252.2 million, with an associated margin of 15.0%. Meanwhile, GAAP diluted earnings per share (EPS) was $0.09, and adjusted EPS was reported at $0.24.
From a cash flow perspective, Avantor generated $154.4 million in operating cash flow, while free cash flow totaled $125.4 million for the quarter. As of June 30, 2025, the company’s adjusted net leverage ratio stood at 3.2x, underscoring its continued commitment to disciplined capital management.
Segment Performance Overview
Laboratory Solutions
Avantor’s Laboratory Solutions segment reported net sales of $1.122 billion, reflecting a 3% decline compared to $1.156 billion in the second quarter of 2024. The reported figures include a positive 2% impact from foreign currency translation and a negative 4% impact from M&A-related activity. On an organic basis, sales were down 1%.
Despite a modest decline in revenue, the segment continued to benefit from improvement initiatives aimed at driving efficiency and enhancing customer engagement. “Our Laboratory Solutions business delivered sequential revenue gains in line with internal forecasts,” noted Stubblefield. “We are beginning to see tangible returns from our strategic investments in customer service enhancements and portfolio optimization.”
Adjusted Operating Income for the Laboratory Solutions segment came in at $133.3 million, down from $150.9 million in the same period last year. The Adjusted Operating Income margin stood at 11.9%, reflecting the ongoing investments and the impact of lower volume.
Bioscience Production
The Bioscience Production segment delivered net sales of $561.3 million, marking a 3% increase from $547.1 million in the second quarter of 2024. Foreign currency translation positively contributed 1%, resulting in a 2% increase in organic sales.
However, the segment faced several short-term headwinds, including planned plant maintenance, regulatory-related delays, and commercial disruptions with key customer accounts. These factors impacted throughput and temporarily weighed on profitability. Despite these challenges, Avantor remained optimistic about the segment’s medium- and long-term trajectory.
“Our core monoclonal antibody platform continues to perform exceptionally well, providing a strong foundation for growth,” said Stubblefield. “We are actively executing on mitigation strategies to address near-term issues, and we remain confident in the underlying demand dynamics for bioproduction solutions.”
Adjusted Operating Income for Bioscience Production was $139.7 million, compared to $144.0 million in the prior-year period. The Adjusted Operating Income margin stood at a robust 24.9%, reflecting strong gross margins and operating discipline.
CEO Transition
As previously announced on July 21, 2025, Avantor will undergo a planned leadership transition with the appointment of Emmanuel Ligner as the company’s new President and Chief Executive Officer, effective August 18, 2025. Ligner is a seasoned life sciences executive with extensive global experience and a strong track record of delivering growth and innovation across complex organizations.
Ligner will succeed Michael Stubblefield, who will step down from his role as Director, President, and Chief Executive Officer upon Ligner’s appointment. Stubblefield has led Avantor since 2014, guiding the company through its transformation into a publicly traded global leader in the life sciences and advanced technologies markets.
“We are thrilled to welcome Emmanuel to Avantor at this pivotal time,” said Stubblefield. “His deep industry expertise, strategic acumen, and commitment to science and innovation make him the ideal leader to guide Avantor into its next phase of growth.”
