Avantor Raises 2026 Outlook as Both Segments Deliver Organic Growth

Avantor Inc. raised its full-year 2026 organic revenue growth, adjusted earnings and free cash flow guidance after both of its business segments delivered organic growth in the third quarter, marking a key milestone in the company’s Revival operating program.

The life sciences products and services company now expects 2026 organic revenue growth of 0.75% to 1.25%, compared with its previous range of a 0.5% decline to 0.5% growth. Adjusted earnings per share are projected at $0.81 to $0.83, narrowing and lifting the lower end of the prior $0.80-to-$0.83 range. Free cash flow guidance, excluding cash restructuring costs, increased to $525 million to $550 million from $500 million to $550 million.

Avantor maintained its adjusted EBITDA margin outlook of 14.8% to 15.3%. Reported revenue growth is expected to range from 1.5% to 2.0%, including a 0.75-percentage-point foreign-exchange benefit, up from the previously assumed 0.5-point tailwind.

Both segments return to organic growth

Third-quarter revenue rose 4.6% year over year to $1.70 billion, while organic revenue increased 5.2%. Avantor said the consolidated result exceeded its expectations because organic growth in both segments was faster than anticipated.

Adjusted EBITDA declined 4.1% to $257 million. Adjusted EPS was $0.22, down 3% on an unrounded basis despite matching the prior-year quarter when rounded. Management said adjusted EBITDA margin improved sequentially as execution and expense controls helped offset unfavorable business mix, inflation and targeted growth investments.

VWR Distribution & Services generated $1.23 billion in reported revenue and organic growth of 5.8%. The segment posted adjusted operating income of $119 million and an adjusted operating margin of 9.7%.

Avantor attributed VWR’s performance to operational actions and stronger demand among large pharmaceutical and biotechnology customers, particularly in the Americas and Asia. The company also reported progress with small and midsize accounts and positive e-commerce trends. Management expects VWR’s momentum to continue in the fourth quarter, although Europe remained a lagging market and the presentation described only early signs of improvement in higher education and early-stage biotechnology.

Bioscience & Medtech Products, or BMP, returned to organic growth, with revenue increasing 3.6% organically to $465 million. Adjusted operating income was $123 million, representing a 26.6% adjusted operating margin.

The company said Process Chemicals and NuSil contributed to the segment’s performance, while third-quarter order trends remained healthy. Operational initiatives included record production at a key manufacturing line, sequential improvements in throughput and certain service measures, and the deployment of digital manufacturing tools.

Cash generation supports debt reduction and investment

Avantor generated $169 million of third-quarter free cash flow, excluding $13 million of cash restructuring costs, compared with $187 million a year earlier. The company used its cash generation to reduce net debt by $173 million during the quarter.

Net debt stood at $3.24 billion at the end of the period, more than $2 billion below its level at the end of 2023. The adjusted net leverage ratio was 3.1 times as of Sept. 30, leaving Avantor close to its stated goal of less than 3.0 times.

Alongside deleveraging, the company is investing in digital and e-commerce upgrades, manufacturing capabilities, supply-chain infrastructure and delivery performance. These projects form part of Revival, Avantor’s broader program to improve operating discipline, consistency and predictability.

Todd Garner, who has more than 30 years of finance, operating and public-company leadership experience, became chief financial officer on Sept. 21. Avantor said Garner will help advance the Revival program.

For its updated 2026 assumptions, the company expects a blended euro-to-dollar exchange rate of 1.15, modestly lower net interest expense than in 2025 and an adjusted effective tax rate of 22% to 22.5%. Its projected fully diluted share count is 679 million.

The outlook remains subject to execution and demand uncertainty. The presentation identified Europe as a weaker market and noted continuing pressure from inflation, business mix and growth investments. Avantor also cautioned that its forward-looking expectations depend on assumptions and are exposed to the risks described in its regulatory filings.