Avantor Sees 2026 EPS of $0.77–$0.83 After Q4 Organic Sales Fall 4.1%
Avantor reported Q4 adjusted EPS of $0.22 and $1.66 billion revenue, slightly above consensus, with organic sales falling 4.1% year-over-year after positive 3.1% FX and -0.4% M&A impacts. For 2026, company guides adjusted EPS of $0.77–$0.83, expects organic revenue down 2.5%–0.5%, and plans $500–550 million free cash flow tied to Revival program.
1. Q4 Financial Results
Avantor posted Q4 adjusted earnings of $0.22 per share with revenue of $1.66 billion, slightly above consensus. Sales declined 1.4% year-over-year, driven by a 4.1% organic drop after positive 3.1% foreign currency translation and a 0.4% negative M&A effect. Laboratory Solutions revenue fell 0.9% to $1.116 billion, while Bioscience Production sales decreased 2.4% to $548 million.
2. Fiscal 2026 Guidance
The company guided adjusted EPS for fiscal 2026 to $0.77–$0.83, below the prior consensus of $0.90, and anticipates organic revenue decline between 2.5% and 0.5%. Adjusted EBITDA margin is forecast at 14.8%–15.3%, and free cash flow is expected between $500 million and $550 million, reflecting a transition to prioritized investments.
3. Revival Program and Strategic Initiatives
Under the Revival program, Avantor is reorganizing around customer needs with an optimized go-to-market strategy, relaunch of the VWR brand, and enhancements to its e-commerce platform. The company aims to build operational agility, drive top-line growth, and execute targeted cost improvements within this framework.
4. Valuation and Analyst Commentary
Avantor’s 2026 guidance implies trading at 11.4 times the midpoint of its adjusted EBITDA forecast, below peer multiples of 17.6 times and its historical average of 15.5 times. William Blair rates the stock Market Perform, noting potential upside if end-markets recover and $400 million in cost savings materialize.