Avantor Q2 results beat, raises 2026 outlook

Overview

• Life science tools provider's Q2 sales rose 0.5%, beating analyst expectations

• Adjusted EPS for Q2 was $0.21, above analyst consensus

• Company raised FY 2026 organic revenue growth and adjusted EPS guidance

Outlook

• Avantor raises FY 2026 organic revenue growth guidance to -0.5% to +0.5%

• Company lifts FY 2026 adjusted EPS forecast to $0.80-$0.83

• Avantor maintains FY 2026 adjusted EBITDA margin outlook at 14.8%-15.3% and free cash flow at $500 mln-$550 mln

Result Drivers

• REVIVAL PROGRAM - Co said its Revival program improved customer service and business performance, per CEO Emmanuel Ligner

• VWR DISTRIBUTION SERVICES - Segment returned to positive organic revenue growth sooner than expected, per CEO Emmanuel Ligner

• BIOSCIENCE MEDTECH PRODUCTS - Segment performed near high end of expectations but organic sales declined 5.6% year-on-year

Company press release: ID:nPnffH9Ra

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 14 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies distribution peer group is "buy."

• Wall Street's median 12-month price target for Avantor Inc is $10.50, about 15.5% below its July 28 closing price of $12.42

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 28 - Repligen Q2 revenue beats estimates on higher orders; raises outlook

• July 28 - IQVIA raises annual profit forecast on clinical research demand

• July 28 - UK's Croda H1 sales rise on Consumer Care growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)