• Net sales of $1.71 billion, decrease of 0.3%; organic decline of 0.7%
• Net income of $57.8 million; Adjusted EBITDA of $302.5 million
• Diluted GAAP EPS of $0.08; adjusted EPS of $0.26
• Operating cash flow of $244.8 million; free cash flow of $204.0 million

Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries, today reported financial results for its third fiscal quarter ended September 30, 2024.

"Our team delivered another quarter of solid financial results, including outperformance in bioprocessing and a return to growth in our laboratory solutions segment. Our disciplined approach to working capital drove another quarter of best-in-class free cash flow conversion and we are raising our free cash flow guidance for the year," said Michael Stubblefield, President and Chief Executive Officer.

"As we enter the fourth quarter, we remain on track to realize mid to high single-digit growth in our bioprocessing business, supported by continued momentum in order intake. Our cost transformation programs are running ahead of plan, and we are well positioned to achieve our full year guidance. Moving forward, we remain focused on delivering long-term growth for Avantor and differentiated value to our customers and shareholders," Stubblefield concluded.

Third Quarter 2024

For the three months ended September 30, 2024, net sales were $1,714.4 million, a decrease of 0.3% compared to the third quarter of 2023. Foreign currency translation had a positive impact of 0.4%, resulting in a sales decline of 0.7% on an organic basis.

Net income decreased to $57.8 million from $108.4 million in the third quarter of 2023, and adjusted net income was $175.2 million as compared to $171.6 million in the comparable prior period. Net Income margin was 3.4%. Adjusted EBITDA was $302.5 million and Adjusted EBITDA margin was 17.6%. Adjusted Operating Income was $274.8 million and Adjusted Operating Income margin was 16.0%.

Diluted earnings per share on a GAAP basis was $0.08, while adjusted EPS was $0.26.

Operating cash flow was $244.8 million, while free cash flow was $204.0 million. Adjusted net leverage was 3.8x as of September 30, 2024.

Third Quarter 2024 – Segment Results

Laboratory Solutions

• Net sales were $1,171.5 million, a reported increase of 1.1%, as compared to $1,159.1 million in the third quarter of 2023. Sales increased 0.6% on an organic basis.
• Adjusted Operating Income was $151.5 million as compared to $159.1 million in the comparable prior period. Adjusted Operating Income margin was 12.9%.

Bioscience Production

• Net sales were $542.9 million, a reported decrease of 3.2%, as compared to $561.1 million in the third quarter of 2023. Sales declined 3.5% on an organic basis.
• Adjusted Operating Income was $138.1 million as compared to $148.2 million in the comparable prior period. Adjusted Operating Income margin was 25.4%.

Adjusted Operating Income is Avantor's segment reporting profitability measure under generally accepted accounting principles and is used by management to measure and evaluate the performance of our Company's business segments.