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AptarGroup, Inc. (NYSE:ATR) presented its first quarter 2025 results on May 2, showcasing a mixed performance with flat core sales but improved profitability metrics. The company demonstrated resilience in its Pharma segment while facing headwinds in Beauty, and maintained a positive outlook for the coming quarters.
Quarterly Performance Highlights
Aptar reported Q1 2025 sales of $887 million, representing a 3% decrease from the $915 million reported in the same period last year. While reported sales declined, core sales growth remained flat year-over-year. The company’s reported earnings per share (EPS) decreased 5% to $1.17 compared to $1.23 in Q1 2024, while adjusted EPS showed a smaller decline of 2%, reaching $1.20.
Despite the sales challenges, Aptar improved its profitability with adjusted EBITDA increasing 3% to $183 million, resulting in an adjusted EBITDA margin of 20.7%. The company also returned approximately $110 million to shareholders through dividends and share repurchases, including $80 million in share repurchases.
As shown in the following financial highlights slide:
The company’s effective tax rate increased significantly from 20% in Q1 2024 to 26% in Q1 2025, which negatively impacted both reported and adjusted earnings figures. Without this tax impact, the adjusted EPS would have shown growth rather than decline.
The detailed quarterly results comparison illustrates both the sales decline and segment performance:
Segment Analysis
Aptar’s performance varied significantly across its three main business segments. The Pharma segment delivered solid results driven by continued demand for proprietary drug delivery systems, maintaining its position as the company’s strongest performer.
In contrast, the Beauty segment experienced decreased sales primarily due to lower prestige fragrance volumes. This continues a trend seen in previous quarters, as the Q3 2024 results had also shown a 6% decline in the Beauty segment’s core sales.
The Closures segment showed mixed results, with product sales increasing but being offset by lower tooling sales and unprofitable sales in Argentina. The company noted that without these specific headwinds, the Closures segment’s core sales would have increased by approximately 3%.
The adjusted earnings metrics provide further insight into the company’s operational efficiency:
Innovation and Sustainability Focus
Aptar highlighted its ongoing commitment to innovation across all segments, showcasing new product developments in Pharma, Beauty, and Closures. Key innovations included the commencement of clinical studies to validate their proprietary SmartTrack platform in the Pharma segment, and the introduction of new fragrance pump technologies for refillable packaging in the Beauty segment.
The following slide details these product and technology highlights:
The company also emphasized its leadership in sustainability, showcasing numerous recognitions from organizations including Barron’s Most Sustainable Companies (2019-2025), EcoVadis Platinum (since 2021), and CDP Climate A List (2024). These accolades underscore Aptar’s commitment to environmental responsibility and sustainable business practices.
As illustrated in the sustainability recognitions slide:
Forward-Looking Statements
Looking ahead, Aptar provided an optimistic outlook for Q2 2025, projecting earnings per share in the range of $1.56 to $1.64, which would represent a significant increase from Q2 2024’s reported EPS of $1.34 and adjusted EPS of $1.37. The company expects to benefit from a lower effective tax rate of 19-21% in Q2 2025, primarily due to a one-time tax benefit.
The outlook slide demonstrates the projected earnings growth:
Management expressed confidence in building on their "solid start" to the year, stating they are well-positioned across resilient end markets with their in-region supply chain. Capital expenditures for 2025 are estimated at $280-$300 million, with the majority allocated toward the pharma segment, indicating continued investment in the company’s strongest performing business.
Aptar’s mixed Q1 2025 results reflect both challenges and opportunities, with operational efficiency improvements helping to offset sales pressures. The company’s focus on innovation, sustainability, and strategic capital allocation suggests a continued emphasis on long-term growth despite near-term variability across segments.
Full presentation:
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