AptarGroup Q2 2025 slides: 18% EPS growth as all segments expand margins

Introduction & Market Context

AptarGroup Inc (NYSE:ATR) released its second quarter 2025 financial results on August 1, 2025, demonstrating robust performance across all business segments despite facing some market challenges. The company, which specializes in dispensing, sealing, and active packaging solutions, reported significant growth in both sales and earnings per share while continuing to strengthen its sustainability credentials.

The results come as AptarGroup’s stock trades near its 52-week low of $129.04, despite the company’s solid financial health and growth trajectory. According to recent market data, the stock closed at $130.22 on October 14, 2025, down 0.32% for the day, suggesting investors may be undervaluing the company’s consistent performance.

Quarterly Performance Highlights

AptarGroup reported second quarter sales of $966 million, representing a 6% increase over the same period in 2024. Core sales growth, which excludes the impacts of currency and acquisitions, was 3%. The company benefited from a positive currency effect of 3%, primarily due to the strengthening of the Euro against the U.S. dollar.

As shown in the following chart of quarterly financial results:

Adjusted earnings per share reached $1.66, an impressive 18% increase compared to Q2 2024. This growth was partially driven by a lower effective tax rate of 20.0%, down from 23.5% in the prior year period. Even neutralizing for foreign currency effects and tax benefits, adjusted EPS would have increased by 13% over the prior year quarter.

The company’s adjusted EBITDA grew to $218 million, representing a 13% increase over Q2 2024’s $193 million, as illustrated in this chart:

AptarGroup continued to demonstrate its commitment to shareholder returns, with $100 million returned to shareholders through dividends and share repurchases during the quarter. This brings the total shareholder returns to $210 million for the first half of 2025.

Segment Performance Analysis

All three of AptarGroup’s business segments contributed positively to the quarter’s results, with each expanding their adjusted EBITDA margins compared to the prior year.

The Pharma segment, which remains the company’s largest and most profitable division, posted sales of $443 million, a 7% increase over Q2 2024. Core sales grew by 3%, with currency effects adding 4% to reported growth. The segment achieved an impressive adjusted EBITDA margin of 35.4%, up 130 basis points from 34.1% in the prior year.

The Pharma segment’s performance by market is illustrated here:

Within the Pharma segment, prescription core sales increased by 8% and injectables core sales grew by 9%, while consumer healthcare core sales decreased by 14%. The decline in consumer healthcare was attributed to normalizing naloxone sales and elevated levels of cough and cold inventory in Europe.

The Beauty segment reported sales of $335 million, a 4% increase over Q2 2024, with core sales growth of 1% and a 2% positive currency effect. The segment’s adjusted EBITDA margin improved slightly to 14.1%, up from 13.9% in the prior year.

The Closures segment demonstrated the strongest core sales growth among all segments at 7%, with total sales reaching $189 million, an 8% increase over Q2 2024. The segment’s adjusted EBITDA margin expanded significantly to 16.9%, up from 15.6% in the prior year, representing a 130 basis point improvement.

Food applications led the growth in the Closures segment with a 13% increase in core sales, followed by beverage applications with 7% growth.

Strategic Initiatives & Innovation

AptarGroup continues to strengthen its competitive position through product innovation and sustainability initiatives. The company showcased several new product developments across all segments during the quarter, reinforcing its commitment to innovation as a key growth driver.

In the Pharma segment, notable innovations included a Lateral Control System with One-Push Button, Bag-on-Valve with Pacifica Soft Actuator, Ophthalmic Squeeze Dispenser, and Bio-Based Feedstock Nasal Pump. The Beauty segment introduced Dual-Chamber Dispensing with Locking Capability, Fragrance Pump for Refillable Packaging, and Precise Dropper Technology, among other innovations.

The company’s sustainability efforts continue to gain recognition, as evidenced by numerous awards and certifications. AptarGroup has been named to TIME World’s Most Sustainable Companies (2024-2025), CDP Climate A List (2024), and maintained its EcoVadis Platinum status since 2021, positioning sustainability as a competitive advantage.

Forward-Looking Statements & Guidance

Looking ahead to the third quarter of 2025, AptarGroup provided earnings per share guidance in the range of $1.53 to $1.61. This guidance reflects a negative impact of approximately 6 to 7 cents driven by higher legal fees associated with litigating pharmaceutical intellectual property rights.

The company’s outlook for Q3 2025 is summarized in this chart:

Management expects a solid third quarter with continued strength in the Pharma segment, though challenges are anticipated as naloxone sales begin to normalize and elevated levels of cough and cold inventory in Europe persist. The company also expects modest contributions from the Closures and Beauty segments in Q3.

For the full year 2025, AptarGroup estimates capital expenditures to be between $270 and $290 million, with depreciation and amortization expected to range from $260 to $270 million.

The company’s free cash flow for the first six months of 2025 was $92 million, resulting from cash from operations of $209 million less capital expenditures of $117 million, net of government grants.

Despite near-term challenges in specific markets, AptarGroup’s diversified business model, focus on innovation, and operational efficiency improvements position the company for continued growth. With all segments expanding margins and the company maintaining its commitment to shareholder returns, AptarGroup appears well-positioned to navigate market uncertainties while delivering long-term value.

Full presentation:

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