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Introduction & Market Context
AptarGroup, Inc. (NYSE:ATR) presented its second quarter 2025 results on August 1, 2025, revealing strong performance across all business segments. The company, which specializes in dispensing, sealing, and active packaging solutions for the pharmaceutical, beauty, personal care, home care, and food and beverage markets, reported solid growth metrics despite challenging market conditions.
The presentation comes after a first quarter that saw a modest EPS beat but revenue shortfall. In contrast, Q2 results demonstrate improved momentum across the business, with the stock closing at $156.79 on July 31, 2025, up 0.22% for the day, according to available market data.
As shown in the following slide highlighting key financial metrics, AptarGroup delivered strong results across its core performance indicators:
Quarterly Performance Highlights
AptarGroup reported Q2 2025 sales of $966 million, representing a 6% increase from $910 million in the same period last year. Core sales growth, which excludes the impact of currency effects and acquisitions, was 3%. The company’s reported earnings per share jumped 25% to $1.67, while adjusted earnings per share grew 18% to $1.66.
The detailed breakdown of sales and EPS performance is illustrated in the following slide:
Adjusted EBITDA for the quarter reached $218 million, a 13% increase from $193 million in Q2 2024, with the adjusted EBITDA margin expanding to 22.6% from 21.2% in the prior year. This margin expansion reflects the company’s focus on operational efficiency and cost discipline.
The following slide provides a clear view of the adjusted EPS and EBITDA growth:
AptarGroup also demonstrated its commitment to shareholder returns, returning $100 million to shareholders through dividends and share repurchases in the quarter, bringing the total to $210 million in the first half of the year. Free cash flow for the first six months of 2025 was $92 million, in line with the prior year period.
Segment Analysis
All three of AptarGroup’s business segments contributed positively to the second quarter results, with each expanding their adjusted EBITDA margins compared to the prior year.
The Pharma segment, which continues to be the company’s strongest performer, reported sales of $443 million, a 7% increase from Q2 2024. Core sales grew by 3%, with currency effects contributing an additional 4%. The segment’s adjusted EBITDA margin improved by 130 basis points to 35.4%.
Within the Pharma segment, prescription products saw core sales increase by 8%, injectables by 9%, and active material science by 11%. However, consumer healthcare experienced a 14% decline in core sales, likely due to the normalization of naloxone sales and elevated cough and cold inventory levels in Europe mentioned in the outlook.
The detailed Pharma segment results are shown in the following slide:
The Beauty segment reported sales of $335 million, a 4% increase from Q2 2024. Core sales grew by 1%, with acquisitions and currency effects contributing an additional 3%. The segment’s adjusted EBITDA margin improved slightly by 20 basis points to 14.1%.
Within Beauty, personal care products showed strong performance with 11% core sales growth, while fragrance, facial skin care, and color cosmetics experienced a 4% decline. Home care sales remained flat.
The Closures segment delivered the strongest core sales growth among all segments, with sales reaching $189 million, an 8% increase from Q2 2024. Core sales grew by 7%, with currency effects adding 1%. The segment’s adjusted EBITDA margin improved significantly by 130 basis points to 16.9%.
Food products (TADAWUL:2100) led the growth in the Closures segment with a 13% increase in core sales, followed by beverage products with 7% growth. Personal care products within this segment saw a 4% decline, while other categories grew by 1%.
Product Innovation & Strategic Initiatives
AptarGroup continues to focus on innovation across all segments, introducing new products and technologies to meet evolving customer needs. The company showcased various product highlights in pharmaceuticals, beauty, and closures, demonstrating its commitment to developing high-value solutions.
As illustrated in the following product and technology highlights slide, innovations include lateral control systems, bio-based feedstock nasal pumps, dual-chamber dispensing solutions, and recyclable valves:
The company also emphasized its commitment to sustainability as a competitive advantage, highlighting various recognitions and awards received for its environmental, social, and governance (ESG) initiatives. These accolades include recognition from organizations such as TIME, CDP, EcoVadis, Barron’s, Forbes, and Newsweek.
The following slide showcases these sustainability recognitions:
Outlook & Forward-Looking Statements
Looking ahead to Q3 2025, AptarGroup provided adjusted earnings per share guidance of $1.53 to $1.61, compared to $1.54 in Q3 2024. 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 expects continued strength in the Pharma segment, particularly in injectables, driven by rising demand for higher-value elastomeric components fueled by growth in biologics, GLP-1 therapies, and Annex 1 compliance requirements. However, challenges are anticipated as naloxone sales begin to normalize after a period of rapid growth, and elevated levels of cough and cold inventory in Europe are expected to persist through the quarter.
AptarGroup estimates capital expenditures in 2025, net of any government grants, to be between $270 and $290 million, with the majority of capital allocated toward the pharma segment. Depreciation and amortization for 2025 is estimated to be between $260 and $270 million.
The detailed outlook is presented in the following slide:
Overall, AptarGroup’s Q2 2025 results demonstrate the company’s ability to deliver growth across all segments while expanding margins, despite various market challenges. The focus on innovation, sustainability, and operational efficiency positions the company well for continued success, particularly in high-growth areas such as pharmaceutical injectables for biologics and GLP-1 therapies.
Full presentation:
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