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Investing.com - Avantor, Inc. (NYSE:AVTR) reported first quarter earnings on Friday that met analyst estimates, sending shares up 3.2% in trading following the announcement.
The life sciences and advanced technology products provider posted adjusted earnings per share of $0.23, in line with Wall Street expectations.
Revenue for the quarter came in at $1.58 billion, slightly below the consensus estimate of $1.61 billion and down 6% YoY. On an organic basis, sales declined 2% compared to the same period last year.
"Our first quarter results demonstrate disciplined execution and a continued focus on cost management in a dynamic macro environment," said Michael Stubblefield, President and CEO of Avantor.
He noted that while earnings and margin performance were in line with plans, Lab Solutions revenue was impacted by reduced demand, particularly in the Education and Government end market.
The company reported net income of $64.5 million, up from $60.4 million in the first quarter of 2024. Adjusted EBITDA came in at $269.5 million with a margin of 17.0%.
Avantor announced it is expanding its cost transformation initiative, now targeting $400 million in gross run-rate savings by the end of 2027.
The company also updated its full-year outlook to reflect ongoing funding and policy-related headwinds.
Operating cash flow for the quarter was $109.3 million, while free cash flow reached $82.1 million. The company’s adjusted net leverage stood at 3.2x as of March 31, 2025.
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