Avantor reported second-quarter 2026 results showing its Revival program is improving execution, with VWR Distribution & Services returning to 1.7% organic growth ahead of expectations and management raising its full-year outlook. Bioscience & Medtech Products organic revenue fell 5.6% year over year, though the segment posted double-digit order growth and a 1.1 times book-to-bill ratio, with management expecting organic growth to return in the second half of 2026. Gross margin contracted about 120 basis points to 31.7% and adjusted operating margin fell 170 basis points to 13.3%, pressured by lower volumes, unfavorable mix, inflation and higher freight costs. Avantor raised its 2026 organic revenue growth outlook to negative 0.5% to positive 0.5% and lifted adjusted earnings per share guidance to 80-83 cents, while ending the quarter with about $307 million in cash and total debt of roughly $3.7 billion, having repaid $112.1 million of debt during the quarter. The stock carries a Zacks Rank #2 (Buy), but its Value Score of C, Growth Score of D, Momentum Score of F and VGM Score of D do not reinforce the Rank, supporting a selective stance while the recovery develops.
Avantor IncAvantor's Q2 results beat expectations, raised full-year outlook, and repaid debt.
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