Avantor recently released its 10-Q report for the quarter ended March 31, 2026. Avantor, Inc. supplies products and services used by customers in biopharma, healthcare, education and government, advanced technologies, and applied materials across the Americas, Europe, Asia, the Middle East, and Africa. Its portfolio includes chemicals, reagents, lab supplies, silicone materials, excipients, single-use assemblies, chromatography products, analytical kits, equipment, and a range of lab and production services.
In Item 2, management said first-quarter net sales were $1.5814 billion, unchanged from $1.5814 billion a year earlier, but organic net sales fell 4.1%, or $64.3 million. Net income declined to $43.3 million from $64.5 million, while operating income fell to $99.5 million from $147.4 million.
Gross margin narrowed to 31.7% from 33.8%, a drop of 210 basis points. Avantor said the decline reflected lower sales volume, inflationary pressures, higher inventory reserves, and freight costs, partly offset by favorable foreign currency effects.
Operating expenses rose to $401.2 million from $387.5 million, and operating income dropped $47.9 million. Management tied the increase in expenses mainly to inflationary pressure on compensation and unfavorable foreign exchange movements.
Adjusted EBITDA fell to $219.4 million from $269.5 million, with margin declining to 13.9% from 17.0%. Adjusted Operating Income decreased to $190.6 million from $242.8 million, and the margin fell to 12.1% from 15.4%.
Avantor’s segment structure changed effective January 1, 2026, and it now reports through two segments: Bioscience & Medtech Products and VWR Distribution & Services. The company said this change did not affect consolidated results.
In Bioscience & Medtech Products, first-quarter sales rose to $431.4 million from $426.4 million, but organic sales fell 2.0%, or $8.6 million. Management said the decline was driven mainly by lower volume in Fluid Handling and NuSil, partly offset by higher Process Chemicals volume.
In VWR Distribution & Services, sales slipped to $1.15 billion from $1.155 billion, while organic sales fell 4.8%, or $55.7 million. The company said lower sales of lab consumables and equipment and instrumentation in the VWR Channel drove the decline.
Adjusted Operating Income in Bioscience & Medtech Products fell to $102.7 million from $114.5 million. In VWR Distribution & Services, it dropped to $105.4 million from $147.9 million.
Avantor also flagged a goodwill impairment review for the VWR Distribution reporting unit after a sustained decline in its share price and market capitalization. The company said fair value exceeded carrying value by a limited margin and no impairment was recorded in the quarter. The market has reacted to these announcements by moving the company's shares 1.8% to a price of $7.90. For the full picture, make sure to review Avantor's 10-Q report.
