Avantor Reports Strong Q4 and Full Year 2024 Results, Driven by Bioprocessing Growth

Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries, reported its fourth quarter and full year 2024 financial results on February 7, 2025. The company's strong performance was driven by growth in its bioprocessing segment, which grew high-single-digits in the fourth quarter, and a focus on operational discipline and commercial intensity.

Fourth Quarter 2024 Results
------------------------

* Net sales of $1.69 billion, a decrease of 2% compared to the fourth quarter of 2023, with organic growth of 1%.
* Net income of $500.4 million, up from $98.5 million in the fourth quarter of 2023, and adjusted net income of $183.9 million.
* Adjusted EBITDA of $307.7 million, with an adjusted EBITDA margin of 18.2%.
* Diluted GAAP EPS of $0.73, and adjusted EPS of $0.27.
* Operating cash flow of $173.3 million, and free cash flow of $222.1 million.

Full Year 2024 Results
--------------------

* Net sales of $6.78 billion, a decrease of 3% compared to 2023, with an organic decline of 2%.
* Net income of $711.5 million, up from $321.1 million in 2023, and adjusted net income of $677.7 million.
* Adjusted EBITDA of $1,198.8 million, with an adjusted EBITDA margin of 17.7%.
* Diluted GAAP EPS of $1.04, and adjusted EPS of $0.99.
* Operating cash flow of $840.8 million, and free cash flow of $768.3 million.

Key Drivers of Growth
------------------

* Bioprocessing segment growth: The Bioscience Production segment, which includes bioprocessing, reported a 4% increase in net sales on an organic basis, driven by high-single-digit growth in the bioprocessing platform. This growth was supported by focused execution and improving end market conditions.
* Operational discipline and commercial intensity: The company's commitment to operational discipline and commercial intensity led to sequential and year-over-year growth in adjusted EBITDA margin, adjusted EPS, and best-in-class free cash flow conversion.
* Divestiture of Clinical Services: The divestiture of the Clinical Services business contributed to debt reduction and improved net leverage, which positively impacted the company's financial performance.

Looking Ahead
------------

* The company expects continued strength in the bioprocessing segment, driven by focused execution and improving end market conditions.
* Avantor is confident in achieving both its near-term and long-term financial goals, driven by its industry-leading portfolio, resilient supply chain, and relentless efficiency.
* The company is entering the new year with strong momentum and a clear focus on innovation-driven revenue growth, margin expansion, and continued deleveraging.

In conclusion, Avantor's strong fourth quarter and full year 2024 results were driven by growth in the bioprocessing segment and a focus on operational discipline and commercial intensity. The company's commitment to innovation, efficiency, and adaptability positions it well for continued success in the life sciences and advanced technology industries.