Avantor Plunges 10.26% on Revenue Downturn, CEO Exit

Avantor's stock price plummeted by 10.26% during pre-market trading on April 25, 2025, marking a significant downturn for the biopharma supplier.

Avantor has revised its revenue outlook for the year following a decline in demand from government- and education-related end markets, which impacted its first-quarter sales. The company reported a profit of $64.5 million, or 9 cents per share, compared to $60.4 million, or 9 cents per share, in the same period last year. Adjusted earnings, excluding one-time items, were 23 cents per share, meeting analyst expectations.

Revenue decreased by 6% to $1.58 billion, falling short of analyst projections. The company attributed this decline to a drop in demand for its lab-solutions business, particularly in the education and government sectors, due to policy changes from the new presidential administration. As a result, Avantor has lowered its guidance for organic revenue growth, now expecting it to be between a 1% increase and a 1% decrease, down from the previous range of 1% to 3%.

In response to these challenges, Avantor is implementing a comprehensive strategy to strengthen its lab solutions segment and improve overall business performance. Additionally, the company announced that CEO Michael Stubblefield intends to step down and will resign once a successor is found.