Aptar Reports Third Quarter 2025 Results (Form 8-K)

Aptar Reports Third Quarter 2025 Results

Crystal Lake, Illinois, October 30, 2025 -- AptarGroup, Inc. (NYSE:ATR), a global leader in drug delivery and consumer product dosing, dispensing and protection technologies, today reported the following third quarter results for the period ended September 30, 2025, as compared to the corresponding period of the last fiscal year.

Third Quarter 2025 Highlights

(Compared to the prior year quarter; see Non-GAAP section for full definitions; see reconciliation for Non-GAAP measures)

•Reported sales increased 6% and core sales increased 1%

•Strong product volume growth in Closures and Pharma, especially in injectables

•Reported net income increased 28% to $128 million and reported earnings per share increased 30% to $1.92

•Adjusted earnings per share, which also excludes non-ordinary-course litigation costs (see Non-GAAP section for full definition), increased 4% to $1.62

•Adjusted EBITDA, which also excludes non-ordinary-course litigation costs, increased 7% to $223 million

•Adjusted EBITDA margin was 23.2% compared to 22.9% in the prior year

•Returned $70 million to shareholders through share repurchases and dividends

Nine Months Year-to-Date 2025 Highlights

(Compared to the prior year period; see Non-GAAP section for full definitions; see reconciliation for Non-GAAP measures)

•Reported sales increased 3% and core sales increased 1%

•Reported net income increased 16% to $318 million and reported earnings per share increased 17% to $4.75

•Adjusted earnings per share increased 7% to $4.48

•Adjusted EBITDA increased 8% to $624 million, and Adjusted EBITDA margin was 22.2% compared to 21.2% in the prior year

•Returned $279 million to shareholders through share repurchases and dividends

"Aptar delivered solid third quarter results with strong product volume growth in Pharma and Closures. As we anticipated, we are seeing the steady ramp in sales in our injectables division, which grew 18% in the third quarter, indicating an expected strong finish to the year for elastomeric components. Our continued focus on innovation, operational excellence and disciplined capital deployment, positions us well to deliver sustainable value for our customers and shareholders, while expanding our third quarter adjusted EBITDA margin," said Stephan B. Tanda, Aptar President and CEO.

Third Quarter Results

For the quarter ended September 30, 2025, reported sales increased 6% to $961 million compared to $909 million in the prior year and core sales increased 1%.

Third Quarter Segment Sales Analysis (Change Over Prior Year)
			Aptar Pharma			Aptar Beauty			Aptar Closures			Total AptarGroup
Reported Sales Growth			6%			8%			1%			6%
Currency Effects (1)			(4)%			(4)%			(2)%			(4)%
Acquisitions			0%			(4)%			0%			(1)%
Core Sales Growth			2%			0%			(1)%			1%

(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates.

Aptar Pharma's reported sales increased 6% with currency changes contributing 4%, resulting in a 2% increase in core sales in the quarter when compared to the prior year period. Growth was primarily driven by higher volumes in prescription drugs, injectables and active material science solutions. In the prescription division, sales for dispensing systems rose 3% primarily due to strong demand for central nervous system therapies and asthma treatments, as well as moderating demand for emergency medicine. Injectables division sales surged 18%, driven by robust GLP-1 component sales. Active material science solutions grew 3%. Consumer healthcare sales declined 11% due to softer demand in nasal and cold products. This was particularly evident in Europe, the division's largest market. Adjusted EBITDA margin was 37.2%, which also excludes non-ordinary-course litigation costs, an increase of 120 basis points, reflecting strong sales performance of higher value proprietary drug delivery systems and higher royalties.

Aptar Beauty's reported sales increased 8% driven by a 4% benefit from currency changes and a 4% contribution from acquisitions, while core sales remained flat compared to the prior year quarter. Strong tooling sales offset mixed performance across markets, with beauty dispensing sales down due to weaker indie skincare demand in North America. Personal care technology sales increased due to demand for hair care and body care applications. Adjusted EBITDA margin was 12.1% a decline of 120 basis points due to the less favorable mix for products and the impact of lower tooling margins.

Aptar Closures' reported sales rose 1% from the prior year quarter and core sales decreased 1%, with a 2% currency benefit. Product sales volumes were up; however, core sales results were more than offset by lower tooling sales and pass throughs of lower resin pricing. Adjusted EBITDA margin was 16.1% a decline of 110 basis points due to some unscheduled maintenance costs and lower tooling sales.

Aptar reported third quarter earnings per share of $1.92 compared to $1.48 reported a year ago. Reported EPS and the reported effective tax rate were impacted by the remeasurement of the previously held minority equity interest in BTY. Adjusted earnings per share were $1.62, compared to the prior year period's adjusted earnings per share of $1.56, including comparable exchange rates. The third quarter reported effective tax rate was 17.1% and the adjusted effective tax rate was 20.8%, compared to the prior year period's reported and adjusted effective tax rate of 23.8%.

Nine Months Year-To-Date Results

For the nine months ended September 30, 2025, reported sales increased 3% to $2.81 billion compared to $2.73 billion in the prior year. Core sales also increased 1%.

Nine Months Year-To-Date Segment Sales Analysis (Change Over Prior Year)
			Aptar Pharma			Aptar Beauty			Aptar Closures			Total AptarGroup
Total Reported Sales Growth			4%			2%			1%			3%
Currency Effects (1)			(2)%			(1)%			0%			(1)%
Acquisitions			0%			(1)%			0%			(1)%
Core Sales Growth			2%			0%			1%			1%

(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates.

For the nine months ended September 30, 2025, Aptar's reported earnings per share were $4.75, an increase of 17%, compared to $4.05 reported a year ago. For the first nine months of the year, adjusted earnings per share were $4.48 and increased 7% from prior year adjusted earnings per share of $4.19, including comparable exchange rates. The current year had a reported effective tax rate of 20.4% and an adjusted effective tax rate of 21.9% compared to the prior year reported and adjusted effective tax rates of 22.7% and 22.8% respectively.

In the first nine months of 2025, free cash flow was $206 million, with the year-over-year decline primarily driven by higher working capital and pension contributions, partially offset by lower capital expenditures. The company ended September with $265 million in cash and short-term investments, $936 million in net debt, and a leverage ratio of 1.22.

Outlook

Regarding Aptar's outlook, Tanda stated, "We expect our Pharma pipeline to remain strong and to continue to contribute 7% to 10% of revenue annually, with new launches layered on to a stable base. We also anticipate continued growth in injectables to be driven by accelerating demand for GLP-1, Annex-1 and biologics applications. In the short-term, we expect to face tough comparisons from a one-time naloxone ramp-up. For full year 2025, emergency-use delivery systems are expected to represent about 5% of total company sales. Based on current demand, funding policies and customer inventories, we anticipate full year 2026 revenue from this category will be lower than full year 2025. All three of our segments are expected to contribute positively in Q4. Operational discipline is part of our DNA, sharpening execution and driving efficiency. While the sales mix is expected to be less favorable due to the impact of lower emergency-use dispensing system sales, we believe our diversified portfolio, strong pipeline and disciplined execution position us well for long-term growth and margin resilience."

Aptar currently expects adjusted earnings per share for the fourth quarter of 2025 to be in the range of $1.20 to $1.28. This guidance is based on an effective tax rate range of 19.5% to 21.5%. The earnings per share guidance range is assuming a 1.17 Euro to USD exchange rate.

Cash Dividends and Share Repurchases

As previously announced, Aptar's Board of Directors approved a quarterly cash dividend of $0.48 per share. The payment date is November 13, 2025, to stockholders of record as of October 23, 2025. During the third quarter, Aptar repurchased 286,000 shares for $40 million. Aptar may repurchase shares through the open market, privately negotiated transactions or other programs, subject to market conditions.

Open Conference Call

There will be a conference call held on Friday, October 31, 2025 at 8:00 a.m. Central Time to discuss the company's third quarter results for 2025. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations website at investors.aptar.com. Replay of the conference call can also be accessed for a limited time on the Investor Relations page of the website.

About Aptar

Aptar is a global leader in drug delivery and consumer product dosing, dispensing and protection technologies. Aptar serves a number of attractive end markets including pharmaceutical, beauty, food, beverage, personal care and home care. Using market expertise, proprietary design, engineering and science to create innovative solutions for many of the world's leading brands, Aptar in turn makes a meaningful difference in the lives, looks, health and homes of millions of patients and consumers around the world. Aptar is headquartered in Crystal Lake, Illinois and has more than 13,000 dedicated employees in 20 countries. For more information, visit www.aptar.com.

Presentation of Non-GAAP Information

This press release refers to certain non-GAAP financial measures, including current year adjusted earnings per share and adjusted EBITDA, which exclude the impact of restructuring initiatives, acquisition-related costs, certain purchase accounting adjustments related to acquisitions and investments and net unrealized investment gains and losses related to observable market price changes on equity securities, and other special items. Core sales and adjusted earnings per share also neutralize the impact of foreign currency translation effects when comparing current results to the prior year. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items. For the three and nine months ended September 30, 2025, "Other special items" include costs incurred related to non-ordinary-course litigation, specifically: lawsuits between Aptar and ARS Pharmaceuticals, Inc., involving Aptar's claims of trade-secret misappropriation and contractual breaches and ARS's counterclaims under U.S. antitrust laws; and patent infringement actions filed by Nemera La Verpillière SAS in Germany and France relating to certain of Aptar's ophthalmic products. These costs are excluded because they do not reflect our core operating performance. Please refer to "Legal Proceedings" within Note 12 - Commitments and Contingencies within Aptar's Form 10-Q for the quarterly period ended September 30, 2025 for more information. Adjusted EBITDA margin is adjusted EBITDA divided by reported net sales. Non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures provided by other companies. Aptar's management believes these non-GAAP financial measures provide useful information to our investors because they allow for a better period over period comparison of operating results by removing the impact of items that, in management's view, do not reflect Aptar's core operating performance. These non-GAAP financial measures also provide investors with certain information used by Aptar's management when making financial and operational decisions. Free cash flow is calculated as cash provided by operating activities less capital expenditures plus proceeds from government grants related to capital expenditures. We believe that it is meaningful to investors in evaluating our financial performance and measuring our ability to generate cash internally to fund our initiatives. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial results but should be read in conjunction with the unaudited condensed consolidated statements of income and other information presented herein. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is included in the accompanying tables. Our outlook is provided on a non-GAAP basis because certain reconciling items are dependent on future events that either cannot be controlled, such as exchange rates and changes in the fair value of equity investments, or reliably predicted because they are not part of the company's routine activities, such as restructuring, acquisition costs and other special items.