APTARGROUP, INC.ATR
APTARGROUP, INC. Segments Disclosure
SEGMENT INFORMATION
We are organized into three reporting segments. Operations that sell proprietary dispensing systems, drug delivery systems, sealing solutions and services to the prescription drug, consumer health care, injectables, active material science solutions and digital health markets form our Pharma segment. Operations that sell dispensing systems and sealing solutions to the fragrance, facial skincare, color cosmetics, personal care and home care markets form our Beauty segment. Operations that sell dispensing closures, sealing solutions and food service trays to the food, beverage, personal care, home care, beauty and other markets form our Closures segment. The Pharma and Beauty segments are named for the markets they serve with multiple product platforms, while the Closures segment is named primarily for a single product platform that serves all available markets.
The accounting policies of the segments are the same as those described in Note 1 – Summary of Significant Accounting Policies. We adopted ASU 2023-07, Improvement to Reportable Segment Disclosures which requires enhanced segment disclosure. Our chief operating decision maker, ("CODM") is our President and Chief Executive Officer, Stephan Tanda. Our CODM is provided operating reports from each of our reportable segments which include or can easily derive significant segment expenses identified as selling, research & development and administrative expenses and cost of sales by segment. Additionally, the other segment items is primarily comprised of foreign currency gains or losses from operations and other non-operating activity. Our CODM evaluates performance of our reporting segments and allocates resources based upon Adjusted EBITDA. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items. Adjusted EBITDA provides useful information regarding performance of each segment as it reflects profitability and performance of each segment on a consistent and comparable basis, and our CODM considers budget-to-actual variances on a monthly basis when making decisions supporting capital resource allocation, including in connection with development, acquisition and disposition activities in each segment.
Financial information regarding our reporting segments is shown below:
In thousands | |||||||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Total Sales: | |||||||||||||||||
| Pharma | $ | 1,738,470 | $ | 1,644,012 | $ | 1,521,837 | |||||||||||
| Beauty | 1,338,138 | 1,252,904 | 1,297,477 | ||||||||||||||
| Closures | 736,943 | 721,564 | 706,847 | ||||||||||||||
| Total Sales | $ | 3,813,551 | $ | 3,618,480 | $ | 3,526,161 | |||||||||||
| Less: Intersegment Sales: | |||||||||||||||||
| Pharma | $ | 989 | $ | 860 | $ | 844 | |||||||||||
| Beauty | 28,701 | 27,174 | 29,780 | ||||||||||||||
| Closures | 6,680 | 7,556 | 8,087 | ||||||||||||||
| Total Intersegment Sales | $ | 36,370 | $ | 35,590 | $ | 38,711 | |||||||||||
| Net Sales: | |||||||||||||||||
| Pharma | $ | 1,737,481 | $ | 1,643,152 | $ | 1,520,993 | |||||||||||
| Beauty | 1,309,437 | 1,225,730 | 1,267,697 | ||||||||||||||
| Closures | 730,263 | 714,008 | 698,760 | ||||||||||||||
| Net Sales | $ | 3,777,181 | $ | 3,582,890 | $ | 3,487,450 | |||||||||||
| Less: | |||||||||||||||||
Cost of Sales (exclusive of depreciation and amortization): | |||||||||||||||||
| Pharma | 885,928 | 834,595 | 797,542 | ||||||||||||||
| Beauty | 965,316 | 884,433 | 922,223 | ||||||||||||||
| Closures | 523,939 | 511,409 | 507,866 | ||||||||||||||
| Selling, Research & Development and Administrative: | |||||||||||||||||
| Pharma | 252,946 | 241,357 | 221,808 | ||||||||||||||
| Beauty | 194,246 | 183,903 | 192,831 | ||||||||||||||
| Closures | 91,921 | 89,913 | 87,930 | ||||||||||||||
Other Segment Items: | |||||||||||||||||
| Pharma | (9,039) | (1,171) | (990) | ||||||||||||||
| Beauty | (8,896) | (2,515) | (11,073) | ||||||||||||||
| Closures | (2,074) | (1,456) | (729) | ||||||||||||||
| Adjusted EBITDA (1): | |||||||||||||||||
| Pharma | $ | 607,646 | $ | 568,371 | $ | 502,633 | |||||||||||
| Beauty | 158,771 | 159,909 | 163,716 | ||||||||||||||
| Closures | 116,477 | 114,142 | 103,693 | ||||||||||||||
Adjusted EBITDA for Reportable Segments | $ | 882,894 | $ | 842,422 | $ | 770,042 | |||||||||||
Corporate & Other, unallocated | (67,792) | (67,498) | (62,320) | ||||||||||||||
| Acquisition-related costs (2) | (3,253) | (140) | (480) | ||||||||||||||
| Restructuring Initiatives (3) | (9,837) | (13,002) | (45,004) | ||||||||||||||
| Curtailment gain related to restructuring initiatives (4) | 115 | 1,851 | — | ||||||||||||||
| Net unrealized investment (loss) gain (5) | (483) | 1,713 | (2,775) | ||||||||||||||
| Gain from remeasurement of equity method investment (6) | 26,518 | — | — | ||||||||||||||
| Other special items (7) | (8,360) | — | — | ||||||||||||||
| Depreciation and amortization | (287,363) | (263,784) | (248,593) | ||||||||||||||
| Interest Expense | (52,737) | (43,898) | (40,418) | ||||||||||||||
| Interest Income | 11,676 | 12,101 | 4,373 | ||||||||||||||
| Income before Income Taxes | $ | 491,378 | $ | 469,765 | $ | 374,825 | |||||||||||
In thousands | |||||||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Depreciation and Amortization: | |||||||||||||||||
| Pharma | $ | 136,111 | $ | 120,429 | $ | 109,365 | |||||||||||
| Beauty | 91,066 | 82,931 | 83,399 | ||||||||||||||
| Closures | 56,716 | 57,326 | 52,095 | ||||||||||||||
Depreciation and Amortization for Reportable Segments | 283,893 | 260,686 | 244,859 | ||||||||||||||
| Corporate & Other | 3,470 | 3,098 | 3,734 | ||||||||||||||
| Depreciation and Amortization | $ | 287,363 | $ | 263,784 | $ | 248,593 | |||||||||||
| Capital Expenditures: | |||||||||||||||||
| Pharma | $ | 143,068 | $ | 148,261 | $ | 196,083 | |||||||||||
| Beauty | 68,193 | 64,571 | 83,872 | ||||||||||||||
| Closures | 50,968 | 45,766 | 52,160 | ||||||||||||||
Capital Expenditures for Reportable Segments | 262,229 | 258,598 | 332,115 | ||||||||||||||
| Corporate & Other | 11,889 | 23,630 | 14,729 | ||||||||||||||
| Transfer of Corporate Expenditures (8) | (3,699) | (5,747) | (34,502) | ||||||||||||||
| Capital Expenditures | $ | 270,419 | $ | 276,481 | $ | 312,342 | |||||||||||
| Total Assets: | |||||||||||||||||
| Pharma | $ | 2,283,609 | $ | 2,057,586 | $ | 2,111,779 | |||||||||||
| Beauty | 1,691,850 | 1,392,491 | 1,412,203 | ||||||||||||||
| Closures | 799,403 | 746,127 | 765,930 | ||||||||||||||
Total Assets for Reportable Segments | 4,774,862 | 4,196,204 | 4,289,912 | ||||||||||||||
| Corporate & Other | 477,857 | 236,074 | 161,978 | ||||||||||||||
| Total Assets | $ | 5,252,719 | $ | 4,432,278 | $ | 4,451,890 | |||||||||||
(1)We evaluate performance of our reporting segments and allocate resources based upon Adjusted EBITDA. 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.
(2)Acquisition-related costs include transaction costs (and purchase accounting adjustments related to acquisitions and investments) (see Note 19 - Acquisitions and Note 20 – Investments in Equity Securities for further details).
(3)Restructuring Initiatives includes expense items for the years ended December 31, 2025, 2024 and 2023 as follows (see Note 21 – Restructuring Initiatives for further details):
In thousands | |||||||||||||||||
| Year Ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||
| Restructuring Initiatives by Plan: | |||||||||||||||||
| Optimization initiative | $ | 9,837 | $ | 13,019 | $ | 45,445 | |||||||||||
| Prior year initiatives | — | (17) | (441) | ||||||||||||||
| Total Restructuring Initiatives | $ | 9,837 | $ | 13,002 | $ | 45,004 | |||||||||||
| Restructuring Initiatives by Segment: | |||||||||||||||||
| Pharma | $ | 1,080 | $ | 589 | $ | 4,852 | |||||||||||
| Beauty | 4,469 | 8,041 | 20,683 | ||||||||||||||
| Closures | 3,566 | 3,835 | 17,927 | ||||||||||||||
| Corporate & Other | 722 | 537 | 1,542 | ||||||||||||||
| Total Restructuring Initiatives | $ | 9,837 | $ | 13,002 | $ | 45,004 | |||||||||||
(4)The curtailment gain is included in the line in the Consolidated Statements of Income (see Note 9 - Retirement and Deferred Compensation Plans).
(5)Net unrealized investment (loss) gain represents the change in fair value of our investment in PCT (see Note 20 – Investment in Equity Securities for further details).
(6)The gain on remeasurement of equity method investment represents the remeasurement of our previously held minority equity interest in BTY at fair value (see Note 19 – Acquisitions for further details).
(7)Other special items includes costs related to non-ordinary-course litigation regarding the matters disclosed under "Legal Proceedings" within Note 13 – Commitments and Contingencies, as these costs do not reflect our core operating performance.
(8)The transfer of corporate expenditures represents amounts of projects managed by corporate for the benefit of specific entities within each segment. Once the projects are complete, all related costs are allocated from corporate to and paid by the appropriate entity and the associated assets are then depreciated at the entity level. The increase in 2023 relates to a project build in Suzhou, China.
Geographic Information
The following are net sales and long-lived asset information by geographic area and product information for the years ended December 31, 2025, 2024 and 2023:
| 2025 | 2024 | 2023 | |||||||||||||||
| Net Sales to Unaffiliated Customers (1): | |||||||||||||||||
| United States | $ | 1,071,430 | $ | 1,037,968 | $ | 949,248 | |||||||||||
| Europe: | |||||||||||||||||
| France | 513,281 | 499,795 | 541,333 | ||||||||||||||
| Germany | 163,913 | 169,891 | 160,812 | ||||||||||||||
| Italy | 201,895 | 180,101 | 200,817 | ||||||||||||||
| Spain | 195,405 | 171,779 | 175,101 | ||||||||||||||
| Other Europe | 788,065 | 748,302 | 727,662 | ||||||||||||||
| Total Europe | 1,862,559 | 1,769,868 | 1,805,725 | ||||||||||||||
| China | 194,406 | 155,502 | 146,026 | ||||||||||||||
| Other Foreign Countries | 648,786 | 619,552 | 586,451 | ||||||||||||||
| Total | $ | 3,777,181 | $ | 3,582,890 | $ | 3,487,450 | |||||||||||
| Property, Plant and Equipment, Net | |||||||||||||||||
| United States | $ | 346,879 | $ | 349,255 | $ | 357,729 | |||||||||||
| Europe: | |||||||||||||||||
| France | 590,775 | 527,570 | 550,738 | ||||||||||||||
| Germany | 266,695 | 229,637 | 225,860 | ||||||||||||||
| Italy | 51,178 | 44,087 | 42,240 | ||||||||||||||
| Other Europe | 96,765 | 66,546 | 63,864 | ||||||||||||||
| Total Europe | 1,005,413 | 867,840 | 882,702 | ||||||||||||||
| China | 165,598 | 105,613 | 112,017 | ||||||||||||||
| Other Foreign Countries | 158,589 | 124,442 | 125,615 | ||||||||||||||
| Total | $ | 1,676,479 | $ | 1,447,150 | $ | 1,478,063 | |||||||||||
(1)Sales are attributed to countries based upon shipped to location.
No single customer or group of affiliated customers represents greater than 4%, 4% and 5% of our net sales in 2025, 2024 or 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 6, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 9, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.