Avantor, Inc.AVTR
Avantor, Inc. Segments Disclosure
Segment financial information
Effective January 1, 2024, we changed our operating model and reporting segment structure into two reportable business segments: Laboratory Solutions and Bioscience Production. Corporate costs are managed on a standalone basis, certain of which are allocated to our reportable segments.
In connection with this change, our CODM changed the measure used to evaluate segment profitability from Adjusted EBITDA to Adjusted Operating Income. The CODM uses this metric predominantly in the annual budget, forecasting and performance monitoring processes. All segment disclosures for 2023 reflect the changes to our reportable segments.
The following tables present information by reportable segment:
(in millions) | Net sales Year ended December 31, | Adjusted Operating Income Year ended December 31, | |||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||
| Laboratory Solutions | $ | 4,399.7 | $ | 4,610.1 | $ | 4,738.3 | $ | 510.4 | $ | 598.0 | $ | 668.3 | |||||||||||||||||||||||
| Bioscience Production | 2,152.5 | 2,173.5 | 2,228.9 | 517.8 | 558.2 | 601.9 | |||||||||||||||||||||||||||||
| Corporate | — | — | — | (70.4) | (66.4) | (58.4) | |||||||||||||||||||||||||||||
| Total | $ | 6,552.2 | $ | 6,783.6 | $ | 6,967.2 | $ | 957.8 | $ | 1,089.8 | $ | 1,211.8 | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
| Year ended December 31, 2025 | Laboratory Solutions | Bioscience Production | Corporate | Total | |||||||||||||||||||
| Net sales | $ | 4,399.7 | $ | 2,152.5 | $ | — | $ | 6,552.2 | |||||||||||||||
Adjusted cost of sales1 | 3,210.5 | 1,201.9 | (0.2) | 4,412.2 | |||||||||||||||||||
Adjusted operating expenses2 | 678.8 | 432.8 | 70.6 | 1,182.2 | |||||||||||||||||||
| Adjusted Operating Income | $ | 510.4 | $ | 517.8 | $ | (70.4) | $ | 957.8 | |||||||||||||||
(in millions) | |||||||||||||||||||||||
| Year ended December 31, 2024 | Laboratory Solutions | Bioscience Production | Corporate | Total | |||||||||||||||||||
| Net sales | $ | 4,610.1 | $ | 2,173.5 | $ | — | $ | 6,783.6 | |||||||||||||||
Adjusted cost of sales1 | 3,288.4 | 1,203.8 | — | 4,492.2 | |||||||||||||||||||
Adjusted operating expenses2 | 723.7 | 411.5 | 66.4 | 1,201.6 | |||||||||||||||||||
| Adjusted Operating Income | $ | 598.0 | $ | 558.2 | $ | (66.4) | $ | 1,089.8 | |||||||||||||||
(in millions) | |||||||||||||||||||||||
| Year ended December 31, 2023 | Laboratory Solutions | Bioscience Production | Corporate | Total | |||||||||||||||||||
| Net sales | $ | 4,738.3 | $ | 2,228.9 | $ | — | $ | 6,967.2 | |||||||||||||||
Adjusted cost of sales1 | 3,380.3 | 1,223.1 | — | 4,603.4 | |||||||||||||||||||
Adjusted operating expenses2 | 689.7 | 403.9 | 58.4 | 1,152.0 | |||||||||||||||||||
| Adjusted Operating Income | $ | 668.3 | $ | 601.9 | $ | (58.4) | $ | 1,211.8 | |||||||||||||||
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1.Adjusted cost of sales excludes $0.6 million and $12.1 million of non-GAAP adjustments for the years ended December 31, 2025 and December 31, 2024, respectively, primarily related to restructuring and severance as described in more detail within the non-GAAP reconciliation presented below. There were no such non-GAAP adjustments to cost of sales for the year ended December 31, 2023.
2.Adjusted operating expenses excludes $1,203.4 million, $(7.1) million and $515.4 million of non-GAAP adjustments, for the years ended December 31, 2025, December 31, 2024 and December 31, 2023, respectively, primarily related to gain on sale of business, amortization, impairment charges, restructuring and severance charges and transformation expenses as described in more detail within the non-GAAP reconciliation presented below.
The following table presents depreciation and amortization by reportable segment:
(in millions) | Depreciation and amortization Year ended December 31, | ||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Laboratory Solutions | $ | 205.8 | $ | 212.8 | $ | 215.0 | |||||||||||
| Bioscience Production | 204.4 | 192.7 | 187.3 | ||||||||||||||
| Total | $ | 410.2 | $ | 405.5 | $ | 402.3 | |||||||||||
Information about our segments’ assets and capital expenditures is not disclosed because this information is not provided to our CODM.
The amounts above exclude inter-segment activity because it is not material. All of the net sales presented for each segment are from external customers.
The following table presents the reconciliation of Adjusted Operating Income, our segment profitability measure, to (Loss) income before income taxes, the nearest measurement under GAAP:
(in millions) | Year ended December 31, | ||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Adjusted Operating Income | $ | 957.8 | $ | 1,089.8 | $ | 1,211.8 | |||||||||||
| Amortization | (301.1) | (299.8) | (307.7) | ||||||||||||||
Integration-related expenses1 | — | — | (7.6) | ||||||||||||||
Restructuring and severance charges2 | (29.8) | (82.8) | (26.5) | ||||||||||||||
Transformation expenses3 | (61.7) | (58.9) | (5.4) | ||||||||||||||
Reserve for certain legal matters, net4 | (7.3) | (9.2) | (7.1) | ||||||||||||||
Other5 | (14.0) | (0.9) | (0.3) | ||||||||||||||
Impairment charges6 | (785.0) | — | (160.8) | ||||||||||||||
Gain on sale of business7 | (5.1) | 446.6 | — | ||||||||||||||
| Interest expense, net | (169.8) | (218.8) | (284.8) | ||||||||||||||
| Loss on extinguishment of debt | (4.6) | (10.9) | (6.9) | ||||||||||||||
Other (expense) income, net | (20.7) | (1.2) | 5.8 | ||||||||||||||
(Loss) income before income taxes | $ | (441.3) | $ | 853.9 | $ | 410.5 | |||||||||||
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1.Represents direct costs incurred with third parties and the accrual of a long-term retention incentive to integrate acquired companies. These expenses represent incremental costs and are unrelated to
normal operations of our business. Integration expenses are incurred over a pre-defined integration period specific to each acquisition.
2.Reflects the incremental expenses incurred in the period related to restructuring initiatives to increase profitability and productivity. Costs included in this caption are specific to employee severance, site-related exit costs, and contract termination costs. These expenses recognized in 2024 & 2025 represent costs incurred to achieve the Company’s publicly-announced cost transformation initiative.
3.Represents incremental expenses directly associated with the Company’s publicly-announced cost transformation initiative, primarily related to the cost of external advisors.
4.Represents charges and legal costs, net of recoveries, in connection with certain litigation and other contingencies that are unrelated to our core operations and not reflective of on-going business and operating results.
5.Represents other stock-based compensation expense (benefit), $6.7 million of severance and transition costs associated with the replacement of our Chief Executive Officer in 2025, and other costs.
6.As described in notes 10 and 11.
7.The amount reported in 2024 reflects the gain on the sale of our Clinical Services business. The amount reported in 2025 reflects post‑closing purchase price adjustments related to that sale. The sale of the Clinical Services business is further described in note 4.
The following table presents net sales by product category:
(in millions) | Year ended December 31, | ||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Proprietary | $ | 3,448.9 | $ | 3,615.1 | $ | 3,720.2 | |||||||||||
| Third-party | 3,103.3 | 3,168.5 | 3,247.0 | ||||||||||||||
| Total | $ | 6,552.2 | $ | 6,783.6 | $ | 6,967.2 | |||||||||||
The following table presents information by geographic area:
(in millions) | Net sales Year ended December 31, | Property, plant and equipment, net Year ended December 31, | |||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | |||||||||||||||||||||||||
| United States | $ | 3,279.7 | $ | 3,549.6 | $ | 3,705.2 | $ | 470.4 | $ | 445.8 | |||||||||||||||||||
| All other countries | 3,272.5 | 3,234.0 | 3,262.0 | 296.4 | 262.3 | ||||||||||||||||||||||||
| Total | $ | 6,552.2 | $ | 6,783.6 | $ | 6,967.2 | $ | 766.8 | $ | 708.1 | |||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 11, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 14, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 14, 2020 | |
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.