Avantor, Inc. (AVTR), with a market capitalization of $8.37 billion, is projecting 3.2% earnings growth over the next five years, despite facing challenges in its Lab Solutions segment. The company reported a 12.2% stock decline over the past six months, underperforming against both the industry and the S&P 500’s growth of 12.2% and 14.4%, respectively.
In a recent earnings call, management emphasized a strong commercial momentum with approximately $100 million in new business wins from two top-15 global pharmaceutical clients beginning in 2026, as well as strategic partnerships, including a collaboration with BlueWhale Bio. Avantor is on track to achieve $400 million in run-rate savings from a multi-year cost transformation program by 2027, having generated $172 million in free cash flow in the latest period.
However, the Lab Solutions segment continues to underperform due to weakened activity in research and academic markets, impacting overall margins. The Zacks Consensus Estimate for 2025 earnings per share remains stable at 90 cents, while fourth-quarter 2025 revenue is expected to decline by 4.2% year-over-year to $1.62 billion.
