Aptar Reports Second Quarter 2025 Results
Second Quarter 2025 Highlights (compared to the prior year quarter)
Reported sales increased 6% and core sales increased 3%
Reported net income increased 24% to $112 million and adjusted EBITDA increased 13% from the prior year to $218 million
Reported earnings per share increased 25% to $1.67 and adjusted earnings per share increased 18% to $1.66
Achieved an adjusted EBITDA margin of 22.6% an increase of 140 basis points
Returned $100 million to shareholders through share repurchases and dividends
Six Months Year-to-Date 2025 Highlights (compared to the prior year period)
Reported and core sales grew 2%
Reported net income increased 10% to $191 million and adjusted EBITDA increased 8% to $402 million
Reported earnings per share increased 10% to $2.83 and adjusted earnings per share increased 8% to $2.86
Returned $210 million to shareholders through share repurchases and dividends
'Each of our segments contributed positively to our second quarter results and each expanded their adjusted EBITDA margins. Our Pharma and Closures segments drove the growth through increased volumes and sales of higher value products. We also returned $100 million to shareholders through dividends and share repurchases in the quarter, bringing the total to $210 million in the first half of the year,' said Stephan B. Tanda, Aptar President and CEO.
Second Quarter Results
For the quarter ended June 30, 2025, reported sales increased 6% to $966 million compared to $910 million in the prior year and core sales increased 3%.
Second Quarter Segment Sales Analysis
(Change Over Prior Year)
Aptar
Pharma
Aptar
Beauty
Aptar
Closures
Total
AptarGroup
Reported Sales Growth
7%
4%
8%
6%
Currency Effects (1)
(4)%
(2)%
(1)%
(3)%
Acquisitions
0%
(1)%
0%
0%
Core Sales Growth
3%
1%
7%
3%
(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates.
Expand
Aptar Pharma's reported sales increased 7% and core sales increased 3% in the quarter when compared to the prior year period. The segment's positive results were driven by strong demand in Prescription, Injectables and Active Material Science divisions, while Consumer Healthcare declined. Demand continued for proprietary drug delivery systems used for emergency medicines, as well as asthma, COPD and ophthalmic treatments. Injectables core sales grew 9% due to increased demand for higher value elastomeric components, which are used in a number of end markets including biologics and GLP-1. Active Material Science core sales grew 11%, due to higher demand from active film solutions. Adjusted EBITDA margins grew 130 basis points in the quarter, with royalty revenues helping drive adjusted EBITDA margins to 35.4%.
Aptar Beauty's reported sales increased 4% and core sales were up 1% compared to the prior year quarter primarily due to higher tooling sales for the personal care and beauty end markets. In the quarter, personal care products continued to show strong growth but could not offset lower demand in beauty dispensing technologies for fragrance and for full pack solutions. The pace of new fragrance launches remained subdued due to tariff-related uncertainties. In China, the beauty market continued to improve, with healthy sales in the quarter for dispensing systems, mainly due to demand from regional customers. Adjusted EBITDA margins increased by 20 basis points, to 14.1%.
Aptar Closures' reported sales increased 8% from the prior year quarter and core sales increased 7%. The solid product sales growth was mainly driven by increased demand in the food and beverage end markets. The segment experienced growth in almost every region, across a number of applications including sauces, salad dressings and functional drinks. Adjusted EBITDA margins improved to 16.9%, expanding by 130 basis points.
Aptar reported second quarter earnings per share of $1.67 compared to $1.34 reported a year ago. Adjusted earnings per share, excluding restructuring charges, acquisition costs, and the unrealized gains or losses on an equity investment, were $1.66 compared to the prior year period's adjusted earnings per share of $1.41, including comparable exchange rates. The second quarter effective tax rate was 20.0% compared to the prior year period's effective tax rate of 23.5%. The lower effective tax rate for the three months ended June 30, 2025 was due to an expected tax benefit as part of the company's ongoing tax planning, and greater tax benefits from share-based compensation. Actual exchange and effective tax rates for the second quarter were comparable to the guidance provided by the company.
Six Months Year-To-Date Results
For the six months ended June 30, 2025, reported sales increased 2% to $1.85 billion compared to $1.83 billion in the prior year. Core sales also increased 2%.
Six Months Year-To-Date Segment Sales Analysis
(Change Over Prior Year)
Aptar
Pharma
Aptar
Beauty
Aptar
Closures
Total
AptarGroup
Total Reported Sales Growth
4%
(1)%
2%
2%
Currency Effects (1)
(1)%
0%
1%
0%
Acquisitions
0%
0%
0%
0%
Core Sales Growth
3%
(1)%
3%
2%
(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates.
Expand
For the six months ended June 30, 2025, Aptar's reported earnings per share were $2.83, an increase of 10%, compared to $2.57 reported a year ago. For the first six months of the year, adjusted earnings per share, excluding restructuring charges, acquisition costs, and the unrealized gains or losses on an equity investment, were $2.86 and increased 8% from prior year adjusted earnings per share of $2.64, including comparable exchange rates. The current year had an effective tax rate of 22.5% compared to the prior year effective tax rate of 22.1%.
Outlook
Regarding Aptar's outlook, Tanda stated, 'Looking ahead to Q3, we expect a solid quarter with continued strength in Pharma, particularly in Injectables, driven by rising demand for higher value elastomeric components fueled by growth in biologics, GLP-1 therapies, and Annex 1 compliance requirements. We anticipate challenges as naloxone sales begin to normalize after a period of rapid growth. Additionally, we expect elevated levels of cough and cold inventory in Europe to persist through the quarter. We anticipate modest Q3 contributions from our Closures and Beauty segments. Across all segments, we remain focused on cost discipline. In the face of external headwinds, our pipeline and industrialized capabilities position us well for sustained growth.'
Aptar currently expects earnings per share for the third quarter of 2025, excluding any restructuring expenses, changes in the fair value of equity investments and acquisition costs, to be in the range of $1.53 to $1.61, which includes approximately 6 to 7 cents of higher legal fees associated with litigating pharma intellectual property rights. This guidance is based on an effective tax rate range of 20.5% to 22.5%, primarily due to a one-time tax benefit, with a comparable adjusted prior year effective tax rate of 23.8%. The earnings per share guidance range is based on current spot rates and a 1.15 Euro to USD exchange rate.
Cash Dividends and Share Repurchases
As previously announced, Aptar's Board of Directors approved a quarterly cash dividend of $0.45 per share. The payment date is August 14, 2025, to stockholders of record as of July 24, 2025. During the second quarter, Aptar repurchased 452 thousand shares for $70 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, August 1, 2025 at 8:00 a.m. Central Time to discuss the company's second 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 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. 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. 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 use free cash flow to measure cash flow generated by operations that is available for dividends, share repurchases, acquisitions and debt repayment. 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 and acquisition costs.
This press release contains forward-looking statements, including certain statements set forth under the 'Outlook' section of this press release. Words such as 'expects,' 'anticipates,' 'believes,' 'estimates,' 'future,' 'potential,' 'continues' and other similar expressions or future or conditional verbs such as 'will,' 'should,' 'would' and 'could' are intended to identify such forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on our beliefs as well as assumptions made by and information currently available to us. Accordingly, our actual results or other events may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist in our operations and business environment including, but not limited to: geopolitical conflicts worldwide including the invasion of Ukraine by the Russian military and the resulting indirect impact on demand from our customers selling their products into these countries, as well as rising input costs and certain supply chain disruptions; cybersecurity threats against our systems and/or service providers that could impact our networks and reporting systems; the availability of raw materials and components (particularly from sole sourced suppliers for some of our Pharma solutions) as well as the financial viability of these suppliers; our ability to protect and defend our intellectual property rights, as well as litigation involving intellectual property rights; the outcome of any legal proceeding that has been or may be instituted against us and others;lower demand and asset utilization due to an economic recession either globally or in key markets we operate within; economic conditions worldwide, including inflationary conditions and potential deflationary conditions in other regions we rely on for growth; competition, including technological advances; significant tariffs and other restrictions on foreign imports imposed by the U.S. and related countermeasures taken by impacted foreign countries; the execution of our fixed cost reduction initiatives, including our optimization initiative; our ability to successfully implement facility expansions and new facility projects; fluctuations in the cost of materials, components, transportation cost as a result of supply chain disruptions and labor shortages, and other input costs; significant fluctuations in foreign currency exchange rates or our effective tax rate; the impact of tax reform legislation, changes in tax rates and other tax-related events or transactions that could impact our effective tax rate; financial conditions of customers and suppliers; consolidations within our customer or supplier bases; changes in customer and/or consumer spending levels; loss of one or more key accounts; our ability to offset inflationary impacts with cost containment, productivity initiatives and price increases; changes in capital availability or cost, including rising interest rates; volatility of global credit markets; our ability to identify potential new acquisitions and to successfully acquire and integrate such operations, including the successful integration of the businesses we have acquired; our ability to build out acquired businesses and integrate the product/service offerings of the acquired entities into our existing product/service portfolio; direct or indirect consequences of acts of war, terrorism or social unrest; the impact of natural disasters and other weather-related occurrences; fiscal and monetary policies and other regulations; changes, difficulties or failures in complying with government regulation, including FDA or similar foreign governmental authorities; changing regulations or market conditions regarding environmental sustainability; our ability to retain key members of management and manage labor costs; work stoppages due to labor disputes; our ability to meet future cash flow estimates to support our goodwill impairment testing; the demand for existing and new products; the success of our customers' products, particularly in the pharmaceutical industry; our ability to manage worldwide customer launches of complex technical products, particularly in developing markets; difficulties in product development and uncertainties related to the timing or outcome of product development; significant product liability claims; and other risks associated with our operations. For additional information on these and other risks and uncertainties, please see our filings with the Securities and Exchange Commission, including the discussion under 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' in our Form 10-K and Form 10-Qs. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
AptarGroup, Inc.
Condensed Consolidated Financial Statements (Unaudited)
(In Thousands, Except Per Share Data)
Consolidated Statements of Income
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Net Sales
$
966,009
$
910,063
$
1,853,314
$
1,825,511
Cost of Sales (exclusive of depreciation and amortization shown below)
598,994
567,440
1,149,885
1,150,196
Selling, Research & Development and Administrative
151,139
149,330
306,416
302,110
Depreciation and Amortization
69,904
64,968
135,551
129,317
Restructuring Initiatives
1,579
2,315
3,621
5,795
Operating Income
144,393
126,010
257,841
238,093
Other Income (Expense):
Interest Expense
(10,850
)
(10,061
)
(22,201
)
(20,236
)
Interest Income
1,880
3,102
4,694
6,000
Net Investment Gain (Loss)
2,102
(140
)
1,006
452
Equity in Results of Affiliates
2,309
130
4,395
(91
)
Miscellaneous Income, net
(120
)
(795
)
(6
)
(1,654
)
Income before Income Taxes
139,714
118,246
245,729
222,564
Provision for Income Taxes
27,982
27,788
55,334
49,173
Net Income
$
111,732
$
90,458
$
190,395
$
173,391
Net (Gain) Loss Attributable to Noncontrolling Interests
(12
)
(4
)
123
167
Net Income Attributable to AptarGroup, Inc.
$
111,720
$
90,454
$
190,518
$
173,558
Net Income Attributable to AptarGroup, Inc. per Common Share:
Basic
$
1.69
$
1.36
$
2.88
$
2.62
Diluted
$
1.67
$
1.34
$
2.83
$
2.57
Average Numbers of Shares Outstanding:
Basic
65,995
66,312
66,132
66,188
Diluted
67,048
67,575
67,262
67,509
Expand
AptarGroup, Inc.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
($ In Thousands)
Consolidated Balance Sheets
June 30, 2025
December 31, 2024
ASSETS
Cash and Equivalents
$
161,728
$
223,844
Short-term Investments
8,037
2,337
Accounts and Notes Receivable, Net
800,225
658,057
Inventories
527,421
461,807
Prepaid and Other
165,609
132,338
Total Current Assets
1,663,020
1,478,383
Property, Plant and Equipment, Net
1,584,533
1,447,150
Goodwill
996,489
936,256
Other Assets
621,339
570,489
Total Assets
$
4,865,381
$
4,432,278
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-Term Obligations
$
551,523
$
338,285
Accounts Payable, Accrued and Other Liabilities
817,361
729,996
Total Current Liabilities
1,368,884
1,068,281
Long-Term Obligations
535,054
688,066
Deferred Liabilities and Other
243,629
190,007
Total Liabilities
2,147,567
1,946,354
AptarGroup, Inc. Stockholders' Equity
2,700,122
2,471,888
Noncontrolling Interests in Subsidiaries
17,692
14,036
Total Stockholders' Equity
2,717,814
2,485,924
Total Liabilities and Stockholders' Equity
$
4,865,381
$
4,432,278
Expand
AptarGroup, Inc.
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited)
($ In Thousands)
Three Months Ended
June 30, 2025
Consolidated
Aptar Pharma
Aptar Beauty
Aptar Closures
Corporate
& Other
Net Interest
Net Sales
$
966,009
$
442,589
$
334,849
$
188,571
$
—
$
—
Reported net income
$
111,732
Reported income taxes
27,982
Reported income before income taxes
139,714
122,594
24,628
17,546
(16,084
)
(8,970
)
Adjustments:
Restructuring initiatives
1,579
68
626
890
(5
)
Net investment gain
(2,102
)
—
—
—
(2,102
)
Transaction costs related to acquisitions
344
—
344
—
—
Adjusted earnings before income taxes
139,535
122,662
25,598
18,436
(18,191
)
(8,970
)
Interest expense
10,850
10,850
Interest income
(1,880
)
(1,880
)
Adjusted earnings before net interest and taxes (Adjusted EBIT)
148,505
122,662
25,598
18,436
(18,191
)
—
Depreciation and amortization
69,904
34,169
21,475
13,447
813
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)
$
218,409
$
156,831
$
47,073
$
31,883
$
(17,378
)
$
—
Reported net income margins (Reported net income / Reported Net Sales)
11.6
%
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)
22.6
%
35.4
%
14.1
%
16.9
%
Expand
Three Months Ended
June 30, 2024
Consolidated
Aptar Pharma
Aptar Beauty
Aptar Closures
Corporate
& Other
Net Interest
Net Sales
$
910,063
$
414,533
$
321,487
$
174,043
$
—
$
—
Reported net income
$
90,458
Reported income taxes
27,788
Reported income before income taxes
118,246
111,814
22,773
11,971
(21,353
)
(6,959
)
Adjustments:
Restructuring initiatives
2,315
65
1,199
893
158
Net investment loss
140
—
—
—
140
Transaction costs related to acquisitions
140
—
140
—
—
Adjusted earnings before income taxes
120,841
111,879
24,112
12,864
(21,055
)
(6,959
)
Interest expense
10,061
10,061
Interest income
(3,102
)
(3,102
)
Adjusted earnings before net interest and taxes (Adjusted EBIT)
127,800
111,879
24,112
12,864
(21,055
)
—
Depreciation and amortization
64,968
29,609
20,526
14,254
579
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)
$
192,768
$
141,488
$
44,638
$
27,118
$
(20,476
)
$
—
Reported net income margins (Reported net income / Reported Net Sales)
9.9
%
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)
21.2
%
34.1
%
13.9
%
15.6
%
Expand
AptarGroup, Inc.
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited)
($ In Thousands)
Six Months Ended
June 30, 2025
Consolidated
Aptar Pharma
Aptar Beauty
Aptar Closures
Corporate
& Other
Net Interest
Net Sales
$
1,853,314
$
852,056
$
640,556
$
360,702
$
—
$
—
Reported net income
$
190,395
Reported income taxes
55,334
Reported income before income taxes
245,729
233,706
41,309
29,879
(41,658
)
(17,507
)
Adjustments:
Restructuring initiatives
3,621
258
1,021
2,242
100
Net investment gain
(1,006
)
—
—
—
(1,006
)
Transaction costs related to acquisitions
344
—
344
—
—
Adjusted earnings before income taxes
248,688
233,964
42,674
32,121
(42,564
)
(17,507
)
Interest expense
22,201
22,201
Interest income
(4,694
)
(4,694
)
Adjusted earnings before net interest and taxes (Adjusted EBIT)
266,195
233,964
42,674
32,121
(42,564
)
—
Depreciation and amortization
135,551
65,317
41,537
27,022
1,675
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)
$
401,746
$
299,281
$
84,211
$
59,143
$
(40,889
)
$
—
Reported net income margins (Reported net income / Reported Net Sales)
10.3
%
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)
21.7
%
35.1
%
13.1
%
16.4
%
Expand
Six Months Ended
June 30, 2024
Consolidated
Aptar Pharma
Aptar Beauty
Aptar Closures
Corporate
& Other
Net Interest
Net Sales
$
1,825,511
$
821,826
$
648,807
$
354,878
$
—
$
—
Reported net income
$
173,391
Reported income taxes
49,173
Reported income before income taxes
222,564
215,166
39,969
24,841
(43,176
)
(14,236
)
Adjustments:
Restructuring initiatives
5,795
89
3,909
1,653
144
Net investment gain
(452
)
—
—
—
(452
)
Transaction costs related to acquisitions
140
—
140
—
—
Adjusted earnings before income taxes
228,047
215,255
44,018
26,494
(43,484
)
(14,236
)
Interest expense
20,236
20,236
Interest income
(6,000
)
(6,000
)
Adjusted earnings before net interest and taxes (Adjusted EBIT)
242,283
215,255
44,018
26,494
(43,484
)
—
Depreciation and amortization
129,317
58,411
41,754
27,785
1,367
—
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)
$
371,600
$
273,666
$
85,772
$
54,279
$
(42,117
)
$
—
Reported net income margins (Reported net income / Reported Net Sales)
9.5
%
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)
20.4
%
33.3
%
13.2
%
15.3
%
Expand
AptarGroup, Inc.
Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)
(In Thousands, Except Per Share Data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Income before Income Taxes
$
139,714
$
118,246
$
245,729
$
222,564
Adjustments:
Restructuring initiatives
1,579
2,315
3,621
5,795
Net investment (gain) loss
(2,102
)
140
(1,006
)
(452
)
Transaction costs related to acquisitions
344
140
344
140
Foreign currency effects (1)
3,665
358
Adjusted Earnings before Income Taxes
$
139,535
$
124,506
$
248,688
$
228,405
Provision for Income Taxes
$
27,982
$
27,788
$
55,334
$
49,173
Adjustments:
Restructuring initiatives
421
567
927
1,458
Net investment (gain) loss
(515
)
34
(246
)
(111
)
Transaction costs related to acquisitions
86
35
86
35
Foreign currency effects (1)
861
79
Adjusted Provision for Income Taxes
$
27,974
$
29,285
$
56,101
$
50,634
Net (Gain) Loss Attributable to Noncontrolling Interests
$
(12
)
$
(4
)
$
123
$
167
Net Income Attributable to AptarGroup, Inc.
$
111,720
$
90,454
$
190,518
$
173,558
Adjustments:
Restructuring initiatives
1,158
1,748
2,694
4,337
Net investment (gain) loss
(1,587
)
106
(760
)
(341
)
Transaction costs related to acquisitions
258
105
258
105
Foreign currency effects (1)
2,804
279
Adjusted Net Income Attributable to AptarGroup, Inc.
$
111,549
$
95,217
$
192,710
$
177,938
Average Number of Diluted Shares Outstanding
67,048
67,575
67,262
67,509
Net Income Attributable to AptarGroup, Inc. Per Diluted Share
$
1.67
$
1.34
$
2.83
$
2.57
Adjustments:
Restructuring initiatives
0.02
0.03
0.04
0.06
Net investment (gain) loss
(0.03
)
—
(0.01
)
—
Transaction costs related to acquisitions
—
—
—
—
Foreign currency effects (1)
0.04
0.01
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted Share
$
1.66
$
1.41
$
2.86
$
2.64
(1) Foreign currency effects are approximations of the adjustment necessary to state the prior year earnings and earnings per share using current period foreign currency exchange rates.
Expand
AptarGroup, Inc.
Reconciliation of Free Cash Flow to Net Cash Provided by Operations (Unaudited)
(In Thousands)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Net Cash Provided by Operations
$
125,958
$
143,579
$
208,700
$
235,912
Capital Expenditures
(63,425
)
(68,205
)
(120,287
)
(143,866
)
Proceeds from Government Grants
3,308
—
3,308
—
Free Cash Flow
$
65,841
$
75,374
$
91,721
$
92,046
Expand
AptarGroup, Inc.
Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)
(In Thousands, Except Per Share Data)
Three Months Ending
September 30,
Expected 2025
2024
Income before Income Taxes
$
131,131
Adjustments:
Restructuring initiatives
3,864
Curtailment gain related to restructuring initiatives
(1,851
)
Net investment gain
(1,043
)
Transaction costs related to acquisitions
—
Foreign currency effects (1)
7,045
Adjusted Earnings before Income Taxes
$
139,146
Provision for Income Taxes
$
31,209
Adjustments:
Restructuring initiatives
1,013
Curtailment gain related to restructuring initiatives
(478
)
Net investment gain
(255
)
Transaction costs related to acquisitions
—
Foreign currency effects (1)
1,677
Adjusted Provision for Income Taxes
$
33,166
Net Loss Attributable to Noncontrolling Interests
$
117
Net Income Attributable to AptarGroup, Inc.
$
100,039
Adjustments:
Restructuring initiatives
2,851
Curtailment gain related to restructuring initiatives
(1,373
)
Net investment gain
(788
)
Transaction costs related to acquisitions
—
Foreign currency effects (1)
5,368
Adjusted Net Income Attributable to AptarGroup, Inc.
$
106,097
Average Number of Diluted Shares Outstanding
67,716
Net Income Attributable to AptarGroup, Inc. Per Diluted Share (3)
$
1.48
Adjustments:
Restructuring initiatives
0.04
Curtailment gain related to restructuring initiatives
(0.02
)
Net investment gain
(0.01
)
Transaction costs related to acquisitions
—
Foreign currency effects (1)
0.05
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted Share (2)
$1.53 - $1.61
$
1.54
(1) Foreign currency effects are approximations of the adjustment necessary to state the prior year earnings and earnings per share using current spot rates for all applicable foreign currency exchange rates.
(2) AptarGroup's expected earnings per share range for the third quarter of 2025, excluding any restructuring expenses, acquisition costs and changes in fair value of equity investments, is based on an effective tax rate range of 20.5% to 22.5%. This tax rate range compares to our third quarter of 2024 effective tax rate of 23.8% on reported earnings and adjusted earnings per share.
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These include approximately $25 million in restructuring costs; $105 million in M&A related costs; $195 million in acquisition related amortization and depreciation; $147 million in non-cash, pre-tax charges related to the final settlement of the U.S. pension plan, which occurred in the first quarter; $12 million in interest expense from M&A bridge financing fees and related costs, which was incurred in the first quarter; and $11 million in loss on investment from an impairment charge related to a joint-venture, which occurred in the second quarter. For the full year 2025, net interest expense is anticipated to be $105 - $110 million, which includes $12 million in M&A bridge financing fees and related costs. Other income related to cross currency swaps on the Term Loan B is expected to be approximately $10 million. Total depreciation and amortization is estimated to be approximately $285 million, including approximately $195 million in acquisition related amortization and depreciation. The tax rate included in GAAP EPS is expected to be approximately 11 - 12 percent. The tax rate included in adjusted EPS is expected to be approximately 24 - 25 percent. Earnings Conference Call A conference call is scheduled for 10:00 a.m. ET / 14:00 GMT on Tuesday, August 5, 2025, to discuss second quarter 2025 results. A simultaneous webcast and audio replay of the call will be available on the Company's Investor Relations website at About JBT Marel Corporation JBT Marel Corporation (NYSE and Nasdaq Iceland: JBTM) is a leading global technology solutions provider to high-value segments of the food & beverage industry. JBT Marel brings together the complementary strengths of both the JBT and Marel organizations to transform the future of food. JBT Marel provides a unique and holistic solutions offering by designing, manufacturing, and servicing cutting-edge technology, systems, and software for a broad range of food and beverage end markets. JBT Marel aims to create better outcomes for customers by optimizing food yield and efficiency, improving food safety and quality, and enhancing uptime and proactive maintenance, all while reducing waste and resource use across the global food supply chain. JBT Marel operates sales, service, manufacturing and sourcing operations in more than 30 countries. For more information, please visit Non-GAAP Measures and Reconciliations to GAAP Measures Adjusted EBITDA, adjusted EBITDA margin, adjusted EPS, and free cash flow are non-GAAP financial measures. JBT Marel provides non-GAAP financial measures in order to increase transparency in our operating results and trends. These non-GAAP measures eliminate certain costs or benefits from, or change the calculation of, a measure as calculated under U.S. GAAP. By eliminating these items, JBT Marel provides a more meaningful comparison of our ongoing operating results, consistent with how management evaluates performance. Management uses these non-GAAP measures in financial and operational evaluation, planning and forecasting. These calculations may differ from similarly-titled measures used by other companies. The non-GAAP financial measures disclosed are not intended to be used as a substitute for, nor should they be considered in isolation of, financial measures prepared in accordance with U.S. GAAP. Reconciliations of non-GAAP financial measures can be found in the supplemental schedules to this release. Forward-Looking Statements This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond JBT Marel's ability to control. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by JBT Marel will be achieved. These forward-looking statements include, among others, statements relating to our business and our results of operations, including our outlook, the benefits or results of our acquisition of Marel hf. (the "Marel Transaction"), our strategic plans, our restructuring plans and expected cost savings from those plans and our liquidity. The factors that could cause our actual results to differ materially from expectations include, but are not limited, to the following factors: the inability to successfully integrate the legacy businesses of JBT and Marel, operationally, technologically, culturally or otherwise, in a manner that permits the combined company to achieve the benefits and synergies anticipated from the Marel Transaction on the anticipated timeline or at all; fluctuations in our financial results; changes to tariffs, trade regulation, quotas, or duties; deterioration of economic conditions, including impacts from supply chain delays and reduced material or component availability; unanticipated delays or accelerations in our sales cycles; inflationary pressures, including increases in energy, raw material, freight and labor costs; disruptions in the political, regulatory, economic and social conditions of the countries in which we conduct business; fluctuations in currency exchange rates and interest rates; changes in food consumption patterns; impacts of pandemic illnesses, food borne illnesses and diseases to various agricultural products; weather conditions and natural disasters; the impact of climate change and environmental protection initiatives; acts of terrorism or war, including the ongoing conflicts in Ukraine and the Middle East; termination or loss of major customer contracts and risks associated with fixed-price contracts, particularly during periods of high inflation; customer sourcing initiatives; competition and innovation in our industries; our ability to develop and introduce new or enhanced products and services and keep pace with technological developments; difficulty in developing, preserving and protecting our intellectual property or defending claims of infringement; catastrophic loss at any of our facilities and business continuity of our information systems; cyber-security risks such as network intrusion or ransomware schemes; loss of key management and other personnel; potential liability arising out of the installation or use of our systems; our ability to comply with U.S. and international laws governing our operations and industries; increases in tax liabilities; work stoppages; our ability to remediate the material weaknesses relating to the Marel financial statements; availability of and access to financial and other resources; and the factors described under the captions 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' in our most recent Annual Report on Form 10-K, our Quarterly Report on Form 10-Q for the three months ended March 31, 2025, and any future Quarterly Report on Form 10-Q. If one or more of those or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Consequently, actual events and results may vary significantly from those included in or contemplated or implied by our forward-looking statements. The forward-looking statements included in this release are made only as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statement made by us or on our behalf, whether as a result of new information, future developments, subsequent events or changes in circumstances or otherwise. JBT MAREL CORPORATION NON-GAAP FINANCIAL MEASURES (Unaudited and in millions, except per share data) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Income (loss) from continuing operations $ 3.4 $ (173.0) $ (6.9) $ 38.1 $ 30.7 Non-GAAP adjustments Restructuring related costs (1) 5.6 10.6 0.3 (0.2) 0.2 M&A related costs (2) 20.0 74.4 53.3 12.9 14.5 Loss on investment 10.6 — — — — Amortization of bridge financing debt issuance cost — 12.4 4.7 1.2 1.2 Acquisition related amortization and depreciation 58.3 41.7 11.4 11.0 11.1 Impact on tax provision from Non-GAAP adjustments (3) (20.2) (31.0) (16.7) (6.3) (6.8) Recognition of non-cash pension plan related settlement costs — 146.9 23.3 — — Impact on tax provision from non-cash pension plan related settlement costs — (37.1) (6.0) — — Deferred tax benefit related to an internal reorganization — — — — (8.8) Discrete tax adjustment from M&A activity — 5.4 — — — Adjusted income from continuing operations $ 77.7 $ 50.3 $ 63.4 $ 56.7 $ 42.1 Income (loss) from continuing operations $ 3.4 $ (173.0) $ (6.9) $ 38.1 $ 30.7 Total shares and dilutive securities 52.2 51.7 32.2 32.2 32.2 Diluted earnings per share from continuing operations $ 0.07 $ (3.35) $ (0.21) $ 1.18 $ 0.95 Adjusted income from continuing operations $ 77.7 $ 50.3 $ 63.4 $ 56.7 $ 42.1 Total shares and dilutive securities 52.2 51.9 32.2 32.2 32.2 Adjusted diluted earnings per share from continuing operations $ 1.49 $ 0.97 $ 1.97 $ 1.76 $ 1.31 (1) Costs incurred as a direct result of the restructuring program are excluded because they are not part of the ongoing operations of our underlying business. (2) M&A related costs for the three months ended June 30, 2025, include advisory and transaction related costs for both potential and completed M&A transactions and strategy of $4.6 million, amortization of inventory step-up from business combinations of $9.3 million, and integration costs of $6.1 million. M&A related costs are excluded as they are generally short-term in nature and turn over quickly or are not part of the ongoing operations of our underlying business. (3) Impact on tax provision was calculated using the enacted rate for the relevant jurisdiction for each period shown. The above table reports adjusted income from continuing operations and adjusted diluted earnings per share from continuing operations, which are non-GAAP financial measures. We use these measures internally to make operating decisions and for the planning and forecasting of future periods, and therefore provide this information to investors because we believe it allows more meaningful period-to-period comparisons of our ongoing operating results, without the fluctuations in the amount of certain costs that do not reflect our underlying operating results. Expand JBT MAREL CORPORATION NON-GAAP FINANCIAL MEASURES (Unaudited and in millions) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Income (loss) from continuing operations $ 3.4 $ 30.7 $ (169.6) $ 53.4 Income tax provision (benefit) 7.9 (3.3) (38.3) 4.8 Interest expense (income), net 29.0 (1.6) 70.0 (4.4) Other financing (income) (1) (3.0) — (5.0) — Loss on investment 10.6 — 10.6 — Pension expense, other than service cost (2) 0.2 1.0 147.0 2.0 Restructuring related costs (3) 5.6 0.2 16.2 1.3 M&A related costs (4) 20.0 14.5 94.4 19.7 Depreciation and amortization (5) 82.5 22.2 143.1 44.3 Adjusted EBITDA from continuing operations $ 156.2 $ 63.7 $ 268.4 $ 121.1 Total revenue $ 934.8 $ 402.3 $ 1,788.9 $ 794.6 Income (loss) from continuing operations margin 0.4 % 7.6 % (9.5) % 6.7 % Adjusted EBITDA margin 16.7 % 15.8 % 15.0 % 15.2 % (1) Other financing income represents transaction gains from fair value hedges on our foreign currency denominated debt, and are considered non-operating as they relate to our cost of borrowing on this debt. (2) Pension expense, other than service cost is excluded as it represents all non service-related pension expense, which consists of non-cash interest cost, expected return on plan assets, amortization of actuarial gains and losses, and settlement charges. (3) Costs incurred as a direct result of the restructuring program are excluded because they are not part of the ongoing operations of our underlying business. (4) M&A related costs for the three and six months ended June 30, 2025, respectively, include advisory and transaction related costs for both potential and completed M&A transactions and strategy of $4.6 million and $57.7 million, amortization of inventory step-up from business combinations of $9.3 million and $19.9 million, and integration costs of $6.1 million and $16.8 million. M&A related costs are excluded as they are generally short-term in nature and turn over quickly or are not part of the ongoing operations of our underlying business. (5) Depreciation and amortization, including the acquisition related amortization and depreciation expense, is excluded to determine EBITDA. The above table reports Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP financial measures. We use Adjusted EBITDA and Adjusted EBITDA margin internally to make operating decisions and believe that Adjusted EBITDA is useful to investors as a measure of the Company's operational performance and a way to evaluate and compare operating performance against peers in the Company's industry. Expand JBT MAREL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited and in millions) December 31, 2024 Assets Cash and cash equivalents $ 111.8 $ 1,228.4 Restricted cash 18.2 — Trade receivables, net of allowances 542.2 335.1 Inventories 661.1 233.1 Other current assets 195.7 66.7 Total current assets 1,529.0 1,863.3 Property, plant and equipment, net 803.7 233.7 Goodwill 3,101.8 769.1 Intangible assets, net 2,571.0 340.9 Other assets 247.1 206.8 Total Assets $ 8,252.6 $ 3,413.8 Liabilities and Stockholders' Equity Short-term debt and current portion of long-term debt $ 410.2 $ — Accounts payable, trade and other 288.9 131.0 Advance and progress payments 521.9 194.1 Other current liabilities 422.7 210.4 Total current liabilities 1,643.7 535.5 Long-term debt, less current portion 1,511.3 1,252.1 Accrued pension and other post-retirement benefits, less current portion 17.5 19.3 Other liabilities 705.2 62.7 Common stock and additional paid-in capital 2,731.8 232.8 Retained earnings 1,356.2 1,535.9 Accumulated other comprehensive loss 286.9 (224.5) Total stockholders' equity 4,374.9 1,544.2 Total liabilities and stockholders' equity $ 8,252.6 $ 3,413.8 Expand JBT MAREL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited and in millions) Six Months Ended June 30, 2025 2024 Cash flows from continuing operating activities Net income (loss) $ (169.6) $ 53.5 Less: Income from discontinued operations, net of taxes — 0.1 Income (loss) from continuing operations (169.6) 53.4 Adjustments to reconcile income to cash provided by operating activities Depreciation and amortization 143.1 44.3 Stock-based compensation 9.3 7.8 Other 196.9 5.8 Changes in operating assets and liabilities Trade accounts receivable, net 31.2 (29.8) Inventories (64.7) (22.6) Accounts payable, trade and other 14.3 2.7 Advance and progress payments 26.5 (16.8) Other - assets and liabilities, net (50.4) (12.8) Cash provided by continuing operating activities 136.6 32.0 Cash flows from continuing investing activities Acquisitions, net of cash acquired (1,746.0) — Proceeds from sale of AeroTech, net (0.1) (2.6) Capital expenditures (38.5) (21.0) Other 4.5 0.9 Cash required by continuing investing activities (1,780.1) (22.7) Cash flows from continuing financing activities Net payments for domestic credit facilities (246.5) — Net proceeds from Term Loan B, net of debt issuance costs 888.1 — Settlement of deal contingent hedge (42.5) — Dividends (10.5) (6.4) Other (45.2) (10.0) Cash provided (required) by continuing financing activities 543.4 (16.4) Net decrease in cash from continuing operations (1,100.1) (7.1) Net cash required by discontinued operations — (0.1) Effect of foreign exchange rate changes on cash and cash equivalents 1.7 (1.8) Net decrease in cash, cash equivalents and restricted cash (1,098.4) (9.0) Cash and cash equivalents from continuing operations, beginning of period 1,228.4 483.3 Add: Cash and cash equivalents from discontinued operations, beginning of period — — Add: Net decrease in cash and cash equivalents (1,098.4) (9.0) Less: Cash and cash equivalents from discontinued operations, end of period — — Cash, cash equivalents and restricted cash from continuing operations, end of period $ 130.0 $ 474.3 Expand JBT MAREL CORPORATION NON-GAAP FINANCIAL MEASURES FREE CASH FLOW (Unaudited and in millions) Six Months Ended June 30, 2025 2024 Cash provided by continuing operating activities $ 136.6 $ 32.0 Less: capital expenditures 38.5 21.0 Plus: proceeds from disposal of assets 4.5 0.9 Plus: pension contributions 3.2 1.6 Free cash flow (FCF) $ 105.8 $ 13.5 The above table reports free cash flow, which is a non-GAAP financial measure. We use free cash flow internally as a key indicator of our liquidity and ability to service debt, invest in business combinations, and return money to shareholders and believe this information is useful to investors because it provides an understanding of the cash available to fund these initiatives. For free cash flow purposes, we consider contributions to pension plans to be more comparable to payment of debt, and therefore exclude these contributions from the calculation of free cash flow. Expand JBT MAREL CORPORATION NET DEBT CALCULATION (Unaudited and in millions) As of Quarter Ended Change From Total debt $ 1,921.5 $ 1,252.1 $ 647.6 $ 669.4 $ 1,273.9 Less: cash and marketable securities 111.8 1,228.4 474.3 (1,116.6) (362.5) Net debt $ 1,809.7 $ 23.7 $ 173.3 $ 1,786.0 $ 1,636.4 Expand JBT MAREL CORPORATION BANK TOTAL NET LEVERAGE RATIO CALCULATION (Unaudited and in millions) Q2 2025 Total debt $ 1,921.5 Less: cash and marketable securities 111.8 Net debt 1,809.7 Other items considered debt under the credit agreement 37.3 Consolidated total indebtedness (1) $ 1,847.0 Trailing twelve months adjusted EBITDA from continuing operations 442.2 Pro forma EBITDA of recent acquisitions (2) 90.9 Trailing twelve months pro forma adjusted EBITDA 533.1 Other adjustments net to earnings under the credit agreement 118.2 Consolidated EBITDA (1) $ 651.3 Bank total net leverage ratio (Consolidated total indebtedness / Consolidated EBITDA) 2.84 3.39 (1) As defined in the credit agreement. Expand JBT MAREL CORPORATION NON-GAAP FINANCIAL MEASURES (Unaudited and in cents) Guidance Full Year 2025 Diluted earnings per share from net income ($1.90) - ($1.20) Non-GAAP adjustments: Restructuring related costs (1) 0.48 M&A related costs (2) 2.01 Acquisition related amortization and depreciation (3) 3.75 Bridge financing fees and related costs (4) 0.24 Pension plan lump sum payment and termination (5) 2.82 Loss on investment (6) 0.21 Impact on tax provision from Non-GAAP adjustments (7) (2.15) Adjusted diluted earnings per share from net income $5.45 - $6.15 Expand JBT MAREL CORPORATION NON-GAAP FINANCIAL MEASURES (Unaudited and in millions) Guidance Full Year 2025 (Loss) from continuing operations ($100) - ($65) Income tax provision ($11) - ($9) Pension expense, other than service cost (5) ~ $147 Interest expense, net $110 - $105 Other financing income (8) ~ ($10) Loss on investment (6) ~ $11 Restructuring related costs (1) ~ $25 M&A related costs (2) ~ $105 Depreciation and amortization ~ $285 Adjusted EBITDA from continuing operations $560 - $595 Revenue $3,675 - $3,725 (Loss) from continuing operations margin (2.7%) - (1.7%) Adjusted EBITDA margin 15.25% - 16.0% (1) Restructuring related costs are estimated to be approximately $25 million for the full year 2025. The amount has been divided by our estimate of 52.2 million total shares and dilutive securities to derive earnings per share. (2) M&A related costs are estimated to be approximately $105 million for the full year 2025, of which $20 million is related to amortization of inventory step up from business combinations, $27 million is related to integration costs, and $58 million is related to advisory and transaction related costs for both potential and completed M&A transactions and strategy. The amount has been divided by our estimate of 52.2 million total shares and dilutive securities to derive earnings per share. (3) Acquisition related amortization and depreciation is expected to be approximately $195 million for the full year 2025. The amount has been divided by our estimate of 52.2 million total shares and dilutive securities to derive earnings per share. (4) Bridge financing fees and related costs are estimated to be approximately $12 million for the full year 2025. The amount has been divided by our estimate of 52.2 million total shares and dilutive securities to derive earnings per share. (5) Pension expense, other than service cost for the lump sum payment and termination of the pension plan is estimated to be approximately $147 million for the full year 2025. The amount has been divided by our estimate of 52.2 million total shares and dilutive securities to derive earnings per share. (6) Loss on investment is estimated to be approximately $11 million for the full year 2025. This is an impairment loss from a joint-venture investment, which occurred in the second quarter. The amount has been divided by our estimate of 52.2 million total shares and dilutive securities to derive earnings per share. (7) Impact on tax provision for 2025 tax provision on non-GAAP adjustments was calculated using a tax rate of approximately 24-25% based on a estimate of the tax rate of the country in which the non-GAAP adjustments are originating. (8) Other financing income is estimated to be approximately $10 million for the full year 2025. The amount has been divided by our estimate of 52.2 million total shares and dilutive securities to derive earnings per share. Expand
