Avantor Inc. (NYSE:AVTR) stock is trading lower on Wednesday after the company reported fourth-quarter adjusted earnings of 22 cents, in line with the consensus.

• Avantor shares are approaching critical lows. Why is AVTR stock at lows?

The life science tools company reported sales of $1.66 billion, slightly above the consensus of $1.64 billion.

Sales fell 1.4% year-over-year. Foreign currency translation had a positive impact of 3.1% and M&A had a negative impact of 0.4%, resulting in a 4.1% sales decline on an organic basis.

Laboratory Solutions sales were $1.116 billion, a reported 0.9% decrease.

Foreign currency translation had a positive impact of 3.8% and M&A had a negative impact of 0.6%, resulting in a sales decline of 4.1% on an organic basis.

Bioscience Production sales were $548 million, a reported decrease of 2.4%. Foreign currency translation had a positive impact of 1.7%, resulting in a 4.1% sales decline on an organic basis.

“Through the Revival program we initiated last quarter, we are building a more agile company that is better organized around the needs of our customers,” said Emmanuel Ligner, president and CEO. “The entire team is energized around a clear set of strategic priorities, and we have already made important changes to how we run the business, including optimizing our go-to-market strategy, relaunching the VWR brand, implementing critical improvements, and upgrading our e-commerce channel.”

Ligner continued: “We are moving with urgency to execute Revival and turn around the performance of this great business. 2026 will be a year of transition and purposeful investment, and our priority is driving top-line growth by competing vigorously in the marketplace and strengthening our company. We are confident that the steps we are taking this year will position Avantor for sustainable shareholder value creation.”

Adjusted EBITDA margin was 15.2%. Adjusted operating income was $225 million, with a margin was 13.5%.

Guidance

Avantor expects its fiscal 2026 adjusted earnings per share of 77 cents to 83 cents, versus the consensus of 90 cents.

The company expects organic revenue to decline between 2.5% and 0.5%, and an adjusted EBITDA margin of 14.8% to 15.3%.

The company expects 2026 free cash flow between $500 million and $550 million.

Analyst View

William Blair notes Avantor shares trade at 11.4 times the midpoint of the 2026 adjusted EBITDA guide, compared to peers at 17.6 times and its 15.5 times average as a public company.

“While we acknowledge that Avantor has a possible path to outperformance as end-markets continue to return and more of the now $400 million in targeted cost savings take hold, we think the company's below-peer growth and margin profile make the discount to peers warranted at this time,” analyst Matt Larew wrote in an investor note on Wednesday.

The analyst rates the stock Market Perform.

AVTR Price Action: Avantor shares are trading down 15.46% at $9.44 at the time of publication on Wednesday. During the day’s session, the stock hit a high of $9.86 and a low of $8.89. The stock is 4.7% above its 52-week low, according to Benzinga Pro data.

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