AptarGroup Q2 Earnings Call Highlights

AptarGroup reported record second-quarter sales of approximately $1 billion , up 6% year over year, while adjusted EPS of $1.42 exceeded guidance. However, adjusted EBITDA fell 3% and the margin declined to 20.7% amid weaker emergency medicine sales, operating challenges and higher costs. Pharma remained the strongest area, with core sales up 8% excluding the anticipated emergency medicine decline, supported by consumer healthcare, injectables and demand tied to GLP-1 therapies and biologics. Beauty and Closures also posted sales growth, but both faced significant margin pressure from lower volumes, unfavorable mix and production costs. Aptar forecast third-quarter adjusted EPS of $1.45 to $1.53 and expects growth across all three segments. CEO Stephan Tanda will retire later this year, with Gael Touya scheduled to become CEO on Sept. 1 and focus on profitable growth, execution and capital allocation.

AptarGroup NYSE: ATR reported second-quarter sales growth across each of its three segments and adjusted earnings per share above its guidance range, supported by stronger-than-expected performance in its Pharma business. The company also said President and CEO Stephan Tanda will retire later this year, with President and CEO Designate Gael Touya set to assume the CEO role on Sept. 1.

Reported second-quarter sales increased 6% to approximately $1 billion, a quarterly record, while core sales, which exclude currency effects and acquisitions, rose 1% from a year earlier. Adjusted EBITDA declined 3% to $213 million, and adjusted EBITDA margin fell to 20.7% from 22.6% in the prior-year period. Adjusted EPS was $1.42, compared with $1.68 a year earlier at comparable exchange rates.

Chief Financial Officer Vanessa Kanu said the earnings decline reflected lower emergency medicine sales in Pharma, operating challenges in Beauty and Closures, higher depreciation and amortization related to investments and acquisitions, and higher interest expense. Pharma Growth Excluding Emergency Medicine Pharma core sales rose 1% in the quarter, affected by an anticipated decline in emergency medicine sales. Aptar expects emergency medicine sales to decline by about $65 million during fiscal 2026. Kanu said roughly two-thirds of that headwind occurred during the first half, with most of it occurring in the second quarter. The remaining portion is expected primarily in the third quarter, with the year-over-year impact expected to abate by the fourth quarter. Excluding emergency medicine, Pharma core sales rose 8%. Prescription core sales declined 7% overall but increased 8% excluding emergency medicine, driven by central nervous system treatments and asthma and COPD applications. Consumer healthcare core sales increased 15%, supported by demand for nasal decongestants, eye-care products, dermal solutions and tooling. Injectables core sales rose 9%, reflecting demand for elastomeric components used in GLP-1 therapies, biologics and vaccines. Pharma’s adjusted EBITDA margin was 33.6%, down 180 basis points from the prior year, largely because of the mix effect from lower high-margin emergency medicine sales. Kanu said the segment’s margin would have improved year over year excluding emergency medicine. Management also pointed to continued pipeline activity in Annex I compliance, GLP-1 and biologics projects. Touya said the company has completed its larger investment phase at its Congers, New York, injectable manufacturing site and that customer audits, inspections and validations are supporting growth. The company highlighted several technology developments, including an approved U.S. patent application for N-Sorb, an active-material solution intended to address nitrosamine impurities in pharmaceutical products. Aptar also introduce...