Summary of Aptar's Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 2025 Performance::

Reported sales: $963 million (up 14% YoY from $848 million).

Core sales: Increased by 5%.

Adjusted EBITDA: $191 million (down 2% YoY), with an adjusted EBITDA margin of 19.8% (down from 23% YoY).

Adjusted earnings per share (EPS): $1.25 (down 23% YoY from $1.62).

Full Year 2025 Performance::

Reported sales: $3.8 billion (up 5% YoY).

Core sales: Increased by 2%.

Reported net income: $393 million (up 5% YoY).

Adjusted EPS: $5.74 (down 1% YoY).

Free cash flow: $303 million, down $64 million YoY due to timing of tax payments and higher pension contributions.

2Strategic Updates and Business Highlights

Segment Performance::

Pharma:: Core sales increased by 4%, driven by strong demand for elastomeric components and systemic nasal drug delivery technologies. Excluding emergency medicine, core sales grew 10%.

Beauty:: Core sales increased by 10%, with operational disruptions noted but expected to improve in 2026.

Closures:: Core sales rose by 1%, with solid growth in beverages but impacted by lower resin pricing.

Innovation and Pipeline::

Significant advancements in the Pharma pipeline, including FDA approval for CARDAMYST, a self-administered nasal spray for PSVT.

Continued focus on sustainability, recognized by CDP Climate A list and Newsweek's ranking of America's most responsible companies.

3Forward Guidance and Outlook

Q1 2026 Guidance:: Adjusted EPS expected to be between $1.13 and $1.21.

Full Year 2026 Outlook:: Anticipates continued strong growth in Pharma (excluding emergency medicine) and improvements in Beauty and Closures. However, expects a revenue headwind of approximately $65 million from emergency medicine, particularly impacting the first half of the year.

Capital investments projected between $260 million and $280 million for 2026, with a focus on productivity improvements.

4Bad News, Challenges, or Points of Concern

Margin Declines:: Adjusted EBITDA margins decreased due to unfavorable product mix and higher production costs, particularly in Beauty and Closures.

Emergency Medicine Decline:: Anticipated continued headwinds in 2026, with a significant impact on overall margins and revenue.

Operational Disruptions:: Notable issues in Beauty and Closures segments due to environmental compliance upgrades and supplier challenges, which are expected to improve but have affected margins.

5Notable Q&A Insights

Pharma Growth:: Management expects high single-digit to low double-digit growth in injectables, with GLP-1s contributing but not being the sole driver.

Margin Recovery:: Q1 margins are expected to improve sequentially, with significant recovery anticipated in the second half of 2026.

NARCAN Business:: Management clarified that they did not lose the NARCAN business but faced destocking challenges. Long-term growth is expected to stabilize at low to mid-single digits.

Capital Allocation:: The $600 million share repurchase authorization reflects a commitment to returning capital to shareholders while maintaining flexibility for growth investments. Overall, Aptar's Q4 2025 results reflect strong top-line growth amid operational challenges, with a cautious outlook for 2026 driven by expected headwinds in emergency medicine and ongoing efforts to improve margins across segments.