AptarGroup (ATR) Investor Day 2025 summary

Strategic priorities and financial guidance

• Raised ROIC target by 100 basis points to 12%-14%, reflecting confidence in higher returns and capital discipline.

• Long-term core sales growth target maintained at 4%-7%, supported by strong end-market dynamics and diversified business model.

• Adjusted EBITDA margin target remains at 21%-23%, with current performance at 21.6% in 2024 and a credible path to the high end.

• Dividend increased by nearly 7%, with a payout ratio of 30%-40% and 32 consecutive years of increases.

• Capital allocation prioritizes 70% reinvestment in the business and 30% returned to shareholders via dividends and buybacks.

Business developments and innovation

• Pharma segment pipeline adds 7%-11% of revenue annually, with innovation in injectables, digital health, and regulatory services.

• Beauty segment targets 3%-6% core sales growth, focusing on sustainability, customization, and leveraging the China ecosystem.

• Closures segment targets 4%-7% core sales growth and 16%-18% EBITDA margin, driven by innovation and regional expansion.

• Active material science, digital patient engagement, and sustainable packaging differentiate all segments.

• All segments emphasize operational efficiency, cost management, and regional expansion, especially in Asia and LATAM.

Operational efficiency and productivity

• $110 million in cost reductions achieved since 2022, with SG&A and labor productivity improvements.

• Ongoing shift of operations and back-office functions to lower-cost countries and increased automation to drive further efficiencies.

• Gross margin and EBITDA margin have expanded significantly, with continued focus on productivity and digitalization.

• Capital intensity expected to remain in the 7%-9% range, with no major new plant investments planned.

• Free cash flow conversion improved to 10% of sales, with further growth expected as working capital and CapEx are optimized.