AptarGroup (ATR) Q1 2025 earnings summary

Executive summary

• Q1 2025 reported sales declined 3% year-over-year to $887 million, with core sales flat and no impact from acquisitions.

• Adjusted EBITDA margin expanded to 20.7%, up 120 basis points year-over-year, driven by cost management and segment mix.

• Pharma segment saw strong demand for proprietary drug delivery systems, especially for emergency and CNS therapies, with core sales up 3%.

• Beauty segment sales declined due to lower prestige fragrance volumes, partially offset by growth in personal and home care, with sequential improvement in Europe and China.

• Returned $110 million to shareholders via dividends and $80 million in share repurchases.

Financial highlights

• Adjusted EPS was $1.20, up 5% year-over-year when neutralizing for currency and tax; reported EPS was $1.17.

• Free cash flow was $25.9 million, up from $16.7 million in Q1 2024.

• Effective tax rate rose to 26% from 20% due to a temporary French surtax and lower share-based compensation benefits.

• Cash and equivalents at quarter-end were $125.8 million, down from $223.8 million at year-end 2024.

• Net income margin was 8.9% in Q1 2025, down from 9.1% in Q1 2024.

Outlook and guidance

• Q2 2025 adjusted EPS expected between $1.56 and $1.64, with a 19–21% effective tax rate due to a one-time tax benefit.

• Management anticipates positive contributions from all segments and resilience in key end markets.

• 2025 capital expenditures projected at $280–$300 million, mainly for pharma; D&A expected at $260–$270 million.

• Net effect of tariffs expected to be limited and already incorporated into guidance.