AptarGroup (ATR) Q1 2026 earnings summary

Executive summary

• Reported sales increased 11% year-over-year, reaching up to $1.2 billion, with core sales flat due to currency and acquisitions; strong demand in GLP-1 therapies, biologics, nasal drug delivery, and prestige fragrance, while emergency medicine destocking and tough prior-year comparisons impacted pharma.

• Adjusted EPS was $1.19, down 8% year-over-year at comparable exchange rates, and reported EPS was $1.12; net income attributable to shareholders was $72.7 million, down from $78.8 million, with a reported net income margin of 7.4%.

• Adjusted EBITDA rose 3% to $189 million, but margin declined to 19.2% from 20.7% due to less favorable mix, higher cost of sales, and operational challenges.

• Free cash flow more than doubled to $53.3 million; $131 million was returned to shareholders via buybacks and dividends.

• Leadership transition underway, with Gael Touya set to become CEO in September 2026.

Financial highlights

• Q1 2026 reported net sales: $1,200 million, up from $1,083 million in Q1 2025; net income margin at 7.4%.

• Adjusted EBITDA margin declined to 19.2% from 20.7% year-over-year.

• Free cash flow for Q1 2026: $53.3 million, more than double Q1 2025.

• SG&A as a percentage of sales decreased by 40 basis points to 17.1%.

• Depreciation and amortization rose to $75.7 million, up $10.1 million year-over-year, largely from acquisitions and capital investments.

Outlook and guidance

• Q2 2026 adjusted EPS expected between $1.32 and $1.40; effective tax rate 22.5%-24.5%.

• Full-year 2026 capital investments projected at $260–280 million; depreciation and amortization at $310–320 million.

• Growth anticipated across all segments in Q2, except for continued destocking in emergency medicine within Pharma.

• Margin compression expected as higher input costs are passed through to customers.

• Management remains cautious about supply chain uncertainties.