Avantor Shares Fall on Cut Guidance, Lower Demand

Published: 2025-04-25 09:53:04 ET AVTR

By Adriano Marchese

Avantor shares tumbled Friday morning after the company lowered its outlook for the year due to lower demand from government- and education-related end markets.

Shares traded 17% lower at $12.88.

The biopharma supplier now expects organic revenue to come in between up 1% and down 1%. It previously guided for a gain of 1% to 3%.

Radnor, Pa.-based Avantor said its lab-solutions business saw a drop in demand, particularly for its education and government end markets, due to recent policy changes from the new presidential administration.

First-quarter revenue was also lower. Revenue declined by 6% to $1.58 billion, below analyst projections for $1.61 billion, according to FactSet.

Stripping out one-time items, adjusted earnings were 23 cents a share, in line with the consensus estimate of analysts.

"While earnings and margin performance were in line with our plan, lab solutions revenue was impacted by reduced demand--particularly in our education and government end market--following recent policy changes," said outgoing Chief Executive Michael Stubblefield.

Stubblefield is set to step down after he and the board agreed to change leadership. Avantor said a search for Stubblefield's replacement is under way.

Write to Adriano Marchese at [email protected]

(END) Dow Jones Newswires

04-25-25 0952ET