AptarGroup, Inc.

Second-quarter reported sales increased 6% to $1 billion, a quarterly record. Core sales increased 1% year over year. Adjusted EBITDA was $213 million, down 3%, and adjusted EBITDA margin was 20.7% versus 22.6% last year. Adjusted EPS was $1.42 versus $1.68 at comparable exchange rates, down 15% year over year. By segment, pharma core sales increased 1% overall, beauty core sales increased 1%, and closures core sales increased 4%. For the first half, reported sales increased 8%, core sales increased 1%, adjusted EBITDA was $401 million, adjusted EBITDA margin was 20%, adjusted EPS was $2.61, and free cash flow was $99 million. The company ended the quarter with $190 million of cash, $1.2 billion of net debt, and a leverage ratio of 1.49x. For Q3 2026, management guided adjusted EPS to $1.45-$1.53, assuming a 22.5%-24.5% tax rate and a 1.14 euro/U.S. dollar exchange rate. Full-year 2026 capital investments are expected to be $260 million-$280 million, and depreciation and amortization expense is expected to be $310 million-$320 million.

Stephan Tanda emphasized this was his final earnings call and framed Aptar as entering its next chapter from a position of strength. Strategically, he highlighted continued investment in pharma capabilities beyond dispensing systems, including formulation development, analytical services, regulatory support, and patient engagement, with early-stage GLP-1, inhaled, and injectable-related opportunities. His tone was reflective and confident, while also acknowledging ongoing work needed in beauty, especially in the Americas.

Vanessa Kanu said Q2 margin pressure came mainly from product mix, emergency medicine decline, beauty and closures operational issues, and higher depreciation/amortization tied to capital spending and acquisitions. She quantified pharma adjusted EBITDA margin at 33.6% versus 35.4% last year, beauty at 12.2% versus 14.1%, and closures at 14.9% versus 16.9%. She also noted SG&A was flat year over year excluding currency and acquisitions, returned $212 million to shareholders over the last six months, bought back 1.1 million shares for $150 million, and said Q3 FX guidance assumes 1.14 versus a Q2 average of 1.16.

Analysts focused on whether beauty’s weakness, especially in the Americas and Brazil, might require more structural action; management said Brazil was weak, beauty in Europe and Asia is stronger, but it was too early to commit to major structural changes. Questions also centered on whether the Q2 margin profile implied gross margin expansion in the second half; Vanessa said the emergency medicine headwind was most intense in the first half and gross margin should improve as it eases, with beauty pass-through timing also expected to normalize in Q3. On pharma, management said consumer healthcare destocking has run its course, Rx strength was helped by asthma/COPD and the propellant transition, and the long-term 7%-11% pharma core sales target remains intact.