AptarGroup (NYSE:ATR) reported second-quarter sales growth across each of its three segments and adjusted earnings per share above its guidance range, supported by stronger-than-expected performance in its Pharma business. The company also said President and CEO Stephan Tanda will retire later this year, with President and CEO Designate Gael Touya set to assume the CEO role on Sept. 1.
Reported second-quarter sales increased 6% to approximately $1 billion, a quarterly record, while core sales, which exclude currency effects and acquisitions, rose 1% from a year earlier. Adjusted EBITDA declined 3% to $213 million, and adjusted EBITDA margin fell to 20.7% from 22.6% in the prior-year period. Adjusted EPS was $1.42, compared with $1.68 a year earlier at comparable exchange rates.
Pharma Growth Excluding Emergency Medicine
Pharma core sales rose 1% in the quarter, affected by an anticipated decline in emergency medicine sales. Aptar expects emergency medicine sales to decline by about $65 million during fiscal 2026. Kanu said roughly two-thirds of that headwind occurred during the first half, with most of it occurring in the second quarter. The remaining portion is expected primarily in the third quarter, with the year-over-year impact expected to abate by the fourth quarter.
Excluding emergency medicine, Pharma core sales rose 8%. Prescription core sales declined 7% overall but increased 8% excluding emergency medicine, driven by central nervous system treatments and asthma and COPD applications. Consumer healthcare core sales increased 15%, supported by demand for nasal decongestants, eye-care products, dermal solutions and tooling. Injectables core sales rose 9%, reflecting demand for elastomeric components used in GLP-1 therapies, biologics and vaccines.
Pharma’s adjusted EBITDA margin was 33.6%, down 180 basis points from the prior year, largely because of the mix effect from lower high-margin emergency medicine sales. Kanu said the segment’s margin would have improved year over year excluding emergency medicine.
Management also pointed to continued pipeline activity in Annex I compliance, GLP-1 and biologics projects. Touya said the company has completed its larger investment phase at its Congers, New York, injectable manufacturing site and that customer audits, inspections and validations are supporting growth.
The company highlighted several technology developments, including an approved U.S. patent application for N-Sorb, an active-material solution intended to address nitrosamine impurities in pharmaceutical products. Aptar also introduced a collaborative system framework for injectable therapies designed to provide customers with earlier information on the performance of assembled injection systems.
In respiratory delivery, Aptar noted regulatory approvals involving products that use its inhaler technologies. It also cited Chiesi’s U.K. approval for what Aptar described as the first pressurized metered-dose inhaler using HFA-152a, a next-generation lower-global-warming-potential propellant.
Beauty and Closures See Sales Growth, Margin Pressure
Beauty core sales increased 1%, as demand for dispensing systems and higher input-cost pass-throughs offset lower tooling sales. Fragrance, facial skincare and color cosmetics sales grew 2%, led by prestige fragrance pumps and color cosmetics. Personal care sales were flat, as hair-care demand did not fully offset lower tooling sales.
Beauty’s adjusted EBITDA margin was 12.2%, down 190 basis points year over year, though it improved sequentially from the first quarter. Kanu attributed the year-over-year decline to lower volumes, unfavorable mix and the timing of resin and other inflationary pass-throughs. She said a delay in Beauty pricing pass-throughs reduced the segment’s quarterly margin by roughly 80 to 90 basis points and is expected to be resolved in the third quarter.
During the question-and-answer session, Tanda said Aptar had experienced weak sales in Brazil, where he said two major customers can shift market share. He said the company’s Beauty turnaround in Europe has reached its target range, while Asia is performing above that range, but the Americas have underperformed because of operational challenges in North America and market weakness in Brazil. Touya said he is reviewing the business with a “fresh perspective” and plans to engage with customers and operations teams before detailing further actions.
Closures core sales increased 4%. Food sales declined 1% due to lower tooling sales, partially offset by demand for sauce and condiment dispensing closures. Beverage sales rose 14%, driven by bottled water and functional sports drinks. The segment’s adjusted EBITDA margin was 14.9%, down 200 basis points, due to the ramp-up of new production lines and a maintenance initiative that management said is making sequential progress.
Cash Flow, Capital Returns and Outlook
For the first six months of 2026, reported sales rose 8% and core sales increased 1%. Adjusted EBITDA was unchanged at $401 million, while adjusted EBITDA margin declined 170 basis points to 20%. Adjusted EPS fell 12% to $2.61.
Year-to-date free cash flow increased by $8 million to $99 million, consisting of $222 million in cash from operations less $123 million in capital expenditures, net of government grants. Aptar returned $212 million to shareholders through dividends and share repurchases during the first half, including the repurchase of 1.1 million shares for $150 million.
The company ended the quarter with $190 million in cash, $1.2 billion in net debt and a leverage ratio of 1.49 times. Kanu said Aptar expects third-quarter adjusted EPS of $1.45 to $1.53, based on an effective tax rate of 22.5% to 24.5% and a euro-to-U.S.-dollar exchange rate of $1.14. Full-year capital investments are expected to range from $260 million to $280 million, while depreciation and amortization expense is projected at $310 million to $320 million.
Touya said Aptar expects growth across all three segments, citing demand in Pharma, continued momentum in Closures and improving trends in Beauty. As he prepares to take over as CEO, Touya said his priorities will be to drive profitable growth, execute consistently and allocate capital thoughtfully.
About AptarGroup (NYSE:ATR)
AptarGroup, Inc is a global provider of advanced dispensing, sealing and protection solutions for consumer and pharmaceutical markets. The company designs and manufactures a broad portfolio of products that enable the controlled delivery of liquids, gels, powders and aerosols. Its customer base spans beauty and personal care, home care, food and beverage, and pharmaceutical sectors, where innovation in packaging and drug?delivery devices drives brand differentiation and regulatory compliance.
In the consumer markets, AptarGroup offers pumps, actuators, valves, closures and specialized bottles engineered for precision, convenience and sustainability.
