AptarGroup (ATR -10.05%), a global leader in dosing, dispensing, and protection technologies for the pharmaceutical, beauty, and food and beverage markets, reported its earnings results for the second quarter of fiscal 2025 on July 31, 2025. The company delivered adjusted earnings per share of $1.66, outpacing analyst estimates of $1.59 (non-GAAP). GAAP revenue was $966 million, above the $954.93 million consensus forecast (GAAP). The period was marked by margin improvement, positive sales growth in key Pharma and Closures segments, and disciplined cost management. Overall, the period reflected resilient demand in essential end markets, despite some unevenness in other business lines and persistent macroeconomic uncertainty.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Adjusted, Non-GAAP) | $1.66 | $1.59 | $1.41 | 18% |
| Revenue (GAAP) | $966 million | $954.93 million | $910 million | 6% |
| Adjusted EBITDA (Non-GAAP) | $218 million | $193 million | 13% | |
| Adjusted EBITDA Margin (Non-GAAP) | 22.6% | 21.2% | 1.4 pp | |
| Free Cash Flow (Non-GAAP) | $65.8 million | $75.4 million | (12.7%) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Strategic Focus
AptarGroup specializes in designing and manufacturing packaging and dispensing systems, serving industries including pharmaceuticals, beauty, food, and beverages. Its core products include nasal sprays, injectable drug delivery components, fragrance and cosmetics pumps, and closures for food and drink containers. These solutions are used in everyday products such as asthma inhalers, allergy medications, perfumes, sauces, and drinks.
The company’s recent strategic priorities center on innovation, regional manufacturing, and sustainability. AptarGroup invests in research and development to create advanced, often recyclable or reusable, packaging. It is focused on expanding through targeted acquisitions, particularly in high-growth markets like Asia and the Middle East. The group also emphasizes a manufacturing approach that produces as locally as possible to reduce risks from global trade tensions and supply chain disruptions. Key success factors include its ability to adapt operations to shifting market demands, manage regulatory changes, and deliver new products to market quickly.
Quarter Review: Sales Performance, Margins, and Operational Highlights
In Q2 2025, the company achieved growth in sales and profit margins, mainly due to robust results in the Pharma and Closures divisions. In the Pharma segment, which delivered 46% of sales, reported revenue rose 7% compared to the prior-year period. The segment’s adjusted EBITDA margin increased 1.3 percentage points to 35.4%. Growth was attributed to higher demand for prescription and injectable components, especially those supporting biologic drugs and GLP-1 treatments used in diabetes management. Additionally, the Active Material Science division, which develops advanced films for regulated drug delivery, posted an 11% increase in core sales. However, consumer healthcare core sales declined 10% in Q1 2025, with US order patterns “returning to normal,” while European markets continued to face elevated inventories.
The Beauty segment reported a 4% rise in revenue.
Adjusted EBITDA margin for Aptar Beauty improved slightly, rising to 14.1%. Growth in this area came mainly from increased tooling sales for personal care product lines, offsetting softer demand in fragrance dispensing technologies.
Lower activity in prestige fragrance launches reflected ongoing tariff uncertainty.
In contrast, the Chinese market showed gains, especially among regional beauty brands, indicating a rebound in demand. The Closures segment, which includes caps and specialized closures for food and beverage packaging, grew 8% in reported sales and reached an adjusted EBITDA margin of 16.9%. Growth was led by high demand across sauces, salad dressings, and functional drinks in nearly every region. The company's ability to localize supply chains allowed it to navigate changing tariff and trade landscapes without significant disruption, benefiting customers and supporting competitive pricing strategies.
Company-wide profitability improved as AptarGroup achieved an adjusted EBITDA margin of 22.6% (non-GAAP), a 1.4 percentage point increase from the prior year.
This margin expansion was supported by a business mix skewed toward higher-value Pharma and Closures products.
Reported net income grew 24%, aided by a lower effective tax rate. “Each of our segments contributed positively to our results and each expanded their adjusted EBITDA margins,” management stated in the release. The lower tax rate was described as a one-off result of expected tax benefits from deferred tax asset recognition.
Innovation continued to be a central driver for the company. New product launches spanned proprietary drug delivery systems for emergency medicines, asthma, and ophthalmics. The Active Material Science unit saw strong global demand for active film solutions, while the company continued clinical validation work on its SmartTrack platform, a data-driven tool aimed at improving drug development. In Beauty, sales of custom pumps and recyclable dispensers were noted for major brands, and the Closures segment expanded into new markets with lightweight and fully recyclable solutions, such as closures for Hidden Valley Ranch and L’Oreal hair care. These innovations were reinforced by a supply chain strategy that emphasizes producing in-region for region, limiting exposure to global trade issues. No major new acquisitions occurred during the period, but prior deals such as Gulf Closures and Goldrain are enhancing capacity and local market reach, particularly in the Middle East and Asia.
From a capital allocation perspective, AptarGroup returned $100 million to shareholders through $70 million in share buybacks and dividends.
Year-to-date, the return to shareholders totals $210 million.
Free cash flow (non-GAAP) was $65.8 million.
Inventory and receivables were up compared to the start of the year.
The ongoing investment in plant, property, and equipment underlines the company’s focus on expansion and operational improvement.
Outlook and What to Watch
For Q3 2025, management projected adjusted (non-GAAP) earnings per share between $1.53 and $1.61. This guidance is essentially flat compared to the $1.54 adjusted EPS achieved in Q3 2024. The company expects continued strength in Pharma, especially in injectables, but noted that sales of naloxone (a key emergency medicine) are beginning to “normalize” after recent rapid growth, as discussed in Aptar’s recent earnings release and outlook. Management noted that inventory destocking in cough and cold products, especially outside the US, is expected to weigh on results for at least another quarter. “We anticipate challenges as naloxone sales begin to normalize after a period of rapid growth. Additionally, we expect elevated levels of cough and cold inventory in Europe to persist,” management said. In Closures and Beauty, only modest contributions to next quarter’s performance are anticipated.
The company maintained its focus on proactive management of regulatory risk and sustainability. Investments continue in sustainable packaging, including recyclable closures and dispensing solutions, supporting customer and industry demands for better environmental performance. Management did not provide full-year financial guidance. The company pays a quarterly dividend of $0.45 per share, which matches the most recent distribution; no change was declared for this period.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
