VWR's growth is still below peers; what KPIs indicate market share is shifting back in Avantor's favor?

Emmanuel Ligner listed KPIs such as new accounts, e-commerce metrics (clicks, baskets, conversion), and successful contract renewals. He emphasized the impact of the relaunched VWR brand and vwr.com, improved commercial execution, and a new pricing tool. Steve Eck added that the sequential improvement from -4.8% in Q1 to +1.7% in Q2 is a strong indicator, with further acceleration expected. “We've relaunched VWR brand. We've relaunched vwr.com. We made significant upgrade on the platform. We're not done. We have a whole program in place, and we are continuing to invest there.”

How comfortable is management that current Revival commitments are sufficient, and will costs remain elevated into 2027?

Emmanuel Ligner explained that Revival is constantly evolving, with ongoing identification and execution of high-priority projects. He stated that the company will continue to invest, following a philosophy of "simplifying, saving, and reinvesting for growth." He expects to exit 2026 with momentum and is optimistic about 2027 being a growth year. “Revival is constantly evolving... we simplify, we save and we reinvest for growth. This is the formula that we are applying.”

How does BMP's strong book-to-bill (above 1x) translate into the outlook for H2 2026 and 2027, given the backlog? Also, specific color on NuSil's volume and price outlook.

Emmanuel Ligner highlighted BMP's low double-digit order growth for the entire first half of 2026 and a healthy order book across all subsegments. He noted that NuSil has good order intake, a good but not "crazy" price lift, and good volume, with activity in new markets like [indiscernible]. He reiterated confidence in BMP's return to growth in H2. “it's low double-digit order book for the entire first half, which is, I think, very encouraging. And all the subsegments are in growth as well in the entire BMP.”

AVTR

Avantor (AVTR) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Jul 29, 2026

Source: earnings call transcript

Executive summary

Avantor Q2 FY26 — VWR Returns to Growth, Raised Full-Year Guidance

Avantor's Q2 FY26 results exceeded expectations, primarily driven by the VWR segment's earlier-than-anticipated return to 1.7% organic growth, fueled by strategic actions and digital enhancements. The Bioscience & Medtech Products (BMP) segment, while down organically, showed strong order intake and is poised for a second-half recovery. The company raised its full-year organic revenue and adjusted EPS guidance, reflecting improved performance and confidence in its "Revival" program, which focuses on operational excellence and debt reduction.

Highlights

VWR Distribution & Service segment returned to positive organic revenue growth of 1.7% in Q2 FY26, ahead of expectations.
Adjusted EBITDA grew over 15% sequentially from Q1, driven by increased volumes.
Generated strong free cash flow of $152 million (excluding restructuring costs) in Q2 FY26, used to repay $112 million of debt.
Raised full-year 2026 organic revenue growth guidance to -0.5% to +0.5% and adjusted EPS guidance to $0.80-$0.83.
BMP segment delivered double-digit order growth and a book-to-bill ratio of 1.1x in Q2 FY26, indicating future growth.

Concerns

BMP revenue declined 5.6% organically in Q2 FY26, impacted by discrete factors and difficult comparisons.
VWR's adjusted operating margin declined year-over-year due to mix and inflationary pressures.
Foreign exchange is expected to be a headwind of about 50 basis points to full-year revenue and 125 basis points to Q3 reported revenue.
Activity levels in end markets like education and certain European geographies remain stable but at lower levels than desired.
BMP faces a headwind of about 150 basis points to organic growth in Q3 FY26 from discrete customer ordering patterns and shipments.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Organic Revenue Growth	negative 0.5% to positive 0.5% high materiality	FY26	High
Full-year 2026 Adjusted EPS	$0.80 to $0.83 high materiality	FY26	High
Full-year 2026 Adjusted EBITDA Margin	unchanged medium materiality	FY26	High
Full-year 2026 Free Cash Flow	$500 million and $550 million high materiality	FY26	High
Q3 2026 Adjusted EPS	$0.20 and $0.21 per share medium materiality	Q3 · FY26	High
Q3 2026 Total Company Organic Revenue Growth	about 250 basis points medium materiality	Q3 · FY26	High
Q3 2026 FX Headwind to Reported Revenue	about 125 basis points medium materiality	Q3 · FY26	High
BMP Organic Growth	return to growth high materiality	H2 FY26	High
VWR Organic Growth	accelerate high materiality	H2 FY26	High
Adjusted Net Leverage Ratio	below 3x high materiality	FY26	High
Net Interest Expense	decline modestly low materiality	FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
VWR Distribution & Services Returned to growth ahead of expectations, driven by increased volumes from strong commercial execution, improved performance with large global customers, and better e-commerce outcomes for small/midsized customers. Margins increased approximately 100 basis points sequentially from Q1 due to increased volumes and improved mix. Pharma and biotech customer activity provided a modest tailwind. Adjusted operating income: $126 million	$1.24 billion	1.7% organically	—	10.2% adjusted operating margin
Bioscience & MedTech Products Revenue was near the high end of expectations, with solid performance across product lines. Process Chemicals grew faster than expectations. Fluid Handling and NuSil were down mid-teens, and Research and Specialty Chemicals declined mid-single digits. Discrete factors (customer ordering patterns, shipments in 2025) and difficult comparisons (Fluid Handling) represented a 600 basis point headwind to organic growth. Margins increased sequentially due to increased volumes and mix. Order trends were healthy across all business units, with particular strength in Process Chemicals and Fluid Handling. Adjusted operating income: $118 millionBook-to-bill ratio: 1.1xOrder growth: double-digit	$452 million	-5.6% organically	—	26% adjusted operating margin

Risks & headwinds

Foreign Exchange Headwind second half of 2026 and Q3 FY26

about 50 basis points to full year revenue and about 125 basis points to Q3 reported revenue

Mitigation:operational outperformance enables us to absorb macro inflationary pressures

Inflationary Pressures ongoing

significant pressure on freight costs for both segments

Mitigation:operational outperformance enables us to absorb macro inflationary pressures while also making targeted growth investments; successfully navigate inflationary pressures with our customers and suppliers constructively

Lower Activity in Education and European End Markets Q2 FY26 and ongoing

stable, but at a lower level than we would love to see

Mitigation:An improvement in those end markets could represent an additional tailwind to our growth.

Discrete Headwinds in BMP Q2, Q3, Q4 FY26

600 basis points to BMP organic revenue growth in the second quarter and about 150 basis points to organic growth in Q3 and about 400 basis points related to our electronic materials business in Q4.

Mitigation:improved execution and more favorable discrete comparisons in H2; gradual strengthening in the volumes over the course of the year

What to watch in Q3 FY26

VWR Organic Revenue Growth Acceleration

H2 FY26

Current 1.7% organic growth in Q2 FY26

Target accelerated growth

Why it matters

VWR's sustained acceleration is key to overall company growth and validates the effectiveness of the Revival program's commercial and digital initiatives.

We continue to expect growth to accelerate through the remainder of the year.

Find out whether AVTR delivers this. Inve re-checks your case every morning.

Q&A highlights

How much of VWR's Q2 growth was due to company actions vs. market recovery, and how much of the guidance raise is attributable to each? Also, quantify the headwind from past contract renewals.

Emmanuel Ligner stated that over half of VWR's Q2 growth came from deliberate actions, including successful new contract wins and increased share of wallet with large global customers, as well as positive impact from the relaunched vwr.com for smaller customers. The remainder was from improved pharma/biotech end markets. He declined to quantify the exact headwind from past contract renewals but noted they are now lapping those pressures.

“more than half of the growth that we deliberated in Q2 comes from deliberated action that we're taking.”

asked by Eve Burstein · answered by Emmanuel Ligner

2 min read 5 chapters

Detailed narrative

Revival Program Driving Performance

Avantor's "Revival" program, launched nearly 12 months ago, is yielding measurable results, contributing to the company's improved Q2 performance. This comprehensive program, built on five pillars including commercial excellence and operational performance, has led to significant improvements such as the relaunch of vwr.com, enhanced customer engagement, and increased throughput in key manufacturing lines by over 25% versus Q1.

The program's initiatives are credited with VWR's return to growth and BMP's strong order intake.

VWR's Broad-Based Momentum

The VWR Distribution & Services segment returned to 1.7% organic growth in Q2, ahead of expectations, driven by deliberate actions rather than just market recovery. Key drivers include stronger performance with large global customers due to successful contract renewals and increased share of wallet, and improved growth in small and mid-sized customer segments through digital enhancements like the relaunched vwr.com.

The company expects this momentum to accelerate in the second half of the year.

BMP's Path to Recovery

The Bioscience & MedTech Products (BMP) segment, while experiencing a 5.6% organic decline in Q2 due to discrete factors and difficult comparisons, demonstrated strong commercial performance with double-digit order growth and a 1.1x book-to-bill ratio. Management is confident that BMP will return to organic growth in the second half of 2026, supported by improving operations, a healthy order book across all business units (especially Process Chemicals and Fluid Handling), and more favorable year-over-year comparisons.

Strategic Capital Allocation and Debt Reduction

Avantor continues to generate strong free cash flow, with $152 million (excluding restructuring costs) in Q2, which is being prioritized for purposeful investments in the business and debt repayment. The company repaid $112 million of debt in the quarter, bringing its adjusted net leverage ratio to 3.3x.

Management remains committed to reducing this ratio to below 3x by the end of FY26, a target supported by continued debt paydown and anticipated adjusted EBITDA growth.

Digital Transformation and Customer Engagement

A significant focus of the Revival program is digital transformation, particularly within the VWR segment. The relaunch of vwr.com and continuous platform upgrades have positively impacted customer engagement, driving direct traffic, higher conversion rates, and improved daily sales, especially among smaller, higher-margin customers.

While progress is encouraging, the company views its digital transformation as being in early stages, with substantial opportunities for further enhancement and sustained growth, particularly in Europe.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.