Free cash flow deteriorated from a peak of $235.3M in 2024Q2 to -$25.7M in 2026Q2, with FCF margin dropping from 13.8% to -1.5%, while cumulative operating cash flow of $1.54B over ten quarters far exceeds cumulative net income of $262M, suggesting earnings quality is masked by volatility.
Avantor, Inc. (AVTR) cash flow statement — 10-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Cash from Operations | 597M | 623.8M | 840.8M | 870M | 843.6M | 953.6M | 929.8M | 354M | 200.5M | -167.5M | 72.9M |
| Operating CF Margin % | - | 9.52% | 12.39% | 12.49% | 11.23% | 12.91% | 14.54% | 5.86% | 3.42% | -13.43% | 10.55% |
| Operating CF Growth % | -58.04% | -25.81% | -3.36% | 3.13% | -11.54% | 2.56% | 162.66% | 76.56% | 219.7% | -329.77% | - |
| Net Income | -578M | -530.2M | 711.5M | 321.1M | 686.5M | 572.6M | 116.6M | 37.8M | -86.9M | -145.3M | -80.7M |
| Depreciation & Amortization | 422.3M | 410.2M | 405.5M | 402.3M | 405.5M | 379.2M | 395.4M | 398.9M | 404.6M | 99.2M | 60.3M |
| Stock-Based Compensation | 38.4M | 46.4M | 46.8M | 40.5M | 45.8M | 50.7M | 44.1M | 67.9M | 18.4M | 48.2M | 98.7M |
| Deferred Taxes | 60M | 7.7M | -46.9M | -172.4M | -69.1M | -17.7M | -87.5M | -106.7M | -139.7M | -323.6M | -30.7M |
| Other Non-Cash Items | 932.5M | 888.6M | -323.8M | 261.9M | 96.2M | 83.3M | 441.7M | 142.7M | 97.9M | 81.4M | 36.8M |
| Working Capital Changes | -200M | -198.9M | 47.7M | 16.6M | -321.3M | -114.5M | 19.5M | -186.6M | -93.8M | 72.6M | -11.5M |
| Change in Receivables | -11.4M | 13.6M | 45.9M | 77M | -45.2M | -111.8M | -102.4M | -68.9M | -83.4M | 14.1M | -7.9M |
| Change in Inventory | -122.8M | -109.4M | -18.5M | 30.3M | -112.5M | -129.8M | -69.7M | -71.1M | -41.1M | 19.7M | -13M |
| Change in Payables | 41M | 42.4M | 59.6M | -139.6M | 15.6M | 64.9M | 110.6M | 5.1M | 29.4M | 31.8M | 5.5M |
| Cash from Investing | -143M | -130.5M | 438.9M | -143.7M | -109.6M | -4.12B | -59.1M | -42.1M | -23.2M | -6.68B | -29.9M |
| Capital Expenditures | -147.8M | -128.8M | -148.8M | -146.4M | -133.4M | -111.1M | -61.6M | -51.6M | -37.7M | -25.2M | -29.9M |
| CapEx % of Revenue | 2.25% | 1.97% | 2.19% | 2.1% | 1.78% | 1.5% | 0.96% | 0.85% | 0.64% | 2.02% | 4.33% |
| Acquisitions | 0 | 0 | 0 | 0 | -20.2M | -4.01B | 0 | 0 | 0 | -6.66B | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 4.8M | -1.7M | 587.7M | 2.7M | 1.5M | 3.5M | 2.5M | 9.5M | 14.5M | 9.9M | 0 |
| Cash from Financing | -588.5M | -409.4M | -1.28B | -843.7M | -648.7M | 3.22B | -782.9M | -307.8M | -170.3M | 6.96B | -43.5M |
| Debt Issued (Net) | -498.1M | -318.7M | -1.34B | -846M | -620.4M | 2.3B | -738.5M | -1.88B | -149.8M | 5.96B | 896.9M |
| Equity Issued (Net) | -75.2M | -75.6M | -8.6M | -13.7M | -13.2M | 941.2M | 0 | 1.6B | 0 | 3.05B | -702.2M |
| Dividends Paid | 0 | 0 | 0 | 0 | -32.4M | -64.6M | -64.6M | -31.3M | 0 | -1.7B | -158.7M |
| Share Repurchases | -79.6M | -80.7M | -8.6M | -13.7M | -13.2M | -25.8M | -20.2M | -2.63B | 0 | 0 | -702.2M |
| Other Financing | -15.2M | -15.1M | 69.2M | 16M | 17.3M | 41.9M | 20.2M | -3.9M | -20.5M | -341M | -79.5M |
| Net Change in Cash | -142.5M | 103.6M | -23M | -109.2M | 69.8M | 37.9M | 99.9M | 1.6M | -800K | 122.5M | -1.2M |
| Free Cash Flow | 288.4M | 495M | 692M | 723.6M | 710.2M | 842.5M | 868.2M | 302.4M | 162.8M | -192.7M | 43M |
| FCF Margin % | 4.4% | 7.55% | 10.2% | 10.39% | 9.45% | 11.41% | 13.58% | 5.01% | 2.78% | -15.45% | 6.22% |
| FCF Growth % | -48.12% | -28.47% | -4.37% | 1.89% | -15.7% | -2.96% | 187.1% | 85.75% | 184.48% | -548.14% | - |
| FCF per Share | 0.43 | 0.73 | 1.01 | 1.07 | 1.05 | 1.41 | 1.49 | 0.75 | 0.33 | -0.39 | 0.09 |
| FCF Conversion (FCF/Net Income) | -0.50x | -1.18x | 1.18x | 2.71x | 1.23x | 1.67x | 7.97x | 9.37x | -2.31x | 1.49x | -1.72x |
| Interest Paid | 57.5M | 1.6M | 4.2M | 267M | 242.2M | 187M | 317.8M | 405.5M | 481.3M | 137.2M | 54.9M |
| Taxes Paid | 40.8M | 145M | 247.8M | 224.4M | 256.9M | 144.7M | 42.7M | 112.3M | 65.6M | 31.5M | 28.6M |
Quick answers to the most common questions about buying AVTR stock.
Avantor, Inc. (AVTR) generated $623.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Avantor, Inc. (AVTR) generated $495.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Avantor, Inc. (AVTR) spent $128.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Avantor, Inc. (AVTR) spent $80.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Revenue stagnation and margin erosion
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Volatility
Avantor's operating cash flow exceeded net income in most quarters, with OCF/NI ratios above 2.0, but 2025Q3's $711.8M loss and 2024Q4's $500.4M gain distort the trend, per reported data.
The wide swings in net income, including a $711.8M loss in 2025Q3, are not mirrored in operating cash flow, which remained positive and relatively stable, suggesting that non-cash charges or one-time items drive earnings volatility. The OCF/NI ratio of 4.68 in 2026Q2, despite a modest $38.1M net income, indicates that cash generation is more consistent than reported earnings, but investors should monitor the sustainability of this divergence.
Free Cash Flow Momentum Fading
Free cash flow peaked at $235.3M in 2024Q2 but declined to -$25.7M in 2026Q2, with FCF margin dropping from 13.8% to -1.5%, based on quarterly cash flow statements.
The deterioration in free cash flow is driven by a combination of declining operating cash flow and rising capital expenditures, with CapEx/Revenue increasing from 1.6% in 2024Q4 to 2.5% in 2026Q2. This suggests that Avantor is investing more while cash generation weakens, potentially straining future liquidity if the trend persists.
Capital Intensity Creeping Higher
Capital expenditures as a percentage of revenue rose from 1.6% in 2024Q4 to 2.5% in 2026Q2, while depreciation and amortization remained flat around $100M, per reported figures.
The increase in capital intensity, despite stagnant revenue, may indicate investments in growth initiatives or maintenance needs, but the flat D&A suggests that new capex is not yet translating into higher depreciation. This could imply that Avantor is spending on projects with longer gestation periods, or that some expenditures are being capitalized rather than expensed, warranting closer scrutiny of the nature of these investments.
Working Capital Volatility Persists
Working capital changes swung from a positive $89.9M in 2024Q2 to a negative $100.4M in 2026Q1, indicating significant cash absorption, as per quarterly cash flow data.
The erratic working capital swings, with negative changes in most quarters, suggest that Avantor is experiencing pressure on collections or inventory management, possibly due to slower demand. The $100.4M outflow in 2026Q1 was a major drag on operating cash flow, and while 2026Q2 saw a smaller outflow, the pattern indicates that working capital is a key source of cash flow volatility.
Minimal Capital Returns to Shareholders
Avantor paid no dividends and repurchased only $0.3M in 2026Q2, with cumulative buybacks over ten quarters under $100M, based on reported cash flow statements.
The lack of meaningful capital returns, despite positive free cash flow in several quarters, suggests that management is prioritizing debt reduction or internal reinvestment, though the data does not show significant acquisition activity. This conservative deployment may appeal to investors seeking balance sheet stability, but it also implies limited direct shareholder returns.
Cumulative Cash Outpaces Earnings
Over the last ten quarters, cumulative operating cash flow of $1.54B far exceeds cumulative net income of $262M, highlighting a persistent gap, as per reported financials.
The large cumulative divergence between operating cash flow and net income suggests that earnings are heavily impacted by non-cash charges, such as impairments or amortization, which do not affect cash generation. This indicates that Avantor's cash-generating ability is stronger than its reported profitability, but the recent decline in operating cash flow in 2026Q2 warrants monitoring to see if this trend reverses.
What Could Invalidate the Base Case
The cash flow statement may obscure the true cost of growth, as rising capex and flat D&A could signal aggressive capitalization, while SBC adds $11.3M quarterly, per reported figures.
The increase in capital expenditures without a corresponding rise in depreciation may indicate that some spending is being capitalized rather than expensed, potentially inflating operating cash flow. Additionally, stock-based compensation, which totaled $11.3M in 2026Q2, is added back to operating cash flow but represents a real economic cost to shareholders. Investors should monitor whether these adjustments are masking underlying cash generation weakness.