Free cash flow margins have exhibited extreme volatility, contracting from a peak of 13.8% in 2024Q2 to just 1.6% in 2026Q1, largely driven by erratic working capital swings.
| Cash from Operations | 573.2M | 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 % | -118.53% | -25.81% | -3.36% | 3.13% | -11.54% | 2.56% | 162.66% | 76.56% | 219.7% | -329.77% | - |
| Net Income | -551.4M | -530.2M | 711.5M | 321.1M | 686.5M | 572.6M | 116.6M | 37.8M | -86.9M | -145.3M | -80.7M |
| Depreciation & Amortization | 415.5M | 410.2M | 405.5M | 402.3M | 405.5M | 379.2M | 395.4M | 398.9M | 404.6M | 99.2M | 60.3M |
| Stock-Based Compensation | 42.6M | 46.4M | 46.8M | 40.5M | 45.8M | 50.7M | 44.1M | 67.9M | 18.4M | 48.2M | 98.7M |
| Deferred Taxes | 9.9M | 7.7M | -46.9M | -172.4M | -69.1M | -17.7M | -87.5M | -106.7M | -139.7M | -323.6M | -30.7M |
| Other Non-Cash Items | 865.3M | 888.6M | -323.8M | 261.9M | 96.2M | 83.3M | 441.7M | 142.7M | 97.9M | 81.4M | 36.8M |
| Working Capital Changes | -208.7M | -198.9M | 47.7M | 16.6M | -321.3M | -114.5M | 19.5M | -186.6M | -93.8M | 72.6M | -11.5M |
| Change in Receivables | 16M | 13.6M | 45.9M | 77M | -45.2M | -111.8M | -102.4M | -68.9M | -83.4M | 14.1M | -7.9M |
| Change in Inventory | -104M | -109.4M | -18.5M | 30.3M | -112.5M | -129.8M | -69.7M | -71.1M | -41.1M | 19.7M | -13M |
| Change in Payables | 39.6M | 42.4M | 59.6M | -139.6M | 15.6M | 64.9M | 110.6M | 5.1M | 29.4M | 31.8M | 5.5M |
| Cash from Investing | -134.3M | -130.5M | 438.9M | -143.7M | -109.6M | -4.12B | -59.1M | -42.1M | -23.2M | -6.68B | -29.9M |
| Capital Expenditures | -134.3M | -128.8M | -148.8M | -146.4M | -133.4M | -111.1M | -61.6M | -51.6M | -37.7M | -25.2M | -29.9M |
| CapEx % of Revenue | 2.05% | 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 | 0 | -1.7M | 587.7M | 2.7M | 1.5M | 3.5M | 2.5M | 9.5M | 14.5M | 9.9M | 0 |
| Cash from Financing | -483M | -409.4M | -1.28B | -843.7M | -648.7M | 3.22B | -782.9M | -307.8M | -170.3M | 6.96B | -43.5M |
| Debt Issued (Net) | -392.8M | -318.7M | -1.34B | -846M | -620.4M | 2.3B | -738.5M | -1.88B | -149.8M | 5.96B | 896.9M |
| Equity Issued (Net) | -71.4M | -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 | -79.4M | -80.7M | -8.6M | -13.7M | -13.2M | -25.8M | -20.2M | -2.63B | 0 | 0 | -702.2M |
| Other Financing | -18.8M | -15.1M | 69.2M | 16M | 17.3M | 41.9M | 20.2M | -3.9M | -20.5M | -341M | -79.5M |
| Net Change in Cash | -36.7M | 103.6M | -23M | -109.2M | 69.8M | 37.9M | 99.9M | 1.6M | -800K | 122.5M | -1.2M |
| Free Cash Flow | 438.9M | 495M | 692M | 723.6M | 710.2M | 842.5M | 868.2M | 302.4M | 162.8M | -192.7M | 43M |
| FCF Margin % | 6.7% | 7.55% | 10.2% | 10.39% | 9.45% | 11.41% | 13.58% | 5.01% | 2.78% | -15.45% | 6.22% |
| FCF Growth % | -34.14% | -28.47% | -4.37% | 1.89% | -15.7% | -2.96% | 187.1% | 85.75% | 184.48% | -548.14% | - |
| FCF per Share | 0.65 | 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) | -0.80x | -1.18x | 1.18x | 2.71x | 1.23x | 1.67x | 7.97x | 9.37x | -2.31x | 1.49x | -1.72x |
| Interest Paid | 57.1M | 1.6M | 4.2M | 267M | 242.2M | 187M | 317.8M | 405.5M | 481.3M | 137.2M | 54.9M |
| Taxes Paid | 87.5M | 145M | 247.8M | 224.4M | 256.9M | 144.7M | 42.7M | 112.3M | 65.6M | 31.5M | 28.6M |
Persistent working capital volatility
According to quarterly cash flow statements, Avantor frequently reports operating cash flow significantly exceeding net income, with the OCF/NI ratio reaching an extreme 4.24x in 2024Q3, suggesting that non-cash charges and accounting adjustments are heavily distorting the company's reported profitability metrics for institutional observers.
The consistent divergence between net income and operating cash flow indicates that GAAP earnings are not a reliable proxy for the company's underlying cash-generative capacity. Investors should monitor whether this gap reflects legitimate non-cash amortization of acquisition-related intangibles or if it masks underlying operational inefficiencies that are not being captured in the bottom line.
As reported in financial statements, Avantor's free cash flow margins have exhibited significant instability, peaking at 13.8% in 2024Q2 before contracting to 1.6% in 2026Q1, which highlights the company's difficulty in maintaining consistent cash conversion during periods of revenue stagnation and post-pandemic volume normalization.
The sharp decline in FCF margins suggests that the company's cost structure remains rigid despite the recent revenue contraction. This trend warrants further investigation into whether the business can achieve sustainable cash flow growth without a meaningful recovery in its higher-margin proprietary product segments.
Based on reported figures, Avantor's working capital management appears highly erratic, with a $100.8 million cash outflow in 2026Q1 following a $97.0 million inflow in 2023Q4, indicating that inventory and receivables cycles are currently acting as a significant drag on the company's short-term liquidity position.
These violent swings in working capital suggest that the company is struggling to align its inventory levels with fluctuating demand from biopharma customers. Such volatility may indicate that the distribution arm is carrying excess stock, which could necessitate future write-downs if demand does not materialize as expected.
Data from recent filings shows that Avantor maintains a disciplined capital expenditure profile, with CapEx/Revenue ratios consistently hovering between 1.6% and 2.9%, suggesting that the company is prioritizing maintenance over aggressive capacity expansion in the current uncertain bioprocessing environment.
While the low capital intensity is a positive signal for cash preservation, it may also imply that the company is not investing heavily in new proprietary manufacturing capabilities. Analysts should monitor whether this level of investment is sufficient to maintain the technical 'stickiness' of its high-purity chemical portfolio against more aggressive competitors.
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.