AptarGroup, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported sales for the quarter ended September 30, 2026, increased 6% to $1.02 billion compared to $961 million in the prior year; core sales increased 5%.
• Reported net income was $33 million, with reported earnings per share (EPS) of $0.51, down from $1.92 in the prior year period.
• Adjusted EPS was $1.52, compared to $1.62 in the prior year period at comparable exchange rates.
• Adjusted EBITDA margin was 21.3%, a decline from 23.2% in the prior year quarter.
• For the nine months ended September 30, 2026, reported sales increased 8% to $3.03 billion compared to $2.81 billion; core sales increased 2%.
• Reported EPS for the nine months was $3.00, a 37% decrease from $4.75 in the prior year.
• Adjusted EPS for the nine months was $4.13, a 10% decrease from $4.60 in the prior year.
• Reported effective tax rate for the quarter was 45.6% (adjusted rate: 23.4%); for the nine months, the reported rate was 28.1% (adjusted rate: 23.2%).
• Cash returned to shareholders was $61 million in the quarter and $272 million year-to-date through share repurchases and dividends.
• Free cash flow for the nine months ended September 30, 2026, was $197.8 million, compared to $206.0 million in the prior year period.

Guidance and Future Outlook:

• Aptar expects adjusted EPS for the fourth quarter of 2026 to be in the range of $1.39 to $1.47.
• The Q4 guidance assumes an effective tax rate range of 17.5% to 19.5% and a 1.12 Euro to USD exchange rate.
• Management expects to finish the year strong, supported by continued Pharma growth in consumer healthcare and injectables, and the absence of headwinds from emergency medicine destocking.
• Closures is expected to maintain momentum driven by innovation in beverage technologies.
• In Beauty, the focus remains on improving the long-term North American trajectory while noting pockets of healthy demand in prestige fragrance globally.

Business Segments and Product Lines:

• Pharma: Reported sales increased 2% and core sales increased 1%. Adjusting for emergency medicine destocking, core sales grew 8%. Growth was driven by central nervous system therapies, pulmonary, injectables, consumer healthcare, biologics, vaccines, and GLP-1 therapies. Adjusted EBITDA margin was 36.4%, down 80 basis points, though remaining above the long-term target range.
• Beauty: Reported sales increased 9% and core sales increased 8%. Growth was supported by demand for prestige fragrance dispensing, color cosmetics, and hair care applications, along with pass-throughs of higher input costs. Adjusted EBITDA margin was 11.4%, down 70 basis points due to unfavorable mix and ongoing North American operational challenges.
• Closures: Reported sales increased 11% and core sales increased 11%. Growth was led by beverage and food sales, specifically bottled water, concentrates, and condiments, alongside new beverage dispensing closure innovation. Adjusted EBITDA margin was 15.5%, down 60 basis points due to the dilutive impact of input cost pass-throughs.

Market and Competitive Landscape:

• The company noted continued momentum in beverage dispensing innovation within the Closures segment.
• Pharma growth drivers include demand related to biologics, vaccines, and GLP-1 therapies.
• Beauty segment demand remains strong in prestige fragrance globally.
• The company faces ongoing challenges in North American operations within the Beauty segment.

Risks and Challenges:

• The company deconsolidated its Russian subsidiary following a governmental decree placing it under external administration, resulting in a $58.0 million loss on deconsolidation (including approximately $30.0 million in cash held by the subsidiary).
• The total combined impact of the Russian deconsolidation was $61.2 million before tax and $60.4 million after tax.
• The reported effective tax rate was significantly impacted by the non-deductible tax impact of the Russian deconsolidation.
• Pharma performance was partially offset by the anticipated reduction in emergency medicine sales due to destocking.
• Beauty and Closures margins were negatively impacted by unfavorable product mix and dilutive input cost pass-throughs.

Management Commentary and Tone:

• Gael Touya, Aptar President and CEO, stated the company delivered broad-based revenue growth across all three segments.
• Touya highlighted that Pharma delivered impressive growth while maintaining profitability at the high end of the long-term target range.
• Management emphasized a strong Pharma pipeline with continued focus on building the pipeline and converting opportunities into future growth.
• As the new CEO, Touya outlined a clear direction to deepen customer positions, accelerate innovation, execute with greater consistency, and allocate capital thoughtfully to drive profitable growth.

Other Key Points:

• Subsequent to the quarter, the Board of Directors approved an increase in the quarterly cash dividend from $0.48 to $0.50 per share.
• The dividend payment date is December 3, 2026, for stockholders of record as of November 12, 2026.
• During the third quarter, Aptar repurchased approximately 234,000 shares for $30 million.
• The company employs 14,000 people across 20 countries.
• A conference call to discuss results was held on October 30, 2026.
• Non-GAAP measures exclude impacts from restructuring, acquisition costs, purchase accounting adjustments, Russia deconsolidation, and other special items including litigation costs related to ARS Pharmaceuticals and Nemera La Verpillière SAS.