AptarGroup, Inc. Q4 FY2025 earnings call

• Annual and fourth quarter results: Reported sales grew 14% in Q4 to $963M, full-year reported sales up 5% to $3.8B. Core sales growth across segments. • Pharma pipeline: Systemic nasal drug delivery accelerated, injectables a larger portion. Notable pipeline progress in various therapeutic areas. • Beauty and Closures launches: New product launches in Beauty and Closures. • Sustainability: Continued global leadership in sustainability, named one of America's most responsible companies.

Pharma segment: Core sales increased 4%. Prescription core sales up 1% (driven by systemic nasal drug delivery, etc.), Consumer Healthcare core sales up 3%, Injectables core sales up 24%, Active Materials Science Solutions core sales down 10%. Beauty segment: Core sales increased 10%, adjusted EBITDA margin 10.2% (decline due to customer projects, environmental upgrades, etc.). Closures segment: Core sales up 1%, adjusted EBITDA margin 14.9% (decline due to equipment maintenance, lower resin pricing, etc.)

• Q1 adjusted earnings per share expected to be in range of $1.13 to $1.21. • Full year 2026 capital investments expected to be $260M - $280M, depreciation and amortization expense $320M - $330M. • Emergency medicine expected to be a $65M revenue headwind in 2026, more pronounced in first half. • Sustained cost savings and productivity improvements well north of $100M.

• Operational disruptions in Beauty and Closures segments, including environmental upgrades, supplier issues, maintenance backlog. • Emergency medicine decline putting pressure on overall margins in short term.

Q: Great performance in elastomer business with GLP-1 growth, any deceleration?

A: Expect injectables to grow in high single digit, low double digit.

Q: Concerns on Beauty and Closures margin performance, specifics?

A: Beauty had operational issues like environmental upgrades, Closures had maintenance backlog.

Q: Details on emergency medicine in 4Q and outlook?

A: 4Q Pharma core sales up ex emergency medicine, full year $65M headwind with most in first half.

Q: Capital allocation and potential investments?

A: Look for bolt-ons, technologies to strengthen IP, geographic breadth.

Q: Cost savings and productivity?

A: Well north of $100M taken out, continuing initiatives.

Q: CARDAMYST and pipeline fill?

A: Takes time to establish trajectory, depends on prescribers, payers, etc.

Q: Cash flow and working capital?

A: Free cash flow affected by timing of tax payments, pension contributions.

Q: Maintenance issues in Closures?

A: One site in North America had equipment offline, teams addressing.