AptarGroup, Inc. Q2 2026 10-Q Summary
Business Context and Reporting Period
This summary covers the quarterly report (Form 10-Q) for AptarGroup, Inc. for the period ended June 30, 2026. AptarGroup is a global provider of dispensing, closing, and packaging solutions for the pharmaceutical, beauty, and food/beverage industries. The company operates through three reportable segments: Pharma, Beauty, and Closures.
Key Financial Metrics (Six Months Ended June 30, 2026)
| Metric | 2026 (YTD) | 2025 (YTD) |
|---|---|---|
| Net Sales | $2,009.4 million | $1,853.3 million |
| Operating Income | $234.2 million | $257.8 million |
| Net Income (Attributable to Aptar) | $160.2 million | $190.5 million |
| Diluted EPS | $2.48 | $2.83 |
| Operating Margin | 11.7% | 13.9% |
| Adjusted EBITDA | $401.5 million | $401.7 million |
| Free Cash Flow | $99.2 million | $91.7 million |
| Cash & Equivalents | $190.4 million | $402.4 million (Dec 31, 2025) |
| Total Debt | $1,367.7 million | $1,483.0 million (Dec 31, 2025) |
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 8% year-over-year (YoY) for the six months, driven by a 4% positive currency impact and 3% from acquisitions. Core sales (excluding currency and acquisitions) grew 1%.
- Profitability Decline: Operating income decreased 9% YoY to $234.2 million. Operating margins compressed from 13.9% to 11.7% due to higher input costs, lower productivity, and a less favorable product mix in the Pharma segment (specifically lower sales of high-margin emergency medicine products).
- Interest Expense: Interest expense rose significantly to $32.9 million (from $22.2 million) due to the repayment of lower-rate debt and the issuance of new notes at higher fixed rates (4.75%).
- Segment Performance:
- Pharma: Sales up 5%; Adjusted EBITDA flat. Margin declined due to product mix shifts.
- Beauty: Sales up 14%; Adjusted EBITDA up 1%. Margin declined due to lower volumes and unfavorable mix.
- Closures: Sales up 6%; Adjusted EBITDA down 10% due to operational ramp-up costs and a $0.9 million equity investment write-off.
Guidance, Outlook, and Risks
- Q3 2026 Guidance: Management expects Adjusted EPS in the range of $1.45 to $1.53. This assumes an effective tax rate of 22.5% to 24.5% and an exchange rate of 1.14 EUR/USD.
- Capital Expenditures: Total 2026 estimated cash outlays for CapEx are expected to be $260.0 million to $280.0 million.
- Share Repurchases: The company repurchased $150.0 million of stock in the first half of 2026. $450.0 million remains available under the current authorization.
- Legal Contingencies:
- ARS Pharmaceuticals: Ongoing litigation regarding trade secret misappropriation and antitrust claims. The company believes an adverse outcome is not probable at this stage but cannot estimate potential loss.
- Nemera: Patent infringement actions in Germany and France regarding ophthalmic products. A decision in the German proceeding is expected in August 2026.
- Tariff Matters: Following a Supreme Court ruling invalidating certain IEEPA-based tariffs, the company is evaluating potential refunds for previously paid duties, though amounts received to date are not material.
Investor Verification Checklist
- Pharma Mix Impact: Verify the sustainability of the decline in high-margin emergency medicine sales and the trajectory of growth in consumer healthcare and injectables.
- Input Cost Pass-Through: Assess the company's ability to fully pass through rising raw material and input costs to customers without losing volume, particularly in the Beauty and Closures segments.
- Debt Servicing: Monitor the impact of the higher interest rate environment on future earnings, given the recent refinancing of debt at 4.75%.
- Legal Exposure: Track the August 2026 decision in the Nemera patent case and the discovery phase of the ARS litigation for potential financial impacts.
- Currency Hedging: Review the effectiveness of the company's hedging strategy given the significant exposure to the Euro and other foreign currencies.