Avantor, Inc.
For the period ended Sep 30, 2026. Filed Oct 28, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 28, 2026
AVTR$15.47+2.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001628280-26-050415
Item 2. Management’s discussion and analysis of financial condition and results of operationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-28.
0001628280-26-067751
Item 2. Management’s discussion and analysis of financial condition and results of operationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 117 previous paragraphs and 120 current paragraphs.
72 unchanged; 36 reworded; 11 added; 8 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
In the VWR Distribution & Services segment, net sales increased by $58.8 million, or 5.0%, including $9.0 million, or 0.8%, of unfavorable foreign currency impact. Organic net sales increased by $67.8 million, or 5.8%. The organic sales increase was primarily driven by higher sales volumes within our specialty procurement offering and higher sales of consumables and lab chemicals.
Current report
Nine months ended
Current report
Net sales increased $83.4 million, or 1.7%, which included $70.4 million, or 1.4%, of favorable foreign currency impact. Organic net sales increased by $13.0 million, or 0.3%.
Current report
In the VWR Distribution & Services segment, net sales increased by $86.8 million, or 2.5%, including $54.7 million, or 1.6%, of favorable foreign currency impact. Organic net sales increased by $32.1 million, or 0.9%. The organic sales increase was primarily driven by higher sales volumes within our specialty procurement offering, while sales across the remaining product categories were generally consistent with the prior year.
Current report
Operating income (loss)
Current report
Net income (loss)
Current report
In the Bioscience & Medtech Products segment, Adjusted Operating Income increased by $4.1 million, or 3.4%, or 3.6% when adjusted for unfavorable foreign currency impact. The increase was primarily due to higher sales volume and commercial excellence, partially offset by higher SG&A expenses.
Current report
Nine months ended
Current report
Represents the $785.0 million non-cash goodwill impairment charge recognized in the third quarter of 2025 related to the former Distribution reporting unit. Refer to note 7.
Current report
Represents the $785.0 million non-cash goodwill impairment charge recognized in the third quarter of 2025 related to the former Distribution reporting unit. Refer to note 7.
Current report
Financing activities used $192.3 million less cash in 2026, primarily due to lower term loan repayments compared with the prior year and higher proceeds received from stock option exercises.
Removed paragraphs (8)
Previous report
In the VWR Distribution & Services segment, net sales increased by $33.0 million, or 2.7%, including $13.0 million, or 1.0%, of favorable foreign currency impact. Organic net sales increased by $20.0 million, or 1.7%. The organic sales increase was primarily driven by higher sales volumes of controlled environment consumables and increased specialty procurement sales, partially offset by lower sales of lab consumables.
Previous report
Six months ended
Previous report
Net sales increased $8.9 million, or 0.3%, which included $80.0 million, or 2.5%, of favorable foreign currency impact. Organic decline in net sales was $71.1 million, or 2.2%.
Previous report
In the VWR Distribution & Services segment, net sales increased by $28.0 million, or 1.2%, including $63.7 million, or 2.7%, of favorable foreign currency impact. Organic net sales decreased by $35.7 million, or 1.5%. The organic sales decrease was primarily driven by lower sales volumes of lab consumables and equipment and instrumentation, partially offset by higher sales of controlled environment consumables and increased specialty procurement sales.
Previous report
Operating income
Previous report
Net income
Previous report
Six months ended
Previous report
Financing activities used $179.1 million more cash in 2026, primarily due to higher prepayments of term loans compared to the prior year.
Reworded paragraphs (36)
Previous wording
During the three months ended June 30, 2026, we recorded net sales of $1,692.3 million, net income of $38.1 million, Adjusted EBITDA of $254.3 million, operating income of $121.8 million, and Adjusted Operating Income of $225.1 million. Net sales for the three months ended June 30, 2026 increased by 0.5%, which included a 0.4% organic net sales decrease compared to the same period in 2025. See “Reconciliations of non-GAAP measures” for reconciliations of net income to Adjusted EBITDA, net income margin to Adjusted EBITDA margin, operating income to Adjusted Operating Income, and operating income margin to Adjusted Operating Income margin. See “Results of operations” for a reconciliation and explanation of changes of net sales growth (decline) to organic net sales growth (decline).
Current wording
During the three months ended September 30, 2026, we recorded net sales of $1,698.3 million, net income of $203.4 million, Adjusted EBITDA of $256.9 million, operating income of $139.5 million, and Adjusted Operating Income of $227.6 million. Net sales for the three months ended September 30, 2026 increased by 4.6%, which included a 5.2% organic net sales increase compared to the same period in 2025. See “Reconciliations of non-GAAP measures” for reconciliations of net income (loss) to Adjusted EBITDA, net income (loss) margin to Adjusted EBITDA margin, operating income to Adjusted Operating Income, and operating income margin to Adjusted Operating Income margin. See “Results of operations” for a reconciliation and explanation of changes of net sales growth (decline) to organic net sales growth (decline).
Previous wording
Our consolidated results of operations are comprised of many different functional currencies that translate into our U.S. dollar reporting currency. The movement of the U.S. dollar against those functional currencies, particularly the Euro, has caused significant variability in our results and may continue to do so in the future.
Current wording
Our consolidated results of operations include results reported in many different functional currencies that are translated into our U.S. dollar reporting currency. Movements in the U.S. dollar against those functional currencies, particularly the Euro, have caused significant variability in our results and may continue to do so in the future.
Previous wording
•Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP measures discussed in the section entitled “Results of operations.” Adjusted EBITDA is our net income or loss adjusted for the following items: (i) interest expense, (ii) income tax expense, (iii) amortization of acquired intangible assets, (iv) depreciation expense, (v) losses on extinguishment of debt, (vi) charges associated with the impairment of certain assets, (vii) gain on sale of business, and (viii) certain other adjustments. Adjusted EBITDA margin is Adjusted EBITDA divided by net sales as determined under GAAP. We believe that these measurements are useful to investors as ways to analyze the underlying trends in our business consistently across the periods presented. These measurements are used by our management for the same reason. A reconciliation of net income or loss and net income or loss margin, the most directly comparable GAAP financial measures, to Adjusted EBITDA and Adjusted EBITDA margin, respectively, are included in the section entitled “Reconciliations of non-GAAP measures”;
Current wording
•Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP measures discussed in the section entitled “Results of operations.” Adjusted EBITDA is our net income or loss adjusted for the following items: (i) interest expense, (ii) income tax expense, (iii) amortization of acquired intangible assets, (iv) depreciation expense, (v) losses on extinguishment of debt, (vi) charges associated with the impairment of certain assets, (vii) gain or loss on sale of business, and (viii) certain other adjustments. Adjusted EBITDA margin is Adjusted EBITDA divided by net sales as determined under GAAP. We believe that these measurements are useful to investors as ways to analyze the underlying trends in our business consistently across the periods presented. These measurements are used by our management for the same reason. A reconciliation of net income or loss and net income or loss margin, the most directly comparable GAAP financial measures, to Adjusted EBITDA and Adjusted EBITDA margin, respectively, are included in the section entitled “Reconciliations of non-GAAP measures”;
Previous wording
•Adjusted Operating Income and Adjusted Operating Income margin, which are non-GAAP measures discussed in the section entitled “Results of operations.” Adjusted Operating Income is our operating income or loss adjusted for the following items: (i) amortization of acquired intangible assets, (ii) charges associated with the impairment of certain assets, (iii) gain on sale of business, and (iv) certain other adjustments. This measurement is our segment reporting profitability measure under GAAP. Adjusted Operating Income margin is Adjusted Operating Income divided by net sales as determined under GAAP. We believe that these measurements are useful to investors as ways to analyze the underlying trends in our business consistently across the periods presented. These measurements are used by our management for the same reason. A reconciliation of operating income or loss and operating income or loss margin, the most directly comparable GAAP financial measures, to Adjusted Operating Income and Adjusted Operating Income margin, respectively, are included in the section entitled “Reconciliations of non-GAAP measures”;
Current wording
•Adjusted Operating Income and Adjusted Operating Income margin, which are non-GAAP measures discussed in the section entitled “Results of operations.” Adjusted Operating Income is our operating income or loss adjusted for the following items: (i) amortization of acquired intangible assets, (ii) charges associated with the impairment of certain assets, (iii) gain or loss on sale of business, and (iv) certain other adjustments. This measurement is our segment reporting profitability measure under GAAP. Adjusted Operating Income margin is Adjusted Operating Income divided by net sales as determined under GAAP. We believe that these measurements are useful to investors as ways to analyze the underlying trends in our business consistently across the periods presented. These measurements are used by our management for the same reason. A reconciliation of operating income or loss and operating income or loss margin, the most directly comparable GAAP financial measures, to Adjusted Operating Income and Adjusted Operating
Previous wording
Net sales for the second quarter increased, driven primarily by higher sales volume and commercial excellence within our VWR Distribution & Services segment and a favorable foreign currency impact, partially offset by lower sales volumes within our Bioscience & Medtech Products segment. Gross margin decreased, reflecting unfavorable product mix, inflationary pressures and lower sales volumes. These factors, partially offset by a favorable foreign currency impact, reduced gross profit compared to the prior-year period. Lower gross profit resulted in reduced operating income, Adjusted Operating Income, and Adjusted EBITDA.
Current wording
Net sales for the third quarter increased, driven primarily by higher sales volume and commercial excellence. Gross margin decreased, reflecting unfavorable product mix and inflationary pressures. Gross profit increased compared with the prior-year period, driven primarily by higher sales volume, partially offset by unfavorable product mix. Higher SG&A expenses, driven mainly by increased compensation expense, more than offset the increase in gross profit, resulting in lower Adjusted Operating Income and Adjusted EBITDA.
Previous wording
Net sales increased $8.9 million, or 0.5%, which included $15.7 million, or 0.9%, of favorable foreign currency impact, while organic net sales decreased by $6.8 million, or 0.4%.
Current wording
Net sales increased $74.5 million, or 4.6%, which included $9.6 million, or 0.6%, of unfavorable foreign currency impact, while organic net sales increased by $84.1 million, or 5.2%.
Previous wording
In the Bioscience & Medtech Products segment, net sales decreased by $24.1 million, or 5.1%, including $2.7 million, or 0.5%, of favorable foreign currency impact. Organic net sales decreased by $26.8 million, or 5.6%. The organic sales decrease was primarily driven by lower sales volumes in the Fluid Handling and NuSil businesses, partially offset by higher sales volumes in Process Chemicals.
Current wording
In the Bioscience & Medtech Products segment, net sales increased by $15.7 million, or 3.5%, including $0.6 million, or 0.1%, of unfavorable foreign currency impact. Organic net sales increased by $16.3 million, or 3.6%. The organic sales increase was primarily driven by higher sales volumes in the NuSil and Process Chemicals businesses, partially offset by lower sales volumes in the Fluid Handling business.
Previous wording
In the Bioscience & Medtech Products segment, net sales decreased by $19.1 million, or 2.1%, including $16.3 million, or 1.8%, of favorable foreign currency impact. Organic net sales decreased $35.4 million, or 3.9%. The organic sales decrease was primarily driven by lower sales volumes in the Fluid Handling and NuSil businesses, partially offset by higher sales volumes in Process Chemicals.
Current wording
In the Bioscience & Medtech Products segment, net sales decreased by $3.4 million, or 0.3%, including $15.7 million, or 1.1%, of favorable foreign currency impact. Organic net sales decreased by $19.1 million, or 1.4%. The organic sales decrease was primarily driven by lower sales volumes in the Fluid Handling and NuSil businesses, partially offset by higher sales volumes in Process Chemicals.
Previous wording
Gross margin for the three months ended June 30, 2026 contracted by 120 basis points, reflecting unfavorable product mix, inflationary pressures and lower sales volumes. Gross margin for the six months ended June 30, 2026 contracted by 170 basis points, reflecting those same factors, as well as higher inventory reserves and freight costs, which had a more pronounced impact during the six-month period.
Current wording
Gross margin for the three months ended September 30, 2026 contracted by 90 basis points, reflecting unfavorable product mix and inflationary pressures. Gross margin for the nine months ended September 30, 2026 contracted by 140 basis points, reflecting those same factors, as well as higher inventory reserves and freight costs, which had a more pronounced impact during the nine-month period.
Previous wording
Operating income for the six months ended June 30, 2026 decreased primarily due to lower gross profit, as previously discussed, and higher SG&A expenses, driven mainly by inflationary pressures on compensation expense and unfavorable foreign exchange fluctuations, partially offset by the absence of transformation costs incurred in the prior year.
Current wording
Operating income for the three months ended September 30, 2026 increased primarily due to the absence of the non-cash impairment charge in the prior year and higher gross profit, as previously discussed. These increases were partially offset by higher SG&A expenses, driven mainly by increased compensation and restructuring expenses. Higher SG&A expenses were partially offset by the absence of transformation costs incurred in the prior year.
Previous wording
Operating income for the three months ended June 30, 2026 decreased primarily due to lower gross profit, as previously discussed, partially offset by lower SG&A expenses driven mainly by the absence of transformation costs incurred in the prior year. This decrease in SG&A expenses was partially offset by unfavorable foreign exchange fluctuations.
Current wording
Operating income for the nine months ended September 30, 2026 increased primarily due to the absence of the non-cash impairment charge in the prior year. This increase was partially offset by lower gross profit, as previously discussed, and higher SG&A expenses, driven mainly by increased compensation and restructuring expenses and unfavorable foreign currency translation effects. Higher SG&A expenses were partially offset by the absence of transformation costs incurred in the prior year.
Previous wording
Net income for the three months ended June 30, 2026 decreased primarily due to lower operating income, as previously discussed, and higher income tax expense, partially offset by lower interest expense resulting from debt repayments made over the last twelve months.
Current wording
Net income for the three months ended September 30, 2026 increased primarily due to higher operating income, as previously discussed, lower interest expense resulting from debt repayments made over the last twelve months, and a current-year income tax benefit primarily resulting from the internal reorganization completed during the third quarter of 2026.
Previous wording
Net income for the six months ended June 30, 2026 decreased primarily due to lower operating income, as previously discussed, and higher income tax expense, partially offset by the absence of pension termination charges incurred in the prior year and lower interest expense resulting from debt repayments made over the last twelve months.
Current wording
Net income for the nine months ended September 30, 2026 increased primarily due to higher operating income, as previously discussed, lower interest expense resulting from debt repayments made over the last twelve months, the absence of pension termination charges incurred in the prior year, and a current-year income tax benefit primarily resulting from the internal reorganization completed during the third quarter of 2026.
Previous wording
For reconciliations of Adjusted EBITDA and Adjusted EBITDA margin to net income and net income margin, respectively, the most directly comparable measures under GAAP, see “Reconciliations of non-GAAP financial measures.”
Current wording
For reconciliations of Adjusted EBITDA and Adjusted EBITDA margin to net income (loss) and net income (loss) margin, respectively, the most directly comparable measures under GAAP, see “Reconciliations of non-GAAP measures.”
Previous wording
For the three months ended June 30, 2026, Adjusted EBITDA decreased by $25.5 million, or 9.1%, which included a favorable foreign currency translation impact of $2.4 million, or 0.9%. The remaining decline of $27.9 million, or 10.0%, was primarily driven by lower gross profit as previously discussed.
Current wording
For the three months ended September 30, 2026, Adjusted EBITDA decreased by $11.0 million, or 4.1%, which included unfavorable foreign currency translation impact of $1.5 million, or 0.6%. The remaining decline of $9.5 million, or 3.5%, was primarily driven by higher SG&A expenses, partially offset by higher gross profit as previously discussed.
Previous wording
For the six months ended June 30, 2026, Adjusted EBITDA decreased by $75.6 million, or 13.8%, which included a favorable foreign currency translation impact of $11.3 million, or 2.0%. The remaining decline of $86.9 million, or 15.8%, was primarily driven by lower gross profit and higher SG&A costs, as previously discussed.
Current wording
For the nine months ended September 30, 2026, Adjusted EBITDA decreased by $86.7 million, or 10.6%, which included a favorable foreign currency translation impact of $9.8 million, or 1.2%. The remaining decline of $96.5 million, or 11.8%, was primarily driven by lower gross profit and higher SG&A expenses, as previously discussed.
Previous wording
For reconciliations of Adjusted Operating Income and Adjusted Operating Income margin to operating income and operating income margin, respectively, the most directly comparable measures under GAAP, see “Reconciliations of non-GAAP financial measures.”
Current wording
For reconciliations of Adjusted Operating Income and Adjusted Operating Income margin to operating income (loss) and operating income (loss) margin, respectively, the most directly comparable measures under GAAP, see “Reconciliations of non-GAAP measures.”
Previous wording
Adjusted Operating Income decreased by $27.1 million, or 10.7%, which included a favorable foreign currency translation impact of $2.0 million, or 0.8%. The remaining decline of $29.1 million, or 11.5%, is further discussed below.
Current wording
Adjusted Operating Income decreased by $9.7 million, or 4.1%, which included unfavorable foreign currency translation impact of $1.1 million, or 0.5%. The remaining decline of $8.6 million, or 3.6%, is further discussed below.
Previous wording
In the VWR Distribution & Services segment, Adjusted Operating Income declined by $15.2 million, or 10.7%, or 11.7% when adjusted for a favorable foreign currency impact. The decrease was primarily driven by unfavorable product mix and inflationary pressures on SG&A expenses.
Current wording
In the VWR Distribution & Services segment, Adjusted Operating Income declined by $12.6 million, or 9.5%, or 8.9% when adjusted for unfavorable foreign currency impact. The decrease was primarily driven by unfavorable product mix and higher SG&A expenses, partially offset by higher sales volume.
Previous wording
In Corporate, Adjusted Operating Income improved $4.0 million, or 9.9%, due to immaterial offsetting factors.
Current wording
In Corporate, Adjusted Operating Income declined by $1.2 million, or 8.6%, due to various immaterial factors.
Previous wording
Adjusted Operating Income decreased $79.3 million, or 16.0%, which included a favorable foreign currency translation impact of $9.8 million, or 2.0%. The remaining decline was $89.1 million, or 18.0%, which is further discussed below.
Current wording
Adjusted Operating Income decreased $89.0 million, or 12.2%, which included a favorable foreign currency translation impact of $8.7 million, or 1.1%. The remaining decline was $97.7 million, or 13.3%, which is further discussed below.
Previous wording
In the Bioscience & Medtech Products segment, Adjusted Operating Income declined by $13.8 million, or 10.5%, or 11.0% when adjusted for a favorable foreign currency impact. The decrease was primarily due to lower sales volume.
Current wording
In the Bioscience & Medtech Products segment, Adjusted Operating Income declined $21.5 million, or 5.9%, or 6.9% when adjusted for favorable foreign currency translation impact. The decrease was primarily due to lower sales volume and higher SG&A expenses, partially offset by commercial excellence.
Previous wording
In the VWR Distribution & Services segment, Adjusted Operating Income declined $57.7 million, or 19.9%, or 22.0% when adjusted for favorable foreign currency translation impact. The decrease was primarily driven by lower sales volume, unfavorable product mix, inflationary pressures and higher freight costs.
Current wording
In the VWR Distribution & Services segment, Adjusted Operating Income declined $70.3 million, or 16.7%, or 17.9% when adjusted for favorable foreign currency translation impact. The decrease was primarily driven by unfavorable product mix, higher freight costs, and higher SG&A expenses.
Previous wording
In Corporate, Adjusted Operating Income improved by $1.9 million, or 9.1%, due to various immaterial factors.
Current wording
In Corporate, Adjusted Operating Income improved $2.8 million, or 5.1%, due to various immaterial factors.
Previous wording
The following table presents the reconciliation of net income and net income margin to Adjusted EBITDA and Adjusted EBITDA margin, respectively:
Current wording
The following table presents the reconciliation of net income (loss) and net income (loss) margin to Adjusted EBITDA and Adjusted EBITDA margin, respectively:
Previous wording
Represents net foreign currency (gain) loss from financing activities, other stock-based compensation expense (benefit) and a purchase price adjustment in 2025 related to the sale of our Clinical Services business in 2024.
Current wording
Represents net foreign currency (gain) loss from financing activities, other stock-based compensation expense (benefit) and certain other items that management evaluates separately from core operating performance. The 2025 periods also include a purchase price adjustment related to the 2024 sale of our Clinical Services business and $6.1 million of severance and transition costs associated with the replacement of our Chief Executive Officer.
Previous wording
The following table presents the reconciliation of net income and net income margin to Adjusted Operating Income and Adjusted Operating Income margin, respectively, and includes operating income and operating income margin (the most directly comparable GAAP measures) as intermediate subtotals:
Current wording
The following table presents the reconciliation of net income (loss) and net income (loss) margin to Adjusted Operating Income and Adjusted Operating Income margin, respectively, and includes operating income and operating income margin (the most directly comparable GAAP measures) as intermediate subtotals:
Previous wording
Represents other stock-based compensation expense (benefit) and a purchase price adjustment in 2025 related to the sale of our Clinical Services business in 2024.
Current wording
Represents other stock-based compensation expense (benefit) and certain other items that management evaluates separately from core operating performance. The 2025 periods also include a purchase price adjustment related to the 2024 sale of our Clinical Services business and $6.1 million of severance and transition costs associated with the replacement of our Chief Executive Officer.
Previous wording
We fund short-term cash requirements primarily from operating cash flows and credit facilities. The majority of our long-term financing is from indebtedness. For the three and six months ended June 30, 2026, we generated $178.2 million and $236.9 million of cash from operating activities, respectively, ended the quarter with $306.8 million of cash and cash equivalents and our availability under our credit facilities was $1,379.8 million.
Current wording
We fund short-term cash requirements primarily from operating cash flows and credit facilities. The majority of our long-term financing is from indebtedness. For the three and nine months ended September 30, 2026, we generated $195.1 million and $432.0 million of cash from operating activities, respectively, ended the quarter with $464.3 million of cash and cash equivalents and our availability under our credit facilities was $1,379.9 million.
Previous wording
We have required term loan payments of $30.8 million due in the next twelve months.
Current wording
We have required term loan payments of $28.7 million due in the next twelve months.
Previous wording
At June 30, 2026, $231.7 million, or 75.5%, of our $306.8 million in cash and cash equivalents was held by our non-U.S. subsidiaries and may be subject to certain taxes upon repatriation, primarily where foreign withholding taxes apply.
Current wording
At September 30, 2026, $253.1 million, or 54.5%, of our $464.3 million in cash and cash equivalents was held by our non-U.S. subsidiaries and may be subject to certain taxes upon repatriation, primarily where foreign withholding taxes apply.
Previous wording
Consists of typical non-cash charges including depreciation and amortization, stock-based compensation expense, deferred income tax expense and others.
Current wording
Consists of typical non-cash items, including depreciation and amortization, stock-based compensation expense, deferred income taxes, impairment charges, non-cash restructuring charges and other items.
Previous wording
Cash flows from operating activities provided $26.8 million less cash in 2026, primarily due to a reduction in net income, as previously discussed, and higher net working capital requirements. These impacts were partially offset by favorable changes in other assets and liabilities, primarily driven by lower income tax payments, lower incentive compensation payments, and lower cash outflows related to deferred income. These favorable changes were partially offset by customer prebate payments made during 2026.
Current wording
Cash flows from operating activities provided $39.1 million less cash in 2026, primarily due to higher net working capital requirements, partially offset by an increase in net income, as previously discussed, and favorable changes in other assets and liabilities within the “All Other” caption above. The changes in other assets and liabilities were primarily driven by income tax benefits, lower incentive compensation payments, and lower cash outflows related to deferred income. These favorable changes were partially offset by customer prebate payments made during 2026.
Previous wording
Investing activities used $12.5 million more cash in 2026. The change was primarily attributable to an increase in capital expenditures compared to the prior year.
Current wording
Investing activities used $17.7 million more cash in 2026. The change was primarily attributable to an increase in capital expenditures compared with the prior year.
Previous wording
Free cash flow was $39.5 million lower in 2026, primarily due to lower cash flow from operating activities, as previously discussed, and an increase in capital expenditures.
Current wording
Free cash flow was $55.0 million lower in 2026, primarily due to lower cash flow from operating activities, as previously discussed, and an increase in capital expenditures.
Previous wording
Our consolidated balance sheet includes significant amounts of goodwill and other intangible assets. At June 30, 2026, the combined carrying value of goodwill and other intangible assets, net of accumulated amortization and impairment charges, was $7,949.6 million, representing approximately 69% of our total assets. As a result, impairment assessments for these assets involve significant management judgment and represent a critical accounting estimate.
Current wording
Our consolidated balance sheet includes significant amounts of goodwill and other intangible assets. At September 30, 2026, the combined carrying value of goodwill and other intangible assets, net of accumulated amortization and impairment charges, was $7,858.2 million, representing approximately 68% of our total assets. As a result, impairment assessments for these assets involve significant management judgment and represent a critical accounting estimate.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Income margin, respectively, are included in the section entitled “Reconciliations of non-GAAP measures”;
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
In the Bioscience & Medtech Products segment, Adjusted Operating Income declined $25.6 million, or 10.4%, or 12.0% when adjusted for favorable foreign currency translation impact. The decrease was primarily due to lower sales volume and higher inventory reserves.