This article first appeared on GuruFocus.
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Reported Sales: Increased 6% to just over $1 billion in Q3 2026.
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Core Sales: Grew 5% year over year, driven by growth across all three segments and pass-through of higher input costs.
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Pharma Core Sales: Up 1%; up 8% excluding the anticipated emergency medicine headwind (expected ~$65 million full-year 2026 decline, lapping in Q4).
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Pharma Sub-Segments: Prescription core sales down 7% (up 6% excluding emergency medicine); Consumer Healthcare up 13%; Injectables up 9%; Active Material Science Solutions up 4%.
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Beauty Core Sales: Up 8%, with pass-throughs contributing roughly half; fragrance, facial skin care and color cosmetics up 5%; Personal Care up 11%.
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Closures Core Sales: Up 11%, with pass-throughs contributing roughly half; Food up 9%; Beverage up 19%.
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Gross Margin: Consolidated gross margin declined 120 basis points year over year on lower high-margin emergency medicine sales and lower Beauty and Closures margins.
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SG&A: Increased ~$11.4 million to $160 million; 15.7% of sales vs. 15.5% in Q3 2025.
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Adjusted EBITDA: $217 million, down 2% year over year.
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Adjusted EBITDA Margin: 21.3% vs. 23.2% prior year; Pharma 36.4% (down 80 bps), Beauty 11.4% (down 70 bps), Closures 15.5% (down 60 bps; would have improved 60 bps excluding 120 bps indexation impact).
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Adjusted EPS: $1.52, down 6% from $1.62 at comparable exchange rates.
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Russia Deconsolidation Charge: $61.2 million before tax / $60.4 million after tax ($0.94 per diluted share), excluded from adjusted earnings.
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Year-to-Date Sales: Reported up 8%; core up 2%.
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Year-to-Date Adjusted EBITDA: $619 million, with margin down 180 bps to 20.4%.
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Year-to-Date Adjusted EPS: $4.13, down 10% at comparable exchange rates.
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Free Cash Flow: $198 million year to date (cash from operations $390 million less capex net of grants $192 million).
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Shareholder Returns: $272 million returned year to date; 1.3 million shares repurchased for $180 million; $420 million remaining under authorization; quarterly dividend raised 4%.
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Balance Sheet: Cash of $204 million; leverage ratio of 1.49.
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Q4 2026 Guidance: Adjusted EPS of $1.39$1.47 (midpoint implies 17% growth); effective tax rate 17.5%19.5%; EUR/USD of 1.12.
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Full-Year 2026 Outlook: Capital <a href="https://bitcomme.com/venture-capital-firm-octopus-ventures-leads-38-million-<a href="https://bitcomme.com/openai-slashes-funding-target-as-ai-investment-cools/” title=”OpenAI Slashes Funding Target as AI Investment Cools”>investment-in-braid/” title=”Venture capital firm Octopus Ventures leads $38 million investment in Braid”>investments of $260$280 million; depreciation and amortization of $310$320 million.
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Warning! GuruFocus has detected 3 Warning Signs with BOM:543276.
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Release Date: October 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
