Oct 30, 2026 earnings call — Pharma pipeline and destocking recovery
Q4 adjusted EPS guidance set at $1.39 to $1.47; midpoint reflects 17% growth versus prior year Q4.
Revenue $1.0B (est $1.0B) · EPS $1.52 (est $1.47)
Key quotes
"As previously discussed, emergency medicine sales are expected to decrease by approximately $65 million for the full year 2026. This destocking is expected to lap in the fourth quarter."
"These opportunities span different technologies, customers and therapeutic areas, and they are at different stages of development."
"But looking at the profitability, I want to be clear. Sales growth alone is not our objective. Our goal is to convert the strong demand for our products into more consistent profitability."
"Closures' adjusted EBITDA margin was 15.5%, a 60 basis point decline from the prior year, driven by the margin dilution effect of indexation pass-throughs, which impacted margins by 120 basis points."
Analyst Q&A 9
Pharma margins and naloxone destocking
Q (Ghansham Panjabi · Baird): He asked why Pharma margins were only down 80 basis points in 3Q and whether the emergency medicine (naloxone) destock is tracking to plan and will be finished by Q4 with no carry into 2027.
A: They said the naloxone destocking hit is the $65 million they previously described and that the destocking impact will be behind them as they run to Q4. Pharma margins were strong at 36.4%, down about 80 basis points from an unusually high prior Q3, helped by 8% pharma revenue growth excluding emergency medicine, royalties, and productivity improvements.
"So the $65 million negative impact with the naloxone destocking, emergency medicine being naloxone." — Gael Touya (CEO)
nasal drug growth and JV timing
Q (Paul Knight · KeyBanc): He asked whether stronger intranasal market growth means Pharma can sustainably exceed the 11% upper long-term target. He also asked when the Stevanato joint venture will start generating revenue.
A: They said they remain comfortable with their long-term corridor of 7% to 11% and see it as a multi-year trajectory; the pipeline is robust and progressing. On the Stevanato partnership, they said it offers an integrated solution for stability testing through validation and approval and will help build and convert the pipeline, but no specific revenue timing was given.
"What we say and share, Paul, is we are pretty comfortable with that corridor, the 7% and the 11%." — Gael Touya (CEO)
prescription pharma trend after emergency
Q (Matthew Roberts · Raymond James): He asked what changed quarter-to-quarter for prescription medicine (ex-emergency) and what to expect for Pharma and prescription now that the emergency headwind is over.
A: They said they are not seeing any specific quarter-to-quarter change in prescription sales. Pulmonary is solid and they support propellant switches; other prescription categories (severe epilepsy, severe hypoglycemia, anaphylactic shock) are growing, and they continue to support customers with formulation, analytical testing, and regulatory capabilities to help approvals.
"I'm not reading anything specific from quarter-to-quarter with prescription." — Gael Touya (CEO)
naloxone outlook and Beauty plans
Q (George Staphos · BofA): He asked how much of the $65 million naloxone revenue decline has already happened and whether margins on e-med will return to prior levels. He also asked what Gael will do differently to improve Beauty, especially North America.
A: They said the destock impact has lapsed in Q4 and product margins should be comfortable going forward, but growth rates for naloxone will not replicate historical levels. Gael said naloxone likely will see GDP or GDP-plus growth moving forward, and for Beauty he described North America as the main problem, said they completed a diagnostic, have a multi-year transformation plan, and will focus on quality, operational excellence, accountability and execution.
"But I think and from the discussion with our different customers, we should see a GDP, GDP plus type growth for naloxone moving forward." — Gael Touya (CEO)
Injectables pipeline and capacity
Q (Matthew Larew · William Blair): He asked about the new Injectables product launch, current product offerings, capacity, and what that implies for future growth.
A: They said they are very satisfied with Injectables and expect to be in the high single digits to low double digits. They cited a strong pipeline, technical capabilities for biologics and Annex 1 requirements, and that they invested years ago to globalize capacity in the U.S., China and Europe so they can meet market demand; they are not dependent on any single blockbuster drug.
"And from a capacity standpoint, you know that we largely invested years back to globalize our business." — Gael Touya (CEO)
winter destock risk and eye care
Q (Daniel Rizzo · Jefferies): He asked when it will become clear if cough/cold season causes new destocking and whether management can size the eye care market opportunity.
A: They said they will know soon as the season arrives and are tracking closely with customers and working to keep an agile, resilient supply chain. On eye care, they said they are excited: there's a move from preserved to non-preserved formulations, they support that with multi-dose OSD technology, they signed an exclusive agreement with Bausch + Lomb on a new dispensing approach, and they have clinical-stage ophthalmic biologics that make ophthalmics a key growth driver.
"And we shared with you, we signed a kind of exclusive agreement with one of the leader in the market, Bausch + Lomb, with a very new way to dispense your non-preserved formulation." — Gael Touya (CEO)
acne Rx-to-OTC and naloxone timing
Q (Justin Bowers · Deutsche Bank): He asked whether the acne product moving from prescription to OTC is already on market and the timing, and whether naloxone will reach GDP/GDP-plus growth in the next 12 months and if there's an OUS opportunity.
A: They said the acne product is moving from prescription to OTC and they are excited, but cannot name the customer for confidentiality. For naloxone, GDP-plus is their current best estimate and federal funding supports ongoing purchases and distribution; they expect a better understanding by Q1 2027. Vanessa added gross margins have improved sequentially but Q4 is typically seasonally softer and that is reflected in guidance.
"GDP plus is our best estimate as of today, and we will get a better understanding by Q1 2027." — Gael Touya (CEO)
tariffs and corporate cost outlook
Q (Anojja Shah · UBS): She asked if tariffs affected North America Beauty margins and whether the higher Q3 corporate costs will persist into Q4 or normalize and what to expect for 2027.
A: They said tariffs are not a main issue; the problems in North America Beauty are about being subscale in some growing segments, lost share with certain customers, and execution and planning that need improvement. On corporate costs, they said Q3 was temporarily higher due to CEO transition and pension items and that the increase should be temporary, so they are not guiding to keep that elevated.
"I'm not necessarily going to guide on one line item for Q4 relative to the overall, but the increase we saw in Q3 should be temporary." — Vanessa Kanu (CFO)
tax rate, Beauty update, Premia question
Q (George Staphos · BofA): He asked why the tax rate dropped sequentially and what the normal ETR should be, when management will share concrete Beauty plans, and what drove the Premia Precision move and how it is being implemented.
A: Vanessa said quarterly ETR can vary and for Q4 they expect to recognize the benefit of previously unrecognized tax losses; long-term ETR should be about 21% to 23%. Gael said he is two months in, is reengaging with Beauty, sees Europe and Asia within targets but North America challenging, has talked with many customers who want more Aptar, and will provide a fuller Beauty strategy at the appropriate time. The Premia Precision question was not answered in this exchange.
"So for Q4 specifically, we're able to -- we're anticipating being able to recognize the benefit of some previously unrecognized tax losses." — Vanessa Kanu (CFO)