AptarGroup, Inc. (ATR): BCG Matrix [Dec-2025 Updated]

You're looking at AptarGroup, Inc.'s (ATR) portfolio as of late 2025, and the picture is definitely mixed. We've got the Injectables Division shining as a Star, with core sales up 18% and margins hitting 37.2%, while the core Pharma business keeps printing cash-a true Cash Cow generating $445 million in Q3 sales. But, the Beauty segment is dragging, seeing its adjusted EBITDA margin shrink to just 12.1%, landing those areas squarely in the Dog quadrant. The real intrigue lies with the Question Marks, like the Beverage closures seeing 9% growth battling segment declines. Let's dive into where ATR needs to invest, hold, or divest based on this Q3 2025 snapshot.

Background of AptarGroup, Inc. (ATR)

You're looking at AptarGroup, Inc. (ATR), a major player in dispensing and sealing technologies, headquartered in Crystal Lake, Illinois. Honestly, they're a global supplier of things like aerosol valves, pumps, closures, and elastomer packaging components, serving both the consumer goods and pharmaceutical sectors. They hold over 7,000 active and pending patents, showing a real commitment to innovation in this space.

AptarGroup divides its operations into three primary business segments: Aptar Pharma, Aptar Beauty, and Aptar Closures. To give you a sense of scale, for the nine months ended September 30, 2025, the company posted reported sales of $2.81 billion, with trailing twelve-month revenue as of that date hitting $3.66B. In the third quarter of 2025 alone, reported sales reached $961.1 million, which was a 6% increase year-over-year, though core sales growth was a more modest 1%.

Let's break down those segments based on late 2025 reporting. Aptar Pharma is definitely the heavyweight; it generates over two thirds of the group's profits. In Q3 2025, Pharma sales were $445 million, a 6% reported increase, with core sales up 2%. You saw remarkable strength in injectables, which saw core sales surge by 18%, though consumer healthcare core sales declined by 11%. The Aptar Beauty segment reported sales of $328 million in Q3 2025, an 8% reported increase largely due to currency effects and acquisitions, as core sales were flat.

The Aptar Closures segment also showed solid volume growth, with food applications leading the charge in Q2 2025 with a 13% core sales increase. Geographically, AptarGroup's sales are heavily weighted toward Europe, which accounted for about 49% of net sales, followed by the United States at 32%. Asia and Latin America made up the remaining portion, at roughly 11% and 8% respectively, though all regions saw strong performance across the board.

Financially, the third quarter of 2025 was quite strong on the bottom line, with reported net income jumping 28% to $128 million, and reported earnings per share increasing 30% to $1.92. Still, the market reaction to subsequent guidance suggests some near-term caution, even with these solid results in hand.

AptarGroup, Inc. (ATR) - BCG Matrix: Stars

You're looking at the units within AptarGroup, Inc. (ATR) that are currently dominating high-growth segments, which is exactly where you want to see your capital going. These are the businesses that define market leadership right now.

The Injectables Division is definitely showing Star characteristics. For the third quarter of 2025, sales for this division surged by an impressive 18%, which the company directly attributed to robust component sales for GLP-1 medications and biologics markets. Looking at the first nine months of 2025, the injectables core sales were up 6% and growing. To be fair, this growth rate is a bit uneven, as the second quarter saw core sales growth of 9%, but the overall trajectory in this high-growth area is clear.

When you look at the profitability tied to these high-value offerings, the picture gets even clearer. The segment commanding a 37.2% Adjusted EBITDA margin in the third quarter of 2025 did so specifically by reflecting strong sales performance from higher-value proprietary drug delivery systems, services, and royalties. This margin is significantly higher than the consolidated company's adjusted EBITDA margin of 23.2% for the same quarter.

Active Material Science solutions also shows strong growth, providing that high-tech edge in a growing protection market. Core sales for this unit grew by 3% in the third quarter of 2025. For the first nine months of 2025, this area was up 8%, though the second quarter showed even stronger core sales growth at 11%.

Here's a quick look at the key performance indicators for these high-growth areas as of the latest reported quarter:

AptarGroup, Inc. is also making strategic moves to secure future Stars. They recently expanded into early-stage drug development with the acquisition of Mod3 Pharma's CDMO capabilities. This deal was announced on July 15, 2025, when Aptar Pharma acquired these manufacturing capabilities from SWK Holdings.

This expansion is designed to capture more of the early-stage pipeline, which is definitely high-growth potential. You should note the specifics of what was acquired:

• The acquisition includes formulation, fill, and finish services for Phase 1 and 2 clinical trials.
• Financial terms of the transaction were not disclosed.
• The integration brings an FDA-inspected, state-of-the-art facility located in Boonton, New Jersey.
• The facility includes cGMP cleanrooms, high-potency API suites, and biologics capabilities.

This move helps AptarGroup, Inc. offer a more comprehensive service, moving from formulation to patient delivery, which supports the high-growth segments already identified. If onboarding takes 14+ days, churn risk rises, but here, the integration aims to accelerate development paths.

AptarGroup, Inc. (ATR) - BCG Matrix: Cash Cows

Cash Cows for AptarGroup, Inc. (ATR) are anchored in the Aptar Pharma segment, representing mature product lines with established market leadership that consistently generate excess cash flow to fund other parts of the portfolio.

The overall Pharma segment is the largest and most profitable division, reporting robust third quarter 2025 sales of $445 million. This segment's stability is key; for the quarter ended September 30, 2025, the segment's core sales grew by 2% year-over-year. Within this division, the core dispensing technologies for established central nervous system (CNS) and asthma/COPD treatments represent the classic Cash Cow profile-high market share in a mature space.

Specifically, Aptar Pharma's core Prescription products, excluding injectables, demonstrated stable performance, showing a core sales growth of 3% in Q3 2025. This consistent, low-growth revenue stream is highly valued because of its high margins. To illustrate the segment's profitability, the adjusted EBITDA margin for Aptar Pharma expanded by 120 basis points to reach 37.2% in Q3 2025.

These Cash Cow units provide significant capital for investment across AptarGroup, Inc. This is evidenced by the $206 million in free cash flow generated in the first nine months of 2025. This cash generation is crucial for servicing corporate needs and funding growth initiatives elsewhere in the portfolio.

Here's a snapshot of the financial foundation provided by the Pharma segment and the overall company performance through the first nine months of 2025:

The role of these established products is to fund the next generation of growth, which means keeping support spending low while maximizing cash extraction. You can see the stability in the capital deployment figures:

• Free Cash Flow generated year-to-date: $206 million.
• Shareholders received $279 million through repurchases and dividends in the first nine months of 2025.
• The company ended September with $936 million in net debt.
• Prescription products core sales growth: 3% in Q3 2025.

The strategy here is to maintain market position with minimal promotional spend, focusing investments on infrastructure efficiency to further boost that cash flow. For instance, the company noted that lower capital expenditures partially offset the year-over-year decline in FCF. You want to keep those fixed costs low to milk the gains passively.

AptarGroup, Inc. (ATR) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

Within AptarGroup, Inc., certain areas of the Beauty segment and specific product lines within Closures exhibit characteristics aligning with the Dog quadrant, marked by low or negative core sales growth and margin pressure. The overall Beauty segment's adjusted EBITDA margin contracted to 12.1% in Q3 2025, reflecting an unfavorable sales mix and the impact of lower tooling margins, representing a decline of 120 basis points. This segment's core sales growth was flat compared to the prior year quarter, indicating a low-growth environment for the combined unit. This situation suggests capital tied up with minimal returns.

Specific end markets within Beauty show significant weakness. Fragrance, Facial Skin Care, and Color Cosmetics core sales declined 5% in Q3 2025, struggling with softer demand, particularly due to lower sales of skincare dispensing products for indie brands in North America and softer demand for prestige fragrance dispensing technologies. Furthermore, Home Care products, noted as the smallest Beauty end market, saw a sharp core sales decrease of 18% in Q3 2025, partially attributed to the timing of some non-recurring service fees in the previous year. Still, this sharp decline points to a market position that is not gaining traction.

The Aptar Closures segment also shows signs of pressure in certain areas. While product sales volumes were up, core sales decreased by 1% in Q3 2025. This was more than offset by lower tooling sales and pass-throughs of lower resin pricing. The scenario suggested Food products saw a core sales decline of 4%; however, the reported data shows the overall Closures segment core sales decreased by 1%. The adjusted EBITDA margin for Aptar Closures contracted by 110 basis points to 16.1%, due in part to unscheduled maintenance costs and lower tooling sales. Expensive turn-around plans usually do not help in these situations, so minimizing exposure is often the clearer path.

Here's a quick look at the specific negative performance metrics observed in Q3 2025 for these units:

You should focus on the specific challenges driving these figures, which include:

• Weaker indie skincare demand in North America.
• Softer demand for prestige fragrance dispensing technologies.
• Lower margin tooling sales impacting segment profitability.
• Unscheduled equipment maintenance impacting Closures production.

The performance of these specific product lines and the margin compression in the Beauty segment suggest they are candidates for divestiture or significant resource reduction, as they are in low growth markets and have low market share relative to the company's Stars and Cash Cows. For instance, Personal care core sales within the Beauty segment actually increased 13%, but this growth couldn't offset the declines elsewhere in the segment, pulling the overall segment margin down.

Finance: draft 13-week cash view by Friday.

AptarGroup, Inc. (ATR) - BCG Matrix: Question Marks

You're looking at the parts of AptarGroup, Inc. (ATR) that are in high-growth markets but currently hold a low market share, consuming cash while waiting for that breakout moment. These are the units that need heavy investment to become Stars, or they risk fading into Dogs. Honestly, the Q3 2025 data shows some real volatility here, defintely requiring close monitoring.

The Aptar Pharma segment shows mixed signals, which is classic for a Question Mark area. While injectables are ramping up-showing an 18% core sales growth in Q3 2025-another part of Pharma is facing a significant, though perhaps temporary, headwind.

Consider the following specific areas within the portfolio:

• Pharma - Emergency Medicine delivery systems, with an expected 35% decrease in revenue in 2026 due to customer inventory normalization.
• Aptar Pharma - Consumer Healthcare, which declined 11% in Q3 2025 due to inventory destocking in Europe.

Here's a quick look at the recent performance metrics for these volatile units:

Moving over to Aptar Beauty, the overall segment core sales growth was flat at 0% for Q3 2025. Still, within that segment, the Personal Care sub-segment shows strong potential, growing 13%, suggesting where investment might be warranted to shift the overall segment's position.

The Closures segment also presents a mixed picture, typical of a Question Mark where one product line is outperforming the segment average:

• Beverage products saw a strong 9% core sales increase.
• This strength is offset by the overall Aptar Closures segment reporting a -1% core sales decline.

You can see the divergence in the Beauty and Closures segments here:

These Question Marks-like Consumer Healthcare's 11% Q3 decline or the expected 35% revenue drop in Emergency Medicine in 2026-are consuming resources now. The strategy here is clear: either pour capital into the 13% growth area within Beauty or the 9% growth in Beverage products to capture market share quickly, or decide they aren't worth the cash burn.