The company noted that full-year 2025 GAAP EPS includes special items of
"I am pleased with our team's strong execution, which helped us deliver 14% year-over-year growth in adjusted EPS for the fourth quarter. Our focus on driving profitable mix and productivity helped expand adjusted EBITDA margins in the quarter by 80 basis points to 15.5%," said Dr.
Commenting on full year 2025 results,
2026 Outlook
"Demand conditions are expected to remain mixed as we start 2026, and while we are optimistic for improving macro trends, we are not relying on it to deliver earnings growth. We expect the carryover impact of our 2025 initiatives and continued focus on productivity and cash preservation to enable earnings growth in 2026, should the demand environment not improve," said
"We are projecting first quarter adjusted EPS to be
Webcast Details
The webcast can be viewed live at avient.com/investors, or by clicking on the webcast link here. Conference call participants in the question and answer session should pre-register using the link at avient.com/investors, or here, to receive the dial-in number and personal PIN. This information is required to access the conference call. The question and answer session will follow the company's presentation and prepared remarks.
A recording of the webcast and the slide presentation will be available at avient.com/investors/events-presentations immediately following the conference call and will be accessible for one year.
Non-GAAP Financial Measures
The Company uses both GAAP (generally accepted accounting principles) and non-GAAP financial measures. The non-GAAP financial measures include organic performance (which excludes the impact of foreign exchange), adjusted EPS, adjusted operating income, adjusted EBITDA, adjusted EBITDA margins, free cash flow and adjusted free cash flow.
The Company does not provide reconciliations of forward-looking non-GAAP financial measures, such as adjusted EPS, adjusted EBITDA and free cash flow, to the most comparable GAAP financial measures on a forward-looking basis because the Company is unable to provide a meaningful or accurate calculation or estimation of reconciling items, and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, environmental remediation costs and associated recoveries, mark-to-market adjustments on pension and other post-retirement obligations, acquisition-related charges, and other non-routine costs. Each of such adjustments has not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information.
To access
About
Our purpose at
Forward-looking Statements
In this press release, statements that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. They use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales. Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: disruptions, uncertainty or volatility in the global credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; disruptions or inefficiencies in our supply chain, logistics, or operations; changes in laws and regulations in jurisdictions where we conduct business, including with respect to plastics and climate change; changes to foreign trade policy, including new or increased tariffs and changing import/export regulation; fluctuations in raw material prices, quality and supply, and in energy prices and supply; demand for our products and services; production outages or material costs associated with scheduled or unscheduled maintenance programs; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends; information systems failures, cybersecurity breaches and cyberattacks; our ability to service our indebtedness and restrictions on our current and future operations due to our indebtedness; amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions; and other factors affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation, geopolitical conflicts and any recessionary conditions. The above list of factors is not exhaustive.
Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to
|
Attachment 1 |
|||||||
|
Avient Corporation |
|||||||
|
Senior management uses comparisons of adjusted net income attributable to |
|||||||
|
Three Months Ended |
|||||||
|
2025 |
2024 |
||||||
|
Reconciliation to Condensed Consolidated Statements of Income |
$ |
EPS(1) |
$ |
EPS(1) |
|||
|
Net income attributable to |
$ 16.9 |
$ 0.18 |
$ 48.3 |
$ 0.52 |
|||
|
Special items, after-tax (Attachment 3) |
19.3 |
0.21 |
(18.0) |
(0.20) |
|||
|
Amortization expense, after-tax |
15.1 |
0.17 |
14.8 |
0.17 |
|||
|
Adjusted net income / EPS |
$ 51.3 |
$ 0.56 |
$ 45.1 |
$ 0.49 |
|||
|
(1) Per share amounts may not recalculate from figures presented herein due to rounding |
|
Year Ended |
|||||||
|
2025 |
2024 |
||||||
|
Reconciliation to Condensed Consolidated Statements of Income |
$ |
EPS(1) |
$ |
EPS(1) |
|||
|
Net income attributable to |
$ 81.9 |
$ 0.89 |
$ 169.5 |
$ 1.84 |
|||
|
Special items, after-tax (Attachment 3) |
116.4 |
1.27 |
15.9 |
0.17 |
|||
|
Amortization expense, after-tax |
60.7 |
0.66 |
59.5 |
0.65 |
|||
|
Adjusted net income / EPS |
$ 259.0 |
$ 2.82 |
$ 244.9 |
$ 2.66 |
|||
|
(1) Per share amounts may not recalculate from figures presented herein due to rounding |
|
Attachment 2 |
|||||||
|
Condensed Consolidated Statements of Income (Unaudited) (In millions, except per share data) |
|||||||
|
Three Months Ended |
Year Ended |
||||||
|
2025 |
2024 |
2025 |
2024 |
||||
|
Sales |
$ 760.6 |
$ 746.5 |
$ 3,260.2 |
$ 3,240.4 |
|||
|
Cost of sales |
531.0 |
487.0 |
2,244.6 |
2,183.7 |
|||
|
Gross margin |
229.6 |
259.5 |
1,015.6 |
1,056.7 |
|||
|
Selling and administrative expense |
190.0 |
173.9 |
812.1 |
727.4 |
|||
|
Operating income |
39.6 |
85.6 |
203.5 |
329.3 |
|||
|
Interest expense, net |
(22.8) |
(25.5) |
(98.6) |
(105.6) |
|||
|
Other income, net |
7.7 |
3.2 |
6.8 |
1.1 |
|||
|
Income before income taxes |
24.5 |
63.3 |
111.7 |
224.8 |
|||
|
Income tax expense |
(7.3) |
(14.8) |
(28.1) |
(54.1) |
|||
|
Net income |
17.2 |
48.5 |
83.6 |
170.7 |
|||
|
Net income attributable to noncontrolling interests |
(0.3) |
(0.2) |
(1.7) |
(1.2) |
|||
|
Net income attributable to |
$ 16.9 |
$ 48.3 |
$ 81.9 |
$ 169.5 |
|||
|
Earnings per share attributable to |
$ 0.18 |
$ 0.53 |
$ 0.90 |
$ 1.86 |
|||
|
Earnings per share attributable to |
$ 0.18 |
$ 0.52 |
$ 0.89 |
$ 1.84 |
|||
|
Cash dividends declared per share of common stock |
$ 0.2750 |
$ 0.2700 |
$ 1.0850 |
$ 1.0425 |
|||
|
Weighted-average shares used to compute earnings per common share: |
|||||||
|
Basic |
91.6 |
91.4 |
91.5 |
91.3 |
|||
|
Diluted |
91.8 |
92.2 |
91.8 |
92.0 |
|||
|
Attachment 3 |
|||||||
|
Summary of Special Items (Unaudited) (In millions, except per share data) |
|||||||
|
Special items (1) |
Three Months Ended |
Year Ended |
|||||
|
2025 |
2024 |
2025 |
2024 |
||||
|
Cost of sales: |
|||||||
|
Restructuring costs, including accelerated depreciation |
$ (12.5) |
$ (4.6) |
$ (21.2) |
$ 1.0 |
|||
|
Environmental remediation costs |
(3.9) |
(6.8) |
(23.4) |
(35.0) |
|||
|
Reimbursement of previously incurred environmental costs |
— |
34.7 |
2.0 |
34.7 |
|||
|
Impact on cost of sales |
(16.4) |
23.3 |
(42.6) |
0.7 |
|||
|
Selling and administrative expense: |
|||||||
|
Restructuring and employee separation costs |
(15.4) |
(2.6) |
(27.2) |
(9.2) |
|||
|
Legal and other |
(1.6) |
(0.3) |
(3.2) |
(10.4) |
|||
|
Cloud-based enterprise resource planning system impairment |
— |
— |
(86.3) |
— |
|||
|
Acquisition related costs |
— |
— |
— |
(2.5) |
|||
|
Impact on selling and administrative expense |
(17.0) |
(2.9) |
(116.7) |
(22.1) |
|||
|
Impact on operating income |
(33.4) |
20.4 |
(159.3) |
(21.4) |
|||
|
Interest expense, net - financing costs |
— |
— |
(2.0) |
(2.3) |
|||
|
Pension and post retirement mark-to-market adjustments and other |
9.1 |
3.5 |
9.1 |
3.6 |
|||
|
Impact on other income, net |
9.1 |
3.5 |
9.1 |
3.6 |
|||
|
Impact on income before income taxes |
(24.3) |
23.9 |
(152.2) |
(20.1) |
|||
|
Income tax benefit (expense) on above special items |
4.3 |
(5.8) |
35.1 |
6.1 |
|||
|
Tax adjustments(2) |
0.9 |
(0.1) |
0.9 |
(1.9) |
|||
|
Noncontrolling interest activity |
$ (0.2) |
$ — |
$ (0.2) |
$ — |
|||
|
Impact of special items on net income |
$ (19.3) |
$ 18.0 |
$ (116.4) |
$ (15.9) |
|||
|
Diluted earnings per common share impact |
$ (0.21) |
$ 0.20 |
$ (1.27) |
$ (0.17) |
|||
|
Weighted average shares used to compute adjusted earnings per share: |
|||||||
|
Diluted |
91.8 |
92.2 |
91.8 |
92.0 |
|||
|
(1) |
Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to-market adjustments associated with gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results. |
|
(2) |
Tax adjustments include the net tax impact from non-recurring income tax items and certain adjustments to uncertain tax position reserves and valuation allowances. |
|
Attachment 4 |
|||
|
Condensed Consolidated Balance Sheets (Unaudited) (In millions) |
|||
|
Year Ended |
|||
|
2025 |
2024 |
||
|
ASSETS |
|||
|
Current assets: |
|||
|
Cash and cash equivalents |
$ 510.5 |
$ 544.5 |
|
|
Accounts receivable, net |
435.0 |
399.5 |
|
|
Inventories, net |
367.2 |
346.8 |
|
|
Other current assets |
88.2 |
131.3 |
|
|
Total current assets |
1,400.9 |
1,422.1 |
|
|
Property, net |
988.8 |
955.3 |
|
|
|
1,757.6 |
1,659.7 |
|
|
Intangible assets, net |
1,492.4 |
1,450.4 |
|
|
Operating lease assets, net |
85.6 |
89.1 |
|
|
Deferred income tax assets |
194.7 |
81.3 |
|
|
Other non-current assets |
105.6 |
153.2 |
|
|
Total assets |
$ 6,025.6 |
$ 5,811.1 |
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
|
Current liabilities: |
|||
|
Short-term and current portion of long-term debt |
$ 0.5 |
$ 7.7 |
|
|
Accounts payable |
410.0 |
417.4 |
|
|
Accrued expenses and other current liabilities |
435.8 |
331.0 |
|
|
Total current liabilities |
846.3 |
756.1 |
|
|
Non-current liabilities: |
|||
|
Long-term debt |
1,922.6 |
2,059.3 |
|
|
Deferred income taxes |
285.7 |
260.4 |
|
|
Other non-current liabilities |
584.7 |
405.7 |
|
|
Total non-current liabilities |
2,793.0 |
2,725.4 |
|
|
SHAREHOLDERS' EQUITY |
|||
|
|
2,374.2 |
2,313.8 |
|
|
Noncontrolling interest |
12.1 |
15.8 |
|
|
Total equity |
2,386.3 |
2,329.6 |
|
|
Total liabilities and equity |
$ 6,025.6 |
$ 5,811.1 |
|
|
Attachment 5 |
|||
|
Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) |
|||
|
Year Ended |
|||
|
2025 |
2024 |
||
|
Operating activities |
|||
|
Net income |
$ 83.6 |
$ 170.7 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||
|
Depreciation and amortization |
185.9 |
179.7 |
|
|
Cloud-based enterprise resource planning system impairment |
71.6 |
— |
|
|
Deferred income tax benefit |
(45.4) |
(23.8) |
|
|
Share-based compensation expense |
9.1 |
15.4 |
|
|
Changes in assets and liabilities: |
|||
|
Increase in accounts receivable |
(18.3) |
(15.2) |
|
|
Decrease (increase) in inventories |
0.6 |
(13.7) |
|
|
(Decrease) increase in accounts payable |
(27.6) |
0.3 |
|
|
Decrease in pension, retirement benefits and deferred compensation |
(11.3) |
(34.3) |
|
|
Increase (decrease) in restructuring obligations |
24.9 |
(24.8) |
|
|
Decrease in environmental obligations |
(4.8) |
(11.2) |
|
|
Decrease (increase) in environmental insurance receivable |
34.0 |
(34.0) |
|
|
(Decrease) increase in incentive accruals |
(24.0) |
31.0 |
|
|
Accrued expenses and other assets and liabilities, net |
23.3 |
16.7 |
|
|
Net cash provided by operating activities |
301.6 |
256.8 |
|
|
Investing activities |
|||
|
Capital expenditures |
(106.6) |
(121.9) |
|
|
Proceeds from plant closures |
12.9 |
3.4 |
|
|
Other investing activities |
(3.3) |
(2.1) |
|
|
Net cash used by investing activities |
(97.0) |
(120.6) |
|
|
Financing activities |
|||
|
Proceeds from long-term borrowings |
— |
650.0 |
|
|
Payments on long-term borrowings |
(150.3) |
(660.9) |
|
|
Cash dividends paid |
(98.8) |
(94.0) |
|
|
Payments on withholding tax on share awards |
(4.1) |
(6.4) |
|
|
Debt financing costs |
(3.9) |
(9.6) |
|
|
Net cash used by financing activities |
(257.1) |
(120.9) |
|
|
Effect of exchange rate changes on cash |
18.5 |
(16.6) |
|
|
Decrease in cash and cash equivalents |
(34.0) |
(1.3) |
|
|
Cash and cash equivalents at beginning of year |
544.5 |
545.8 |
|
|
Cash and cash equivalents at end of year |
$ 510.5 |
$ 544.5 |
|
|
Attachment 6 |
|||||||
|
|
|||||||
|
Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not include: special items as defined |
|||||||
|
Three Months Ended |
Year Ended |
||||||
|
2025 |
2024 |
2025 |
2024 |
||||
|
Sales: |
|||||||
|
Color, Additives and Inks |
$ 466.0 |
$ 467.7 |
$ 2,034.2 |
$ 2,046.5 |
|||
|
Specialty Engineered Materials |
295.5 |
279.7 |
1,231.3 |
1,196.8 |
|||
|
Corporate |
(0.9) |
(0.9) |
(5.3) |
(2.9) |
|||
|
Sales |
$ 760.6 |
$ 746.5 |
$ 3,260.2 |
$ 3,240.4 |
|||
|
Gross margin: |
|||||||
|
Color, Additives and Inks |
$ 152.3 |
$ 152.6 |
$ 682.2 |
$ 681.1 |
|||
|
Specialty Engineered Materials |
94.2 |
84.2 |
376.8 |
374.9 |
|||
|
Corporate |
(16.9) |
22.7 |
(43.4) |
0.7 |
|||
|
Gross margin |
$ 229.6 |
$ 259.5 |
$ 1,015.6 |
$ 1,056.7 |
|||
|
Selling and administrative expense: |
|||||||
|
Color, Additives and Inks |
$ 93.7 |
$ 92.8 |
$ 380.9 |
$ 384.9 |
|||
|
Specialty Engineered Materials |
55.2 |
49.6 |
213.2 |
207.7 |
|||
|
Corporate |
41.1 |
31.5 |
218.0 |
134.8 |
|||
|
Selling and administrative expense |
$ 190.0 |
$ 173.9 |
$ 812.1 |
$ 727.4 |
|||
|
Operating income: |
|||||||
|
Color, Additives and Inks |
$ 58.6 |
$ 59.8 |
$ 301.3 |
$ 296.2 |
|||
|
Specialty Engineered Materials |
39.0 |
34.6 |
163.6 |
167.2 |
|||
|
Corporate |
(58.0) |
(8.8) |
(261.4) |
(134.1) |
|||
|
Operating income |
$ 39.6 |
$ 85.6 |
$ 203.5 |
$ 329.3 |
|||
|
Depreciation and amortization: |
|||||||
|
Color, Additives and Inks |
$ 22.5 |
$ 21.9 |
$ 89.2 |
$ 87.5 |
|||
|
Specialty Engineered Materials |
22.3 |
21.0 |
88.2 |
82.1 |
|||
|
Corporate |
2.3 |
2.5 |
8.5 |
10.1 |
|||
|
Depreciation and amortization |
$ 47.1 |
$ 45.4 |
$ 185.9 |
$ 179.7 |
|||
|
Earnings before interest, taxes, depreciation and |
|||||||
|
Color, Additives and Inks |
$ 81.1 |
$ 81.7 |
$ 390.5 |
$ 383.7 |
|||
|
Specialty Engineered Materials |
61.3 |
55.6 |
251.8 |
249.3 |
|||
|
Corporate |
(55.7) |
(6.3) |
(252.9) |
(124.0) |
|||
|
Other income, net |
7.7 |
3.2 |
6.8 |
1.1 |
|||
|
EBITDA |
$ 94.4 |
$ 134.2 |
$ 396.2 |
$ 510.1 |
|||
|
Special items, before tax |
24.3 |
(23.9) |
152.2 |
20.1 |
|||
|
Interest expense included in special items |
— |
— |
(2.0) |
(2.3) |
|||
|
Depreciation and amortization included in special items |
(0.6) |
(0.3) |
(1.8) |
(1.5) |
|||
|
Adjusted EBITDA |
$ 118.1 |
$ 110.0 |
$ 544.6 |
$ 526.4 |
|||
|
Attachment 7 |
|||||||
|
|
|||||||
|
Senior management uses operating income before special items to assess performance and allocate resources because senior management |
|||||||
|
Three Months Ended |
Year Ended |
||||||
|
Reconciliation to Consolidated Statements of Income: |
2025 |
2024 |
2025 |
2024 |
|||
|
Sales |
$ 760.6 |
$ 746.5 |
$ 3,260.2 |
$ 3,240.4 |
|||
|
Gross margin - GAAP |
229.6 |
259.5 |
1,015.6 |
1,056.7 |
|||
|
Special items in gross margin (Attachment 3) |
16.4 |
(23.3) |
42.6 |
(0.7) |
|||
|
Adjusted gross margin |
$ 246.0 |
$ 236.2 |
$ 1,058.2 |
$ 1,056.0 |
|||
|
Adjusted gross margin as a percent of sales |
32.3 % |
31.6 % |
32.5 % |
32.6 % |
|||
|
Operating income - GAAP |
39.6 |
85.6 |
203.5 |
329.3 |
|||
|
Special items in operating income (Attachment 3) |
33.4 |
(20.4) |
159.3 |
21.4 |
|||
|
Adjusted operating income |
$ 73.0 |
$ 65.2 |
$ 362.8 |
$ 350.7 |
|||
|
Adjusted operating income as a percent of sales |
9.6 % |
8.7 % |
11.1 % |
10.8 % |
|||
|
Three Months Ended |
Year Ended |
||||||
|
Reconciliation to EBITDA and Adjusted EBITDA: |
2025 |
2024 |
2025 |
2024 |
|||
|
Net income – GAAP |
$ 17.2 |
$ 48.5 |
$ 83.6 |
$ 170.7 |
|||
|
Income tax expense |
7.3 |
14.8 |
28.1 |
54.1 |
|||
|
Interest expense, net |
22.8 |
25.5 |
98.6 |
105.6 |
|||
|
Depreciation & amortization |
47.1 |
45.4 |
185.9 |
179.7 |
|||
|
EBITDA |
$ 94.4 |
$ 134.2 |
$ 396.2 |
$ 510.1 |
|||
|
Special items, before tax |
24.3 |
(23.9) |
152.2 |
20.1 |
|||
|
Interest expense included in special items |
— |
— |
(2.0) |
(2.3) |
|||
|
Depreciation & amortization included in special items |
(0.6) |
(0.3) |
(1.8) |
(1.5) |
|||
|
Adjusted EBITDA |
$ 118.1 |
$ 110.0 |
$ 544.6 |
$ 526.4 |
|||
|
Adjusted EBITDA as a percent of sales |
15.5 % |
14.7 % |
16.7 % |
16.2 % |
|||
|
Three Months Ended |
|||
|
Reconciliation to Condensed Consolidated Statements of Income |
$ |
EPS(1) |
|
|
Net loss attributable to |
$ (20.2) |
$ (0.22) |
|
|
Special items, after-tax |
75.7 |
0.82 |
|
|
Amortization expense, after-tax |
14.5 |
0.16 |
|
|
Adjusted net income / EPS |
$ 70.0 |
$ 0.76 |
|
|
(1) Per share amounts may not recalculate from figures presented herein due to rounding |
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SOURCE
Giuseppe (Joe) Di Salvo, Vice President, Treasurer and Investor Relations, Avient Corporation, +1 440-930-1921, giuseppe.disalvo@avient.com