Avient (NYSE: AVNT) lifts Q1 2026 EPS and reaffirms 2026 outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Avient Corporation reported stronger results for the first quarter of 2026, returning to solid profitability and modest sales growth. Sales rose 3% to $847.4 million, helped by a 5% favorable foreign exchange impact. GAAP earnings per share were $0.61, a sharp turnaround from a loss of ($0.22) a year earlier, including $0.06 of special items and $0.16 of intangible amortization.
Adjusted EPS increased 9% to $0.83, slightly above guidance of $0.81, and adjusted EBITDA reached $149.9 million with margins improving to 17.7%. Management expects second quarter adjusted EPS of $0.89, representing 11% year-over-year growth, and reaffirmed full-year 2026 guidance for adjusted EBITDA of $555–$585 million and adjusted EPS of $2.93–$3.17, while noting uncertainty in the second half of the year.
Positive
- Strong earnings improvement: GAAP EPS rose to $0.61 from a loss of ($0.22) a year earlier, while adjusted EPS grew 9% to $0.83 and exceeded guidance of $0.81.
- Margin expansion with stable outlook: Adjusted EBITDA increased to $149.9 million with margin improving to 17.7%, and management reaffirmed full-year 2026 adjusted EBITDA guidance of $555–$585 million and adjusted EPS of $2.93–$3.17.
Negative
- None.
Insights
Avient delivered a clean EPS beat, margin expansion, and affirmed full-year guidance.
Avient posted Q1 2026 sales of $847.4M, up 3%, with GAAP EPS swinging from a ($0.22) loss to $0.61 profit. Adjusted EPS rose 9% to $0.83, topping the $0.81 guidance. Adjusted EBITDA reached $149.9M and margin improved to 17.7%.
Results were helped by productivity and cost control, with adjusted gross margin at 33.0% and adjusted operating margin at 12.4%. Cash from operations was negative $34.5M in the quarter, while cash on hand stood at $427.6M and long-term debt at $1.924B.
Management guided Q2 adjusted EPS to $0.89, implying 11% growth, and reaffirmed 2026 adjusted EBITDA of $555–$585M and adjusted EPS of $2.93–$3.17. They highlighted macro and geopolitical uncertainties for the second half, so future quarters will show how resilient demand and margins remain versus this outlook.
8-K Event Classification
4 items: 2.0, 2.02, 9.01, 25.5
4 items
Item 2.0
Item 2.0
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Item 25.5
Item 25.5
Key Figures
Q1 2026 Sales: $847.4 million
Q1 2026 GAAP EPS: $0.61 per share
Q1 2026 Adjusted EPS: $0.83 per share
+5 more
8 metrics
Q1 2026 Sales
$847.4 million
Three months ended March 31, 2026; up 3% year over year
Q1 2026 GAAP EPS
$0.61 per share
Compared to ($0.22) in the prior-year quarter
Q1 2026 Adjusted EPS
$0.83 per share
Versus $0.76 a year earlier and above $0.81 guidance
Q1 2026 Adjusted EBITDA
$149.9 million
Adjusted EBITDA margin 17.7% of sales
2026 Adjusted EPS Guidance
$2.93–$3.17
Full-year 2026 adjusted EPS guidance range reaffirmed
Q2 2026 Adjusted EPS Outlook
$0.89 per share
Expected to represent 11% growth over prior-year quarter
Cash and Cash Equivalents
$427.6 million
Balance at March 31, 2026 on condensed balance sheet
Long-Term Debt
$1,924.0 million
Non-current portion of debt at March 31, 2026
Key Terms
adjusted EPS, adjusted EBITDA, special items, non-GAAP financial measures, +2 more
6 terms
adjusted EPS financial
"First quarter 2026 adjusted EPS was $0.83 compared to $0.76 in the prior year quarter"
Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.
adjusted EBITDA financial
"Our first quarter results also reflect ... which enabled expansion of adjusted EBITDA margins by 20 basis points to 17.7%"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
special items financial
"The company noted that first quarter 2026 GAAP EPS includes special items of $0.06 and intangible amortization expense of $0.16"
Special items are unusual or infrequent gains or losses that a company reports separately from its regular operating profit, such as restructuring costs, asset write-downs, legal settlements, or one-time gains from selling a business. Investors pay attention because these items can make reported profits look better or worse than the company’s ongoing performance—like a homeowner’s one-off roof repair affecting a single month’s budget but not the household’s regular income and expenses.
non-GAAP financial measures financial
"The Company uses both GAAP ... and non-GAAP financial measures. The non-GAAP financial measures include organic performance ... adjusted EPS, adjusted operating income, adjusted EBITDA"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
environmental remediation costs financial
"Environmental remediation costs | (3.9) | | | (4.9)"
Costs a company incurs to clean up, contain or restore land, water, buildings or equipment after pollution, chemical spills, asbestos, or other hazardous conditions; think of it as the bill for restoring a property after a major mess. These expenses matter to investors because they can be large, unexpected cash outflows, reduce profits, trigger fines or legal claims, and affect the value and future use of assets — similar to how a homeowner’s unexpected repair bill can change household finances.
cloud-based enterprise resource planning system impairment financial
"Cloud-based enterprise resource planning system impairment | — | | | (86.3)"
Earnings Snapshot
Sales: $847.4M · Guidance included
Q1 2026
Sales
$847.4M
3% growth year over year
GAAP EPS
$0.61
from ($0.22) prior-year loss
Adjusted EPS
$0.83
9% growth vs prior year; above $0.81 guidance
Adjusted EBITDA
$149.9M
up from $144.7M; margin 17.7% vs 17.5%
Guidance
For Q2 2026, adjusted EPS is expected at $0.89, representing 11% growth over the prior-year quarter. For full-year 2026, adjusted EBITDA guidance is $555–$585M and adjusted EPS guidance is $2.93–$3.17.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): May 7, 2026
| (Exact Name of Registrant as Specified in Its Charter) | ||||||||
| | ||||||||
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (440 ) 930-1000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 7, 2026, the Registrant issued a press release, furnished herewith as Exhibit 99.1, announcing earnings for the first quarter of 2026. The press release shall not be deemed to be “filed” under the Securities Exchange Act of 1934.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Number | Exhibit | ||||
99.1 | Press release dated May 7, 2026. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AVIENT CORPORATION | |||||
| By: /s/ Jamie A. Beggs | |||||
| Name: Jamie A. Beggs | |||||
Title: Senior Vice President and Chief Financial Officer | |||||
Dated: May 7, 2026
NEWS RELEASE
FOR IMMEDIATE RELEASE
Avient Announces First Quarter 2026 Results
•First quarter sales grew 3% to $847 million, which includes a 5% favorable foreign exchange impact
•First quarter GAAP EPS of $0.61 compared to ($0.22) in the prior year quarter
•First quarter adjusted EPS of $0.83 exceeded guidance of $0.81; growth of 9% over the prior year quarter
•2026 full year adjusted EPS guidance range of $2.93 to $3.17, unchanged from prior guidance
CLEVELAND – May 7, 2026 – Avient Corporation (NYSE: AVNT), an innovator of materials solutions, today announced its first quarter results for 2026. First quarter GAAP earnings per share (EPS) were $0.61 compared to ($0.22) in the prior year quarter.
The company noted that first quarter 2026 GAAP EPS includes special items of $0.06 and intangible amortization expense of $0.16 (see attachment 1).
First quarter 2026 adjusted EPS was $0.83 compared to $0.76 in the prior year quarter, reflecting 9% growth in adjusted EPS.
"Once again our teams successfully navigated a complex and ever-changing environment with agility to deliver these results," said Dr. Ashish Khandpur, Chairman, President and Chief Executive Officer, Avient Corporation.
"Our first quarter results also reflect the team’s strong execution on driving productivity improvement and disciplined cost control, which enabled expansion of adjusted EBITDA margins by 20 basis points to 17.7%. Our teams remain focused on serving our customers, securing raw material supply, and have been proactively working to mitigate the costs of inflation from the ongoing situation in the Middle East and from macro-economic uncertainty,” added Dr. Khandpur.
1
2026 Outlook
“We have a proven track record of successfully managing through volatile environments and supply chain constraints, as we demonstrated during the post-pandemic period in 2021 and 2022, as well as responding to the tariff policy changes in 2025. Accordingly, we expect second quarter adjusted EPS of $0.89, which represents 11% growth over the prior year quarter,” said Jamie Beggs, Senior Vice President and Chief Financial Officer.
“Our performance expectations for the first half of the year are slightly better-than-expected compared to the beginning of the year. With that said, the outlook for the second half of the year is less certain, so we are maintaining our full year guidance of adjusted EBITDA of $555 to $585 million and adjusted EPS of $2.93 to $3.17,” said Ms. Beggs.
Dr. Khandpur added, “Our strategy has enabled us to deliver consistent results and grow earnings in 2024 and 2025. We remain committed to growing full year earnings again in 2026, while continuing to also invest in our prioritized growth vectors to keep advancing our longer-term plans.”
2
Webcast Details
Avient will provide additional details on its 2026 first quarter and its 2026 full year outlook during its webcast scheduled for 8:00 a.m. Eastern Time on May 7, 2026.
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.
3
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. Avient's chief operating decision maker uses these financial measures to monitor and evaluate the ongoing performance of the Company and each business segment and to allocate resources.
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 Avient’s news library online, please visit www.avient.com/news.
About Avient
Our purpose at Avient Corporation (NYSE: AVNT) is to be an innovator of materials solutions that help our customers succeed, while enabling a sustainable world. Our local touch and customer engagement, combined with our global presence, allows us to serve customers with agility. We harness the collective strength of more than 9,000 employees worldwide to collaborate and build on each other's ideas. In doing so, we innovate solutions that help our customers overcome their challenges or capitalize on opportunities provided by the fast-changing world and secular trends. Our expanding portfolio of offerings includes colorants, advanced composites, functional additives, engineered materials, and Dyneema®, the world’s strongest fiber™. By intersecting our broad portfolio of technologies with the product roadmaps of our customers, we help create differentiated and high-performance products that make the world better and more sustainable. Visit www.avient.com to learn more.
4
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 the Securities and Exchange Commission.
5
Investor Relations Contact:
Giuseppe (Joe) Di Salvo
Vice President, Treasurer and Investor Relations
Avient Corporation
+1 440-930-1921
giuseppe.disalvo@avient.com
6
Attachment 1
Avient Corporation
Reconciliation of Adjusted Net Income and Earnings Per Share (Unaudited)
(In millions, except per share data)
Senior management uses comparisons of adjusted net income attributable to Avient common shareholders and diluted adjusted earnings per share (EPS) attributable to Avient common shareholders, excluding special items, to assess performance and facilitate comparability of results. Further, as a result of Avient's strategic shift towards an innovator of materials solutions, it has completed several acquisitions and divestitures which have resulted in a significant amount of intangible asset amortization. Management excludes intangible asset amortization from adjusted EPS as it believes excluding acquired intangible asset amortization is a useful measure of current period earnings per share. Senior management believes these measures are useful to investors because they allow for comparison to Avient's performance in prior periods without the effect of items that, by their nature, tend to obscure Avient's operating results due to the potential variability across periods based on timing, frequency and magnitude. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or solely as alternatives to, financial measures prepared in accordance with GAAP. Below is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. See Attachment 3 for a definition and summary of special items.
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Reconciliation to Condensed Consolidated Statements of Income | $ | EPS(1) | $ | EPS(1) | |||||||||||||||||||
| Net income (loss) attributable to Avient common shareholders | $ | 55.7 | $ | 0.61 | $ | (20.2) | $ | (0.22) | |||||||||||||||
| Special items, after-tax (Attachment 3) | 5.5 | 0.06 | 75.7 | 0.82 | |||||||||||||||||||
| Amortization expense, after-tax | 15.6 | 0.16 | 14.5 | 0.16 | |||||||||||||||||||
| Adjusted net income / EPS | $ | 76.8 | $ | 0.83 | $ | 70.0 | $ | 0.76 | |||||||||||||||
(1) Per share amounts may not recalculate from figures presented herein due to rounding
7
Attachment 2
Avient Corporation
Condensed Consolidated Statements of Income (Unaudited)
(In millions, except per share data)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Sales | $ | 847.4 | $ | 826.6 | |||||||
| Cost of sales | 574.8 | 563.4 | |||||||||
| Gross margin | 272.6 | 263.2 | |||||||||
| Selling and administrative expense | 176.8 | 262.5 | |||||||||
| Operating income | 95.8 | 0.7 | |||||||||
| Interest expense, net | (22.0) | (26.9) | |||||||||
| Other expense, net | (1.5) | (0.4) | |||||||||
| Income (loss) before income taxes | 72.3 | (26.6) | |||||||||
| Income tax (expense) benefit | (16.5) | 6.7 | |||||||||
| Net income (loss) | $ | 55.8 | $ | (19.9) | |||||||
| Net income attributable to noncontrolling interests | (0.1) | (0.3) | |||||||||
| Net income (loss) attributable to Avient common shareholders | $ | 55.7 | $ | (20.2) | |||||||
| Earnings (loss) per share attributable to Avient common shareholders - Basic: | $ | 0.61 | $ | (0.22) | |||||||
| Earnings (loss) per share attributable to Avient common shareholders - Diluted: | $ | 0.61 | $ | (0.22) | |||||||
| Cash dividends declared per share of common stock | $ | 0.2750 | $ | 0.2700 | |||||||
| Weighted-average shares used to compute earnings per common share: | |||||||||||
| Basic | 91.7 | 91.5 | |||||||||
| Diluted | 91.9 | 91.5 | |||||||||
8
Attachment 3
Avient Corporation
Summary of Special Items (Unaudited)
(In millions, except per share data)
Special items (1) | Three Months Ended March 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Cost of sales: | |||||||||||
| Restructuring costs, including accelerated depreciation | $ | (3.2) | $ | (4.1) | |||||||
| Environmental remediation costs | (3.9) | (4.9) | |||||||||
| Reimbursement of previously incurred environmental costs | 0.3 | 1.3 | |||||||||
| Impact on cost of sales | (6.8) | (7.7) | |||||||||
| Selling and administrative expense: | |||||||||||
| Restructuring and employee separation costs | (0.8) | (5.1) | |||||||||
| Legal and other | (1.3) | (0.4) | |||||||||
| Cloud-based enterprise resource planning system impairment | — | (86.3) | |||||||||
| Impact on selling and administrative expense | (2.1) | (91.8) | |||||||||
| Impact on operating income | (8.9) | (99.5) | |||||||||
| Interest expense, net - financing costs | — | (1.7) | |||||||||
Impact on income (loss) before income taxes | (8.9) | (101.2) | |||||||||
Income tax benefit on special items | 2.0 | 25.5 | |||||||||
Tax adjustments(2) | 1.4 | — | |||||||||
Impact of special items on net income (loss) | $ | (5.5) | $ | (75.7) | |||||||
| Diluted earnings (loss) per common share impact | $ | (0.06) | $ | (0.82) | |||||||
Weighted average shares used to compute adjusted earnings per share: | |||||||||||
| Diluted | 91.9 | 91.8 | |||||||||
(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.
9
Attachment 4
Avient Corporation
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited) March 31, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 427.6 | $ | 510.5 | |||||||
| Accounts receivable, net | 513.4 | 435.0 | |||||||||
| Inventories, net | 386.4 | 367.2 | |||||||||
| Other current assets | 96.5 | 88.2 | |||||||||
| Total current assets | 1,423.9 | 1,400.9 | |||||||||
| Property, net | 967.9 | 988.8 | |||||||||
| Goodwill | 1,739.2 | 1,757.6 | |||||||||
| Intangible assets, net | 1,447.4 | 1,492.4 | |||||||||
| Other non-current assets | 366.4 | 385.9 | |||||||||
| Total assets | $ | 5,944.8 | $ | 6,025.6 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Short-term and current portion of long-term debt | $ | 0.5 | $ | 0.5 | |||||||
| Accounts payable | 426.1 | 410.0 | |||||||||
| Accrued expenses and other current liabilities | 376.5 | 435.8 | |||||||||
| Total current liabilities | 803.1 | 846.3 | |||||||||
| Non-current liabilities: | |||||||||||
| Long-term debt | 1,924.0 | 1,922.6 | |||||||||
| Deferred income taxes | 280.5 | 285.7 | |||||||||
| Other non-current liabilities | 519.2 | 584.7 | |||||||||
| Total non-current liabilities | 2,723.7 | 2,793.0 | |||||||||
| SHAREHOLDERS' EQUITY | |||||||||||
| Avient shareholders’ equity | 2,405.8 | 2,374.2 | |||||||||
| Noncontrolling interest | 12.2 | 12.1 | |||||||||
| Total equity | 2,418.0 | 2,386.3 | |||||||||
| Total liabilities and equity | $ | 5,944.8 | $ | 6,025.6 | |||||||
10
Attachment 5
Avient Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating activities | |||||||||||
| Net income (loss) | $ | 55.8 | $ | (19.9) | |||||||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||
| Depreciation and amortization | 47.9 | 45.3 | |||||||||
| Cloud-based enterprise resource planning system impairment | — | 71.6 | |||||||||
| Share-based compensation expense | 2.1 | 2.4 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Increase in accounts receivable | (83.7) | (83.7) | |||||||||
| Increase in inventories | (22.9) | (20.3) | |||||||||
| Increase (decrease) in accounts payable | 20.0 | (1.0) | |||||||||
| (Decrease) increase in restructuring obligations | (4.7) | 2.5 | |||||||||
| Decrease in incentive accruals | (24.8) | (53.1) | |||||||||
| Environmental insurance recovery | — | 34.0 | |||||||||
| Accrued expenses and other assets and liabilities, net | (24.2) | (28.9) | |||||||||
| Net cash used in operating activities | (34.5) | (51.1) | |||||||||
| Investing activities | |||||||||||
| Capital expenditures | (19.0) | (12.5) | |||||||||
| Net cash used in investing activities | (19.0) | (12.5) | |||||||||
| Financing activities | |||||||||||
| Cash dividends paid | (25.2) | (24.7) | |||||||||
| Other financing activities | (2.6) | (3.6) | |||||||||
| Net cash used in financing activities | (27.8) | (28.3) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (1.6) | 3.4 | |||||||||
| Decrease in cash and cash equivalents | (82.9) | (88.5) | |||||||||
| Cash and cash equivalents at beginning of year | 510.5 | 544.5 | |||||||||
| Cash and cash equivalents at end of period | $ | 427.6 | $ | 456.0 | |||||||
11
Attachment 6
Avient Corporation
Business Segment Operations (Unaudited)
(In millions)
Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker. These costs are included in Corporate.
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Sales: | |||||||||||
| Color, Additives and Inks | $ | 528.1 | $ | 519.7 | |||||||
| Specialty Engineered Materials | 320.2 | 308.4 | |||||||||
| Corporate | (0.9) | (1.5) | |||||||||
| Sales | $ | 847.4 | $ | 826.6 | |||||||
| Gross margin: | |||||||||||
| Color, Additives and Inks | $ | 178.7 | $ | 173.1 | |||||||
| Specialty Engineered Materials | 100.6 | 97.8 | |||||||||
| Corporate | (6.7) | (7.7) | |||||||||
| Gross margin | $ | 272.6 | $ | 263.2 | |||||||
| Selling and administrative expense: | |||||||||||
| Color, Additives and Inks | $ | 97.3 | $ | 94.5 | |||||||
| Specialty Engineered Materials | 53.2 | 50.7 | |||||||||
| Corporate | 26.3 | 117.3 | |||||||||
| Selling and administrative expense | $ | 176.8 | $ | 262.5 | |||||||
| Operating income: | |||||||||||
| Color, Additives and Inks | $ | 81.4 | $ | 78.6 | |||||||
| Specialty Engineered Materials | 47.4 | 47.1 | |||||||||
| Corporate | (33.0) | (125.0) | |||||||||
| Operating income | $ | 95.8 | $ | 0.7 | |||||||
| Depreciation & amortization: | |||||||||||
| Color, Additives and Inks | $ | 22.4 | $ | 21.7 | |||||||
| Specialty Engineered Materials | 22.6 | 21.5 | |||||||||
| Corporate | 2.9 | 2.1 | |||||||||
| Depreciation & amortization | $ | 47.9 | $ | 45.3 | |||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA): | |||||||||||
| Color, Additives and Inks | $ | 103.8 | $ | 100.3 | |||||||
| Specialty Engineered Materials | 70.0 | 68.6 | |||||||||
| Corporate | (30.1) | (122.9) | |||||||||
| Other expense, net | (1.5) | (0.4) | |||||||||
| EBITDA | $ | 142.2 | $ | 45.6 | |||||||
| Special items, before tax | 8.9 | 101.2 | |||||||||
| Interest expense included in special items | — | (1.7) | |||||||||
| Depreciation & amortization included in special items | (1.2) | (0.4) | |||||||||
| Adjusted EBITDA | $ | 149.9 | $ | 144.7 | |||||||
12
Attachment 7
Avient Corporation
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(In millions, except per share data)
Senior management uses operating income before special items to assess performance and allocate resources because senior management believes that this measure is most useful in understanding current profitability levels and how it may serve as a basis for future performance. In addition, operating income before the effect of special items is a component of Avient's annual incentive plans and is used in debt covenant computations. Senior management believes this measure is useful to investors because it allows for comparison to Avient's performance in prior periods without the effect of items that, by their nature, tend to obscure Avient's operating results due to the potential variability across periods based on timing, frequency and magnitude. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or solely as alternatives to, financial measures prepared in accordance with GAAP. Below is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. See Attachment 3 for a definition and summary of special items.
| Three Months Ended March 31, | |||||||||||
| Reconciliation to Condensed Consolidated Statements of Income | 2026 | 2025 | |||||||||
| Sales | $ | 847.4 | $ | 826.6 | |||||||
| Gross margin - GAAP | 272.6 | 263.2 | |||||||||
| Special items in gross margin (Attachment 3) | 6.8 | 7.7 | |||||||||
| Adjusted gross margin | $ | 279.4 | $ | 270.9 | |||||||
| Adjusted gross margin as a percent of sales | 33.0 | % | 32.8 | % | |||||||
| Operating income - GAAP | 95.8 | 0.7 | |||||||||
| Special items in operating income (Attachment 3) | 8.9 | 99.5 | |||||||||
| Adjusted operating income | $ | 104.7 | $ | 100.2 | |||||||
| Adjusted operating income as a percent of sales | 12.4 | % | 12.1 | % | |||||||
| Three Months Ended March 31, | |||||||||||
| Reconciliation to EBITDA and Adjusted EBITDA: | 2026 | 2025 | |||||||||
| Net income (loss) - GAAP | $ | 55.8 | $ | (19.9) | |||||||
| Income tax expense (benefit) | 16.5 | (6.7) | |||||||||
| Interest expense, net | 22.0 | 26.9 | |||||||||
| Depreciation & amortization | 47.9 | 45.3 | |||||||||
| EBITDA | $ | 142.2 | $ | 45.6 | |||||||
| Special items, before tax | 8.9 | 101.2 | |||||||||
| Interest expense included in special items | — | (1.7) | |||||||||
| Depreciation & amortization included in special items | (1.2) | (0.4) | |||||||||
| Adjusted EBITDA | $ | 149.9 | $ | 144.7 | |||||||
| Adjusted EBITDA as a percent of sales | 17.7 | % | 17.5 | % | |||||||
| Three Months Ended June 30, 2025 | |||||||||||
| Reconciliation to Condensed Consolidated Statements of Income | $ | EPS(1) | |||||||||
| Net income attributable to Avient common shareholders | $ | 52.6 | $ | 0.57 | |||||||
| Special items, after-tax | 5.7 | 0.07 | |||||||||
| Amortization expense, after-tax | 15.2 | 0.16 | |||||||||
| Adjusted net income / EPS | $ | 73.5 | $ | 0.80 | |||||||
(1) Per share amounts may not recalculate from figures presented herein due to rounding
13
FAQ
How did Avient (AVNT) perform in the first quarter of 2026?
Avient delivered improved results in Q1 2026, with sales of $847.4 million, up 3% year over year. GAAP EPS turned to a $0.61 profit from a ($0.22) loss, while adjusted EPS rose 9% to $0.83, slightly beating prior guidance of $0.81.
What were Avient (AVNT) adjusted earnings and margins for Q1 2026?
Adjusted EPS for Q1 2026 was $0.83 versus $0.76 a year earlier, reflecting 9% growth. Adjusted EBITDA reached $149.9 million, up from $144.7 million, and adjusted EBITDA margin improved to 17.7%. Adjusted gross margin was 33.0% and adjusted operating margin was 12.4% of sales.
What guidance did Avient (AVNT) provide for Q2 and full-year 2026?
For Q2 2026, Avient expects adjusted EPS of $0.89, representing 11% growth over the prior-year quarter. For full-year 2026, the company reaffirmed adjusted EBITDA guidance of $555–$585 million and adjusted EPS guidance in the range of $2.93 to $3.17, citing uncertainty in the second half.
How did Avient’s segment performance look in Q1 2026?
In Q1 2026, Color, Additives and Inks generated $528.1 million of sales and $81.4 million of operating income. Specialty Engineered Materials produced $320.2 million of sales and $47.4 million of operating income. Corporate costs reduced consolidated operating income to $95.8 million for the quarter.
What is Avient’s cash and debt position after Q1 2026?
At March 31, 2026, Avient held $427.6 million in cash and cash equivalents, down from $510.5 million at year-end. Long-term debt was $1.924 billion, with only $0.5 million classified as short-term. Net cash used in operating activities during the quarter totaled $34.5 million.
How did special items affect Avient’s Q1 2026 results?
Special items reduced Q1 2026 net income by $5.5 million, or $0.06 per diluted share. These items mainly related to restructuring and environmental remediation. After adding back special items and after-tax amortization expense of $15.6 million, adjusted net income reached $76.8 million and adjusted EPS was $0.83.