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1. Company Snapshot

1.a. Company Description

Avient Corporation provides specialized formulator, services, and sustainable material solutions in the United States, Canada, Mexico, Europe, South America, and Asia.It operates through three segments: Color, Additives and Inks; Specialty Engineered Materials; and Distribution.The Color, Additives and Inks segment offers specialized color and additive concentrates in solid and liquid form for thermoplastics; dispersions for thermosets; and specialty inks.


This segment products are used in various markets include medical, pharmaceutical devices, food packaging, personal care, cosmetics, transportation, building products, recreational, athletic apparel, construction, filtration, outdoor furniture, healthcare, wire, and cable.The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials; and long glass and carbon fiber technology to thermoset and thermoplastic composites.The Distribution segment distributes approximately 4,000 grades of engineering and commodity grade resins to custom injection molders and extruders.


The company sells its products through direct sales personnel, distributors, and commissioned sales agents.The company was formerly known as PolyOne Corporation and changed its name to Avient Corporation in June 2020.Avient Corporation was founded in 1885 and is headquartered in Avon Lake, Ohio.

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1.b. Last Insights on AVNT

Avient Corporation's recent performance was driven by strong Q4 2025 earnings and revenue beat, with adjusted EPS of $0.56 representing 14% growth over the prior year quarter. The company's organic sales growth in the Specialty Engineered Materials segment and company-wide productivity initiatives contributed to this growth. Additionally, Avient's full-year adjusted EPS of $2.82 represents an increase of 6% over the prior year, driven by adjusted EBITDA margin expansion of 50 bps to 16.7% and lower interest expense.

1.c. Company Highlights

2. Avient Corporation's Strong Q4 2025 Earnings: A Closer Look

Avient Corporation reported a strong fourth quarter 2025, with adjusted EBITDA margin expanding by 80 basis points and adjusted EPS growing by 14%. Organic sales were down 0.8% but grew 1.9% as reported due to favorable foreign exchange impact. For the full year 2025, sales were relatively flat year over year, but adjusted EBITDA margin expanded by 50 basis points, helping the company achieve a record high margin of 16.7%. The actual EPS came out at $0.56, beating estimates of $0.55. The company's guidance for 2026 is optimistic, with adjusted EBITDA expected to grow by 2% to 7% year over year.

Publication Date: Feb -16

📋 Highlights
  • Q4 Adjusted EBITDA Margin Expansion:: 80 basis points increase, driven by strong execution, alongside 14% adjusted EPS growth.
  • Full-Year 2025 Adjusted EBITDA:: $545M (3.5% YoY growth), with record 16.7% margins via 50 bps expansion from productivity and product mix.
  • 2026 Guidance:: EBITDA of $555M–$585M (+2%–7%), EPS of $2.93–$3.17 (+4%–12%), and free cash flow of $200M–$220M.
  • Patent Growth & Innovation:: 50+ patents filed in two years (vs. 20+ previously), fueling high-single-digit growth in prioritized vectors like defense and healthcare.

Financial Performance

The company's financial performance was strong in 2025, with adjusted EBITDA finishing at $545,000,000, a 3.5% year-over-year growth. The company's focus on innovation and productivity initiatives has driven growth, particularly in end markets such as defense, healthcare, and telecommunications. The company's growth vectors grew at high single digits, nearly 10%, while the rest of its businesses remained flat.

Valuation Metrics

Avient Corporation's valuation metrics indicate a relatively high price-to-earnings ratio of 47.81, suggesting that the market has high expectations for the company's future growth. The price-to-book ratio is 1.64, indicating that the company's stock price is slightly higher than its book value. The EV/EBITDA ratio is 15.2, which is relatively high, but justified by the company's strong EBITDA growth. The net debt to EBITDA ratio is 4.03, indicating that the company has a significant amount of debt, but is working to reduce it.

Growth Prospects

The company is expecting robust growth in 2026, driven by its focus on innovation, productivity, and operational discipline. The company's defense business has grown double digits in 2024 and 2025, and is expected to continue growing. The healthcare business is also expected to grow, driven by the increasing demand for GLP-1 drugs and the company's drug delivery product line. The company's guidance for 2026 is cautious, but optimistic, with adjusted EBITDA expected to grow by 2% to 7% year over year.

Management's Strategy

Ashish K. Khandpur highlighted the company's focus on organic growth, with no M&A planned for the next 12 months. The company will prioritize debt repayment, aiming to reduce debt to below 2.5x EBITDA. The company is also focusing on innovation, with a new product vitality index (NPVI) that tracks the creation of new growth. The company's debottlenecking process is helping it reach double-digit growth without compromising customer service, and new investments are being made to prepare for capacity constraints.

3. NewsRoom

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Avient: Becoming A Better Business

Feb -18

Source: seekingalpha.com

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Avient Announces Quarterly Dividend

Feb -16

Source: prnewswire.com

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Huntsman (NYSE:HUN) vs. Avient (NYSE:AVNT) Head-To-Head Review

Feb -16

Source: defenseworld.net

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Avient Corporation (AVNT) Q4 2025 Earnings Call Transcript

Feb -12

Source: seekingalpha.com

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Avient (AVNT) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Feb -12

Source: zacks.com

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Avient (AVNT) Q4 Earnings and Revenues Beat Estimates

Feb -12

Source: zacks.com

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Avient Announces Fourth-Quarter and Full-Year 2025 Results; Initiates Full-Year 2026 Financial Guidance

Feb -12

Source: prnewswire.com

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Avient (AVNT) to Release Earnings on Thursday

Feb -05

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.86%)

6. Segments

Color, Additives and Inks

Expected Growth: 4.5%

Avient Corporation's Color, Additives and Inks segment growth of 4.5% is driven by increasing demand for sustainable and specialty materials, growth in packaging and healthcare industries, and expansion in emerging markets. Additionally, the company's innovative product offerings, such as its sustainable colorant solutions, and strategic acquisitions are contributing to the segment's growth.

Specialty Engineered Materials

Expected Growth: 5.5%

Avient Corporation's Specialty Engineered Materials segment growth of 5.5% is driven by increasing demand for sustainable and lightweight materials in the automotive and aerospace industries, as well as growing adoption of advanced composites in industrial and consumer applications.

Corporate

Expected Growth: 3.5%

Avient Corporation's 3.5% corporate growth is driven by increasing demand for sustainable materials, expansion in emerging markets, and strategic acquisitions. The company's focus on specialty chemicals and compounding also contributes to growth, as well as its ability to pass on raw material costs to customers.

7. Detailed Products

Color and Additives

Avient Corporation offers a wide range of color and additive solutions for plastics, including color concentrates, specialty additives, and liquid colorants.

Specialty Engineered Materials

Avient Corporation provides specialty engineered materials, including thermoplastic elastomers, thermoplastic vulcanizates, and alloys, for various industrial applications.

Distribution

Avient Corporation distributes a broad portfolio of plastics and chemicals from leading suppliers, offering a one-stop-shop solution for customers.

Sustainable Solutions

Avient Corporation offers sustainable solutions, including bioplastics, recycled materials, and eco-friendly additives, to help customers reduce their environmental footprint.

Formulation and Design

Avient Corporation provides formulation and design services to help customers develop customized material solutions for their specific applications.

8. Avient Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Avient Corporation operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the availability of alternative materials and technologies.

Bargaining Power Of Customers

Avient Corporation's customers have limited bargaining power due to the company's strong market position and diversified customer base.

Bargaining Power Of Suppliers

Avient Corporation's suppliers have moderate bargaining power due to the availability of alternative suppliers and the company's dependence on certain raw materials.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the specialty chemicals industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The specialty chemicals industry is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.48%
Debt Cost 8.24%
Equity Weight 52.52%
Equity Cost 11.67%
WACC 10.04%
Leverage 90.40%

11. Quality Control: Avient Corporation passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Avient

A-Score: 4.5/10

Value: 5.4

Growth: 3.2

Quality: 4.0

Yield: 7.0

Momentum: 1.5

Volatility: 6.0

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A-Score: 4.2/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.28$

Current Price

43.28$

Potential

-0.00%

Expected Cash-Flows