Education
About Us
Working with TipRanks
Follow Us
Avient (AVNT)
NYSE:AVNT
Top Page
Avient
(NYSE:AVNT)
Select Model
Select Model
Rating:59Neutral
Price Target:
$36.00
▲(5.60% Upside)
Action:ReiteratedDate:02/17/26
AVNT’s score is supported by improving cash flow and balance-sheet progress plus constructive 2026 guidance and margin expansion plans. It is held back by a high valuation (P/E ~48) and overbought technical signals, alongside historically inconsistent net profitability and limited organic top-line momentum.
Positive Factors
Free cash flow & deleveraging
Consistent, improving free cash flow (FCF $195M in 2025 and guided $200–$220M) and active debt paydown (used $150M in 2025; target net leverage <2.5x) materially strengthen financial flexibility. Durable FCF supports capex for strategic capacity, lowers refinancing risk and enables sustained deleveraging over the medium term.
Specialty Engineered Materials (SEM) strength
SEM growth concentrated in higher-value end markets (defense, healthcare, telecom) drives more resilient, recurring demand and higher margins. Diversified exposure across these end-markets reduces cyclicality versus pure commodity resin sales and supports sustainable EBITDA and ROIC improvement if market momentum persists.
Innovation and product differentiation
Increased R&D intensity and new product launches (non‑PFAS materials, processing aids, Dyneema process gains) create durable technical differentiation. Patents and proprietary processes support pricing power, stickier customer relationships, and defendable margins versus commodity competitors over a multi‑quarter horizon.
Negative Factors
Inconsistent profitability
Despite gross margin gains, net margin compression and volatile earnings history indicate below‑the‑line pressures (costs, non‑recurring items, or tax/other adjustments) that could impair sustainable return on capital. Persistent profitability swings make multi‑quarter margin recovery and ROIC targets harder to rely on.
Flat organic sales & CAI weakness
Limited top‑line momentum and weakness in Color Additives & Inks (CAI) mean the company must rely heavily on productivity and price/mix to hit targets. Structural flat organic volumes reduce the durability of revenue growth and increase execution reliance on margin programs rather than sustained volume expansion.
Higher capex and paused M&A constrain flexibility
Incremental, structural capex to expand defense/Dyneema capacity plus an explicit M&A pause to prioritize deleveraging consumes cash and narrows strategic options. Over the medium term this reduces financial flexibility to pursue inorganic growth or return cash, making outcomes more dependent on organic execution and capex returns.
Avient (AVNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.12B
Dividend Yield3.48%
Average Volume (3M)778.78K
Price to Earnings (P/E)34.9
Beta (1Y)1.31
Revenue Growth1.03%
EPS Growth-24.57%
CountryUS
Employees9,200
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.56
Shares Outstanding91,624,725
10 Day Avg. Volume681,942
30 Day Avg. Volume778,784
Financial Highlights & Ratios
PEG Ratio-0.68
Price to Book (P/B)1.20
Price to Sales (P/S)0.88
P/FCF Ratio14.66
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue1.39
Enterprise Value/Gross Profit4.40
Enterprise Value/Ebitda10.53
Forecast
1Y Price Target
$48.33Price Target Upside41.77% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)3.06
Revenue Forecast (FY)$3.35B
Avient Business Overview & Revenue Model
Company DescriptionAvient 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.
How the Company Makes MoneyAvient makes money primarily by selling specialty polymer materials and formulations to manufacturers and processors that use plastics in their products. Its revenue model is largely transaction-based: customers purchase formulated products (e.g., color masterbatch, additive masterbatch, liquid colorants, specialty compounds, and engineered materials) that are blended into or used to produce finished plastic parts and packaging. Key revenue streams include (1) specialty color and additive solutions, where Avient is paid for the value-added formulation, dispersion quality, and performance attributes (such as UV protection, flame retardancy, antistatic behavior, antimicrobial features, or process aids) rather than for commodity resin alone; and (2) engineered/specialty compounds and materials, where it supplies customized or performance-enhanced polymer compounds and blends designed to meet customer specifications, regulatory requirements, or application performance needs. In addition to product sales, Avient earns revenue from services that support adoption and performance of its materials (such as color matching, design/application development support, and technical services), which help drive repeat purchasing and long-term customer relationships. Profitability is influenced by product mix (specialty vs. more commodity-like offerings), pricing discipline, and the ability to pass through raw material cost changes in customer pricing (often with a timing lag depending on customer terms). Significant partnerships or specific contractual arrangements contributing to earnings: null.
Avient Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call emphasizes strong execution: margin expansion, record full‑year EBITDA margins (16.7%), double‑digit Q4 EPS growth, solid free cash flow ($195M) and meaningful deleveraging (net leverage 2.6x). Growth vectors (defense, healthcare, telecom) and innovation (non‑PFAS products, Dyneema process improvements) are clear positives and underpin constructive 2026 guidance (adjusted EBITDA +2%–7%, adjusted EPS +4%–12%). Offsetting items include persistent CAI weakness (organic down ~2% for the year), regions with soft demand (EMEA, Latin America), flat overall organic sales, and near‑term inflation/capex pressures. On balance, the positive operational and financial momentum and forward guidance outweigh the headwinds, though management remains cautious given macro uncertainty.Q4-2025 Updates
Positive Updates
Margin Expansion and EPS Growth
Adjusted EBITDA margin expanded 80 basis points in Q4 and 50 basis points for full year 2025 versus 2024, reaching a record 16.7%. Adjusted EBITDA was $545,000,000 for 2025 (up 3.5% year‑over‑year as reported). Adjusted EPS grew ~14% in Q4 and ~6% for the full year.
Strong Free Cash Flow and Deleveraging
Generated $195,000,000 of free cash flow in 2025, used $150,000,000 to reduce outstanding debt and finished the year with net leverage of 2.6x (down from 3.1x in 2023). 2026 free cash flow is guided to $200,000,000–$220,000,000 with a goal to reduce leverage below ~2.5x.
Specialty Engineered Materials (SEM) Strength
SEM organic sales grew ~3% in Q4 and ~2% for full year 2025. Q4 SEM benefited from double‑digit/strong growth in defense, healthcare and telecommunications, delivering ~80 basis points of margin expansion and ~10% EBITDA growth in Q4.
Innovation and New Product Development
Accelerated R&D: ~50+ patent filings over the last two years (up materially from ~20 historically). Launched innovations including GlideTech non‑PFAS lubricious materials, non‑PFAS polymer processing aids for polyolefin film, and a Dyneema process improvement that unlocks incremental fiber capacity.
Positive 2026 Guidance
Full‑year 2026 guidance: adjusted EBITDA $555M–$585M (up ~2%–7% YoY) and adjusted EPS $2.93–$3.17 (up ~4%–12% YoY). Q1 adjusted EPS outlook of $0.81. Guidance contemplates productivity carryover, continued margin expansion, and improved demand in key markets.
Regional & End‑market Signs of Improvement
Q4 improvements include U.S./Canada sales decline narrowing to 1% (from -5% prior quarter), packaging flipping to low single‑digit growth in Q4, and Asia organic growth of ~3% driven by packaging, telecom and high‑performance computing materials.
Negative Updates
Color Additives & Inks (CAI) Demand Weakness
CAI organic sales declined ~3% in Q4 and ~2% for full year 2025. Q4 CAI EBITDA margins declined ~10 basis points as healthcare and packaging strength were insufficient to offset weak consumer, industrial and building & construction demand.
Overall Organic Sales Essentially Flat
Consolidated organic sales were down ~0.8% in Q4 and relatively flat for full year 2025, indicating limited top‑line momentum outside prioritized growth vectors despite margin gains.
Regional Softness in Select Markets
EMEA organic sales declined ~2% in Q4; Latin America declined ~5% in Q4 (after a strong prior‑year comp). U.S. transportation exposure was weak (U.S. transportation down ~5% for the year driven by rail/commercial vehicles).
SEM Full‑Year Margin Pressure from Maintenance & Investments
Although SEM had Q4 margin expansion, full‑year SEM EBITDA margins declined ~40 basis points primarily due to planned maintenance in Avient Protective Materials and strategic investments in growth vectors.
Macro Uncertainty and Inflation Headwinds
Management cites ongoing macro volatility (trade policy, geopolitics, supply chains) and models net inflation of approximately $30,000,000 for 2026 as a baseline; guidance is cautious and contingent on demand recovery.
Near‑term M&A Pause and Increased CapEx
No M&A expected in the next 12 months as the company prioritizes debt paydown over buybacks. Planned capital expenditures rise to $140,000,000 in 2026 (≈$33,000,000 increase vs 2025) to support defense/Dyneema capacity, which limits near‑term flexibility for other uses of cash.
Company Guidance
Avient guided 2026 to adjusted EBITDA of $555–$585 million (up 2%–7% YoY) and adjusted EPS of $2.93–$3.17 (up 4%–12% YoY), including a Q1 adjusted EPS outlook of $0.81; it expects free cash flow of $200–$220 million and plans capital expenditures of $140 million (about $33 million higher than 2025) to support defense capacity investments (incremental capacity expected by 2028). Management said it will prioritize debt reduction (no M&A in the next 12 months) and expects to finish 2026 with net leverage below 2.5x, while relying on carryover productivity and price/mix to drive margin expansion (management delivered >$40 million of productivity in 2025 with roughly half carrying into 2026), offsetting a baseline net inflation impact of about $30 million; the guide projects continued improvement in ROIC and EBITDA margins versus 2025 (which closed at $545 million adjusted EBITDA and a 16.7% adjusted EBITDA margin).Avient Financial Statement Overview
Summary
Cash generation is solid and improving (2025 FCF $195M, consistently positive), and the balance sheet is improving with debt down and equity up. Offsetting this, profitability is inconsistent with net margin compressing in 2025 and volatile earnings quality, which raises execution risk if margins do not recover.Income Statement
Revenue has been relatively stable over time with a sharp jump in 2025 (annual revenue growth of ~43%), but profitability is inconsistent. Net profit margin fell meaningfully in 2025 (~2.5%) versus 2024 (~5.2%), and earnings have been volatile (notably an unusually high 2022 profit level that did not repeat). Gross margin has improved versus 2020, but the recent drop in net margin suggests higher costs, pricing pressure, or other below-the-line headwinds.58
Neutral
Balance Sheet
Leverage looks manageable but not light for a specialty chemicals business. Total debt declined in 2025 versus 2024, and equity has grown over the period, supporting balance-sheet resilience. That said, debt remains sizable relative to equity (around ~0.9x in recent years where provided), leaving the company somewhat exposed if earnings weaken or refinancing costs rise.62
Positive
Cash Flow
Cash generation is solid and improving: operating cash flow increased in 2025 and free cash flow rose to $195M (up strongly year over year). Free cash flow is consistently positive across the period, supporting debt paydown and flexibility. The main weakness is that free cash flow did not fully cover net income in 2025 (free cash flow running at ~65% of net income), indicating some working-capital or cash-conversion friction in the latest year.66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.26B | 3.24B | 3.14B | 3.40B | 3.32B |
| Gross Profit | 1.06B | 1.06B | 902.70M | 882.70M | 943.80M |
| EBITDA | 548.70M | 510.10M | 391.40M | 346.70M | 424.60M |
| Net Income | 81.90M | 169.50M | 75.70M | 153.00M | 230.80M |
Balance Sheet | |||||
| Total Assets | 6.03B | 5.81B | 5.97B | 6.08B | 5.00B |
| Cash, Cash Equivalents and Short-Term Investments | 510.50M | 544.50M | 545.80M | 641.10M | 601.20M |
| Total Debt | 1.92B | 2.15B | 2.14B | 2.24B | 1.92B |
| Total Liabilities | 3.64B | 3.48B | 3.63B | 3.73B | 3.21B |
| Stockholders Equity | 2.37B | 2.31B | 2.32B | 2.33B | 1.77B |
Cash Flow | |||||
| Free Cash Flow | 195.00M | 134.90M | 82.20M | 292.90M | 133.20M |
| Operating Cash Flow | 301.60M | 256.80M | 201.60M | 398.40M | 233.80M |
| Investing Cash Flow | -97.00M | -120.60M | -94.20M | -504.00M | -150.20M |
| Financing Cash Flow | -257.10M | -120.90M | -201.70M | 166.40M | -114.60M |
Avient Technical Analysis
Negative
34.09
Price Trends
37.42
Negative
33.85
Positive
33.71
Positive
Market Momentum
-1.19
Positive
25.75
Positive
-0.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVNT, the sentiment is Negative. The current price of 34.09 is below the 20-day moving average (MA) of 38.62, below the 50-day MA of 37.42, and above the 200-day MA of 33.71, indicating a neutral trend. The MACD of -1.19 indicates Positive momentum. The RSI at 25.75 is Positive, neither overbought nor oversold. The STOCH value of -0.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVNT.
Avient Risk Analysis
Avient disclosed 17 risk factors in its most recent earnings report. Avient reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Avient Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.60B | 11.96 | 20.42% | 2.72% | -7.04% | -11.28% | |
63 Neutral | $2.99B | 20.94 | 7.98% | 1.54% | -1.30% | -36.69% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $3.03B | 53.35 | 16.73% | 0.50% | 11.86% | 1.99% | |
59 Neutral | $3.12B | 34.90 | 3.48% | 3.48% | 1.03% | -24.57% | |
52 Neutral | $2.93B | -55.77 | -2.18% | 3.91% | 4.68% | -62.80% | |
50 Neutral | $3.35B | -7.30 | -17.79% | ― | 19.12% | ― |
* Basic Materials Sector Average
AVNT
Avient
34.09
-4.84
-12.42%
CBT
Cabot
68.98
-13.39
-16.26%
FUL
H.B. Fuller Company
54.80
1.22
2.28%
HWKN
Hawkins
145.15
39.74
37.70%
OLN
Olin
25.78
1.56
6.45%
PRM
Perimeter Solutions
22.40
13.38
148.34%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.