Education
About Us
Working with TipRanks
Follow Us
Avient Corporation (AVNT)
NYSE:AVNT
Top Page
Avient
(NYSE:AVNT)
Select Model
Select Model
Rating:59Neutral
Price Target:
$45.00
▲(8.02% 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
Consistent positive free cash flow
Sustained, improving free cash flow (FCF) provides durable financial flexibility: supports continued debt reduction, funds capex for strategic capacity, and cushions against cyclical demand. Positive FCF underpins reinvestment or capital return choices without relying on external financing, strengthening resilience.
Measured deleveraging and balance-sheet progress
Progressively lower leverage and a declining debt load improve financial durability: reduces refinancing risk, lowers interest burden, and increases strategic optionality. Management's target to get below ~2.5x leverage signals commitment to capital structure strength and long‑term solvency improvement.
Product innovation and industry differentiation
Higher patenting and launches of differentiated, non‑PFAS and capacity‑unlocking technologies build durable competitive advantage, expanding addressable markets (defense, healthcare, telecom). Innovation supports pricing power, customer stickiness, and long‑term margin improvement across specialty end markets.
Negative Factors
Inconsistent net profitability
Volatile net margins and inconsistent profitability raise execution risk for sustainable returns. If cost pressures, pricing lag, or below‑the‑line items persist, ROIC and cash conversion could weaken, limiting the durability of recent margin gains and constraining long‑term earnings reliability.
Limited organic top‑line momentum
Stagnant organic revenue implies growth is largely dependent on price/mix and productivity rather than volume expansion. Over time, flat organic demand constrains sustainable revenue scaling, increases sensitivity to market cycles, and forces heavier reliance on cost initiatives to drive EPS.
End‑market & regional demand softness
Weakness in CAI and select regions exposes Avient to cyclical end‑market risk. Persistent declines in consumer, industrial and regional demand can pressure volumes and margins, slowing recovery and making performance more reliant on a few stronger segments (defense, healthcare), reducing diversification benefits.
Avient (AVNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.88B
Dividend Yield3.48%
Average Volume (3M)903.49K
Price to Earnings (P/E)47.4
Beta (1Y)1.24
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. Volume887,396
30 Day Avg. Volume903,487
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 Cap1.35
Enterprise Value/Revenue1.60
Enterprise Value/Gross Profit5.07
Enterprise Value/Ebitda12.14
Forecast
1Y Price Target
$50.25Price Target Upside20.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)3.07
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 generates revenue primarily through the sale of its specialized polymer products and services, which are categorized into several key segments: Color, Additives, and Engineered Materials. The company leverages its extensive expertise in materials science to develop tailored solutions that meet the unique needs of its clients, which helps to foster long-term partnerships. Additionally, Avient has made strategic acquisitions and collaborations that enhance its product offerings and market reach, contributing to consistent revenue growth. The company also focuses on sustainability initiatives, which are increasingly in demand, thus allowing it to tap into new markets and customer bases seeking eco-friendly solutions. Overall, the combination of a diverse product portfolio, strategic partnerships, and a focus on innovation are critical to Avient's revenue generation.
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
Positive
41.66
Price Trends
35.76
Positive
33.19
Positive
33.88
Positive
Market Momentum
2.07
Negative
72.14
Negative
54.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVNT, the sentiment is Positive. The current price of 41.66 is above the 20-day moving average (MA) of 39.78, above the 50-day MA of 35.76, and above the 200-day MA of 33.88, indicating a bullish trend. The MACD of 2.07 indicates Negative momentum. The RSI at 72.14 is Negative, neither overbought nor oversold. The STOCH value of 54.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVNT.
Avient Risk Analysis
Avient disclosed 14 risk factors in its most recent earnings report. Avient reported the most risks in the "Macro & Political" 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.96B | 13.30 | 20.88% | 2.72% | -7.04% | -11.28% | |
64 Neutral | $3.90B | 62.59 | 7.39% | ― | 19.12% | ― | |
63 Neutral | $3.57B | 23.93 | 7.93% | 1.54% | -1.30% | -36.69% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $3.07B | 37.07 | 16.89% | 0.50% | 11.86% | 1.99% | |
59 Neutral | $3.88B | 47.41 | 3.49% | 3.48% | 1.03% | -24.57% | |
52 Neutral | $2.76B | -63.20 | -2.22% | 3.91% | 4.68% | -62.80% |
* Basic Materials Sector Average
AVNT
Avient
41.66
0.15
0.36%
CBT
Cabot
75.87
-8.73
-10.32%
FUL
H.B. Fuller Company
65.04
9.09
16.25%
HWKN
Hawkins
146.63
40.00
37.52%
OLN
Olin
24.01
-0.88
-3.54%
PRM
Perimeter Solutions
26.37
16.02
154.78%
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.