Open the filing on EDGARAvient Announces Third Quarter 2026 Results Ahead of Expectations; Increases Full-Year Adjusted EPS Guidance Range
- Third quarter sales grew 10.5% to $891 million, driven by strong sales growth in both business segments
- Third quarter GAAP EPS of $0.46 compared to $0.36 in the prior year quarter
- Third quarter adjusted EPS grew 23% over the prior year quarter to $0.86; exceeded adjusted EPS guidance of $0.80, primarily driven by better-than-expected sales growth
- Strong cash flow generation supported $50 million of debt repayment in the third quarter bringing total year-to-date 2026 debt reduction to $100 million
- Increasing 2026 full year adjusted EPS guidance range to $3.22 to $3.32 from previous guidance of $3.10 to $3.25; updated full year adjusted EPS guidance range represents 14% to 18% growth over the prior year
CLEVELAND - November 4, 2026 - Avient Corporation (NYSE: AVNT), an innovator of materials solutions, today announced its third quarter results for 2026. Third quarter GAAP earnings per share (EPS) were $0.46 compared to $0.36 in the prior year quarter.
In the third quarter 2026, sales grew 10.5% to $891 million, which included a negative 0.1% impact from unfavorable foreign exchange. Excluding the impact of foreign exchange, organic sales growth was 10.6%
The company noted that in the third quarter 2026, GAAP EPS includes special items of $0.23 and intangible amortization expense of $0.17 compared to special items of $0.17 and intangible amortization of $0.17 in the third quarter 2025 (see attachment 1).
Third quarter 2026 adjusted EPS was $0.86 compared to $0.70 in the prior year quarter, reflecting 23% growth in adjusted EPS over the prior year quarter.
"Our teams delivered a strong third quarter, driven by sales growth across nearly all our markets, in particular packaging, healthcare and building & construction,” said Mike Frank, President and Chief Executive Officer, Avient Corporation.
“Both operating segments contributed organic sales growth in the quarter, driven by pricing, in combination with improving mix from new business gains and strong demand for our growth vector technologies. Our strategy is delivering tangible results by aligning Avient’s capabilities with high-growth secular trends and advancing productivity initiatives that support top-line growth and margin expansion. As a result, organic sales grew 10.6% and adjusted EBITDA margins expanded by 80 basis points to 17.3%.” added Mr. Frank.
2026 Outlook
“Our teams continue to demonstrate their ability to stay nimble in managing a volatile business environment while executing our strategy. Supported by our year-to-date results and visibility into fourth quarter demand, we are narrowing our full-year 2026 adjusted EBITDA guidance to $593 to $603 million and raising our adjusted EPS guidance to $3.22 to $3.32, representing 9% to 11% adjusted EBITDA growth and 14% to 18% adjusted EPS growth for the year,” said Joe Di Salvo, Senior Vice President and Chief Financial Officer.
“Strong cash generation is allowing us to invest in growth while strengthening our balance sheet. Year-to-date in 2026, we have repaid a total of $100 million of debt, including $50 million repaid during the third quarter. We expect to end 2026 with net debt to adjusted EBITDA leverage ratio of 2.2x to 2.3x. Additionally, subsequent to quarter end, we have repurchased shares for the first time since 2022, repurchasing 281,000 shares for approximately $10.9 million. Going forward, I expect we will take a balanced approach to deploying excess cash for further debt reduction and opportunistic share repurchases," said Mr. Di Salvo.
Mr. Frank added, "Since joining Avient, I have been impressed with our customer focus, innovation capabilities and operational discipline. I believe there is considerable opportunity to continue to drive profitable growth through enhancing our market penetration in key growth segments, as well as increasing share and value in our core markets. Disciplined capital allocation will also be a key area of focus as we continue to strengthen our balance sheet. I expect to continue to build on the momentum we have created this year, while accelerating our mission to materialize a brighter future.”
Webcast Details
Avient will provide additional details on its 2026 third quarter and its 2026 full year outlook during its webcast scheduled for 8:00 a.m. Eastern Time on November 4, 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.
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.
Forward-looking Statements
Forward-looking statements notice
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.
Attachment 1
Avient Corporation
Reconciliation of Adjusted Net Income and Earnings Per Share (Unaudited)
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 September 30, |
|---|
| 2026 | 2025 |
|---|
| Reconciliation to Condensed Consolidated Statements of Income | $ | EPS | $ | EPS |
| Net income attributable to Avient common shareholders | $42.7 | $0.46 | | $32.6 | $0.36 | |
| Special items, after-tax (Attachment 3) | 21.1 | 0.23 | | 15.7 | 0.17 | |
| Amortization expense, after-tax (Attachment 7) | 15.7 | 0.17 | | 15.9 | 0.17 | |
| Adjusted net income / EPS | $79.5 | $0.86 | | $64.2 | $0.70 | |
Per share amounts may not recalculate from figures presented herein due to rounding
| Nine Months Ended September 30, |
|---|
| 2026 | 2025 |
|---|
| Reconciliation to Condensed Consolidated Statements of Income | $ | EPS | $ | EPS |
| Net income attributable to Avient common shareholders | $163.2 | $1.77 | | $65.0 | $0.71 | |
| Special items, after-tax (Attachment 3) | 34.8 | 0.38 | | 97.1 | 1.06 | |
| Amortization expense, after-tax (Attachment 7) | 46.5 | 0.50 | | 45.6 | 0.49 | |
| Adjusted net income / EPS | $244.5 | $2.65 | | $207.7 | $2.26 | |
Per share amounts may not recalculate from figures presented herein due to rounding
Attachment 2
Avient Corporation
Condensed Consolidated Statements of Income (Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Sales | $891.2 | | $806.5 | | $2,655.6 | | $2,499.6 | |
| Cost of sales | 619.4 | | 561.6 | | 1,803.6 | | 1,713.6 | |
| Gross margin | 271.8 | | 244.9 | | 852.0 | | 786.0 | |
| Selling and administrative expense | 189.2 | | 177.8 | | 561.2 | | 622.1 | |
| Operating income | 82.6 | | 67.1 | | 290.8 | | 163.9 | |
| Interest expense, net | (22.7) | | (24.2) | | (67.0) | | (75.8) | |
| Other expense, net | (1.4) | | - | | (3.9) | | (0.9) | |
| Income before income taxes | 58.5 | | 42.9 | | 219.9 | | 87.2 | |
| Income tax expense | (15.0) | | (10.1) | | (54.9) | | (20.8) | |
| Net income | $43.5 | | $32.8 | | $165.0 | | $66.4 | |
| Net income attributable to noncontrolling interests | (0.8) | | (0.2) | | (1.8) | | (1.4) | |
| Net income attributable to Avient common shareholders | $42.7 | | $32.6 | | $163.2 | | $65.0 | |
| Earnings per share attributable to Avient common shareholders - Basic: | $0.47 | | $0.36 | | $1.78 | | $0.71 | |
| Earnings per share attributable to Avient common shareholders - Diluted: | $0.46 | | $0.36 | | $1.77 | | $0.71 | |
| Cash dividends declared per share of common stock | $0.2750 | | $0.2700 | | $0.8250 | | $0.8100 | |
| Weighted-average shares used to compute earnings per common share: | | | | |
| Basic | 91.7 | | 91.6 | | 91.7 | | 91.5 | |
| Diluted | 92.4 | | 91.8 | | 92.2 | | 91.8 | |
Attachment 3
Avient Corporation
Summary of Special Items (Unaudited)
| Special items | Three Months Ended September 30, | Nine Months Ended September 30, |
| | 2026 | | 2025 | | 2026 | | 2025 |
| Cost of sales: | | | | |
| Restructuring costs, including accelerated depreciation | $(5.6) | | $(2.0) | | $(10.4) | | $(8.7) | |
| Environmental remediation costs | (19.1) | | (12.8) | | (27.7) | | (19.5) | |
| Reimbursement of previously incurred environmental costs | 0.8 | | 0.1 | | 1.1 | | 2.0 | |
| Impact on cost of sales | (23.9) | | (14.7) | | (37.0) | | (26.2) | |
| Selling and administrative expense: | | | | |
| Restructuring and employee separation costs | (0.2) | | (4.0) | | (1.7) | | (11.8) | |
| Legal and other | (1.9) | | (0.7) | | (5.5) | | (1.6) | |
| Cloud-based enterprise resource planning system impairment | - | | - | | - | | (86.3) | |
| Impact on selling and administrative expense | (2.1) | | (4.7) | | (7.2) | | (99.7) | |
| Impact on operating income | (26.0) | | (19.4) | | (44.2) | | (125.9) | |
| Interest expense, net - financing costs | - | | - | | - | | (2.0) | |
| Impact on income before income taxes | (26.0) | | (19.4) | | (44.2) | | (127.9) | |
| Income tax benefit on special items | 5.2 | | 3.7 | | 9.0 | | 30.8 | |
| Tax adjustments | (0.3) | | - | | 0.4 | | - | |
| Impact of special items on net income | $(21.1) | | $(15.7) | | $(34.8) | | $(97.1) | |
| Diluted earnings per common share impact | $(0.23) | | $(0.17) | | $(0.38) | | $(1.06) | |
| Weighted average shares used to compute adjusted earnings per share: | | |
| Diluted | 92.4 | | 91.8 | | 92.2 | | 91.8 | |
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.
The tax effect has been calculated using a blended statutory tax rate for the jurisdictions in which the special item was recognized, except when a jurisdiction is in a valuation allowance in which case no tax benefit is recognized.
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
Avient Corporation
Condensed Consolidated Balance Sheets
| (Unaudited)September 30, 2026 | December 31, 2025 |
|---|
| ASSETS | | |
| Current assets: | | |
| Cash and cash equivalents | $445.7 | $510.5 |
| Accounts receivable, net | 520.7 | 435.0 |
| Inventories, net | 442.3 | 367.2 |
| Other current assets | 100.6 | 88.2 |
| Total current assets | 1,509.3 | 1,400.9 |
| Property, net | 958.8 | 988.8 |
| Goodwill | 1,733.2 | 1,757.6 |
| Intangible assets, net | 1,396.3 | 1,492.4 |
| Other non-current assets | 347.8 | 385.9 |
| Total assets | $5,945.4 | $6,025.6 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | |
| Current liabilities: | | |
| Short-term and current portion of long-term debt | $0.4 | $0.5 |
| Accounts payable | 440.4 | 410.0 |
| Accrued expenses and other current liabilities | 439.7 | 435.8 |
| Total current liabilities | 880.5 | 846.3 |
| Non-current liabilities: | | |
| Long-term debt | 1,826.8 | 1,922.6 |
| Deferred income taxes | 276.7 | 285.7 |
| Other non-current liabilities | 490.7 | 584.7 |
| Total non-current liabilities | 2,594.2 | 2,793.0 |
| SHAREHOLDERS' EQUITY | | |
| Avient shareholders’ equity | 2,456.8 | 2,374.2 |
| Noncontrolling interest | 13.9 | 12.1 |
| Total equity | 2,470.7 | 2,386.3 |
| Total liabilities and equity | $5,945.4 | $6,025.6 |
Attachment 5
Avient Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
| Nine Months Ended September 30, |
|---|
| 2026 | 2025 |
|---|
| Operating activities | | |
| Net income | $165.0 | | $66.4 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | |
| Depreciation and amortization | 143.9 | | 138.8 | |
| Cloud-based enterprise resource planning system impairment | - | | 71.6 | |
| Share-based compensation expense | 6.6 | | 6.9 | |
| Changes in assets and liabilities: | | |
| Increase in accounts receivable | (92.8) | | (66.4) | |
| Increase in inventories | (80.5) | | (25.4) | |
| Increase (decrease) in accounts payable | 34.5 | | (43.5) | |
| Increase (decrease) in environmental obligations | 1.7 | | (1.5) | |
| Environmental insurance recovery | - | | 34.0 | |
| (Decrease) increase in restructuring obligations | (20.6) | | 4.1 | |
| Increase (decrease) in incentive accruals | 14.6 | | (33.0) | |
| Accrued expenses and other assets and liabilities, net | 7.6 | | (18.2) | |
| Net cash provided by operating activities | 180.0 | | 133.8 | |
| Investing activities | | |
| Capital expenditures | (66.4) | | (64.2) | |
| Net cash used in investing activities | (66.4) | | (64.2) | |
| Financing activities | | |
| Cash dividends paid | (75.7) | | (74.1) | |
| Payments on long-term borrowings | (100.2) | | (100.2) | |
| Debt financing costs | - | | (3.9) | |
| Other financing activities | (2.6) | | (3.5) | |
| Net cash used in financing activities | (178.5) | | (181.7) | |
| Effect of exchange rate changes on cash | 0.1 | | 13.2 | |
| Decrease in cash and cash equivalents | (64.8) | | (98.9) | |
| Cash and cash equivalents at beginning of year | 510.5 | | 544.5 | |
| Cash and cash equivalents at end of period | $445.7 | | $445.6 | |
Attachment 6
Avient Corporation
Business Segment Operations (Unaudited)
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 September 30, | Nine Months Ended September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Sales: | | | | |
| Color, Additives and Inks | $551.5 | | $509.9 | | $1,653.8 | | $1,568.2 | |
| Specialty Engineered Materials | 340.6 | | 297.7 | | 1,004.7 | | 935.8 | |
| Corporate | (0.9) | | (1.1) | | (2.9) | | (4.4) | |
| Sales | $891.2 | | $806.5 | | $2,655.6 | | $2,499.6 | |
| Gross margin: | | | | |
| Color, Additives and Inks | $189.1 | | $168.8 | | $573.0 | | $529.9 | |
| Specialty Engineered Materials | 107.0 | | 91.0 | | 316.9 | | 282.6 | |
| Corporate | (24.3) | | (14.9) | | (37.9) | | (26.5) | |
| Gross margin | $271.8 | | $244.9 | | $852.0 | | $786.0 | |
| Selling and administrative expense: | | | | |
| Color, Additives and Inks | $100.4 | | $95.0 | | $301.1 | | $287.2 | |
| Specialty Engineered Materials | 57.3 | | 53.7 | | 167.1 | | 158.0 | |
| Corporate | 31.5 | | 29.1 | | 93.0 | | 176.9 | |
| Selling and administrative expense | $189.2 | | $177.8 | | $561.2 | | $622.1 | |
| Operating income: | | | | |
| Color, Additives and Inks | $88.7 | | $73.8 | | $271.9 | | $242.7 | |
| Specialty Engineered Materials | 49.7 | | 37.3 | | 149.8 | | 124.6 | |
| Corporate | (55.8) | | (44.0) | | (130.9) | | (203.4) | |
| Operating income | $82.6 | | $67.1 | | $290.8 | | $163.9 | |
| Depreciation & amortization: | | | | |
| Color, Additives and Inks | $22.4 | | $22.6 | | $67.5 | | $66.7 | |
| Specialty Engineered Materials | 23.0 | | 22.0 | | 68.7 | | 65.9 | |
| Corporate | 1.8 | | 2.3 | | 7.7 | | 6.2 | |
| Depreciation & amortization | $47.2 | | $46.9 | | $143.9 | | $138.8 | |
| Earnings before interest, taxes, depreciation and amortization (EBITDA): | | | | |
| Color, Additives and Inks | $111.1 | | $96.4 | | $339.4 | | $309.4 | |
| Specialty Engineered Materials | 72.7 | | 59.3 | | 218.5 | | 190.5 | |
| Corporate | (54.0) | | (41.7) | | (123.2) | | (197.2) | |
| Other expense, net | (1.4) | | - | | (3.9) | | (0.9) | |
| EBITDA | $128.4 | | $114.0 | | $430.8 | | $301.8 | |
| Special items, before tax | 26.0 | | 19.4 | | 44.2 | | 127.9 | |
| Interest expense included in special items | - | | - | | - | | (2.0) | |
| Depreciation & amortization included in special items | - | | (0.5) | | (2.6) | | (1.2) | |
| Adjusted EBITDA | $154.4 | | $132.9 | | $472.4 | | $426.5 | |
Attachment 7
Avient Corporation
Reconciliation of Non-GAAP Financial Measures (Unaudited)
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 September 30, | Nine Months Ended September 30, |
|---|
| Reconciliation to Condensed Consolidated Statements of Income | | 2026 | | 2025 | | 2026 | | 2025 |
| Sales - Sales | $891.2 | | $806.5 | | $2,655.6 | | $2,499.6 | |
| Gross margin - GAAP | 271.8 | | 244.9 | | 852.0 | | 786.0 | |
| Gross margin - GAAP as a percent of sales | 30.5% | | 30.4% | | 32.1% | | 31.4% | |
| Special items in gross margin (Attachment 3) | 23.9 | | 14.7 | | 37.0 | | 26.2 | |
| Adjusted gross margin | $295.7 | | $259.6 | | $889.0 | | $812.2 | |
| Adjusted gross margin as a percent of sales | 33.2% | | 32.2% | | 33.5% | | 32.5% | |
| Operating income - GAAP | $82.6 | | $67.1 | | $290.8 | | $163.9 | |
| Operating income - GAAP as a percent of sales | 9.3% | | 8.3% | | 11.0% | | 6.6% | |
| Special items in operating income (Attachment 3) | 26.0 | | 19.4 | | 44.2 | | 125.9 | |
| Adjusted operating income | $108.6 | | $86.5 | | $335.0 | | $289.8 | |
| Adjusted operating income as a percent of sales | 12.2% | | 10.7% | | 12.6% | | 11.6% | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| Reconciliation to EBITDA and Adjusted EBITDA: | | 2026 | | 2025 | | 2026 | | 2025 |
| Net income - GAAP | $43.5 | | $32.8 | | $165.0 | | $66.4 | |
| Net income - GAAP as a percent of sales | 4.9% | | 4.1% | | 6.2% | | 2.7% | |
| Income tax expense | $15.0 | | $10.1 | | $54.9 | | $20.8 | |
| Interest expense | 22.7 | | 24.2 | | 67.0 | | 75.8 | |
| Depreciation and amortization | 47.2 | | 46.9 | | 143.9 | | 138.8 | |
| EBITDA | $128.4 | | $114.0 | | $430.8 | | $301.8 | |
| Special items, before tax (Attachment 3) | 26.0 | | 19.4 | | 44.2 | | 127.9 | |
| Interest expense included in special items (Attachment 3) | - | | - | | - | | (2.0) | |
| Depreciation and amortization included in special items | - | | (0.5) | | (2.6) | | (1.2) | |
| Adjusted EBITDA | $154.4 | | $132.9 | | $472.4 | | $426.5 | |
| Adjusted EBITDA as a percent of sales | 17.3% | | 16.5% | | 17.8% | | 17.1% | |
Attachment 7
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| Reconciliation of Tax Effect on Amortization: | | 2026 | | 2025 | | 2026 | | 2025 |
| Amortization expense | | 20.4 | | 20.5 | | 61.3 | | 59.9 |
| Tax effect on amortization expense | | 4.7 | | 4.6 | | 14.8 | | 14.3 |
| Amortization expense, net of tax | $15.7 | | $15.9 | | $46.5 | | $45.6 | |
The tax effect has been calculated using a blended statutory tax rate for the jurisdictions in which the amortization expense was recognized.
| Year Ended December 31, |
|---|
| Reconciliation to EBITDA and Adjusted EBITDA: | | 2025 |
| Net income from continuing operations - GAAP | $83.6 | |
| Net income - GAAP as a percent of sales | 2.6% | |
| Income tax expense | 28.1 | |
| Interest expense, net | 98.6 | |
| Depreciation & amortization | 185.9 | |
| EBITDA | $396.2 | |
| Special items, before tax | 152.2 | |
| Interest expense included in special items | (2.0) | |
| Depreciation & amortization included in special items | (1.8) | |
| Adjusted EBITDA | $544.6 | |
| Adjusted EBITDA as a percent of sales | 16.7% | |
Attachment 8
Avient Corporation
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
| Year Ended |
|---|
| December 31, 2025 |
|---|
| Reconciliation to Condensed Consolidated Statements of Income | $ | EPS |
| Net income attributable to Avient common shareholders | $81.9 | $0.89 |
| Special items, after-tax (Table B) | 116.4 | 1.27 |
| Amortization expense, after-tax (Table A) | 60.7 | 0.66 |
| Adjusted net income / EPS | $259.0 | $2.82 |
Per share amounts may not recalculate from figures presented herein due to rounding
| December 31, 2025 |
|---|
| Table A | Year Ended |
| Amortization expense | $80.3 | |
| Tax effect on amortization expense | | 19.6 |
| Amortization expense, net of tax | $60.7 | |
| Table B | Year Ended |
| Summary of Specials Items | December 31, 2025 |
| Impact on Cost of sales | $(42.6) | |
| Impact on Selling and administrative | (116.7) | |
| Impact on operating income | (159.3) | |
| Interest expense, net - financing costs | (2.0) | |
| Pension and post-retirement mark-to-market adjustments and other | 9.1 | |
| Impact on Other income, net | 9.1 | |
| Impact on income before income taxes | (152.2) | |
| Income tax benefit on above special items | 35.1 | |
| Tax adjustments | 0.9 | |
| Noncontrolling interest activity | (0.2) | |
| Impact of special items on net income | $(116.4) | |
| Diluted earnings per common share impact | $(1.27) | |
| Weighted average shares used to compute adjusted earnings per share: | |
| Diluted | | 91.8 |
The tax effect has been calculated using a blended statutory tax rate for the jurisdictions in which the special item or amortization expense was recognized, except when a jurisdiction is in a valuation allowance in which case no tax benefit is recognized.
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.
Tax adjustments include the net tax impact from non-recurring income tax items and certain adjustments to uncertain tax position reserves and valuation allowances.
Contacts
George T. Clark
Director of Investor Relations
440-930-1921 george.clark@avient.com
Tatiana Marshall
Sr. Global Communications Leader
216-905-7211 tatiana.marshall@avient.com