Company Overview - Avient (AVNT) shares increased by 13.7% to close at $32.89, following a significant trading volume compared to normal sessions, despite a 28.1% loss over the past four weeks [1] - The upcoming quarterly earnings for Avient are expected to be $0.76 per share, unchanged from the previous year, with revenues projected at $839.69 million, reflecting a 1.3% increase year-over-year [2] Earnings Estimates and Trends - The consensus EPS estimate for Avient has been revised down by 1.2% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] - Empirical research suggests that trends in earnings estimate revisions are closely linked to near-term stock price movements, highlighting the importance of monitoring these changes [3] Industry Context - Avient operates within the Zacks Chemical - Diversified industry, which has seen a broader rise in material stocks due to President Trump's decision to pause reciprocal tariffs for 90 days [1] - Another company in the same industry, Dow Inc. (DOW), experienced a 15.7% increase in its stock price, closing at $29.86, despite a significant 29.6% decline over the past month [4] - Dow Inc.'s consensus EPS estimate has dropped by 32% over the past month to $0.04, representing a 92.9% decrease from the previous year's report, and it currently holds a Zacks Rank of 5 (Strong Sell) [5]

Core Viewpoint - Avient Corporation plans to release its first quarter 2025 earnings on May 6, 2025, before the market opens, followed by a webcast presentation [1] Group 1: Earnings Release - The earnings release is scheduled for May 6, 2025, before market opening [1] - A webcast with a slide presentation will take place at 8:00 a.m. Eastern Time on the same day [1] Group 2: Webcast Details - The webcast can be accessed live at avient.com/investors [2] - Participants in the Q&A session must pre-register to receive the dial-in number and personal PIN [2] - A recording of the webcast and slide presentation will be available on the company's website immediately after the conference call and will remain accessible for one year [3] Group 3: Company Overview - Avient Corporation aims to be an innovator of materials solutions that support customer success and sustainability [4] - The company employs over 9,000 individuals globally, fostering collaboration to innovate solutions [4] - Avient's product portfolio includes colorants, advanced composites, functional additives, engineered materials, and Dyneema®, recognized as the world's strongest fiber [4]

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Financial Performance - Avient Corporation reported sales from continuing operations of $3.2 billion in 2024, with approximately 60% of sales coming from customers outside the United States[12]. - Sales for 2024 were $3,240.4 million, an increase of 3.1% compared to $3,142.8 million in 2023[205]. - Net income from continuing operations increased by $94.4 million, or 123.7%, totaling $170.7 million in 2024[113]. - Earnings per share attributable to common shareholders increased to $1.86 in 2024 from $0.83 in 2023, reflecting a 123.9% increase[113]. - Operating income rose by $132.5 million, or 67.3%, in 2024 compared to 2023, reaching $329.3 million[125]. - Gross margin improved to 32.6% in 2024 from 28.4% in 2023, primarily due to raw material deflation and lower environmental remediation costs of $34.6 million[115]. - Comprehensive income attributable to Avient common shareholders was $79.1 million in 2024, compared to $64.1 million in 2023, an increase of 23.4%[207]. Research and Development - The company invested $98.7 million in research and development in 2024, up from $90.3 million in 2023 and $84.9 million in 2022[28]. - Avient's strategic focus includes amplifying innovation to address evolving market and sustainability needs, supported by a technical workforce of around 1,100 employees[28]. Operational Footprint - Avient operates 102 manufacturing sites globally, with a workforce of approximately 9,200 employees as of December 31, 2024[12][32]. - The company operates globally with 102 manufacturing sites across North America, South America, Asia, Europe, the Middle East, and Africa, indicating a strong operational footprint[83]. Sustainability and Environmental Commitment - The company emphasizes sustainability and performance advantages of its specialized polymers over traditional materials[20]. - Avient maintains a strong commitment to sustainability, aiming to help customers meet their sustainability goals through technologies that improve recyclability and reduce carbon footprints[108]. - The company is subject to extensive environmental, health, and safety regulations, which could lead to increased compliance costs and potential liabilities[59]. - The company may incur additional costs or liabilities due to increasingly strict environmental regulations and potential claims related to plant emissions[46]. Financial Position and Debt - Total debt as of December 31, 2024, was $2,067.0 million, a decrease from $2,080.0 million in 2023[140]. - The company maintains a senior secured revolving credit facility with a maximum borrowing size of $500.0 million, with remaining availability of $211.4 million as of December 31, 2024[144]. - Future obligations total $3,164.6 million, with $247.0 million due in less than one year[148]. - The company has a revolving credit facility that requires compliance with specific financial tests, which could impact borrowing capacity if not met[70]. Cybersecurity - The company has experienced targeted and non-targeted cybersecurity attacks in the past, although no incident has had a material impact on its business to date[63]. - The Chief Information Security Officer (CISO) oversees cybersecurity risk management, reporting directly to the Chief Information Officer (CIO)[78]. - The company emphasizes cybersecurity education for employees and imposes security requirements on third-party service providers[76]. - The company has established a Cyber and Data Incident Response Team (CDIRT) to manage responses to cyber incidents effectively[82]. Market Risks - Fluctuations in foreign currency exchange rates may adversely impact the company's financial results, affecting competitiveness and cost control[67]. - The company manages market risks, including interest rate and foreign currency exposure, through regular operating and financing activities, including derivative financial instruments[176]. - There would be no material impact on interest expense or cash flows from a 100 basis point increase or decrease in market rates of interest on outstanding variable rate debt as of December 31, 2024[177]. Employee Engagement - The company conducts annual employee engagement surveys, with participation from employees in over 40 countries, to support ongoing engagement efforts[44]. Strategic Focus - Avient's refined strategy focuses on intersecting high-growth markets and maximizing the impact of existing business, supported by four strategic drivers: Portfolio Prioritization, Amplify Innovation, Digital for Operational Excellence and Growth, and Leadership, Talent and Culture[107]. - Long-term trends that provide opportunities for Avient include improving health and wellness, protecting the environment, and increasing the need for power and electricity[109].

Core Viewpoint - Avient Corporation reported strong earnings growth in Q4 2024, with adjusted earnings surpassing estimates, although revenue fell short of expectations Financial Performance - Earnings from continuing operations for Q4 2024 were 52 cents per share, up from 30 cents a year ago [1] - Adjusted earnings for the quarter were 49 cents per share, beating the Zacks Consensus Estimate of 48 cents [1] - Revenues for Q4 2024 were $746.5 million, a 4% increase year over year, but missed the Zacks Consensus Estimate of $751.2 million [2] - Organic sales increased by 5% year over year, driven by growth across all geographic regions [2] Segment Highlights - Sales from the Color, Additives and Inks unit were $467.7 million, up approximately 2% year over year, but below the consensus estimate of $479 million [3] - Specialty Engineered Materials recorded sales of $279.7 million, an 8% increase year over year, exceeding the consensus estimate of $277 million [3] Full-Year Results - For FY 2024, earnings were $1.84 per share, up from 83 cents per share a year ago [4] - Net sales rose around 3% year over year to $3,240.4 million [4] Financial Position - At the end of 2024, cash and cash equivalents were approximately $544.5 million, unchanged year over year [5] - Long-term debt was around $2,059.3 million, down about 0.5% from the previous year [5] - Net cash provided by operating activities for FY 2024 was $256.8 million, a 27% increase year over year [5] Outlook - The company expects full-year 2025 adjusted earnings in the range of $2.70-$2.94 per share, representing an 11% growth excluding unfavorable currency impact [6] - Projected adjusted EBITDA for the full year is between $540-$570 million [6] - First-quarter adjusted earnings are anticipated to be 76 cents per share, indicating a 6% growth excluding currency impact [6] Stock Performance - Avient's shares have increased by 8.8% over the past year, contrasting with a 3.2% decline in the Zacks Chemicals Diversified industry [7]

Financial Data and Key Metrics Changes - In 2024, organic sales for the total company increased by 4% with adjusted EBITDA margins expanding by 20 basis points to 16.2% [12][34] - Adjusted EPS grew by 13% for the year, including the impact of foreign exchange [12][34] - The fourth quarter saw organic sales growth of 5% year-over-year, with adjusted EBITDA and adjusted EPS slightly down due to variable compensation accruals [25][26] Business Segment Data and Key Metrics Changes - The Color, Additives and Inks (CAI) segment grew organic sales by 3%, while the Specialty Engineered Materials (SEM) segment saw a 6% increase [12][30] - Adjusted EBITDA margins expanded by 90 basis points for CAI and 110 basis points for SEM [12][31] - SEM segment posted 8% sales growth and 13% EBITDA growth, excluding foreign exchange, driven by demand in healthcare and construction applications [28][29] Market Data and Key Metrics Changes - Organic revenue growth was achieved in every region, with significant growth in the U.S. and Canada, Asia, and Latin America [10][11] - EMEA faced a challenging macro environment but still contributed to overall growth [10] - The company reported a 5% dividend increase, marking the 14th consecutive year of annual dividend growth [16] Company Strategy and Development Direction - The company articulated a new purpose to be an innovator of material solutions while enabling a sustainable world [8] - Focus on organic top-line growth with margin expansion, leveraging customer intimacy and innovative offerings [9][30] - A new incentive compensation plan was rolled out to align employee focus with strategic execution [13][106] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming headwinds from a strong U.S. dollar and challenging comparisons from the previous year [24][34] - The company anticipates mid-single-digit growth in defense for 2025, acknowledging the lumpy nature of defense orders [72][74] - Despite uncertainties in the macro environment, the company remains focused on controllable factors and expects to achieve adjusted EBITDA of $540 million to $570 million for 2025 [38][39] Other Important Information - A decision was made to cease the implementation of the S/4HANA ERP system due to increased costs and complexity, resulting in a noncash impairment charge of approximately $71 million [21][22] - The company expects free cash flow to be between $180 million and $200 million, with a CapEx estimate of around $120 million [109][113] Q&A Session Summary Question: Impact of Generation 3 Dyneema product and expectations for Defense - Management highlighted that the new Dyneema product is a significant upgrade and is expected to help maintain or increase margins while winning market share [45][46] - Defense sales were steady at 7% of overall sales, with expectations for mid-single-digit growth in 2025 due to tough comparisons from 2024 [72][74] Question: Insights on the decision to pause SAP S/4HANA implementation - The implementation was in the early stages, and the decision was made due to high costs and complexity, with alternative solutions expected to deliver similar benefits more efficiently [60][63] Question: Strength in healthcare segment and future trends - Healthcare was a strong focus area with double-digit growth in 2024, driven by new business wins in remote monitoring and drug delivery devices [66][68] Question: Demand in China and automotive end markets - China saw 7% growth in Q4, with expectations for continued strong performance in 2025, particularly in the EV market [116][120]

Avient Corporation AVNT Fourth quarter and full year 2024 results 2025 financial guidance FEBRUARY 13, 2025 Disclaimer Forward-looking statements Certain statements contained in or incorporated by reference into this presentation constitute "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 expect ...

Avient Corporation (NYSE:AVNT) Q4 2024 Earnings Conference Call February 13, 2025 8:00 AM ET Company Participants Joe Di Salvo – Vice President-Treasurer and Investor Relations Ashish Khandpur – President and Chief Executive Officer Jamie Beggs – Senior Vice President and Chief Financial Officer Conference Call Participants Frank Mitsch – Fermium Research Mike Harrison – Seaport Research David Huang – Deutsche Bank Michael Sison – Wells Fargo Steve Haynes – Morgan Stanley Kristen Owen – Oppenheimer Kevin E ...

Core Insights - Avient reported revenue of $746.5 million for the quarter ended December 2024, reflecting a 3.8% increase year-over-year, but fell short of the Zacks Consensus Estimate of $751.23 million by 0.63% [1] - The company's EPS was $0.49, down from $0.52 in the same quarter last year, but exceeded the consensus estimate of $0.48 by 2.08% [1] Revenue Breakdown - Specialty Engineered Materials sales reached $279.70 million, surpassing the average estimate of $277.15 million by analysts, and showing a year-over-year increase of 7.7% [4] - Color, Additives and Inks sales were reported at $467.70 million, below the average estimate of $478.58 million, with a year-over-year change of 1.8% [4] - Corporate sales reported a loss of $0.90 million, worse than the estimated loss of $0.60 million, representing a significant year-over-year increase of 350% [4] Operating Income Analysis - Operating income for Color, Additives and Inks was $59.80 million, lower than the average estimate of $62.84 million [4] - Specialty Engineered Materials reported an operating income of $34.60 million, slightly above the average estimate of $33.50 million [4] - Corporate operating loss was $8.80 million, significantly better than the estimated loss of $37.50 million [4] Stock Performance - Avient's shares returned +0.4% over the past month, compared to a +3.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]