Avient (AVNT) - 2024 Q4 - Annual Results

Earnings Performance - Fourth quarter GAAP earnings per share (EPS) were $0.52, up from$ 0.30 in the prior year, while full year EPS was $1.84 compared to$ 0.83 previously[2]. - Full year 2024 adjusted EPS was $2.66, reflecting a 13% increase over the prior year, driven by sales growth and margin expansion[3]. - The company expects 2025 adjusted EPS to range from$ 2.70 to $2.94, representing an 11% growth excluding foreign exchange impacts[4]. - First quarter adjusted EPS is projected to be$ 0.76, which includes a $0.04 foreign exchange headwind, translating to 6% growth excluding this impact[6]. - Earnings per share attributable to Avient common shareholders (diluted) for continuing operations was$ 1.84 for the year ended December 31, 2024, up from $0.83 in 2023[23]. Sales and Revenue Growth - Fourth quarter sales increased 4% to$ 747 million, and full year sales rose 3% to $3,240 million[4]. - Organic sales growth was 5% in the fourth quarter and 4% for the full year, with all regions contributing positively[4]. - The company achieved organic sales growth in all regions, with Latin America leading at 14% growth[4]. - Sales for the three months ended December 31, 2024, were$ 746.5 million, an increase of 3.5% compared to $719.0 million in the same period of 2023[23]. - Total sales for the three months ended December 31, 2024, increased to$ 746.5 million, up from $719.0 million in the same period of 2023, representing a growth of 3.9%[33]. Profitability and Margins - Gross margin improved to$ 259.5 million for the three months ended December 31, 2024, up 24.2% from $208.9 million in the prior year[23]. - Operating income for the year ended December 31, 2024, was$ 329.3 million, representing a 67.1% increase from $196.8 million in 2023[23]. - Adjusted operating income for the year ended December 31, 2024, rose to$ 350.7 million, compared to $312.8 million in 2023, marking an increase of 12.1%[35]. - The adjusted gross margin as a percentage of sales for the year ended December 31, 2024, improved to 32.6%, up from 30.9% in 2023[35]. - Adjusted EBITDA margins expanded by 90 and 110 basis points in the Color, Additives and Inks and Specialty Engineered Materials segments, respectively[5]. Net Income and Cash Flow - Net income attributable to Avient common shareholders for the year ended December 31, 2024, was$ 169.5 million, compared to $75.7 million in 2023, reflecting a 123.1% increase[23]. - Cash dividends declared per share increased to$ 1.0425 for the year ended December 31, 2024, compared to $1.0000 in 2023[23]. - Net cash provided by operating activities for the year ended December 31, 2024, was$ 256.8 million, an increase from $201.6 million in 2023[29]. - Cash provided by operating activities for the year ended December 31, 2024, was$ 256.8 million, compared to $201.6 million in 2023, an increase of 27.3%[36]. - Adjusted free cash flow for the year ended December 31, 2024, was$ 155.7 million, down from $186.3 million in 2023, reflecting a decrease of 16.4%[36]. Safety and Environmental Performance - The company reported its safest year in history for safety performance in 2024[5]. - Environmental remediation costs for the year ended December 31, 2024, totaled$ 35.0 million, a decrease from $69.7 million in 2023[25]. Asset Management - Total assets decreased to$ 5,811.1 million as of December 31, 2024, from $5,968.5 million in 2023[27]. - The company reported a decrease in cash and cash equivalents to$ 544.5 million at the end of 2024, down from $545.8 million at the end of 2023[29].