Avient (US:AVNT)2025-11-05 11:01Financial Performance - Third quarter 2025 sales were $806.5 million, a decrease of 1% from $815.2 million in the prior year quarter[5]. - Third quarter GAAP EPS was $0.36, down from $0.41 in the prior year quarter, while adjusted EPS increased to $0.70, representing an 8% growth year-over-year[5][3]. - Total sales for the third quarter of 2025 were $806.5 million, a decrease of 1.1% from $815.2 million in the same period of 2024[33]. - Operating income for the nine months ended September 30, 2025, was $163.9 million, a decrease of 32.8% compared to $243.7 million for the same period in 2024[33]. - Net income for the nine months ended September 30, 2025, was $66.4 million, down 45.4% from $122.2 million in 2024[30]. - Net income for Q3 2025 was $32.8 million, down from $38.7 million in Q3 2024, with adjusted net income for the year ended December 31, 2024, at $244.9 million[35]. - Special items impacted net income by $15.7 million in the third quarter of 2025, compared to $6.6 million in the same quarter of 2024[26]. Margins and Earnings - Adjusted EBITDA margins expanded by 60 basis points to 16.5% due to a focus on profitable mix and increased productivity[4]. - The company continues to focus on disciplined cost control and productivity initiatives to drive margin expansion and earnings growth[7]. - Adjusted gross margin for Q3 2025 was $259.6 million, representing 32.2% of sales, compared to 32.1% in Q3 2024[35]. - Operating income for Q3 2025 was $67.1 million, down from $77.2 million in Q3 2024, with adjusted operating income at $86.5 million[35]. - EBITDA for Q3 2025 was $114.0 million, compared to $122.0 million in Q3 2024, while adjusted EBITDA increased to $132.9 million[35]. - Adjusted operating income as a percentage of sales for the nine months ended September 30, 2025, was 11.6%, up from 11.4% in the same period of 2024[35]. - The adjusted EBITDA as a percentage of sales for the nine months ended September 30, 2025, was 17.1%, compared to 16.7% in the same period of 2024[35]. Guidance and Expectations - The company maintains its full-year adjusted EPS guidance range of $2.77 to $2.87, reflecting a year-over-year growth of 4% to 8%[5][7]. - The company updated its full-year adjusted EBITDA guidance range to $540 to $550 million, considering current customer order patterns[7]. Cash Flow and Debt Management - Strong cash flow generation allowed for an additional $50 million in debt repayment, totaling $100 million year-to-date, with an expectation of $150 million total debt repayment for 2025[5][7]. - Cash and cash equivalents at the end of the third quarter of 2025 were $445.6 million, a decrease from $544.5 million at the end of 2024[28]. - The company reported a net cash provided by operating activities of $133.8 million for the nine months ended September 30, 2025, slightly down from $134.2 million in 2024[30]. Market Conditions - Demand in key markets was negatively impacted by weak consumer sentiment and geopolitical uncertainty, although defense, healthcare, and telecommunication sales grew in the high single digits[6]. Special Items and Costs - The company incurred restructuring costs of $4.0 million in the third quarter of 2025, compared to $3.1 million in the same quarter of 2024[26]. - Special items in operating income for Q3 2025 totaled $19.4 million, compared to $8.4 million in Q3 2024[35]. Assets and Share Information - Total assets increased to $6,055.8 million as of September 30, 2025, compared to $5,811.1 million at the end of 2024[28]. - The weighted-average diluted shares used to compute earnings per share were 91.8 million for the third quarter of 2025[24]. - Cash dividends declared per share increased to $0.2700 from $0.2575 in the prior year quarter[24].