Avient (AVNT) Q2 2026 earnings summary

Executive summary

• Q2 2026 adjusted EPS was $0.96, up 20% year-over-year and $0.09 above expectations, driven by strong volume growth, innovation, and execution amid inflation and supply chain challenges.

• Sales for Q2 2026 increased 5.8% year-over-year to $917 million, with 4.3% organic growth and 1.5% favorable FX impact; net income attributable to shareholders rose 23.2% to $64.8 million.

• Adjusted EBITDA margin reached a record 18.3%, up 110 basis points year-over-year, reflecting profitable mix, productivity, and cost savings.

• Asia led with 18% organic sales growth, while packaging, building & construction, consumer, and defense end markets drove overall gains.

• Strong cash flow enabled $50 million debt paydown in Q2 and $200 million over the last 12 months.

Financial highlights

• Q2 2026 sales were $917 million (up 5.8% YoY); adjusted EBITDA was $168.2 million (18.3% margin), up 13% as reported and 11.5% organically.

• Adjusted EPS for Q2 was $0.96, a 20% increase as reported and 17.1% organically; adjusted net income was $88.3 million.

• Year-to-date sales were $1,764.4 million, up 4.2% as reported and 1.2% organically.

• Gross margin improved to 33.5% for Q2 2026, up from 32.1% in Q2 2025; adjusted gross margin was 34.2%.

• Cash and cash equivalents at June 30, 2026, were $425.6 million; liquidity (including revolver) was $916.1 million.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance raised to $575–$603 million, adjusted EPS to $3.10–$3.25, and free cash flow to $210–$230 million.

• Q3 adjusted EPS expected at ~$0.80, up 14% year-over-year.

• Capital expenditures revised to $120–$130 million for 2026, above 2025 levels.

• Net leverage expected to exit 2026 at 2.2x–2.4x, with $100–$150 million debt repayment planned for the year.

• Management expects sufficient liquidity for at least the next twelve months, supported by cash on hand, operations, and revolving credit.