Avient (AVNT) Q4 2025 earnings summary

Executive summary

• Full-year 2025 sales reached $3,260M, up 0.6% year-over-year, with adjusted EBITDA of $545M, up 3.5%, and adjusted EPS of $2.82, up 6% year-over-year.

• Q4 2025 sales were $761M, up 1.9% year-over-year, with adjusted EBITDA of $118M, up 7.4%, and adjusted EPS of $0.56, up 14%.

• Defense, healthcare, and telecom delivered double-digit growth, offsetting weak consumer sentiment and volatile trade policy.

• Innovation and productivity initiatives drove record-high adjusted EBITDA margins of 16.7%.

• Free cash flow of $195M enabled $150M debt reduction, ending with net leverage at 2.6x.

Financial highlights

• Adjusted EBITDA margin expanded 50 bps to 16.7% for FY 2025 and 80 bps to 15.5% in Q4 2025.

• Adjusted EPS grew 14% in Q4 and 6% for the year, aided by lower interest expense and FX.

• Adjusted EBITDA for 2025 was $545M, up from $526.4M in 2024.

• Free cash flow for 2025 was $195M, supporting $150M in debt repayment.

• Adjusted ROIC increased to 8.6% in 2025 from 8.3% in 2024.

Outlook and guidance

• 2026 adjusted EBITDA guidance: $555M–$585M (up 2%–7%); adjusted EPS: $2.93–$3.17 (up 4%–12%).

• Q1 2026 adjusted EPS outlook: $0.81, up 7% year-over-year.

• Free cash flow expected at $200M–$220M in 2026, with $140M in capital expenditures, mainly for defense capacity expansion.

• Macro assumptions include easing interest rates, government policy support, and continued NATO defense spending, but persistent inflation and FX volatility remain risks.

• Cautiously optimistic for improved demand in 2026, especially in consumer, industrial, and building/construction markets.