Avient Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 sales grew 10.5% to $891.2 million, compared to $806.5 million in the prior year quarter; organic sales growth was 10.6% excluding a 0.1% negative impact from foreign exchange.
• GAAP earnings per share (EPS) were $0.46 for the quarter, up from $0.36 in the prior year quarter.
• Adjusted EPS grew 23% year-over-year to $0.86, exceeding the guidance range of $0.80.
• GAAP net income attributable to Avient common shareholders was $42.7 million for the quarter, compared to $32.6 million in the prior year.
• Adjusted net income was $79.5 million for the quarter, compared to $64.2 million in the prior year.
• Adjusted EBITDA margins expanded 80 basis points to 17.3% in the third quarter, compared to 16.5% in the prior year.
• Year-to-date 2026 debt reduction totaled $100 million, including $50 million repaid in the third quarter.
• Nine months ended September 30, 2026, sales were $2,655.6 million compared to $2,499.6 million in the prior year.
• Nine months ended September 30, 2026, GAAP EPS was $1.77 compared to $0.71 in the prior year.
• Nine months ended September 30, 2026, adjusted EPS was $2.65 compared to $2.26 in the prior year.
• Nine months ended September 30, 2026, adjusted EBITDA was $472.4 million compared to $426.5 million in the prior year.
• GAAP operating income for the quarter was $82.6 million, compared to $67.1 million in the prior year.
• Adjusted operating income for the quarter was $108.6 million, compared to $86.5 million in the prior year.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $180.0 million, compared to $133.8 million in the prior year.
• Capital expenditures for the nine months ended September 30, 2026, were $66.4 million, compared to $64.2 million in the prior year.
• Cash dividends declared per share of common stock were $0.2750 in the third quarter 2026, compared to $0.2700 in the prior year.

Guidance and Future Outlook:

• Full-year 2026 adjusted EPS guidance range increased to $3.22 to $3.32, representing 14% to 18% growth over the prior year, up from the previous range of $3.10 to $3.25.
• Full-year 2026 adjusted EBITDA guidance narrowed to $593 to $603 million, representing 9% to 11% growth over the prior year.
• Management expects to end 2026 with a net debt to adjusted EBITDA leverage ratio of 2.2x to 2.3x.
• Management indicated a balanced approach to deploying excess cash for further debt reduction and opportunistic share repurchases going forward.

Business Segments and Product Lines:

• Both operating segments contributed to organic sales growth in the third quarter.
• Color, Additives and Inks segment sales were $551.5 million for the quarter, up from $509.9 million in the prior year.
• Specialty Engineered Materials segment sales were $340.6 million for the quarter, up from $297.7 million in the prior year.
• Growth was driven by pricing, improving mix from new business gains, and strong demand for growth vector technologies.
• Key market drivers included strong sales growth in packaging, healthcare, and building & construction.

Market and Competitive Landscape:

• Management stated the strategy is delivering tangible results by aligning capabilities with high-growth secular trends.
• The company aims to drive profitable growth by enhancing market penetration in key growth segments and increasing share and value in core markets.

Risks and Challenges:

• Special items impacting the quarter included $21.1 million in after-tax costs, comprising $19.1 million in environmental remediation costs and $5.6 million in restructuring costs.
• Special items for the nine months ended September 30, 2026, included $34.8 million in after-tax costs, including $27.7 million in environmental remediation costs and $10.4 million in restructuring costs.
• The press release notes forward-looking statements are subject to risks including global credit market volatility, currency fluctuations, tariffs, supply chain disruptions, raw material price fluctuations, and cybersecurity breaches.

Management Commentary and Tone:

• Mike Frank, President and CEO, stated the teams delivered a strong third quarter driven by sales growth across nearly all markets.
• Frank noted the strategy is delivering tangible results through alignment with secular trends and productivity initiatives supporting top-line growth and margin expansion.
• Joe Di Salvo, Senior Vice President and CFO, highlighted strong cash generation allowing for investment in growth and balance sheet strengthening.
• Frank expressed confidence in the company's customer focus, innovation capabilities, and operational discipline, expecting to continue building momentum.

Other Key Points:

• Subsequent to the quarter end, Avient repurchased 281,000 shares for approximately $10.9 million, marking the first share repurchase since 2022.
• The company reported intangible amortization expense of $0.17 per share in the third quarter 2026, consistent with the prior year quarter.
• GAAP EPS includes special items of $0.23 and intangible amortization of $0.17 in the third quarter 2026.
• The company's portfolio includes colorants, advanced composites, functional additives, engineered materials, and Dyneema®.