Avient Raises 2026 Earnings Outlook After Organic Sales Pick Up

The Tip Desk · August 6, 2026 · 3 min read

Second-quarter sales reached $917 million as organic growth reached 4.3% and adjusted EPS of $0.96 beat the $0.89 outlook.

Avient Corporation (AVNT), an innovator of materials solutions, raised its 2026 adjusted earnings outlook after second-quarter organic sales growth accelerated and adjusted profit beat the company’s own quarterly target.

Sales in the three months ended June 30 were $917 million, up 5.8% from a year earlier, with 4.3% of the increase organic and 1.5% from favorable foreign exchange. That organic rate was faster than the first quarter, when sales grew 3% to $847 million and included a 5% foreign-exchange tailwind. The company had organic growth in both reportable segments.

Adjusted earnings were $0.96 a share, 20% above the year-earlier quarter and above the $0.89 second-quarter outlook set in May. First-quarter adjusted EPS had been $0.83, up 9% year over year. GAAP earnings were $0.70 a share, compared with $0.57 a year earlier.

Chairman, President and Chief Executive Officer Dr. Ashish Khandpur said the teams generated organic growth and adjusted EBITDA margin expansion in each of the two business segments, and that organic sales growth was driven by a combination of market share gains, new product innovation, and pricing actions. He said adjusted EBITDA margins expanded by 110 basis points to a record high of 18.3%. In the first quarter, adjusted EBITDA margin had expanded 20 basis points to 17.7%.

Color, Additives and Inks sales were $574.2 million in the second quarter. Specialty Engineered Materials sales were $343.9 million. Segment operating income was $101.8 million in Color, Additives and Inks and $52.7 million in Specialty Engineered Materials. Adjusted EBITDA for the quarter was $168.2 million.

Senior Vice President and Chief Financial Officer Joe Di Salvo said the company is increasing full-year 2026 adjusted EBITDA guidance to $575 million to $603 million and adjusted EPS guidance to $3.10 to $3.25, from prior ranges of $555 million to $585 million and $2.93 to $3.17. The new EPS range represents 10% to 15% growth over the prior year. Di Salvo said the raise was supported by year-to-date results and visibility into third-quarter demand.

Cash flow in the quarter supported $50 million of debt repayment. The company expects to repay a total of $100 million to $150 million of debt during 2026. Cash and cash equivalents were $425.6 million at June 30. Long-term debt was $1.88 billion.

GAAP results included special items of $0.09 a share and intangible amortization of $0.17 a share. Special items in the quarter included $4.7 million of environmental remediation costs in cost of sales and $2.3 million of legal and other charges in selling and administrative expense. Adjusted gross margin was 34.2% of sales. Adjusted operating income was $121.7 million, or 13.3% of sales.

Khandpur said the strategy continues to produce earnings growth in 2024 and 2025 and is positioned to deliver double-digit adjusted EPS growth in 2026. The company remains focused on balancing near-term execution with targeted investments in prioritized growth portfolios.