#United States #Cleveland #financial results #Q4 2024 #Avient Corporation

Avient Corporation's 2024 Financial Outlook

On February 13, 2025, Avient Corporation (NYSE: AVNT), a leader in material solutions, released its financial results for the fourth quarter and the full year of 2024. Despite a challenging backdrop marked by economic uncertainties, the company showcased remarkable performance metrics.

Key Financial Highlights

• - In Q4, Avient achieved sales totaling $747 million, representing a 4% increase compared to the same period last year. For the full year, sales reached $3.24 billion, a rise of 3% over the previous year. Key to this growth was organic sales, which surged 5% in Q4 and 4% over the year, indicating positive development across all geographical segments.
• - The GAAP earnings per share (EPS) from continuing operations in Q4 stood at $0.52, a notable improvement from $0.30 in the prior year, while the full-year GAAP EPS reached $1.84, up from $0.83. The adjusted EPS was reported at $0.49 for Q4, exceeding the guidance range of between $0.46 and $0.50, despite facing a $0.01 adverse impact from foreign exchange fluctuations.
• - The full-year adjusted EPS of $2.66 indicated a 13% increase compared to the previous year's $2.36, fueled by both sales growth and improved margins across its two primary segments.

Regional Performance Insights

Avient's growth was driven by significant performance in various regions. The United States and Canada reported an impressive 6% growth, while Latin America led the charge with a 14% rise. Asia contributed a substantial 7% growth, and Europe, the Middle East, and Africa (EMEA) experienced a modest 1% increase.

Strategic Goals and Operating Efficiency

Dr. Ashish Khandpur, President and CEO of Avient, remarked on the proactive strategies employed by their teams, which allowed the company to maintain organic sales growth amidst various geopolitical and economic hurdles. Avient's dedication to its customers proves its commitment to maintaining robust operational practices.

Khandpur further emphasized their strategic goal for 2025, aiming for organic sales growth 100-200 basis points above GDP. To achieve this, Avient plans to intersect high-growth markets and secular trends with their innovative technologies, maintaining a keen focus on delivering value to shareholders.

One of the notable achievements highlighted during the earnings call was that 2024 marked Avient's safest year on record, showcasing the company's commitment to not only financial excellence but also employee safety and welfare.

Future Outlook

As for 2025, Avient's guidance set an adjusted EPS range from $2.70 to $2.94. The mid-point of this range translates to an estimated growth of 11% once foreign exchange impacts are accounted for. The company anticipates first-quarter adjusted EPS to be approximately $0.76, which aligns closely with the same quarter last year, despite a $0.04 foreign exchange headwind.

Jamie Beggs, Senior Vice President and CFO, addressed the uncertainties in the current macroeconomic environment, touching on factors like inflation, policies, and foreign exchange, which could shape the company's projections. Nonetheless, she expressed confidence that Avient's established strategies and dedication could mitigate potential adverse effects.

Finally, Avient will host a webinar at 8:00 a.m. ET on February 13, 2025, to provide further insights into its financial results and strategic outlook for 2025. Interested participants can access the live webcast on the Avient website.

In summary, Avient Corporation has not only weathered a challenging year but has emerged stronger, with a clear path forward to capitalize on new opportunities while continuing to enhance its operational and financial efficiencies.