Avient | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 917 M

Revenue: As of FY2026 Q2, the actual value is USD 917 M, beating the estimate of USD 897.49 M.

EPS: As of FY2026 Q2, the actual value is USD 0.7, missing the estimate of USD 0.825.

EBIT: As of FY2026 Q2, the actual value is USD 134.7 M.

Second Quarter 2026 Financial Highlights

Overall Performance

Avient Corporation’s sales for the second quarter of 2026 increased by 5.8% to $917.0 million, compared to $866.5 million in the prior year quarter, driven by 4.3% organic sales growth and 1.5% favorable foreign exchange. For the six months ended June 30, 2026, sales were $1,764.4 million, up from $1,693.1 million in the same period of 2025.

Gross Margin

Gross margin for the second quarter of 2026 was $307.6 million, an increase from $277.9 million in the second quarter of 2025. Adjusted gross margin for Q2 2026 was $313.9 million (34.2% of sales), up from $281.7 million (32.5% of sales) in Q2 2025. For the six months ended June 30, 2026, gross margin was $580.2 million, compared to $541.1 million for the same period in 2025. Adjusted gross margin for the six months ended June 30, 2026, was $593.3 million (33.6% of sales), compared to $552.6 million (32.6% of sales) in 2025.

Operating Income

Operating income for the second quarter of 2026 was $112.4 million, an increase from $96.1 million in the prior year quarter. Adjusted operating income for Q2 2026 was $121.7 million (13.3% of sales), up from $103.1 million (11.9% of sales) in Q2 2025. For the six months ended June 30, 2026, operating income was $208.2 million, significantly higher than $96.8 million in the same period of 2025. Adjusted operating income for the six months ended June 30, 2026, was $226.4 million (12.8% of sales), compared to $203.3 million (12.0% of sales) in 2025.

Net Income

Net income attributable to Avient common shareholders for the second quarter of 2026 was $64.8 million, up from $52.6 million in the prior year quarter. For the six months ended June 30, 2026, net income attributable to Avient common shareholders was $120.5 million, an increase from $32.4 million in the same period of 2025.

Adjusted EBITDA

Adjusted EBITDA for the second quarter of 2026 was $168.2 million (18.3% of sales), compared to $148.9 million (17.2% of sales) in the second quarter of 2025. Adjusted EBITDA margins expanded by 110 basis points to a record high 18.3%. For the six months ended June 30, 2026, Adjusted EBITDA was $318.1 million (18.0% of sales), up from $293.6 million (17.3% of sales) in 2025.

Cash Flow and Debt Repayment

Avient Corporation generated strong cash flow during the second quarter of 2026, supporting $50 million of debt repayment. For the six months ended June 30, 2026, net cash provided by operating activities was $59.3 million, compared to $61.7 million in the same period of 2025. Payments on long-term borrowings for the six months ended June 30, 2026, were - $50.0 million, compared to - $50.2 million in 2025.

Segment Performance

• Color, Additives and Inks Segment: Sales for Q2 2026 were $574.2 million, up from $538.6 million in Q2 2025. Operating income was $101.8 million in Q2 2026, compared to $90.3 million in Q2 2025. For the six months ended June 30, 2026, sales were $1,102.3 million and operating income was $183.2 million, compared to $1,058.3 million and $168.9 million respectively in 2025.
• Specialty Engineered Materials Segment: Sales for Q2 2026 were $343.9 million, up from $329.7 million in Q2 2025. Operating income was $52.7 million in Q2 2026, compared to $40.2 million in Q2 2025. For the six months ended June 30, 2026, sales were $664.1 million and operating income was $100.1 million, compared to $638.1 million and $87.3 million respectively in 2025.

2026 Outlook

Avient Corporation is increasing its full-year 2026 adjusted EBITDA guidance to a range of $575 million to $603 million. The company expects to repay a total of $100 million to $150 million of debt during the full year 2026, including the $50 million already repaid in the second quarter. This updated guidance reflects confidence in continued strong operational discipline and execution of strategic initiatives.