Avient (AVNT) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 12, 2026 astatine 8:38 AM CST 36 min read

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Feb. 12, 2026 astatine 8 a.m. ET

• Chairman, President, and Chief Executive Officer — Ashish K. Khandpur

• Senior Vice President and Chief Financial Officer — Jamie A. Beggs

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Joining maine connected the telephone contiguous is our Chairman, President, and Chief Executive Officer, Ashish K. Khandpur, and Senior Vice President and Chief Financial Officer, Jamie A. Beggs. I volition present manus the telephone implicit to Ashish to begin. Thank you, Joe, and bully morning, everyone.

Ashish K. Khandpur: Strong execution by our teams, with favorable premix and management's choky outgo control, led to 80 ground points of adjusted EBITDA borderline enlargement and a beardown 14% adjusted EPS maturation for the 4th quarter. With this result, we expanded our adjusted EBITDA margins twelvemonth implicit twelvemonth successful each of the 4 quarters of 2025. Organic income successful Q4 were down somewhat astatine 0.8%, and grew 1.9% arsenic reported implicit the anterior twelvemonth owed to favorable overseas speech impact. As we had highlighted successful our 3rd 4th net call, we proceed to spot beardown momentum successful defense, healthcare, and telecom markets with concern increasing treble digits successful each.

In addition, packaging request improved modestly, increasing income debased azygous digits successful the 4th fourth compared to being down debased azygous digits successful the 3rd quarter. As expected, businesses successful our different markets finished down versus the anterior year. Moving to the right-hand broadside of the slide, for the afloat twelvemonth 2025, income were comparatively level twelvemonth implicit year. Favorable merchandise premix and our productivity initiatives led to 50 ground points of adjusted EBITDA borderline enlargement versus 2024, helping america execute afloat twelvemonth grounds precocious margins of 16.7%. Adjusted EBITDA finished astatine $545,000,000 for 2025 with 3.5% year-over-year maturation arsenic reported. Adjusted EPS grew 6% helped by little involvement disbursal and favorable overseas currencies.

Our team's highly disciplined currency absorption enabled america to make $195,000,000 of escaped currency flow, enabling america to trim our outstanding indebtedness by $150,000,000 and extremity the twelvemonth with a nett leverage ratio of 2.6x. As you know, 1 of our cardinal drivers to beforehand our strategy is innovation. Creating meaningful and differentiated products, particularly successful markets supported by secular trends, volition not lone assistance america turn faster, but besides summation our profitability. Today, I would similar to stock immoderate examples of caller innovations from our company. The archetypal acceptable of examples code the request and request for non-PFAS products successful applications presently utilizing PFAS materials which are facing stringent regulations, particularly successful the United States and Europe.