Avient Corporation (AVNT) Bundle
A Brief History of Avient Corporation
Avient Corporation, a leading provider of specialized and sustainable materials solutions, has undergone significant transformations and growth over the years, culminating in its strong performance as of 2024.
Financial Performance Overview
For the third quarter of 2024, Avient reported sales of $815.2 million, an increase from $753.7 million in the same quarter of 2023. Year-to-date sales reached $2.4939 billion, compared to $2.4238 billion for the first nine months of 2023.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Sales | $815.2 million | $753.7 million | $2.4939 billion | $2.4238 billion |
| Net Income | $38.7 million | $5.1 million | $122.2 million | $47.8 million |
| Earnings per Share (EPS) | $0.41 | $0.06 | $1.32 | $0.52 |
Operational Segments
Avient operates primarily through two segments: Color, Additives and Inks, and Specialty Engineered Materials. In Q3 2024, the Color, Additives and Inks segment generated sales of $521.5 million, while the Specialty Engineered Materials segment contributed $294.6 million.
| Segment | Q3 2024 Sales | Q3 2023 Sales |
|---|---|---|
| Color, Additives and Inks | $521.5 million | $486.5 million |
| Specialty Engineered Materials | $294.6 million | $267.9 million |
Cost Structure and Profitability
The cost of sales for Q3 2024 was $553.8 million, resulting in a gross margin of $261.4 million. Selling and administrative expenses for the quarter were $184.2 million, leading to an operating income of $77.2 million.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Sales | $553.8 million | $558.4 million |
| Gross Margin | $261.4 million | $195.3 million |
| Operating Income | $77.2 million | $34.3 million |
Cash Flow and Capital Expenditures
Net cash provided by operating activities for the nine months ended September 30, 2024, amounted to $134.2 million. Capital expenditures for the same period were $80.8 million.
| Metric | YTD 2024 | YTD 2023 |
|---|---|---|
| Net Cash from Operating Activities | $134.2 million | $47.1 million |
| Capital Expenditures | $80.8 million | $75.0 million |
Market Position and Future Outlook
Avient's strategic focus on sustainability and innovation has positioned it well within the market. The company has narrowed its full-year adjusted EPS guidance range for 2024 to $2.63 to $2.67, reflecting expected growth of 11% to 13% over the previous year.
As of September 30, 2024, Avient's total assets were $6.0473 billion with total liabilities of $3.6671 billion, resulting in total equity of $2.3802 billion.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $6.0473 billion | $5.9685 billion |
| Total Liabilities | $3.6671 billion | $3.5575 billion |
| Total Equity | $2.3802 billion | $2.3380 billion |
A Who Owns Avient Corporation (AVNT)
Major Shareholders
As of 2024, Avient Corporation (AVNT) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The largest shareholders are typically institutional investors.
| Shareholder Type | Percentage Ownership | Number of Shares Owned (Approx.) |
|---|---|---|
| Institutional Investors | 85.2% | 78 million |
| Mutual Funds | 10.3% | 9.4 million |
| Individual Investors | 4.5% | 4.1 million |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Avient Corporation as of the latest available data in 2024.
| Institution | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 12.4% | 11.4 million |
| BlackRock, Inc. | 9.8% | 9 million |
| State Street Corporation | 6.5% | 5.9 million |
| Wellington Management Group LLP | 5.1% | 4.7 million |
| Invesco Ltd. | 4.2% | 3.8 million |
Recent Changes in Ownership
In the latest quarter, Avient Corporation has seen some fluctuations in its major shareholders. Notably, institutional ownership has increased by approximately 2% compared to the previous year.
Stock Performance and Market Capitalization
As of October 2024, Avient Corporation's stock is trading at approximately $32.00 per share, with a market capitalization of around $2.9 billion. The company's stock has shown a year-to-date increase of 15%, reflecting positive investor sentiment.
Dividends and Earnings
Avient Corporation has declared a quarterly dividend of $0.27 per share in 2024, representing an annualized dividend of $1.08. The company reported a third-quarter net income of $38.7 million and earnings per share (EPS) of $0.41 for the three months ending September 30, 2024.
Avient Corporation (AVNT) Mission Statement
Avient Corporation's mission is to provide specialized and sustainable materials solutions that transform customer challenges into opportunities, bringing new products to life for a better world. The company focuses on innovative technologies that enhance recyclability and reduce environmental impact.
Financial Overview
As of the third quarter of 2024, Avient reported significant financial growth:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales | $815.2 million | $753.7 million | +8% |
| Net Income from Continuing Operations | $38.7 million | $5.1 million | +658.8% |
| GAAP EPS | $0.41 | $0.06 | +583.3% |
| Adjusted EPS | $0.65 | $0.57 | +14.0% |
| Adjusted EBITDA | $130.0 million | $122.7 million | +5.3% |
Market Performance
In the third quarter of 2024, Avient's performance across various regions was notable:
| Region | Organic Revenue Growth (%) |
|---|---|
| Latin America | +27% |
| Asia | +11% |
| US and Canada | +9% |
| EMEA | +5% |
Dividend Information
Avient Corporation has consistently increased its dividend, marking the fourteenth consecutive annual increase:
| Dividend Metric | 2024 | 2023 |
|---|---|---|
| Annual Dividend per Share | $1.08 | $1.03 |
| Dividend Increase (%) | +5% | +3.0% |
2024 Guidance
The company provided guidance for the full year 2024:
| Guidance Metric | 2024 Range |
|---|---|
| Adjusted EPS | $2.63 to $2.67 |
| Adjusted EBITDA | $525 million to $530 million |
Avient Corporation is focused on continuing to deliver strong financial performance while enhancing its sustainability initiatives and customer solutions.
How Avient Corporation (AVNT) Works
Business Overview
Avient Corporation, listed on the NYSE under the ticker AVNT, specializes in providing sustainable and specialized materials solutions. The company operates primarily through two segments: Color, Additives and Inks, and Specialty Engineered Materials.
Financial Performance
As of the third quarter of 2024, Avient reported significant growth in sales and earnings:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Sales | $815.2 million | $753.7 million | $2,493.9 million | $2,423.8 million |
| Gross Margin | $261.4 million | $195.3 million | $797.2 million | $683.6 million |
| Operating Income | $77.2 million | $34.3 million | $243.7 million | $153.7 million |
| Net Income | $38.7 million | $5.1 million | $122.2 million | $48.7 million |
| Adjusted EPS | $0.65 | $0.57 | $2.17 | $1.84 |
Segment Performance
Avient's revenue is divided among its key segments:
| Segment | Q3 2024 Sales | Q3 2023 Sales | YTD 2024 Sales | YTD 2023 Sales |
|---|---|---|---|---|
| Color, Additives and Inks | $521.5 million | $486.5 million | $1,578.8 million | $1,548.0 million |
| Specialty Engineered Materials | $294.6 million | $267.9 million | $917.1 million | $878.4 million |
Market Dynamics and Growth Drivers
In Q3 2024, Avient experienced broad-based growth across all regions:
- Latin America: 27% organic revenue increase
- Asia: 11% organic revenue increase
- US and Canada: 9% organic revenue increase
- EMEA: 5% organic revenue increase
Expenses and Profitability
The company's selling and administrative expenses have also been rising:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Selling and Administrative Expenses | $184.2 million | $161.0 million | $553.5 million | $529.9 million |
| Interest Expense, Net | $(26.9) million | $(30.3) million | $(80.1) million | $(88.5) million |
Cash Flow and Dividends
For the nine months ended September 30, 2024, Avient reported:
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $134.2 million | $47.1 million |
| Capital Expenditures | $(80.8) million | $(75.0) million |
| Cash Dividends Paid | $(70.5) million | $(67.6) million |
Balance Sheet Highlights
As of September 30, 2024, Avient's balance sheet reflects:
| Metric | Q3 2024 | Q4 2023 |
|---|---|---|
| Total Assets | $6,047.3 million | $5,968.5 million |
| Total Liabilities | $3,667.1 million | $3,730.5 million |
| Shareholders' Equity | $2,380.2 million | $2,338.0 million |
Outlook
For the full year 2024, Avient has adjusted its guidance:
- Adjusted EBITDA: $525 million to $530 million
- Adjusted EPS: $2.63 to $2.67
How Avient Corporation (AVNT) Makes Money
Revenue Streams
Avient Corporation generates its revenue primarily through two business segments: Color, Additives and Inks, and Specialty Engineered Materials. For the third quarter of 2024, total sales reached $815.2 million, an increase from $753.7 million in the same quarter of 2023.
| Business Segment | Q3 2024 Sales (in millions) | Q3 2023 Sales (in millions) | YTD 2024 Sales (in millions) | YTD 2023 Sales (in millions) |
|---|---|---|---|---|
| Color, Additives and Inks | $521.5 | $486.5 | $1,578.8 | $1,548.0 |
| Specialty Engineered Materials | $294.6 | $267.9 | $917.1 | $878.4 |
Cost Structure
For the third quarter of 2024, the cost of sales amounted to $553.8 million, compared to $558.4 million in Q3 2023. The gross margin for Q3 2024 was $261.4 million, reflecting a significant increase from $195.3 million in the prior year quarter.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Sales | $553.8 million | $558.4 million |
| Gross Margin | $261.4 million | $195.3 million |
Operating Income and Net Income
Operating income for Q3 2024 was reported at $77.2 million, a substantial rise from $34.3 million in Q3 2023. The net income attributable to Avient common shareholders for Q3 2024 was $38.2 million, compared to $5.1 million in the same quarter of the previous year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Income | $77.2 million | $34.3 million |
| Net Income | $38.2 million | $5.1 million |
Earnings Per Share (EPS)
The diluted earnings per share from continuing operations for Q3 2024 were $0.41, a significant improvement from $0.06 in Q3 2023. The adjusted EPS for the same period was $0.65, compared to $0.57 in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Diluted EPS | $0.41 | $0.06 |
| Adjusted EPS | $0.65 | $0.57 |
Market Performance and Growth Drivers
Avient's growth in 2024 has been supported by broad-based demand across regions and end markets. The company reported organic revenue growth of 27% in Latin America, 11% in Asia, 9% in the US and Canada, and 5% in the EMEA region for the third quarter. The full-year adjusted EBITDA guidance has been narrowed to $525 million to $530 million.
Dividends
Avient has consistently increased its dividends, with a declared cash dividend of $0.2575 per share in Q3 2024, reflecting a 5% increase over the previous year.
| Dividend Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cash Dividend per Share | $0.2575 | $0.2475 |
Outlook and Strategic Initiatives
Looking forward, Avient anticipates adjusted EPS growth of 11% to 13% for 2024, with a revised guidance range of $2.63 to $2.67. The company is focused on sustainable materials solutions and expanding its portfolio to meet evolving customer needs in various markets.
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Article updated on 8 Nov 2024
Resources:
- Avient Corporation (AVNT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Avient Corporation (AVNT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Avient Corporation (AVNT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.