Avient's Strong 2024 Results: A Recipe for Success

Avient Corporation (NYSE: AVNT) recently announced its fourth quarter and full year 2024 results, showcasing a robust performance driven by organic sales growth and margin expansion. The company's focus on intersecting high growth markets and secular trends with its technologies to create scalable platforms has paid off, positioning it well for future growth. Let's dive into the key takeaways from Avient's impressive results.

Fourth Quarter and Full Year 2024 Results Highlights

* Fourth quarter sales increased 4% to $747 million, with full year sales up 3% to $3,240 million.
* Organic sales grew 5% in the fourth quarter and 4% for the full year, driven by positive growth in all geographic regions.
* Fourth quarter and full year GAAP EPS from continuing operations were $0.52 and $1.84, respectively, compared to $0.30 and $0.83 in the prior year.
* Fourth quarter adjusted EPS of $0.49 exceeded the mid-point of guidance, with full year adjusted EPS of $2.66 representing a 13% increase over the prior year.

Key Drivers Behind Avient's Success

1. Sales Growth: Avient's organic sales growth in all geographic regions, particularly in Latin America (14%) and Asia (7%), contributed to its overall sales increase. This growth was achieved despite a challenging macroeconomic environment, demonstrating the company's resilience and adaptability.
2. Margin Expansion: Avient expanded adjusted EBITDA margins in both its Color, Additives and Inks and Specialty Engineered Materials segments. The Color, Additives and Inks segment expanded margins by 90 basis points, while the Specialty Engineered Materials segment expanded margins by 110 basis points. This margin expansion, combined with sales growth, led to the 13% increase in adjusted EPS.
3. Strategic Focus: Avient's strategic focus on intersecting high growth markets and secular trends with its technologies to create scalable platforms has been instrumental in its success. By offering innovative solutions that cater to emerging trends and market demands, Avient has been able to expand its market reach and contribute to its financial performance.

Looking Ahead to 2025

Avient's strong 2024 results have set the stage for an equally impressive 2025. The company is projecting first quarter adjusted EPS to be $0.76, which is in-line with the prior year quarter and includes a $0.04 foreign exchange headwind due to the stronger U.S. dollar. This translates to 6% adjusted EPS growth, excluding the impact of foreign exchange, and an encouraging start to the year.

Avient's best full year forecast using present information is an adjusted EBITDA range of $540 to $570 million and an adjusted EPS range of $2.70 to $2.94. The mid-point of the adjusted EPS range of $2.82 represents 11% growth, excluding the unfavorable impact from foreign exchange of $0.12 for the full year.

In conclusion, Avient's strong 2024 results are a testament to the company's strategic focus on intersecting high growth markets and secular trends with its technologies to create scalable platforms. With a solid foundation in place, Avient is well-positioned to continue its momentum in 2025 and beyond.