Avient Reports Q1 2025 Results: Strong Adjusted EPS Amid ERP Impairment

Avient Corporation reported Q1 2025 sales of $826.6 million, nearly flat year-over-year. On an organic basis and excluding foreign exchange, sales grew 2%. Adjusted EPS was $0.76, in line with guidance and up 4% year-over-year excluding FX impact. However, GAAP EPS was a loss of ($0.22), down from $0.54 last year, due to an $86 million impairment charge related to halting development of a cloud-based ERP system (S/4HANA).
Adjusted EBITDA rose slightly to $144.7 million, with margin expanding 20 basis points to 17.5%. Regional organic growth was strong in Asia (+9%), Latin America (+17%), and EMEA (+2%), offset by a 3% decline in the U.S. and Canada, where demand was impacted by uncertain trade policy and weak consumer sentiment.
Operating income was just $0.7 million on a GAAP basis due to special items, but adjusted operating income remained stable at $100.2 million, representing 12.1% of sales.
Avient reaffirmed its full-year 2025 adjusted EPS guidance of $2.70–$2.94 and plans to pay down $100–$200 million of debt. For Q2, it expects adjusted EPS of $0.79, supported by strength in packaging, defense, and healthcare markets despite anticipated softness in consumer and transportation sectors.