Track market-moving stories before they get noisy

TORONTO & NEW YORK--(BUSINESS WIRE)--Markel International, a division of Markel Insurance, the insurance operations within Markel Group Inc. (NYSE: MKL) announced today its partnership with hyperexponential (hx) to modernize rating, underwriting workflows and integration architecture across its Canadian business. The partnership reflects Markel’s significant investment in building a more sophisticated, AI‑native underwriting environment and further expands hyperexponential's footprint in North American markets as the leading pricing and underwriting decision platform for commercial P&C carriers.

As part of its collaboration with hyperexponential, Markel Canada has launched a purpose-built Environmental rating capability on the hx platform, enabling a more streamlined, digital experience. This investment marks a shift from fragmented, transactional pricing toward a more connected underwriting experience. By bringing data, pricing and context together in a single workflow, Markel Canada is creating an environment where underwriters have what they need at the point of decision – without friction or unnecessary hand‑offs.

Establishing the hx platform as a centralized rating layer creates a scalable foundation that can support more sophisticated products, package policies and evolving portfolio needs over time. The result is greater clarity at the point of pricing today, and a platform designed to grow with the business – enabling faster, more informed decisions as underwriting complexity and ambition increase.

“Our underwriters need tools that support good judgement, not slow it down. By pulling data directly into the rating workflow, we’re cutting friction from everyday decisions and letting our teams focus on what matters most – building trusted relationships with our broker partners, understanding risk and delivering consistent outcomes for clients,” says Cliff Laidlaw, Senior Vice President, Underwriting at Markel Canada.

Built with the future in mind, the architecture is designed to support emerging agentic and AI‑enabled capabilities as they mature, positioning Markel Canada to continue advancing toward truly AI‑native underwriting workflows.

Maureen Tomlinson, Senior Vice President of Operations at Markel Canada and Head of AI at Markel International, added: “For Markel Canada, this is about more than replacing spreadsheets. It reflects our commitment to investing in a more sophisticated underwriting environment. The hx platform gives our underwriters a better experience today, while laying the groundwork for faster delivery, stronger data capture and future AI-native workflows across the business.”

Richard Gunn, President at hyperexponential, commented: “Canada is an important market for commercial underwriting, and Markel's ambition here stands out: they're not just patching existing systems, they're building for what comes next. hyperexponential has built the leading AI-native underwriting workbench that keeps pricing, data and decisions in one place, from intake through to quote. We're proud to support a team moving with this level of pace and intent to deliver the decision infrastructure for the next era of underwriting.”

About Markel

We are Markel Insurance, a leading global specialty insurer with a truly people-first approach. As the insurance operations within the Markel Group Inc. (NYSE: MKL), we leverage a broad array of capabilities and expertise to create intelligent solutions for the most complex specialty insurance needs. However, it is our people – and the deep, valued relationships they develop with colleagues, brokers and clients – that differentiates us worldwide.

About hyperexponential

hyperexponential provides the leading pricing and underwriting platform for the global commercial P&C insurance market, powering AI-assisted decisions from triage, to pricing, to portfolio optimization. Trusted by carriers processing over $60bn GWP annually, and backed by Andreessen Horowitz and Battery Ventures, the hx platform enables insurers, reinsurers, and MGAs to reduce time-to-quote, iterate on rating models faster, improve loss ratios and write a more profitable book.

More News From Markel Group Inc.

Key Takeaways Markel Canada launched an Environmental rating capability on hyperexponential's hx platform.MKL is replacing spreadsheet pricing with centralized underwriting and decision tools.The AI-driven setup aims to improve pricing accuracy, speed and underwriting efficiency. Markel Group Inc.(MKL - Free Report) is strengthening its push toward AI-driven underwriting through a partnership between Markel International and hyperexponential to modernize rating, underwriting workflows and integration architecture across its Canadian business. The initiative reflects Markel Group’s broader strategy of building a more sophisticated AI-native underwriting environment while expanding hyperexponential’s presence in North American commercial property and casualty insurance markets.

As part of the partnership, Markel Canada has launched a purpose-built environmental rating capability on the hx platform, enabling a more streamlined and digital underwriting experience. The move shifts the company away from fragmented spreadsheet-based pricing systems toward a centralized workflow where underwriting data, pricing models and decision-making tools are integrated into a single platform. By reducing manual processes and unnecessary hand-offs, Markel Group aims to improve underwriting speed and support more informed risk-selection decisions.

The partnership is strategically important because underwriting quality remains one of the key profitability drivers in the commercial property and casualty insurance market. The AI-powered setup helps underwriters make faster, more informed decisions while reducing manual work. The platform can automatically pull data, support pricing calculations and simplify workflows, allowing employees to focus more on understanding risks and serving broker partners and clients.

The hx platform aligns with Markel Group’s broader long-term strategy of leveraging technology and AI to strengthen underwriting discipline and operational efficiency.  As insurance products become more complex, the company is investing in technology to improve pricing accuracy, speed up policy decisions and support long-term operational efficiency. Continued modernization of underwriting capabilities is likely to enhance Markel Group’s competitive positioning while supporting long-term profitability and underwriting performance.

How Are Competitors Faring?Peers like American International Group (AIG - Free Report) and Allianz SE (ALIZY - Free Report) are also accelerating investments in AI-driven underwriting through strategic partnerships.

AIG recently partnered with McGill and Partners to use agentic AI and real-time underwriting capabilities for specialty insurance portfolios, leveraging Palantir’s Foundry platform to improve risk assessment and underwriting efficiency. The initiative reflects the broader industry shift toward AI-powered underwriting workflows and data-driven decision-making in commercial insurance.

Allianz expanded its AI strategy through a global partnership with Anthropic, focused on agentic AI, underwriting automation and operational efficiency. The partnership aims to automate complex insurance workflows, improve claims and underwriting processes and build AI systems capable of supporting regulatory compliance and large-scale decision-making.

MKL’s Price Performance, Valuation & EstimatesShares of MKL have declined 2.4% over the past year against the industry’s 1% growth .

Image Source: Zacks Investment Research

From a valuation standpoint, MKL trades at a forward price-to-earnings ratio of 15.37X, up from the industry average of 9.04X. MCY carries a Value Score of B.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 and 2027 earnings moved 3.2% and 0.5% south, respectively, in the last 30 days.

Image Source: Zacks Investment Research

The consensus estimates for MCY’s 2026 and 2027 revenues & EPS indicate a year-over-year increase.

Markel Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

, /PRNewswire/ -- Markel Insurance, the insurance operation within Markel Group Inc. (NYSE:MKL), today announced the appointment of Sebastian Rice to Head of Global Development – Trade Credit, effective immediately. 

Sebastian Rice, Head of Global Development - Trade Credit Reporting to Phil Amlot, Global Head of Trade Credit – International, Rice will work closely with him to drive innovative, solution-led underwriting and develop bespoke offerings that respond to evolving market conditions and client needs across Markel's global hubs. His role will include supporting clients navigating an increasingly complex trade environment shaped by geopolitical uncertainty, supply chain disruption and shifting credit risks. 

Rice will also co-ordinate a global cohort of Trade Credit underwriters across Markel's offices in New York, Singapore, Dubai and London to align with our key partner relationships. He'll focus on business development and driving further profitable growth across the UK and Europe, with an emphasis on delivering greater capacity, tailored solutions and enhanced service for brokers and clients.

Since joining Markel two years ago, Rice has played a key role in developing new solutions, including Markel's Non-Cancellable Limits offering, which enables clients to operate with greater certainty in the event of non-payment. In his new role, he'll build on this momentum to further strengthen Markel's position as a trade credit insurer of choice for multinational businesses.

Commenting on the appointment, Amlot said: "Markel International's success and sustained growth are driven by colleagues like Seb, who are committed to working alongside our clients to deliver tailored solutions. He takes the time to understand client needs and responds with precision, rather than offering a one-size-fits-all approach.

With demand for trade credit insurance at record levels and underwriting conditions becoming increasingly complex, Seb's expertise and leadership will be invaluable as we help clients navigate increased risk and build enhanced resilience. He's already strengthened our position across the London and European markets, and I'm confident he'll bring the same discipline and commercial insight to this global role."

Rice added: "I'm proud of the profitable growth we've achieved in the London market and continental Europe since joining Markel. In a period defined by shifting supply chains and evolving economic conditions, we've focused on being a consistent and reliable partner for our brokers and clients.

This progress reflects the dedication and expertise of our underwriters. I look forward to leading the next phase of our global development and continuing to deliver solutions that support our clients' ambitions."

Rice brings more than 20 years of underwriting experience, having held roles at Euler Hermes, Atradius and QBE Europe. He joined Markel in January 2024 as Head of Business Development Europe – Trade Credit, where he strengthened the International division's non-payment protection offering across the UK and continental Europe. 

About Markel Insurance 

We are Markel Insurance, a leading global specialty insurer with a truly people-first approach. As the insurance operations within the Markel Group Inc. (NYSE: MKL), we leverage a broad array of capabilities and expertise to create intelligent solutions for the most complex specialty insurance needs. However, it is our people – and the deep, valued relationships they develop with colleagues, brokers, and clients – that differentiates us worldwide. 

Photo - https://mma.prnewswire.com/media/2981121/Markel_Sebastian_Rice.jpg 
Logo - https://mma.prnewswire.com/media/2090808/5972848/Markel_primary_Logo.jpg

Wall Street has rediscovered the stock split. KLA (NASDAQ: KLAC | KLAC Price Prediction) announced a 10-for-1 forward stock split in May 2026, alongside its fiscal Q3 earnings beat and paired with a roughly 21% dividend hike, with shares trading around the $1,800 range.

A month has gone by since the last earnings report for Markel Group (MKL - Free Report) . Shares have added about 5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Markel Group due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Markel Group Inc. before we dive into how investors and analysts have reacted as of late.

Markel Q1 Earnings & Revenues Miss Estimates, Premiums Down Y/Y

Markel Group Inc. reported first-quarter 2026 adjusted operating income of $21.61 per share, which missed the Zacks Consensus Estimate by 18.1%. The bottom line deteriorated 16% year over year. Including one-time items, MKL reported a net loss of $18.90 per share in the first quarter of 2026.

Markel’s first-quarter results were primarily affected by significant net investment losses, and lower premium volumes drove overall operating loss, partially offset by stronger investment income and lower expenses.

Quarterly Operational Update of MKLTotal operating revenues of $3.5 billion, up 0.1% year over year, which missed the Zacks Consensus Estimate by 4%. Earned premiums decreased 2% year over year to $2 billion in the quarter. The figure was lower than the Zacks Consensus Estimate of $2.1 billion

Net investment income increased 8% year over year to $255.9 million in the first quarter, driven by higher interest income on fixed maturity securities and higher dividend income on equity securities. The figure was lower than the Zacks Consensus Estimate of $262 million. However, this was more than offset by substantial net investment losses of $728 million.

Total operating expenses of Markel Group decreased 0.6% year over year to $3.1 billion due to lower losses and loss adjustment expenses, underwriting, acquisition, insurance expenses and other expenses.

Q1 Segment UpdateMarkel Insurance: Operating revenues decreased 1% year over year to $2.4 billion. Adjusted operating income rose 31% year over year to $369.4 million. The combined ratio improved 300 bps year over year to 93.
Industrial: Operating revenues rose 6% year over year to $883 million. Adjusted operating income decreased 16% year over year to $49.2 million.

Financial: Operating revenues decreased 9% year over year to $161.5 million. Adjusted operating income declined 55% year over year to $36.2 million.

Consumer and Other: Operating revenues declined 3% year over year to $280 million. Adjusted operating income rose 23% year over year to $39.7 million.

Financial UpdateMarkel Group exited the first quarter with investments, cash, and cash equivalents and restricted cash and cash equivalents of $36.5 billion as of March 31, 2026, down 2.6% from the 2025-end level. The decrease in invested assets was primarily attributable to a decline in the fair value of equity securities and cash used to repurchase shares of common stock.

Senior long-term debt and other debt balance increased 1.8% to $4.3 billion, as of March 31, 2026, from the 2025-end level. Shareholders' equity was $18.1 billion at the first quarter of 2026-end, down 2.5% from the 2025-end level. 
Net cash provided by operating activities was $15.6 million, down 95.8% year over year. During the first quarter of 2026, MKL repurchased common shares worth of $134 million.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.

VGM ScoresCurrently, Markel Group has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Markel Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerMarkel Group is part of the Zacks Insurance - Multi line industry. Over the past month, Principal Financial (PFG - Free Report) , a stock from the same industry, has gained 5%. The company reported its results for the quarter ended March 2026 more than a month ago.

Principal Financial reported revenues of $3.52 billion in the last reported quarter, representing a year-over-year change of -12.4%. EPS of $2.07 for the same period compares with $1.81 a year ago.

Principal Financial is expected to post earnings of $2.33 per share for the current quarter, representing a year-over-year change of +7.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.4%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Principal Financial. Also, the stock has a VGM Score of C.

, /PRNewswire/ -- Markel Insurance, the insurance operation within Markel Group Inc. (NYSE: MKL), today announced the appointment of Dan McCarthy as Managing Director of its newly structured Marine, Energy and Construction division in its London Market business. 

The appointment forms part of Markel International's continued evolution of its London Market business, creating a clearer, more scalable Marine, Energy and Construction structure that supports sustainable growth and makes it easier for brokers to access specialist underwriting expertise. 

Dan McCarthy, Managing Director - Marine, Energy & Construction at Markel International. In his new role, McCarthy will lead the Marine, Energy and Construction division, with responsibility for shaping underwriting strategy, driving disciplined portfolio performance and strengthening broker and client relationships across highly specialised markets. He will also focus on giving brokers clearer points of contact, more consistent decision-making and stronger alignment across related specialty lines. 

The division will comprise four specialist teams:

Marine & Transportation Cargo & Cargo War, Fine Art and Specie Energy & Power Construction & Engineering.  Within Marine & Transportation, the new structure will bring together closely connected classes including Hull & Hull War, MECO, Marine & Energy Liabilities and Transport & Logistics, helping brokers access connected expertise and identify opportunities across the wider marine and transportation portfolio. 

Overall, this structure has been designed to create clearer accountability, enhance ease of trading and enable the division's people and the business to grow further over the coming years.

McCarthy brings nearly 30 years' experience in global marine insurance, with deep technical underwriting expertise and a strong track record of delivering profitable growth across complex portfolios. He most recently served as Director of Marine at Markel International, where he led the division across London and the US, rebuilding key product lines and strengthening its market presence. 

Throughout his career, McCarthy has demonstrated a consistent ability to shape underwriting strategy, build strong broker and client relationships, and develop high-performing teams, while championing innovation and continuous improvement across the business. 

Under his leadership, the division will focus on strengthening product leadership, investing in technology, talent and partnerships to drive long-term value. The business is targeting significant profitable growth over the next five years, underpinned by disciplined underwriting and a continued focus on being a responsive, technically led market for complex marine, energy, power, construction and engineering risks. 

Rohan Davies, Managing Director – London Market, commented: "Dan is a highly respected leader with deep market expertise and a proven ability to deliver disciplined, profitable performance across complex international portfolios. His leadership will be critical as we bring together our Marine, Energy and Construction capabilities into a more focused and scalable structure. This new division enhances how we serve our brokers and clients, while positioning us strongly for the next phase of growth. 

"For brokers, this new structure is about clarity, access and confidence. With distinct product teams and clear leadership, we're making it easier for our partners to reach the right decision-makers and access joined-up solutions for complex and evolving risks." 

"I'm delighted to take on this role," added McCarthy. "Marine & Energy has always been defined by ambition, expertise and the courage to lead, and with our newly formed Construction & Engineering team, we are now building on those foundations to shape what comes next. Our focus is on building a future-ready business that combines disciplined underwriting, innovation and empowered teams to deliver clarity in complexity and long-term value for clients and partners. 

"By creating a clear structure across Marine, Energy and Construction, we're not only strengthening our market presence today, but building an environment where our people can develop, lead and help shape the future of the division. That matters for brokers too, because strong specialist teams, clear accountability and empowered underwriting talent are central to delivering the service, responsiveness and technical insight they need from a London Market partner." 

About Markel Insurance
We are Markel Insurance, a leading global specialty insurer with a truly people-first approach. As the insurance operations within the Markel Group Inc. (NYSE: MKL), we leverage a broad array of capabilities and expertise to create intelligent solutions for the most complex specialty insurance needs. However, it is our people – and the deep, valued relationships they develop with colleagues, brokers and clients – that differentiates us worldwide. 

SOURCE Markel

A strong stock as of late has been SM Energy (SM - Free Report) . Shares have been marching higher, with the stock up 23.2% over the past month. The stock hit a new 52-week high of $33.92 in the previous session. SM Energy has gained 77.4% since the start of the year compared to the 32% gain for the Zacks Oils-Energy sector and the 31.6% return for the Zacks Oil and Gas - Exploration and Production - United States industry.

What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 6, 2026, SM Energy reported EPS of $1.55 versus consensus estimate of $1.29.

For the current fiscal year, SM Energy is expected to post earnings of $7.18 per share on $7.37 in revenues. This represents a 32.47% change in EPS on a 133.58% change in revenues. For the next fiscal year, the company is expected to earn $7.83 per share on $7.47 in revenues. This represents a year-over-year change of 9.15% and 1.33%, respectively.

Valuation MetricsSM Energy may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

SM Energy has a Value Score of A. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 4.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.2X. On a trailing cash flow basis, the stock currently trades at 2.1X versus its peer group's average of 5.3X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making SM Energy an interesting choice for value investors.

Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, SM Energy currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if SM Energy passes the test. Thus, it seems as though SM Energy shares could have potential in the weeks and months to come.

How Does SM Stack Up to the Competition?Shares of SM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is APA Corporation (APA - Free Report) . APA has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of D.

Earnings were strong last quarter. APA Corporation beat our consensus estimate by 36.63%, and for the current fiscal year, APA is expected to post earnings of $5.20 per share on revenue of $8.74 billion.

Shares of APA Corporation have gained 11.6% over the past month, and currently trade at a forward P/E of 7.72X and a P/CF of 3.89X.

The Oil and Gas - Exploration and Production - United States industry is in the top 6% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SM and APA, even beyond their own solid fundamental situation.

SM Energy (NYSE: SM) went under the radar among President Donald Trump’s stock purchases in the first quarter of 2026. However, the oil producer has posted rather notable gains since the president added it to his portfolio.

More precisely, SM shares are up 76% since January 26 when the trade was disclosed, and are now up 79% year-to-date, trading at $34.32 at press time. 

SM stock price. Source: Google Finance As can be guessed, the rally came amid a sharp rebound in energy stocks, driven by rising crude prices. Further optimism came as a result of SM Energy’s Civitas merger and cash flow outlook.

Analysts now point to accelerating production growth, debt reduction efforts, and improving shareholder returns as other key catalysts, with some, such as Raymond James, arguing SM Energy is one of the biggest beneficiaries of the current geopolitical situation.

SM Energy has plenty more room to run, Raymond James claims Notably, Raymond James upgraded its SM Energy rating from ‘Underperform’ to ‘Outperform’ on May 20, raising the target to $55 on improving fundamentals and a stronger-than-expected oil price backdrop.

As mentioned, the firm highlighted SM Energy as one of the best candidates to profit from the recent surge in oil prices, despite the stock’s already strong performance.

A key part of the bullish thesis centers on balance sheet improvement. Specifically, the independent oil producer has reduced absolute debt by approximately $700 million following the merger, and management expects leverage to fall below 1x by the fourth quarter.

Raymond James also pointed to upcoming shareholder returns, noting that SM Energy plans to initiate share buybacks in the second quarter of 2026, supported by strengthening free cash flow generation in the second half of the year. 

As a result, further upside could emerge if the company continues executing on its deleveraging path while maintaining production momentum through 2026 and 2027.

Featured image via Shutterstock

Best Crypto Exchange for Intermediate Traders and Investors

Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

Copy top-performing traders in real time, automatically.

eToro USA is registered with FINRA for securities trading.

30+ million Users worldwide

Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Join Finbold's newsroom, become a Sales Executive today! Apply now to join Finbold as a crypto/finance news writer!

SM Energy is rated a Strong Buy with a $50/share target, reflecting 48% upside potential driven by debt reduction and valuation re-rating. SM trades at a significant discount to peers, with a 4x EBITDA multiple and $6.9B in debt, but plans to allocate 80% of FCF to deleveraging. Merger synergies with Civitas have increased from $200M to $375M, supporting improved free cash flow and profitability, with full benefits expected by 2027.

SM Energy (SM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this independent oil and gas company have returned +16.1% over the past month versus the Zacks S&P 500 composite's +4.4% change. The Zacks Oil and Gas - Exploration and Production - United States industry, to which SM Energy belongs, has gained 1.3% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

SM Energy is expected to post earnings of $2.01 per share for the current quarter, representing a year-over-year change of +34%. Over the last 30 days, the Zacks Consensus Estimate has changed +7.5%.

The consensus earnings estimate of $7.47 for the current fiscal year indicates a year-over-year change of +37.8%. This estimate has changed +9.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $8.04 indicates a change of +7.7% from what SM Energy is expected to report a year ago. Over the past month, the estimate has changed +3.6%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for SM Energy.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For SM Energy, the consensus sales estimate for the current quarter of $2.1 billion indicates a year-over-year change of +164.4%. For the current and next fiscal years, $7.59 billion and $7.63 billion estimates indicate +140.7% and +0.5% changes, respectively.

Last Reported Results and Surprise HistorySM Energy reported revenues of $1.48 billion in the last reported quarter, representing a year-over-year change of +75.1%. EPS of $1.55 for the same period compares with $1.76 a year ago.

Compared to the Zacks Consensus Estimate of $1.44 billion, the reported revenues represent a surprise of +2.96%. The EPS surprise was +20.16%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

SM Energy is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about SM Energy. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- SM Energy Company (the "Company" or "SM") (NYSE: SM) today announced that its Board of Directors approved the quarterly cash dividend of $0.22 per share of common stock outstanding. The dividend will be paid on June 22, 2026, to stockholders of record as of the close of business on June 8, 2026.

About SM Energy Company

SM is a premier, scaled operator of top-tier oil and gas assets across four leading U.S. shale basins: the Permian Basin, DJ Basin, South Texas, and Uinta Basin. SM is focused on operational excellence, disciplined capital allocation, and delivering growing returns to stockholders. SM routinely posts important information about the Company on its website. For more information, visit www.sm-energy.com. 

Investor Relations

Megan Hays, Vice President, Investor Relations, [email protected]
Meghan Dack, Director, Investor Relations, [email protected]

SOURCE SM Energy Company

Also from this source

Key Takeaways SM Energy expanded its footprint to 696,000 net acres after the Civitas merger across four major U.S. basins.SM Energy achieved production of 371.2 MBoe/d in Q1 2026, with Permian yields increasing 117% sequentially.SM Energy raised its 2026 production guidance while keeping capital spending unchanged. SM Energy Company (SM - Free Report) is an independent oil and gas company engaged in the exploration and production of natural gas and crude oil in North America. The company strengthened its asset portfolio through the January 2026 merger with Civitas, which expanded its presence in the Permian and DJ basins. The merger integrated new Midland and Delaware acreage, bringing SM's footprint to roughly 696,000 net acres spanning the Permian, DJ, South Texas and Uinta basins.

The portfolio diversification drives operational efficiency and fuels long-term production growth. The expanded asset base immediately boosted production, resulting in first-quarter 2026 output of 371.2 thousand barrels of oil equivalent per day (MBoe/d), including 190.3 thousand barrels per day (MBbl/d) of oil, both of which exceeded guidance. Notably, the integration of Civitas assets drove a 117% sequential increase in Permian yields.

SM Energy is leveraging its expanded asset base to drive stronger well performance and capital efficiency. The Civitas merger enabled the company to raise its 2026 production guidance without additional capital spending. The company expects its expanded asset portfolio to achieve production between 410 Mboe/d and 430 MBoe/d, including oil production in the range of 222-228 MBbl/d by 2026.

XOM & CVX Position for Higher ProductionExxon Mobil Corporation (XOM - Free Report) maintains a strong presence in the prolific Permian Basin. Following its strategic acquisition of Pioneer Natural Resources, XOM’s Permian footprint spans 1.4 million net acres. Leveraging this expanded asset portfolio, ExxonMobil is expected to increase Permian production to approximately 2.5 million barrels of oil equivalent per day (MMBoe/d) by 2030.

Chevron Corporation (CVX - Free Report) is an integrated energy giant with global operations across exploration, production and refining. The Hess acquisition added world-class Guyana assets and 463,000 net acres in the Bakken region within the Williston Basin, enhancing Chevron’s long-term production potential. Driven by the successful integration of Hess and growing output from the Gulf of Mexico and the Permian Basin, CVX’s first-quarter 2026 net oil-equivalent production increased 15% to 3.86 MMBoe/d. Chevron projects 7% to 10% production growth for 2026 compared with 2025 levels.

SM’s Price Performance, Valuation & EstimatesSM Energy's shares have gained 33% over the past year compared with 15.3% growth in the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, SM trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 5.74X. This is below the broader industry average of 11.47X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for SM's 2026 earnings has been unchanged over the past seven days.

Image Source: Zacks Investment Research

SM Energy currently carries Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SM Energy is now a four-basin operator post-Civitas merger, with a focus on synergy realization and deleveraging. Q1 results demonstrated disciplined capital spending, production outperformance, and rapid synergy capture, supporting a bullish investment case. SM trades at deep valuation discounts (3.99x forward P/E, 3.10x EV/EBITDA) due to debt concerns, but accelerated debt reduction and buybacks could drive re-rating.

In the latest trading session, SM Energy (SM - Free Report) closed at $32.21, marking a -5.15% move from the previous day. This change lagged the S&P 500's 2.65% loss on the day. Meanwhile, the Dow experienced a drop of 1.35%, and the technology-dominated Nasdaq saw a decrease of 4.18%.

Coming into today, shares of the independent oil and gas company had gained 16.7% in the past month. In that same time, the Oils-Energy sector lost 3.06%, while the S&P 500 gained 5.47%.

The investment community will be paying close attention to the earnings performance of SM Energy in its upcoming release. It is anticipated that the company will report an EPS of $2.01, marking a 34% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.1 billion, indicating a 164.38% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.47 per share and revenue of $7.59 billion, which would represent changes of +37.82% and +140.73%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for SM Energy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 9.08% upward. SM Energy is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, SM Energy is at present trading with a Forward P/E ratio of 4.55. This signifies a discount in comparison to the average Forward P/E of 9.89 for its industry.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

On June 09, 2026, SM Energy Co SM shares fell 4.0%, closing at $31.08. During the last 52 weeks, the stock has traded between a low of $17.45 and a high of $35.88, reflecting a notable increase in value over the year.

GF Value™ indicates that SM is 37.0% undervalued, with a fair value estimated at $49.34.With a GF Score™ of 74/100, SM is considered to have an above-average potential for long-term returns.Insider activity has shown that insiders sold $0.8 million worth of shares in the last three months without any purchases. Is SM Overvalued or Undervalued? Based on the current price of $31.08 compared to the GF Value™ of $49.34, SM Energy Co appears to be undervalued by approximately 37.0%. This creates a significant margin of safety for potential investors looking at the stock. However, the GF Valuation label indicates that SM could be a possible value trap, which suggests caution when considering this investment opportunity. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

While the undervaluation presents an opportunity, potential risks should also be assessed, particularly given the recent insider selling and the company's low predictability rating of 1 star. This combination may suggest that the market sentiment around SM is cautious, despite the attractive valuation metrics.

How Does SM's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 13.1x 5.2x Forward P/E 4.6x N/A SM Energy Co's current P/E ratio of 13.1x is significantly above its 5-year median P/E of 5.2x, indicating that the stock is trading at a premium compared to its historical valuation. The forward P/E of 4.6x suggests more favorable earnings expectations ahead. This P/E analysis somewhat contradicts the GF Value™ verdict, as the higher current P/E implies that the market may be pricing in more optimistic growth prospects than past performance would suggest.

What Does SM's GF Score™ Tell Us? Metric Rating GF Score™ 74 Financial Strength 4/10 Profitability 7/10 Growth 8/10 Valuation 4/10 Momentum 3/10 The GF Score™ of 74/100 suggests that SM Energy Co has solid long-term return potential, particularly driven by its growth rank of 8/10 and profitability rank of 7/10. However, the financial strength and momentum ranks of 4/10 and 3/10, respectively, indicate areas of concern that could affect the stock's performance. Investors should be cautious of these weaker aspects while considering the overall score, as they may influence future stock price movements.

What Are Insiders Doing with SM Stock? Recent insider activity at SM Energy Co has been predominantly negative, with insiders selling $0.8 million worth of shares over the past three months and no reported purchases. This selling could reflect a lack of confidence among insiders regarding the company's future performance or could be a strategic move to capitalize on recent gains. The absence of insider buying may raise concerns for potential investors, as it could indicate that those with the most intimate knowledge of the company do not see an immediate need to invest further.

What This Means for Investors SM Energy Co appears to be undervalued based on GF Value™, with significant potential upside compared to its current trading price. However, investors should exercise caution due to the company's weak financial strength, low momentum, and recent insider selling activity. The combination of these factors suggests that while there are opportunities, there are also considerable risks that need to be carefully evaluated.

For the complete analysis, visit the SM Energy Co SM stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SM's GF Score™?

SM's GF Score™ is 74/100, indicating that the stock has above-average potential for long-term returns based on various fundamental factors.

Is SM overvalued or undervalued?

SM Energy Co is currently undervalued, with a GF Value™ of $49.34 compared to its current price of $31.08, suggesting a potential upside of 37.0%.

What is SM's P/E ratio?

SM's P/E ratio is 13.1x, which is significantly above its 5-year median of 5.2x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways AVNT trades at 11.08X forward earnings vs 22.51X industry, signaling a notable valuation discount.Avient targets lower leverage and $200-$220M free cash flow, prioritizing debt reduction through 2026.Avient's 2026 outlook depends on pricing, mix and cost control amid uneven demand and $30M inflation headwind. Avient Corporation (AVNT - Free Report) is currently trading at a meaningful discount to its industry. The key question is whether that gap reflects an attractive entry point or a fair price for near-term execution and demand risks.

The opportunity comes down to whether Avient’s margin and cash flow plan can overcome a mixed demand backdrop. With leverage trending lower and productivity programs in place, valuation has a reasonable foundation.

AVNT’s Valuation Snapshot vs Peers and HistoryOn a forward 12-month price-to-earnings basis, AVNT trades at 11.08X. That compares with 22.51X for the Zacks Chemical - Diversified industry. The gap is wide, and it positions AVNT as a clear discount name versus its closest peer set.

History suggests the stock is not priced for an aggressive outcome. Over the last five years, AVNT’s forward 12-month earnings multiple has ranged from a high of 20.07X to a low of 9.01X, with a median of 14.24X. At 11.08X, AVNT sits below that median, implying investors are demanding proof that margin expansion and end-market stabilization can hold through 2026.

Image Source: Zacks Investment Research

Cash Flow and Deleveraging as Downside SupportDeleveraging remains a key pillar of the downside case. Avient paid down $150 million of debt in 2025 and ended the year with net leverage at 2.6x. Management expects to exit 2026 below 2.5x, extending the balance-sheet improvement.

Cash generation supports that trajectory. Free cash flow is guided at $200-$220 million for 2026, and management’s stated priority is further debt reduction. If demand recovery is uneven, that combination of liquidity and continued leverage improvement can help limit fundamental downside.

AVNT’s Capital Allocation Trade-Offs in 2026The near-term trade-off is that cash is being steered toward investment and deleveraging instead of more visible shareholder-return levers. Capital expenditures are planned at roughly $140 million in 2026, higher than 2025 levels, with much of the spending aimed at defense and Dyneema capacity.

With higher investment requirements, flexibility for buybacks is reduced. Management also plans no near-term mergers and acquisitions as deleveraging remains the priority. For valuation-focused investors, this is important because the near-term catalyst set is more about operating execution than headline capital deployment.

Avient’s Earnings Path and Sensitivity PointsThe earnings bridge in 2026 leans more on execution than on a broad cyclical rebound. Management expects margin expansion primarily from price/mix and productivity rather than operating leverage, which matters in a demand environment described as patchy across consumer, industrial and building and construction.

That also defines the sensitivity points. Results can swing with pricing execution, mix shift toward higher-value applications and delivery on cost actions, especially with an embedded net inflation headwind of roughly $30 million in 2026. A slower-than-expected demand recovery would raise the bar for self-help to carry a larger share of the earnings load.

Practical Takeaway for Action-Oriented InvestorsFor investors weighing AVNT at a discounted valuation, a practical checklist starts with balance-sheet progress: continued deleveraging toward management’s goal for 2026. Next is delivery against the 2026 guidance ranges for adjusted EBITDA of $555-$585 million and adjusted earnings per share of $2.93-$3.17.

Operational markers also matter. Watch for tangible packaging improvement within the Color, Additives and Inks unit, and monitor stability around defense-related timing and Specialty Engineered Materials margins, where timing can be lumpy. In that context, AVNT fits a “Hold” framework at the moment.

AVNT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For context, Cabot Corporation (CBT - Free Report) and Methanex Corporation (MEOH - Free Report) are among the industry names investors may compare for valuation and trend, and both sit in the same broad chemical landscape that can amplify rotation-driven performance differences across the group.

Key Takeaways Avient leans on specialty materials to boost margins despite uneven 2025 volumes and demand.AVNT targets 2026 margin gains via price, mix and productivity, not volume-driven leverage.Defense, healthcare, telecom and chip packaging demand support AVNT's margin resilience. Avient Corporation (AVNT - Free Report) is leaning into a specialty-materials model that is proving steadier than the typical chemical cycle. The company exited 2025 with stronger margins despite uneven volumes, and management is positioning 2026 for additional improvement driven more by mix and execution than by a broad demand surge.

That setup matters for investors because it puts the focus on what Avient can control: where it competes, how it prices and how consistently it takes costs out.

AVNT’s Mix Shift Toward Defense, Health Care and TelecomAvient is a specialty-materials supplier focused on color, additives, inks, engineered polymers, advanced composites and performance fibers. That mix matters because these offerings tend to be more formulation and application-driven, which can support steadier pricing and better margins than commodity exposure.

The company’s end-market tilt is increasingly geared toward defense, healthcare, telecommunications and materials used in chip and wafer packaging. Those demand vectors are central to the margin-resilience narrative because they skew to higher-value, mission-critical uses where performance tends to be prioritized.

AVNT’s Specialty Engineered Materials segment is positioned as the more direct beneficiary of defense, healthcare, telecommunications and advanced materials applications, including the chip and wafer packaging exposure that has been growing at a double-digit pace, particularly in Asia.

AVNT’s Mix-Led Margin PlaybookThe margin story is increasingly mix-led. Avient ended fourth-quarter 2025 with an adjusted EBITDA margin of 15.5%, up 80 basis points year over year, and delivered a full-year 2025 adjusted EBITDA margin of 16.7%, up 50 basis points. Those outcomes came despite volumes that were not uniformly supportive, underscoring the benefit of tilting toward specialty applications.

For 2026, management expects additional margin expansion driven primarily by price and mix plus productivity, rather than operating leverage. That implies earnings progression can continue even if volume improvement is modest, as long as the company keeps tightening execution and sustaining the mix shift.

Avient’s Productivity Levers That Offset InflationCost execution is the second pillar of the model. Avient delivered a little over $40 million of net productivity in 2025, with about half expected to carry into 2026. The programs include ongoing sourcing work, footprint optimization and Lean Six Sigma initiatives.

That productivity is aimed at offsetting a baseline net inflation headwind of roughly $30 million in 2026. With limited operating leverage embedded in the outlook, the quality and cadence of these productivity actions become a key driver of earnings durability.

AVNT’s End-Market Signals That Matter MostManagement has described the start to 2026 as cautiously optimistic, pointing to continued strength in defense, healthcare, and telecom, along with signs of packaging improvement. Defense grew 8% in 2025 and is again expected to be strong in 2026, while demand tied to chip and wafer packaging continues to reinforce the higher-performance portfolio.

At the same time, demand has been patchy across consumer, industrial and building and construction markets. Regional trends also remain uneven, and guidance assumes only modest improvement across several challenged areas. That backdrop keeps the 2026 setup focused on modest volume improvement, with mix and productivity doing more of the heavy lifting.

AVNT’s Risks to the Resilience ThesisThe checklist starts with demand and regional variability. Macro softness, currency, trade policy, geopolitics and supply-chain shifts can keep end markets uneven and make it harder for mix benefits to fully offset slower volume recovery. Limited operating leverage raises the importance of execution on pricing and cost actions.

Defense also brings timing risk. The company has described defense as lumpy, and near-term Dyneema capacity relies on debottlenecking process improvements, with additional capacity from current investment not expected until 2028. Higher planned capital spending and paused mergers and acquisitions also limit near-term deployment flexibility. The margin narrative in 2026 ultimately comes down to whether mix shift and productivity continue to translate into steadier earnings across uneven demand conditions.

Investors may also want to compare Avient’s profile against diversified chemical peers such as Cabot Corporation (CBT - Free Report) and Tronox Holdings plc (TROX - Free Report) , which operate in the same broad industry grouping.

AVNT carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Based in Avon Lake, Avient (AVNT - Free Report) is in the Basic Materials sector, and so far this year, shares have seen a price change of 19.88%. The maker of resins used in plastic pipe and other products is paying out a dividend of $0.28 per share at the moment, with a dividend yield of 2.94% compared to the Chemical - Diversified industry's yield of 1.62% and the S&P 500's yield of 1.4%.

Looking at dividend growth, the company's current annualized dividend of $1.10 is up 1.4% from last year. Over the last 5 years, Avient has increased its dividend 5 times on a year-over-year basis for an average annual increase of 6.00%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Avient's current payout ratio is 39%, meaning it paid out 39% of its trailing 12-month EPS as dividend.

AVNT is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $3.06 per share, which represents a year-over-year growth rate of 8.51%.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AVNT is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

, /PRNewswire/ -- Avient Corporation (NYSE: AVNT), an innovator of materials solutions, announced today that Giuseppe (Joe) Di Salvo has been promoted and named Senior Vice President and Chief Financial Officer, effective June 1, 2026. He will succeed Jamie A. Beggs, who will be leaving Avient June 1, 2026 to pursue other opportunities.

Giuseppe (Joe) Di Salvo named Senior Vice President and Chief Financial Officer at Avient Corporation, effective June 1, 2026. Mr. Di Salvo brings 25 years of financial experience, including nearly 15 years at Avient, with extensive experience in investor relations, accounting, financial planning and analysis, and treasury. This diverse experience has provided him with a deep understanding of Avient, its businesses, and the financial drivers of value creation at the company.

"We are pleased to promote Joe from within the organization to this important role and to our executive leadership team," said Dr. Ashish K. Khandpur, Chairman, President and Chief Executive Officer of Avient. "Joe's deep institutional knowledge, strong relationships within the company and with our investors, and consistent delivery of results make him exceptionally well suited to lead our finance organization as we execute our strategy.  I look forward to continuing to work closely with Joe to deliver value to all our stakeholders."

Mr. Di Salvo served as Avient's Corporate Controller from 2013 to 2018 when he became Vice President, Investor Relations.  In 2019, he expanded his responsibility to lead Treasury and Financial Planning and Analysis.  Prior to these roles, he held financial positions of increasing responsibility at Avient.  Joe began his career as a certified public accountant at Deloitte after graduating from The Ohio State University Fisher College of Business with a Bachelor of Science in Business Administration and Accounting.

"I'm honored to step into this role and energized by the opportunity to drive an even greater impact," said Mr. Di Salvo. "I have deep confidence in Avient and the strategy we are executing, and I look forward to continuing to support the company's long-term growth and success."

About Avient
Our purpose at Avient Corporation (NYSE: AVNT) is to be an innovator of materials solutions that help our customers succeed, while enabling a sustainable world.  Our local touch and customer engagement, combined with our global presence, allows us to serve customers with agility.  We harness the collective strength of more than 9,000 employees worldwide to collaborate and build on each other's ideas.  In doing so, we innovate solutions that help our customers overcome their challenges or capitalize on opportunities provided by the fast-changing world and secular trends.  Our expanding portfolio of offerings includes colorants, advanced composites, functional additives, engineered materials, and Dyneema®, the world's strongest fiber™. By intersecting our broad portfolio of technologies with the product roadmaps of our customers, we help create differentiated and high-performance products that make the world better and more sustainable.  Visit www.avient.com to learn more.

To access Avient's news library online, please visit www.avient.com/news.

SOURCE Avient Corporation

First quarter sales grew 3% to $847 million, which includes a 5% favorable foreign exchange impact First quarter GAAP EPS of $0.61 compared to ($0.22) in the prior year quarter First quarter adjusted EPS of $0.83 exceeded guidance of $0.81; growth of 9% over the prior year quarter 2026 full year adjusted EPS guidance range of $2.93 to $3.17, unchanged from prior guidance , /PRNewswire/ -- Avient Corporation (NYSE: AVNT), an innovator of materials solutions, today announced its first quarter results for 2026. First quarter GAAP earnings per share (EPS) were $0.61 compared to ($0.22) in the prior year quarter. 

The company noted that first quarter 2026 GAAP EPS includes special items of $0.06 and intangible amortization expense of $0.16 (see attachment 1).

First quarter 2026 adjusted EPS was $0.83 compared to $0.76 in the prior year quarter, reflecting 9% growth in adjusted EPS.

"Once again our teams successfully navigated a complex and ever-changing environment with agility to deliver these results," said Dr. Ashish Khandpur, Chairman, President and Chief Executive Officer, Avient Corporation.

"Our first quarter results also reflect the team's strong execution on driving productivity improvement and disciplined cost control, which enabled expansion of adjusted EBITDA margins by 20 basis points to 17.7%. Our teams remain focused on serving our customers, securing raw material supply, and have been proactively working to mitigate the costs of inflation from the ongoing situation in the Middle East and from macro-economic uncertainty," added Dr. Khandpur.

2026 Outlook

"We have a proven track record of successfully managing through volatile environments and supply chain constraints, as we demonstrated during the post-pandemic period in 2021 and 2022, as well as responding to the tariff policy changes in 2025. Accordingly, we expect second quarter adjusted EPS of $0.89, which represents 11% growth over the prior year quarter," said Jamie Beggs, Senior Vice President and Chief Financial Officer.

"Our performance expectations for the first half of the year are slightly better-than-expected compared to the beginning of the year.  With that said, the outlook for the second half of the year is less certain, so we are maintaining our full year guidance of adjusted EBITDA of $555 to $585 million and adjusted EPS of $2.93 to $3.17," said Ms. Beggs.

Dr. Khandpur added, "Our strategy has enabled us to deliver consistent results and grow earnings in 2024 and 2025. We remain committed to growing full year earnings again in 2026, while continuing to also invest in our prioritized growth vectors to keep advancing our longer-term plans."

Webcast Details

Avient will provide additional details on its 2026 first quarter and its 2026 full year outlook during its webcast scheduled for 8:00 a.m. Eastern Time on May 7, 2026.

The webcast can be viewed live at avient.com/investors, or by clicking on the webcast link here. Conference call participants in the question and answer session should pre-register using the link at avient.com/investors, or here, to receive the dial-in number and personal PIN.  This information is required to access the conference call.  The question-and-answer session will follow the company's presentation and prepared remarks.

A recording of the webcast and the slide presentation will be available at avient.com/investors/events-presentations immediately following the conference call and will be accessible for one year.

Non-GAAP Financial Measures

The Company uses both GAAP (generally accepted accounting principles) and non-GAAP financial measures. The non-GAAP financial measures include organic performance (which excludes the impact of foreign exchange), adjusted EPS, adjusted operating income, adjusted EBITDA, adjusted EBITDA margins, free cash flow and adjusted free cash flow. Avient's chief operating decision maker uses these financial measures to monitor and evaluate the ongoing performance of the Company and each business segment and to allocate resources.

The Company does not provide reconciliations of forward-looking non-GAAP financial measures, such as adjusted EPS, adjusted EBITDA and free cash flow, to the most comparable GAAP financial measures on a forward-looking basis because the Company is unable to provide a meaningful or accurate calculation or estimation of reconciling items, and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, environmental remediation costs and associated recoveries, mark-to-market adjustments on pension and other post-retirement obligations, acquisition-related charges, and other non-routine costs. Each of such adjustments has not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information.

To access Avient's news library online, please visit www.avient.com/news.

About Avient

Our purpose at Avient Corporation (NYSE: AVNT) is to be an innovator of materials solutions that help our customers succeed, while enabling a sustainable world.  Our local touch and customer engagement, combined with our global presence, allows us to serve customers with agility.  We harness the collective strength of more than 9,000 employees worldwide to collaborate and build on each other's ideas.  In doing so, we innovate solutions that help our customers overcome their challenges or capitalize on opportunities provided by the fast-changing world and secular trends. Our expanding portfolio of offerings includes colorants, advanced composites, functional additives, engineered materials, and Dyneema®, the world's strongest fiber™.  By intersecting our broad portfolio of technologies with the product roadmaps of our customers, we help create differentiated and high-performance products that make the world better and more sustainable. Visit www.avient.com to learn more.

Forward-looking Statements

In this press release, statements that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. They use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales. Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: disruptions, uncertainty or volatility in the global credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; disruptions or inefficiencies in our supply chain, logistics, or operations; changes in laws and regulations in jurisdictions where we conduct business, including with respect to plastics and climate change; changes to foreign trade policy, including new or increased tariffs and changing import/export regulation; fluctuations in raw material prices, quality and supply, and in energy prices and supply; demand for our products and services; production outages or material costs associated with scheduled or unscheduled maintenance programs; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends; information systems failures, cybersecurity breaches and cyberattacks; our ability to service our indebtedness and restrictions on our current and future operations due to our indebtedness; amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions; and other factors affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation, geopolitical conflicts and any recessionary conditions. The above list of factors is not exhaustive.

Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and Exchange Commission.

Attachment 1

Avient Corporation
Reconciliation of Adjusted Net Income and Earnings Per Share (Unaudited)
(In millions, except per share data)

Senior management uses comparisons of adjusted net income attributable to Avient common shareholders and diluted adjusted earnings per share (EPS) attributable to Avient common shareholders, excluding special items, to assess performance and facilitate comparability of results. Further, as a result of Avient's strategic shift towards an innovator of materials solutions, it has completed several acquisitions and divestitures which have resulted in a significant amount of intangible asset amortization. Management excludes intangible asset amortization from adjusted EPS as it believes excluding acquired intangible asset amortization is a useful measure of current period earnings per share. Senior management believes these measures are useful to investors because they allow for comparison to Avient's performance in prior periods without the effect of items that, by their nature, tend to obscure Avient's operating results due to the potential variability across periods based on timing, frequency and magnitude. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or solely as alternatives to, financial measures prepared in accordance with GAAP. Below is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. See Attachment 3 for a definition and summary of special items.

Three Months Ended March 31,

2026

2025

Reconciliation to Condensed Consolidated Statements of Income

$

EPS(1)

$

EPS(1)

Net income (loss) attributable to Avient common shareholders

$      55.7

$      0.61

$     (20.2)

$     (0.22)

Special items, after-tax (Attachment 3)

5.5

0.06

75.7

0.82

Amortization expense, after-tax

15.6

0.16

14.5

0.16

Adjusted net income / EPS

$      76.8

$      0.83

$      70.0

$      0.76

(1) Per share amounts may not recalculate from figures presented herein due to rounding

Attachment 2

Avient Corporation

Condensed Consolidated Statements of Income (Unaudited)

(In millions, except per share data)

Three Months Ended

March 31,

2026

2025

Sales

$     847.4

$     826.6

Cost of sales

574.8

563.4

Gross margin

272.6

263.2

Selling and administrative expense

176.8

262.5

Operating income

95.8

0.7

Interest expense, net

(22.0)

(26.9)

Other expense, net

(1.5)

(0.4)

Income (loss) before income taxes

72.3

(26.6)

Income tax (expense) benefit

(16.5)

6.7

Net income (loss)

$      55.8

$     (19.9)

Net income attributable to noncontrolling interests

(0.1)

(0.3)

Net income (loss) attributable to Avient common shareholders

$      55.7

$     (20.2)

Earnings (loss) per share attributable to Avient common shareholders - Basic:

$      0.61

$     (0.22)

Earnings (loss) per share attributable to Avient common shareholders - Diluted:

$      0.61

$     (0.22)

Cash dividends declared per share of common stock

$   0.2750

$   0.2700

Weighted-average shares used to compute earnings per common share:

Basic

91.7

91.5

Diluted

91.9

91.5

Attachment 3

Avient Corporation

Summary of Special Items (Unaudited)

(In millions, except per share data)

Special items (1)

Three Months Ended
March 31,

2026

2025

Cost of sales:

Restructuring costs, including accelerated depreciation

$       (3.2)

$       (4.1)

Environmental remediation costs

(3.9)

(4.9)

Reimbursement of previously incurred environmental costs

0.3

1.3

Impact on cost of sales

(6.8)

(7.7)

Selling and administrative expense:

Restructuring and employee separation costs

(0.8)

(5.1)

Legal and other

(1.3)

(0.4)

Cloud-based enterprise resource planning system impairment

—

(86.3)

Impact on selling and administrative expense

(2.1)

(91.8)

Impact on operating income

(8.9)

(99.5)

Interest expense, net - financing costs

—

(1.7)

Impact on income (loss) before income taxes

(8.9)

(101.2)

Income tax benefit on special items

2.0

25.5

Tax adjustments(2)

1.4

—

Impact of special items on net income (loss)

$       (5.5)

$     (75.7)

Diluted earnings (loss) per common share impact

$     (0.06)

$     (0.82)

Weighted average shares used to compute adjusted earnings per share:

Diluted

91.9

91.8

(1)

Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to-market adjustments associated with gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results.

(2)

Tax adjustments include the net tax impact from non-recurring income tax items and certain adjustments to uncertain tax position reserves and valuation allowances.

Attachment 4

Avient Corporation

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)

March 31, 2026

December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$                427.6

$                510.5

Accounts receivable, net

513.4

435.0

Inventories, net

386.4

367.2

Other current assets

96.5

88.2

Total current assets

1,423.9

1,400.9

Property, net

967.9

988.8

Goodwill

1,739.2

1,757.6

Intangible assets, net

1,447.4

1,492.4

Other non-current assets

366.4

385.9

Total assets

$              5,944.8

$              6,025.6

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term and current portion of long-term debt

$                   0.5

$                   0.5

Accounts payable

426.1

410.0

Accrued expenses and other current liabilities

376.5

435.8

Total current liabilities

803.1

846.3

Non-current liabilities:

Long-term debt

1,924.0

1,922.6

Deferred income taxes

280.5

285.7

Other non-current liabilities

519.2

584.7

Total non-current liabilities

2,723.7

2,793.0

SHAREHOLDERS' EQUITY

Avient shareholders' equity

2,405.8

2,374.2

Noncontrolling interest

12.2

12.1

Total equity

2,418.0

2,386.3

Total liabilities and equity

$              5,944.8

$              6,025.6

Attachment 5

Avient Corporation

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In millions)

Three Months Ended

March 31,

2026

2025

Operating activities

Net income (loss)

$      55.8

$     (19.9)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Depreciation and amortization

47.9

45.3

Cloud-based enterprise resource planning system impairment

—

71.6

Share-based compensation expense

2.1

2.4

Changes in assets and liabilities:

Increase in accounts receivable

(83.7)

(83.7)

Increase in inventories

(22.9)

(20.3)

Increase (decrease) in accounts payable

20.0

(1.0)

(Decrease) increase in restructuring obligations

(4.7)

2.5

Decrease in incentive accruals

(24.8)

(53.1)

Environmental insurance recovery

—

34.0

Accrued expenses and other assets and liabilities, net

(24.2)

(28.9)

Net cash used in operating activities

(34.5)

(51.1)

Investing activities

Capital expenditures

(19.0)

(12.5)

Net cash used in investing activities

(19.0)

(12.5)

Financing activities

Cash dividends paid

(25.2)

(24.7)

Other financing activities

(2.6)

(3.6)

Net cash used in financing activities

(27.8)

(28.3)

Effect of exchange rate changes on cash and cash equivalents

(1.6)

3.4

Decrease in cash and cash equivalents

(82.9)

(88.5)

Cash and cash equivalents at beginning of year

510.5

544.5

Cash and cash equivalents at end of period

$     427.6

$     456.0

Attachment 6

Avient Corporation

Business Segment Operations (Unaudited)

(In millions)

Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments; intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker. These costs are included in Corporate.

Three Months Ended

March 31,

2026

2025

Sales:

   Color, Additives and Inks

$     528.1

$     519.7

   Specialty Engineered Materials

320.2

308.4

   Corporate

(0.9)

(1.5)

      Sales

$     847.4

$     826.6

Gross margin:

   Color, Additives and Inks

$     178.7

$     173.1

   Specialty Engineered Materials

100.6

97.8

   Corporate

(6.7)

(7.7)

      Gross margin

$     272.6

$     263.2

Selling and administrative expense:

   Color, Additives and Inks

$      97.3

$      94.5

   Specialty Engineered Materials

53.2

50.7

   Corporate

26.3

117.3

      Selling and administrative expense

$     176.8

$     262.5

Operating income:

   Color, Additives and Inks

$      81.4

$      78.6

   Specialty Engineered Materials

47.4

47.1

   Corporate

(33.0)

(125.0)

      Operating income

$      95.8

$        0.7

Depreciation & amortization:

Color, Additives and Inks

$      22.4

$      21.7

Specialty Engineered Materials

22.6

21.5

Corporate

2.9

2.1

Depreciation & amortization

$      47.9

$      45.3

Earnings before interest, taxes, depreciation and amortization (EBITDA):

   Color, Additives and Inks

$     103.8

$     100.3

   Specialty Engineered Materials

70.0

68.6

   Corporate

(30.1)

(122.9)

Other expense, net

(1.5)

(0.4)

EBITDA

$     142.2

$      45.6

Special items, before tax

8.9

101.2

Interest expense included in special items

—

(1.7)

Depreciation & amortization included in special items

(1.2)

(0.4)

Adjusted EBITDA

$     149.9

$     144.7

Attachment 7

Avient Corporation

Reconciliation of Non-GAAP Financial Measures (Unaudited)

(In millions, except per share data)

Senior management uses operating income before special items to assess performance and allocate resources because senior management believes that this measure is most useful in understanding current profitability levels and how it may serve as a basis for future performance. In addition, operating income before the effect of special items is a component of Avient's annual incentive plans and is used in debt covenant computations. Senior management believes this measure is useful to investors because it allows for comparison to Avient's performance in prior periods without the effect of items that, by their nature, tend to obscure Avient's operating results due to the potential variability across periods based on timing, frequency and magnitude. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or solely as alternatives to, financial measures prepared in accordance with GAAP. Below is a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. See Attachment 3 for a definition and summary of special items.

Three Months Ended

March 31,

Reconciliation to Condensed Consolidated Statements of Income

2026

2025

Sales

$   847.4

$   826.6

Gross margin - GAAP

272.6

263.2

Special items in gross margin (Attachment 3)

6.8

7.7

Adjusted gross margin

$   279.4

$   270.9

Adjusted gross margin as a percent of sales

33.0 %

32.8 %

Operating income - GAAP

95.8

0.7

Special items in operating income (Attachment 3)

8.9

99.5

Adjusted operating income

$   104.7

$   100.2

Adjusted operating income as a percent of sales

12.4 %

12.1 %

Three Months Ended

March 31,

Reconciliation to EBITDA and Adjusted EBITDA:

2026

2025

Net income (loss) - GAAP

$    55.8

$   (19.9)

Income tax expense (benefit)

16.5

(6.7)

Interest expense, net

22.0

26.9

Depreciation & amortization

47.9

45.3

EBITDA

$   142.2

$    45.6

Special items, before tax

8.9

101.2

Interest expense included in special items

—

(1.7)

Depreciation & amortization included in special items

(1.2)

(0.4)

Adjusted EBITDA 

$   149.9

$   144.7

Adjusted EBITDA as a percent of sales

17.7 %

17.5 %

Three Months Ended

June 30, 2025

Reconciliation to Condensed Consolidated Statements of Income

$

EPS(1)

Net income attributable to Avient common shareholders

$             52.6

$             0.57

Special items, after-tax

5.7

0.07

Amortization expense, after-tax

15.2

0.16

Adjusted net income / EPS

$             73.5

$             0.80

(1) Per share amounts may not recalculate from figures presented herein due to rounding

SOURCE Avient Corporation

Avient (AVNT - Free Report) reported $847.4 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 2.5%. EPS of $0.83 for the same period compares to $0.76 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $845.85 million, representing a surprise of +0.18%. The company delivered an EPS surprise of +2.89%, with the consensus EPS estimate being $0.81.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Avient performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Sales- Specialty Engineered Materials: $320.2 million versus the four-analyst average estimate of $321.51 million. The reported number represents a year-over-year change of +3.8%.Sales- Color, Additives and Inks: $528.1 million versus the four-analyst average estimate of $524.71 million. The reported number represents a year-over-year change of +1.6%.Sales- Corporate: $-0.9 million versus $-0.92 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -40% change.Operating Income (Loss)- Color, Additives and Inks: $81.4 million versus the three-analyst average estimate of $79.98 million.Operating Income (Loss)- Specialty Engineered Materials: $47.4 million versus $49.13 million estimated by three analysts on average.Operating Income (Loss)- Corporate: $-33 million versus the two-analyst average estimate of $-31.13 million.View all Key Company Metrics for Avient here>>>

Shares of Avient have returned +2.1% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

MarketBeat Instant News Alerts

2 hours ago

Amkor Technology Target of Unusually Large Options Trading (NASDAQ:AMKR)MarketBeat

Amkor Technology, Inc. (NASDAQ:AMKR - Get Free Report) was the recipient of unusually large options trading on Friday. Investors acquired 12,436 call options on the company. This is an increase of approximately 48% compared to the average volume of 8,425 call options.

NASDAQ:AMKR

Read Amkor Technology Target of Unusually Large Options Trading (NASDAQ:AMKR)

3 hours ago

CocaCola (NYSE:KO) EVP Jennifer Mann Sells 23,984 SharesMarketBeat

CocaCola Company (The) (NYSE:KO - Get Free Report) EVP Jennifer Mann sold 23,984 shares of the firm's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $83.41, for a total value of $2,000,505.44. Following the completion of the transaction, the executive vice president owned 157,400 shares of the company's stock, valued at approximately $13,128,734. The trade was a 13.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

NYSE:KO

Read CocaCola (NYSE:KO) EVP Jennifer Mann Sells 23,984 Shares

Trending News All MarketBeat Instant News Alerts Sort By

Time Frame

Alert Type

Keywords

Page 1 of 324

Get 30 Days of MarketBeat All Access for Free

Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools.

Start Your 30-Day Trial

Sign in to your free account to enjoy these benefits

In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer.

Key Takeaways AVNT posted Q1 adjusted EPS of 83 cents, topping estimates as sales rose 2.5% year over year.Avient said Q1 sales benefited from a 5% favorable FX impact, lifting revenues to $847.4 million.AVNT maintained full-year 2026 EPS and EBITDA guidance despite uncertainty in the second half. Avient Corporation (AVNT - Free Report) reported adjusted earnings of 83 cents per share for the first quarter of 2026, up 9.2% from 76 cents a year ago. The bottom line beat the Zacks Consensus Estimate of 81 cents by 2.5%.

Net sales were $847.4 million, up 2.5% year over year and slightly ahead of the Zacks Consensus Estimate of $845.8 million. The top line improved despite a challenging backdrop, with sales growth supported by currency translation. AVNT highlighted that first-quarter sales growth included a 5% favorable foreign exchange impact.

Profitability improved alongside revenues. Adjusted EBITDA rose to $149.9 million from $144.7 million a year ago, taking adjusted EBITDA as a percent of sales to 17.7% from 17.5%. The results benefited from productivity improvement and cost-control actions.

AVNT Segment HighlightsColor, Additives and Inks sales were $528.1 million in the quarter, up 1.6% from $519.7 million a year ago. Segment EBITDA increased to $103.8 million from $100.3 million, implying an EBITDA margin of about 19.7% versus roughly 19.3% in the prior-year quarter.

Specialty Engineered Materials generated sales of $320.2 million, up 3.8% from $308.4 million in the year-ago quarter. Segment EBITDA rose to $70 million from $68.6 million, translating to an EBITDA margin of about 21.9% compared with approximately 22.2% a year ago.

Avient Balance Sheet and Cash FlowAvient ended the quarter with cash and cash equivalents of $427.6 million, down from $510.5 million in the prior quarter. Long-term debt was essentially steady at $1,924 million versus $1,922.6 million at year-end 2025.

Net cash used in operating activities was $34.5 million compared with $51.1 million used in the prior-year quarter, while capital expenditures were $19 million versus $12.5 million a year ago.

AVNT’s OutlookAVNT guided to second-quarter adjusted earnings of 89 cents per share, which management said would represent 11% growth over the prior-year quarter. The company also emphasized that its first-half expectations are now slightly better than expected versus the start of the year.

For full-year 2026, Avient maintained its adjusted EPS guidance range of $2.93 to $3.17 and reiterated its adjusted EBITDA outlook of $555 million to $585 million. Management noted that the outlook for the second half of the year is less certain, supporting its decision to keep the full-year targets unchanged.

AVNT’s Price PerformanceShares of Avient have lost 9.7% in the past year against the 18.4% growth in the industry.

Image Source: Zacks Investment Research

AVNT's Zacks Rank & Other Chemicals ReleasesAVNT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Kronos Worldwide (KRO - Free Report) reported a first-quarter 2026 net loss of 4 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents. Kronos expects gross margin to improve as higher-cost inventory produced in late 2025 works through the system and it realizes the benefit of lower-cost production in 2026.

Huntsman Corporation’s (HUN - Free Report) first-quarter 2026 adjusted loss per share was 20 cents compared with a loss of 11 cents in the year-ago quarter. It was narrower than the Zacks Consensus Estimate of a loss of 23 cents. The company expects margin improvement across regions from its pricing initiatives. It anticipates second-quarter adjusted EBITDA of $60-$75 million for Polyurethanes, $30-$40 million for Performance Products and $50-$55 million for Advanced Materials.  

Olin Corporation (OLN - Free Report) reported a first-quarter 2026 adjusted loss of 65 cents per share, narrower than the Zacks Consensus Estimate of a loss of 67 cents. Olin guided second-quarter 2026 adjusted EBITDA to a range of $160 million to $200 million.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Avient (AVNT - Free Report) Avient Corporation is a global specialty-materials company focused on color, additives, inks, engineered polymers, advanced composites, and performance fibers, combining materials science, formulation expertise and manufacturing scale. Formed as PolyOne Corporation on Aug. 31, 2000, the company changed its name to Avient Corporation, effective June 30, 2020.

AVNT is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.15; value investors should take notice.

For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $3.06 per share. AVNT boasts an average earnings surprise of +2.1%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, AVNT should be on investors' short list.

Key Takeaways Avient added eight natural graphite Therma-Tech formulations for thermal management applications.New grades offer high thermal conductivity, lower costs and support sustainability goals.Avient's expanded portfolio works with standard injection molding equipment and diverse uses. Avient Corporation (AVNT - Free Report) has expanded its Therma-Tech product line with the launch of eight new thermally conductive formulations based on natural graphite. The new materials are aimed at helping manufacturers improve heat management while supporting efforts to reduce weight, lower costs and advance sustainability objectives.

Rising electrification across transportation, industrial equipment, appliances and electronics is placing greater emphasis on improving thermal management while reducing weight and costs. As a result, OEMs and product designers pursuing lightweighting strategies are increasingly evaluating plastic materials as alternatives to traditional metal components in thermal management applications.

The natural graphite used in the new grades has a lower carbon footprint and generally requires less energy to produce than synthetic graphite. Certain grades in the expanded portfolio contain post-industrial recycled content to help meet sustainability objectives. The technology utilizes natural graphite to achieve high thermal conductivity while offering performance on par with more expensive specialty filler systems.

The expanded portfolio offers a more cost-efficient option than existing high-performance thermally conductive technologies. The new grades retain the thermal performance and design flexibility of existing Therma-Tech products and can be evaluated against metal and thermally conductive polymer materials. They are also compatible with standard injection molding equipment, reducing the need for specialized manufacturing systems.

The new natural graphite-based grades are designed for applications that require thermal management, reduced weight and design flexibility. They can be used in LED lighting components, automotive heat sinks, heat exchange equipment, electronics and appliance housings, and healthcare devices.

Avient will present its Therma-Tech thermally conductive products at the FIP and Equiplast trade shows in Europe from June 2 to 5.

Shares of Avient have lost 3.5% over the past year against the industry’s 9.5% growth.

Image Source: Zacks Investment Research

AVNT’s Zacks Rank & Key PicksAVNT currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Orla Mining Ltd. (ORLA - Free Report) , LyondellBasell Industries N.V. (LYB - Free Report) and Franco-Nevada Corporation (FNV - Free Report) .

While ORLA and LYB sport a Zacks Rank #1 (Strong Buy) each at present, FNV carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ORLA’s 2026 earnings is pegged at $1.64 per share, indicating a rise of 82.2% year over year. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.16%.

The Zacks Consensus Estimate for LYB’s 2026 earnings is pinned at $8.73 per share, implying a 413.5% year-over-year surge. Its earnings outpaced the Zacks Consensus Estimate in two of the four trailing quarters and missed in the remaining two.

The Zacks Consensus Estimate for FNV’s 2026 earnings is pinned at $8.85 per share, calling for a 58.6% year-over-year increase. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 10.28%.