Track market-moving stories before they get noisy

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%.

Generac's Commercial & Industrial segment now comprises 48.1% of FQ1'26 revenues, supported by a $700M data center backlog and strong hyperscaler demand. The raised FY2026 guidance and expanding EBITDA margins underscore their multi-year tailwinds beyond the last offered FY2028 guidance offered in the Analyst/Investor Day. This is significantly aided by the accretive acquisitions and the expanding manufacturing capacity, allowing them to deliver up to $1.2B in capacity against the $17B TAM.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many 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.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also 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 ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.93% 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.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

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

Stock to Watch: Generac Holdings (GNRC - Free Report) Headquartered in Waukesha, WI, and founded in 1959, Generac Holdings Inc is a leading manufacturer of backup and prime power generation systems for residential and C&I applications, solar + battery storage solutions, advanced power grid software platforms and services, energy management devices and controls along with engine and battery-powered tools and equipment.

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

Momentum investors should take note of this Industrial Products stock. GNRC has a Momentum Style Score of A, and shares are up 33.6% over the past four weeks.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $8.50 per share. GNRC also boasts an average earnings surprise of +7.4%.

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

From pre-storm planning to backup power solutions, Generac highlights simple ways homeowners can prepare for power outages and prevent disruptions to everyday life.

, /PRNewswire/ -- Generac Holdings, Inc. (NYSE: GNRC), a leading global designer, manufacturer and provider of energy technology solutions and other power products, is supporting homeowners – especially those in hurricane-prone areas – to take simple steps to prepare for severe weather and storm-related power outages, by sharing the 2026 Hurricane Preparedness Guide to help make that planning easier.

Generac releases the 2026 Hurricane Preparedness Guide. For more than a decade, Generac has equipped homeowners with the tools, insights and proven strategies needed to prepare for hurricane season. Marking its 10th anniversary, the 2026 Hurricane Preparedness Guide expands that leadership with new data on the nation's highest-risk zones and a clearer picture of the cost of power outages, from nightly lodging to basement flooding expenses.

According to Colorado State University's annual Atlantic hurricane season forecast, experts are anticipating 13 named storms with six expected to develop into hurricanes and two forecasted to reach major hurricane strength of a Category 3 or higher.

Communities across the Atlantic and Gulf coasts are reminded that planning is critical.

The 2025 Atlantic hurricane season produced 13 named storms, five of which became hurricanes. And in 2024, the U.S. reported nearly 1.5 billion electric outage hours – the most since Generac began tracking this data. Hurricane Helene and Milton together caused a staggering 9.5 million power outages at storm peaks and over $113 billion in damages. During Hurricanes Helene and Milton, Generac Whole Home Standby Generators reported 5.4 million hours of runtime.

"It only takes one storm to disrupt people's lives. These storms don't just knock out power. As our homes are our sanctuaries, our workplaces and our classrooms, having a backup power plan is essential," said Kyle Raabe, President of Home Power Generation at Generac. "Planning ahead this hurricane season will protect you and your family from unnecessary stress and help you ensure safety and stability during a storm-induced power outage."

Generac urges homeowners across the country, regardless of if they live in a high-risk area, to download the Hurricane Preparedness Guide to learn more about how to prepare for a storm-induced power outage. The 2026 preparedness guide includes information on home energy and power options, safety tips before, during and after the storm and helpful tools such as emergency kit checklists, home inventory forms and important emergency contact resources.

To learn more about Generac's complete line of home backup power solutions, contact your local dealer or visit www.generac.com.

About Generac

Generac Holdings, Inc. (NYSE: GNRC) is a total energy solutions company that empowers people to use energy on their own terms. Founded in 1959, Generac is a leading global designer, manufacturer, and provider of a wide range of energy technology solutions. The Company provides power generation equipment, energy storage systems, energy management devices & solutions, and other power products serving the residential, light commercial, and industrial markets. Generac introduced the first affordable backup generator and later created the automatic home standby generator category. The Company continues to expand its energy technology offerings for homes and businesses in its mission to Power a Smarter World and lead the evolution to more resilient, efficient, and sustainable energy solutions.

CONTACT: [email protected]

SOURCE Generac Power Systems, Inc.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Generac Holdings (GNRC - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Generac Holdings currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if GNRC is a promising momentum pick, let's examine some Momentum Style elements to see if this generator maker holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For GNRC, shares are up 17.39% over the past week while the Zacks Manufacturing - General Industrial industry is down 0.01% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 31.78% compares favorably with the industry's 3.58% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Generac Holdings have risen 24.39%, and are up 130.43% in the last year. In comparison, the S&P 500 has only moved 6.55% and 32.75%, respectively.

Investors should also pay attention to GNRC's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. GNRC is currently averaging 835,895 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with GNRC.

Over the past two months, 7 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost GNRC's consensus estimate, increasing from $8.41 to $8.91 in the past 60 days. Looking at the next fiscal year, 7 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that GNRC is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Generac Holdings on your short list.

Information in Investor’s Business Daily is for informational and educational purposes only and should not be construed as an offer, recommendation, solicitation, or rating to buy or sell securities. The information has been obtained from sources we believe to be reliable, but we make no guarantee as to its accuracy, timeliness, or suitability, including with respect to information that appears in closed captioning. Historical investment performances are no indication or guarantee of future success or performance. Authors/presenters may own the stocks they discuss. We make no representations or warranties regarding the advisability of investing in any particular securities or utilizing any specific investment strategies. Information is subject to change without notice. For information on use of our services, please see our Terms of Use.

*Real-time prices by Nasdaq Last Sale. Real-time quote and/or trade prices are not sourced from all markets. Ownership data provided by LSEG and Estimate data provided by FactSet.

IBD, IBD Digital, IBD Live, IBD Weekly, Investor's Business Daily, Leaderboard, MarketDiem, MarketSurge and other marks are trademarks owned by Investor's Business Daily, LLC.

©2026 Investor’s Business Daily, LLC. All Rights Reserved.

After reaching an important support level, Generac Holdings (GNRC - Free Report) could be a good stock pick from a technical perspective. GNRC surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.

Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

GNRC could be on the verge of another rally after moving 22.3% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.

Looking at GNRC's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 7 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

Investors may want to watch GNRC for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

On June 01, 2026, Generac Holdings Inc GNRC shares fell 3.1% today, bringing the current price to $269.26. Over the past 52 weeks, GNRC has traded between a low of $118.09 and a high of $287.09, reflecting significant volatility in the stock price.

GF Value™ verdict: Current price is $269.26 vs GF Value™ of $158.62, indicating a 69.8% overvaluation.GF Score™: 83/100, which suggests a strong overall quality assessment.Most notable signal: Insider activity reveals that insiders sold $3.4 million worth of shares in the last three months, indicating a lack of buying interest. Is GNRC Overvalued or Undervalued? The current price of Generac Holdings Inc GNRC at $269.26 is significantly higher than the GF Value™ estimate of $158.62, marking the stock as 69.8% overvalued according to GuruFocus' proprietary valuation metrics. This overvaluation suggests that GNRC may not provide a sufficient margin of safety for potential investors, as the current market price considerably exceeds the calculated intrinsic value of the company. The GF Valuation label categorizes GNRC as "Significantly Overvalued," which presents a risk for investors considering entering a position at this price point.

The GF Value™ methodology evaluates intrinsic value by analyzing historical trading multiples, past business growth, and future performance estimates. Given the substantial divergence between market price and GF Value™, investors must be cautious, as this overvaluation could lead to a price correction if the market reassesses the company’s value in the near future.

How Does GNRC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 84.1x 35.3x Forward P/E 29.9x N/A The current P/E ratio of 84.1x is 138% above its 5-year median P/E of 35.3x, indicating that GNRC is trading significantly above its historical valuation levels. This P/E analysis aligns with the GF Value™ verdict of overvaluation, reinforcing the notion that the current stock price does not reflect the company's historical earnings multiples.

What Does GNRC's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).

Metric Rating GF Score™ 83 Financial Strength 6/10 Profitability 8/10 Growth 8/10 Valuation 3/10 Momentum 9/10 Overall, GNRC's GF Score™ of 83 indicates a strong company, particularly in areas of profitability and growth, which are both rated 8/10. The momentum rank of 9/10 also highlights positive price trends. However, the valuation rank of 3/10 suggests that the stock is not favorably priced relative to its earnings, aligning with the concerns raised by the GF Value™ assessment.

What Are Insiders Doing with GNRC Stock? Insider activity for Generac Holdings Inc has shown a bearish trend, with insiders selling $3.4 million worth of shares in the past three months, and no reported purchases. This selling activity may indicate that those with intimate knowledge of the company do not have confidence in the stock's current valuation, which could be a bearish signal for potential investors.

The lack of insider buying further raises concerns about the stock's current price level and potential future performance, as insiders typically gain insight into the company's prospects and may act accordingly.

What This Means for Investors Based on the GF Value™ assessment, Generac Holdings Inc GNRC is currently overvalued. With shares trading at $269.26 compared to a fair value estimate of $158.62, the stock presents significant risks for potential investors. Caution is advised as the current market price far exceeds intrinsic value.

For the complete analysis, visit the Generac Holdings Inc GNRC 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 GNRC's GF Score™?

GNRC's GF Score™ is 83/100, indicating a strong overall assessment based on various key metrics.

Is GNRC overvalued or undervalued?

GNRC is currently overvalued, with a GF Value™ estimate of $158.62 compared to a market price of $269.26.

What is GNRC's P/E ratio?

GNRC's P/E ratio is 84.1x, which is significantly higher than its 5-year median P/E of 35.3x, indicating overvaluation relative to its historical earnings.

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].

, /PRNewswire/ -- Generac Holdings Inc. (NYSE: GNRC), a leading global designer, manufacturer and provider of energy technology solutions and other power products, today announced it has signed a global supply agreement with a leading hyperscale data center operator to supply backup power generators for the company's data center infrastructure.

Generac signed a global supply agreement with a leading hyperscale data center operator. Data centers underpin the digital infrastructure people rely on every day — banking systems, healthcare delivery, transportation logistics, emergency response, and the broader digital economy. Reliable backup power is the resilience layer that keeps these essential services running through grid disruptions, weather events, and high-demand periods.

The global supply agreement was awarded following a rigorous qualification process including multiple factory visits, performance and quality system reviews, and audits across Generac's broader vendor base.

"This agreement positions Generac at the heart of supporting essential services and the digital economy," said Aaron Jagdfeld, Chairman, President and CEO of Generac. "The successful navigation of this approval process solidifies our position as a top-tier supplier of large megawatt backup power generators and reflects the kind of relationship we expect will grow as the digital economy continues to scale."

"Generac has been supporting mission-critical infrastructure for decades," said Erik Wilde, EVP and President, Domestic C&I at Generac. "Securing this agreement reflects our culture — an engineering-first organization focused on backup power, with the service capabilities required to support critical infrastructure at scale."

Generac has made a series of strategic investments to scale its Commercial & Industrial business and strengthen its global capabilities. Recent initiatives include the collaboration with EPC Power to deploy fully integrated energy solutions for data center applications worldwide, and the acquisition of Enercon, adding 50 years of expertise in generator enclosures and switchgear for mission-critical applications.

These efforts are complemented by the ongoing expansion of manufacturing and operational capacity at facilities in Beaver Dam, Oshkosh and Sussex, Wisconsin, as well as across key regions including APAC, Europe, the Middle East and Latin America, reinforcing Generac's ability to support data center growth with reliable, end-to-end solutions on a global scale. Generac's expertise is further demonstrated through the successful delivery of energy solutions for major colocator data center projects worldwide, supporting some of the industry's leading operators in ensuring resilient, mission-critical infrastructure for rapidly growing digital economies.

About Generac
Generac is a total energy solutions company that empowers people to use energy on their own terms. Founded in 1959, Generac is a leading global designer, manufacturer, and provider of a wide range of energy technology solutions. The Company provides power generation equipment, energy storage systems, energy management devices & solutions, and other power products serving the residential, commercial, data center, telecom, rental and industrial markets. The Company's broad portfolio of energy technology offerings for homes and businesses enables its mission to Power a Smarter World and lead the evolution to more resilient, efficient, and innovative energy solutions.

Forward-looking Information
Certain statements contained in this news release, as well as other information provided from time to time by Generac Holdings Inc. or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements give Generac's current expectations and projections relating to the Company's financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "forecast," "project," "plan," "intend," "believe," "confident," "may," "should," "can have," "likely," "future," "optimistic" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.

Any such forward-looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Company's control) and assumptions. Although Generac believes any forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Generac's actual financial results and cause them to differ materially from those anticipated in any forward- looking statements, including:

frequency and duration of power outages impacting demand for our products; fluctuations in cost, availability, and quality of raw materials, key components and labor required to manufacture our products; our dependence on a small number of contract manufacturers and component suppliers, including single-source suppliers; changes and volatility with respect to the trade policies of various countries, which may result in new or increased tariffs, trade restrictions, or other unfavorable trade actions; our ability to protect our intellectual property rights or successfully defend against third party infringement claims; changes in durable goods spending by consumers and businesses or other global macroeconomic conditions, impacting demand for our products; changes in governmental policies, particularly with respect to tax incentives, tax credits, or grant programs, which could: (i) affect the demand for certain of our products; or (ii) result in a withdrawal or reduction of grants previously awarded to the Company; increase in product and other liability claims, warranty costs, recalls, or other claims; significant legal proceedings, claims, fines, penalties, tax assessments, lawsuits or government investigations; our ability to consummate our share repurchase programs; our failure or inability to adapt to, or comply with, current or future changes in applicable laws, regulations, and product standards; our ability to develop and enhance products and gain customer acceptance including our offerings that serve the data center and energy technology markets; uncertainty regarding the growth of the data center market; increase in contract risk related to terms with certain data center customers, including cancellation rights, delivery requirements, and potential liability exposure tied to our performance obligations or other claimed damages; our ability to accurately forecast demand for our products and effectively manage inventory levels relative to such forecast; our ability to remain competitive; our dependence on our dealer and distribution network; market reaction to changes in selling prices or mix of products; loss of our key management and employees; disruptions from labor disputes or organized labor activities; our ability to attract and retain employees; disruptions in our manufacturing operations; the possibility that the expected synergies, efficiencies and cost savings of our acquisitions, divestitures, restructurings, or realignments will not be realized, or will not be realized within the expected time period; risks related to sourcing components in foreign countries; compliance with environmental, health and safety laws and regulations; scrutiny regarding our sustainability practices; government regulation of our products; failures or security breaches of our networks, information technology systems, or connected products; risks due to instability caused by geopolitical conflicts; our ability to make payments on our indebtedness; terms of our credit facilities that may restrict our operations; our potential need for additional capital to finance our growth or refinancing our existing credit facilities; risks of impairment of the value of our goodwill and other indefinite-lived assets; volatility of our stock price; and potential tax liabilities. Should one or more of these risks or uncertainties materialize, Generac's actual results may vary in material respects from those projected in any forward-looking statements. A detailed discussion of these and other factors that may affect future results is contained in Generac's filings with the U.S. Securities and Exchange Commission ("SEC"), particularly in the Risk Factors section of the Annual Report on Form 10-K and in its periodic reports on Form 10-Q. Stockholders, potential investors and other readers should consider these factors carefully in evaluating the forward-looking statements.

Any forward-looking statement made by Generac in this press release speaks only as of the date on which it is made. Generac undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

CONTACT: [email protected]

Generac CEO Aaron Jagdfeld joins ‘Squawk on the Street' to discuss the company's global supply agreement to provide generators to a major hyperscaler, how the deal could transform the business, and more.

Generac Today

$261.58 +4.25 (+1.65%)

As of 03:10 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$123.66▼

$294.18P/E Ratio82.01

Price Target$278.65

Power consumption is the hardest physical limit on artificial intelligence (AI) scaling. As tech giants race to build the next generation of power-hungry data centers, a legacy manufacturer known for residential backup generators has executed a brilliant strategic pivot.

A strategic pivot that now positions Generac Holdings Inc. NYSE: GNRC as a critical infrastructure supplier for the AI supercycle.

Get Generac alerts:

Following a landmark global supply agreement with an undisclosed top-tier hyperscaler, Generac is quietly positioning itself inside the mission-critical grid resilience layer required to keep the AI revolution online, as multi-billion-dollar initiatives like Stargate accelerate demand for reliable backup power.

This deliberate transition from a weather-dependent residential business to a larger data-center-driven commercial and industrial business appears poised to unlock a new, more predictable phase of significant growth. It represents a structural shift that some investors are beginning to notice.

Generac's Ticket to the AI Big LeaguesOn June 2, 2026, Generac announced it had secured a global supply agreement with an undisclosed hyperscale data center operator to provide large-megawatt backup power generators. The news was a clear market signal, validating the industrial pivot and sending Generac shares up nearly 8% in a single session.

Generac Holdings Inc. (GNRC) Price Chart for Friday, June, 12, 2026

The agreement did not come with a disclosed order value, but it builds on an already meaningful data center backlog. Generac reported more than $700 million in data center backlog in Q1, up roughly $300 million from its mid-February update, giving the company revenue visibility into 2027 before any additional contribution from larger hyperscale opportunities.

While the partner remains officially confidential, the deal is heavily connected to the Stargate AI data center, a rumored $100 billion joint venture involving OpenAI, Oracle, and SoftBank. The evidence lies in plain sight within Texas air permitting documents filed for the project's Abilene site.

These public records explicitly list emergency generators powered by Baudouin engines, a brand used in Generac’s large-megawatt data center generator lineup.

This is not just a one-off contract; it is a technical and logistical validation of Generac's capacity to meet the rigorous, always-on demands of the world's most advanced computing infrastructure. Landing a piece of this foundational AI project serves as a powerful calling card for future hyperscale contracts globally.

Generac's Financials Power Up for GrowthGenerac's recent financial performance provides a strong foundation for this growth narrative.

Generac delivered a robust first quarter for 2026, reporting net sales of $1.06 billion, a 12% year-over-year increase. More impressively, earnings per share (EPS) came in at $1.80, crushing consensus estimates of $1.33 by a remarkable 35%.

The key metric for this strategic pivot, however, is margin expansion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins hit 18.3%, reflecting companywide operating leverage and strong C&I momentum.

After the solid report, Generac raised its full-year 2026 revenue guidance to mid-to-high teens growth, with adjusted EBITDA margins now projected to reach 19% at the midpoint.

Generac Stock Forecast Today12-Month Stock Price Forecast:
$278.65
6.52% Upside

Moderate Buy
Based on 18 Analyst Ratings

Current Price$261.59High Forecast$335.00Average Forecast$278.65Low Forecast$202.00Generac Stock Forecast Details

Sell-side analysts reacted swiftly to the hyperscaler and data-center catalyst and improved outlook.

Jefferies upgraded the stock from a Hold to a Buy, raising its price target to $302.

Their long-term model forecasts a clear path for Generac to achieve $6.8 billion in total revenue and nearly $1.5 billion in adjusted EBITDA by 2028.

The outlook is contingent on securing at least two major hyperscaler contracts within the next three years, a goal that now seems attainable.

This trajectory underscores the massive margin expansion potential as the sales mix shifts from lower-margin residential products to high-value, long-term industrial solutions.

The Price of Power: Insider Selling Vs. Analyst HypeDespite the compelling growth story, investors must analyze the counterarguments. The primary risk factor is valuation. With a trailing 12-month price-to-earnings (P/E) ratio of approximately 87x, Generac trades at a significant premium. This multiple suggests the market has already priced in substantial future AI-driven growth, leaving less room for error or execution missteps.

Generac also faces stiff competition from established industrial incumbents such as Caterpillar NYSE: CAT, Cummins NYSE: CMI, and Kohler, all of which have deep roots and extensive global service networks in the data center power space.

But even as analysts have become more constructive on Generac’s AI data center opportunity, there has been no insider buying activity over the past year.

However, it is also worth noting that the only reported insider sale over the past three months came from CEO Aaron Jagdfeld, whose June 1 sale of 5,000 shares for approximately $1.36 million was conducted under a prearranged Rule 10b5-1 trading plan. That planned transaction does not meaningfully support a bearish read on its own, but the absence of insider buying gives investors another risk factor to weigh against the recent wave of bullish analyst upgrades and the stock’s premium valuation.

Plugging Into Generac's AI Power SurgeGenerac presents a unique and timely investment thesis. The industrial giant is successfully leveraging its core competency in power generation to penetrate the booming AI data center market, offering a crucial pick-and-shovel play on one of the most significant technological shifts of our time. The hyperscaler contract provides tangible proof of this strategic pivot and its clear potential for significant, sustained margin expansion.

However, the stock's premium valuation and the recent pattern of insider selling are material risks that cannot be ignored. A short interest of approximately 4.58% of the float also indicates a healthy market debate between bullish momentum investors and those skeptical of the current price.

Investors with a higher risk tolerance and a long-term horizon might consider Generac an essential infrastructure component for a diversified AI-focused portfolio. More cautious investors, conversely, may prefer to add Generac to their watchlist, waiting for a broader market pullback or a period of consolidation to offer a more attractive entry point into this compelling grid-resilience story.

Should You Invest $1,000 in Generac Right Now?Before you consider Generac, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Generac wasn't on the list.

While Generac currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Enter your email address and we’ll send you MarketBeat’s list of ten stocks set to soar in Summer 2026, despite the threat of tariffs and what's happening in Iran. These ten stocks are incredibly resilient and are likely to thrive in any economic environment.

Get This Free Report

Posted by Defense World Staff on Apr 7th, 2026

Allspring Global Investments Holdings LLC decreased its stake in shares of Cavco Industries, Inc. (NASDAQ:CVCO – Free Report) by 18.8% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 13,255 shares of the construction company’s stock after selling 3,062 shares during the quarter. Allspring Global Investments Holdings LLC owned approximately 0.17% of Cavco Industries worth $7,841,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. lifted its holdings in Cavco Industries by 12.4% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 199 shares of the construction company’s stock valued at $86,000 after buying an additional 22 shares in the last quarter. Sheets Smith Wealth Management increased its position in Cavco Industries by 1.4% during the 3rd quarter. Sheets Smith Wealth Management now owns 2,245 shares of the construction company’s stock valued at $1,304,000 after purchasing an additional 31 shares during the period. Nisa Investment Advisors LLC increased its position in Cavco Industries by 3.8% during the 3rd quarter. Nisa Investment Advisors LLC now owns 872 shares of the construction company’s stock valued at $506,000 after purchasing an additional 32 shares during the period. Guidance Capital Inc. increased its position in Cavco Industries by 3.3% during the 3rd quarter. Guidance Capital Inc. now owns 1,122 shares of the construction company’s stock valued at $663,000 after purchasing an additional 36 shares during the period. Finally, Smartleaf Asset Management LLC increased its position in Cavco Industries by 27.4% during the 3rd quarter. Smartleaf Asset Management LLC now owns 186 shares of the construction company’s stock valued at $109,000 after purchasing an additional 40 shares during the period. Institutional investors own 95.56% of the company’s stock.

Analysts Set New Price Targets A number of research analysts have commented on CVCO shares. Weiss Ratings downgraded shares of Cavco Industries from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, February 26th. Zacks Research downgraded shares of Cavco Industries from a “hold” rating to a “strong sell” rating in a research report on Monday, February 9th. CJS Securities raised shares of Cavco Industries to a “strong-buy” rating in a research report on Thursday, December 11th. Finally, Zelman & Associates raised shares of Cavco Industries to an “outperform” rating in a research report on Thursday, February 5th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $550.00.

Read Our Latest Analysis on Cavco Industries

Insiders Place Their Bets In related news, Director David A. Greenblatt bought 87 shares of the company’s stock in a transaction on Wednesday, February 4th. The shares were bought at an average price of $500.00 per share, with a total value of $43,500.00. Following the transaction, the director owned 16,076 shares in the company, valued at approximately $8,038,000. This trade represents a 0.54% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO William C. Boor bought 1,000 shares of the company’s stock in a transaction on Wednesday, February 4th. The shares were bought at an average cost of $495.00 per share, for a total transaction of $495,000.00. Following the transaction, the chief executive officer owned 48,022 shares in the company, valued at $23,770,890. The trade was a 2.13% increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders have purchased 1,800 shares of company stock valued at $866,592. Insiders own 1.60% of the company’s stock.

Cavco Industries Trading Up 0.3% NASDAQ:CVCO opened at $481.27 on Tuesday. The company has a market cap of $3.73 billion, a PE ratio of 20.91 and a beta of 1.33. Cavco Industries, Inc. has a twelve month low of $393.53 and a twelve month high of $713.01. The company’s 50 day moving average is $532.16 and its two-hundred day moving average is $566.59.

Cavco Industries (NASDAQ:CVCO – Get Free Report) last released its earnings results on Thursday, January 29th. The construction company reported $5.58 earnings per share for the quarter, missing the consensus estimate of $6.00 by ($0.42). The company had revenue of $580.99 million for the quarter, compared to analysts’ expectations of $593.37 million. Cavco Industries had a return on equity of 17.84% and a net margin of 8.37%. As a group, analysts expect that Cavco Industries, Inc. will post 21.93 EPS for the current fiscal year.

About Cavco Industries (Free Report)

Cavco Industries, Inc is a leading designer, manufacturer and retailer of factory-built homes and modular structures. The company produces a range of HUD-code manufactured homes, modular buildings, park model RVs and cabins through its network of production facilities. Its offerings cater to both residential and commercial markets, including customizable single- and multi-section homes, workforce and affordable housing solutions, educational and healthcare modules, as well as specialty lodging products for the recreational vehicle and hospitality industries.

Since its founding in 1967, Cavco has grown through strategic investments and acquisitions, expanding its footprint across the United States and into parts of Canada and Mexico.

Further Reading Five stocks we like better than Cavco Industries

Receive News & Ratings for Cavco Industries Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cavco Industries and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEDuff & Phelps Utility and Infrastructure Fund Inc. $DPG Stock Holdings Boosted by Allspring Global Investments Holdings LLC

NEXT HEADLINE »Allspring Global Investments Holdings LLC Reduces Holdings in Comcast Corporation $CMCSA

Cavco Industries (CVCO) is downgraded from 'buy' to 'hold' due to declining backlog and worsening profitability despite rising revenue. CVCO's revenue growth is driven by higher home deliveries, price increases, and the American Homestar acquisition, but SG&A costs and acquisition expenses pressured margins. Backlog dropped from $224 million to $160 million year-over-year, raising concerns about forward demand despite a strong balance sheet and no debt.

PHOENIX, May 20, 2026 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) (“Cavco,” “we” or the “Company”) announced plans to build a state-of-the-art home manufacturing facility in El Mirage, Arizona. The new 616,000 square foot building facility will increase access to affordable housing across multiple states by producing exceptional, affordable HUD-code manufactured and modular single-family homes. Cavco, headquartered in Phoenix, Arizona, designs and produces factory-built housing products distributed nationwide through a network of independent and company-owned retailers.

Bill Boor, Cavco President and Chief Executive Officer, said, “We are excited about the project, which is a key part of a broader operating strategy in the Southwest region. The shortage of affordable housing in the United States is real, and the El Mirage project will expand Cavco’s capacity to provide quality homes for deserving families in Arizona and surrounding states. We are designing a great place to work in the Phoenix area – reaffirming our commitment to the region and to our Cavco team members.”

Jeff Chrisman, Cavco Regional Vice President overseeing the project added, “We continue to raise the standard in construction processes and equipment in our home building facilities. El Mirage will represent the incorporation of these improvements and beyond, which will make us better and increase our ability to produce more homes.”

Construction of the fully temperature-controlled facility will incorporate modern design, sustainable building practices and advanced manufacturing techniques. The initial project design includes one production line, with an option to expand the facility with a second line for modest additional capital.

We recently broke ground and will move forward under a structured, multi-phase schedule, targeting to be operational by mid-2027. This estimate is dependent upon final permitting and other factors that could impact construction schedules. Additional details about the new facility will be shared as key milestones are reached.

About Cavco

Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and builds factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco’s finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes. Additional information about Cavco can be found at www.cavcohomes.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on current expectations, estimates, and projections about the Company’s business, and are subject to known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those expressed or implied by such statements. Forward-looking statements are generally identified by words such as “may,” “will,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “continue,” or similar expressions, although not all forward-looking statements contain these words.

Forward-looking statements are not guarantees of future performance and actual results may differ materially from those projected. Any forward-looking statements in this press release are made only as of the date hereof, and the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

For additional information, contact:

Mark Fusler
Corporate Controller and Investor Relations
[email protected]

Phone: 602-256-6263
On the Internet: www.cavcohomes.com

PHOENIX, May 21, 2026 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) today announced financial results for the fourth quarter and fiscal year ended March 28, 2026.

Quarterly Highlights

Net revenue of $550 million up 8% from $508 million in the prior year quarter.Gross profit as a percentage of Net revenue was 23.1%, up 30 basis points ("bps"), with factory-built housing Gross profit as a percentage of Net revenue at 21.2%, down 110 bps.Net income was $42 million. Net income per diluted share was $5.42 compared to $4.47. Full Fiscal Year Highlights

Net revenue was $2,245 million, up $230 million or 11.4% compared to $2,015 million last year.Factory-built housing Gross profit as a percentage of Net revenue was 22.1%, compared to 22.9%.Income before income taxes was $245 million, up $34 million or 15.9% compared to $211 million.Net income per diluted share was $23.98 compared to $20.71. Backlogs at March 28, 2026 were $195 million, down from $197 million at March 29, 2025.Stock repurchases were approximately $160 million in the year. On May 18, 2026, the Company's Board of Directors approved an additional $150 million stock repurchase program. Commenting on the results, Bill Boor, President and Chief Executive Officer, said, "Cavco made a lot of progress across many fronts in fiscal year 2026. In addition to continuing a progression of digital marketing, branding and product line transformations, all aimed at improving the customer and retailer experience, we sold a record number of homes. We also joined forces with American Homestar which is exceeding expectations for tangible synergies and operating performance. Finally, as announced yesterday, in Q4 we broke ground on a new, state-of the art production facility in El Mirage, Arizona. This expansion reflects our consistent capital allocation approach focused on the long-term need for factory-built solutions to the worsening housing crisis in America."

He continued, “Wholesale orders in the fourth quarter were up significantly from both the third quarter of this year and the fourth quarter of last year, with the bulk of that pick-up and the accompanying backlog increase happening in March. Additionally, both our insurance and lending operations posted strong results in the quarter. Despite an environment that has not materially improved and remains uncertain, we continued to perform well and invest in the future.”

Three months ended March 28, 2026 compared to three months ended March 29, 2025

 Three Months Ended    ($ in thousands, except revenue per home sold)March 28,
2026 March 29,
2025 ChangeNet revenue         Factory-built housing$528,048  $487,860  $40,188  8.2%Financial services 22,079   20,498   1,581  7.7% $550,127  $508,358  $41,769  8.2%          Factory-built modules sold 8,328   8,260   68  0.8%          Factory-built homes sold (consisting of one or more modules) 5,027   5,060   (33) (0.7)%          Net factory-built housing revenue per home sold$105,042  $96,415  $8,627  8.9% In the factory-built housing segment, the increase in Net revenue was caused by higher average selling price per home sold primarily caused by a higher percentage of sales through Company-owned stores and product mix.Financial services segment Net revenue increased primarily due to more loan sales in the current period after securing a long term agreement to sell loans to a third party investor. Additionally, to a lesser extent, the addition of the American Homestar financial services operation also contributed to net revenue.  Three Months Ended    ($ in thousands)March 28,
2026 March 29,
2025 ChangeGross profit       Factory-built housing$111,737  $108,573  $3,164  2.9%Financial services 15,316   7,544   7,772  103.0% $127,053  $116,117  $10,936  9.4%        Gross profit as % of Net revenue       Consolidated 23.1%  22.8% N/A 0.3%Factory-built housing 21.2%  22.3% N/A (1.1)%Financial services 69.4%  36.8% N/A 32.6%        Selling, general and administrative expenses       Factory-built housing$68,008  $71,458  $(3,450) (4.8)%Financial services 7,572   6,029   1,543  25.6% $75,580  $77,487  $(1,907) (2.5)%        Income from operations       Factory-built housing$43,729  $37,115  $6,614  17.8%Financial services 7,744   1,515   6,229  411.2% $51,473  $38,630  $12,843  33.2% In the factory-built housing segment, Gross profit increased from higher average selling price per home sold, partially offset by higher input costs and lower home sales. Selling, general and administrative expenses decreased compared to the prior year period primarily due to a $10 million non‑cash charge related to adjustment of certain legacy brand intangibles in the fourth quarter of fiscal 2025, which impacted Diluted net income per share by $0.93. Excluding the impact of that charge, SG&A increased year‑over‑year due to the inclusion of Selling, general and administrative expense from the Company’s acquisition of American Homestar completed at the beginning of the third quarter of this fiscal year.In the financial services segment, Gross profit increased primarily due to higher premiums and lower claims losses on insurance policies, as well as an increase in loans sold. The claims loss reduction resulted from both policy underwriting improvements and a reduction due to severe weather events in the prior year period which resulted in higher claims that did not recur. Selling, general and administrative expenses increased due to higher compensation.  Three Months Ended     ($ in thousands, except per share amounts)March 28,
2026 March 29,
2025 ChangeNet income$42,461  $36,330  $6,131  16.9%Diluted net income per share$5.42  $4.47  $0.95  21.3%                Year ended March 28, 2026 compared to the year ended March 29, 2025

 Year Ended     ($ in thousands, except revenue per home sold)March 28,
2026 March 29,
2025 ChangeNet revenue          Factory-built housing$2,157,356  $1,933,111  $224,245  11.6%Financial services 87,149   82,347   4,802  5.8% $2,244,505  $2,015,458  $229,047  11.4%           Factory-built modules sold 34,745   32,428   2,317  7.1%           Factory-built homes sold (consisting of one or more modules) 20,842   19,753   1,089  5.5%           Net factory-built housing revenue per home sold$103,510  $97,864  $5,646  5.8% In the factory-built housing segment, the year-over-year increase in Net revenue was primarily due to higher average selling prices and home sales volume. The current year period includes six months of operations of American Homestar.Financial services segment Net revenue increased year-over-year primarily due to higher insurance premiums in the current year compared to the prior year, partially offset by fewer policies in force.  Year Ended     ($ in thousands)March 28,
2026 March 29,
2025 ChangeGross profit        Factory-built housing$476,330  $441,797  $34,533  7.8%Financial services 50,557   23,794   26,763  112.5% $526,887  $465,591  $61,296  13.2%         Gross profit as % of Net revenue        Consolidated 23.5%  23.1% N/A 0.4%Factory-built housing 22.1%  22.9% N/A (0.8)%Financial services 58.0%  28.9% N/A 29.1%         Selling, general and administrative expenses        Factory-built housing$271,081  $253,027  $18,054  7.1%Financial services 27,237   22,288   4,949  22.2% $298,318  $275,315  $23,003  8.4%         Income from operations        Factory-built housing$205,249  $188,770  $16,479  8.7%Financial services 23,320   1,506   21,814  1,448.5% $228,569  $190,276  $38,293  20.1% In the factory-built housing segment, Gross profit increased from higher average selling price and volume driven partially by current year including six months of American Homestar activity, partially offset by higher input costs. Selling, general and administrative expenses increased as a result of higher incentive compensation on higher sales, the inclusion of Selling, general and administrative expenses from the acquisition of American Homestar acquisition in the third quarter of the current fiscal year and deal costs related to the acquisition. These costs were partially offset by a non-recurring $10.0 million non-cash charge related to the adjustment of certain legacy brand intangibles in the prior year.In the financial services segment, Gross profit increased primarily due to the insurance division having higher premiums and lower claims losses. The claims loss reduction resulted from policy underwriting improvements and severe weather events in the prior year period. Selling, general and administrative expenses increased primarily due to higher compensation.  Year Ended     ($ in thousands, except per share amounts)March 28,
2026 March 29,
2025 ChangeNet income$190,551  $171,036  $19,515  11.4%Diluted net income per share$23.98  $20.71  $3.27  15.8%                Conference Call Details

Cavco's management will hold a conference call to review these results tomorrow, May 22, 2026 at 1:00 p.m. (Eastern Time). Interested parties can access a live webcast of the conference call on the Internet at https://investor.cavco.com or via telephone. To participate by phone, please register here to receive the dial in number and your PIN. An archive of the webcast and presentation will be available for 60 days at https://investor.cavco.com.

About Cavco

Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco's finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. These forward-looking statements reflect Cavco's current expectations and projections with respect to our expected future business and financial performance, including, among other things: (i) expected financial performance and operating results, such as revenue and gross margin percentage; (ii) our liquidity and financial resources; (iii) our outlook with respect to the Company and the manufactured housing business in general; (iv) the expected effect of certain risks and uncertainties on our business; and (iv) the strength of Cavco's business model. These statements may be preceded by, followed by, or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "goal," "intend," "likely," "outlook," "plan," "potential," "project," "seek," "target," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning. A number of factors could cause actual results or outcomes to differ materially from those indicated by these forward-looking statements. These factors include, among other factors, Cavco's ability to manage: (i) customer demand and the availability of financing for our products; (ii) labor shortages and the pricing, availability, or transportation of raw materials; (iii) the impact of local or national emergencies; (iv) excessive health and safety incidents or warranty and construction claims; (v) increases in cancellations of home sales; (vi) information technology failures or cyber incidents; (vii) our ability to maintain the security of personally identifiable information of our customers, (viii) compliance with the numerous laws and regulations applicable to our business, including state, federal, and foreign laws relating to manufactured housing, privacy, the internet, and accounting matters; (ix) successful defense against litigation, government inquiries, and investigations, and (x) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (the "SEC") by Cavco. The forward-looking statements herein represent the judgment of Cavco as of the date of this release and Cavco disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in the Company's other press releases, reports, and other filings with the SEC. Readers are specifically referred to the Risk Factors described in Item 1A of the Company's Annual Report on Form 10-K for the year ended March 29, 2025 as may be updated from time to time in future filings on Form 10-Q and other reports filed by the Company pursuant to the Securities Exchange Act of 1934, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Understanding the information contained in these filings is important in order to fully understand Cavco's reported financial results and our business outlook for future periods.

    CAVCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)     March 28,
2026 March 29,
2025ASSETS(Unaudited)  Current assets   Cash and cash equivalents$236,721  $356,225 Restricted cash, current 20,306   18,535 Accounts receivable, net 108,288   105,849 Short-term investments 16,233   19,842 Current portion of consumer loans receivable, net 19,207   35,852 Current portion of commercial loans receivable, net 54,841   43,492 Current portion of commercial loans receivable from affiliates, net 1,836   2,881 Inventories 295,671   252,695 Prepaid expenses and other current assets 71,630   74,815 Total current assets 824,733   910,186 Restricted cash 585   585 Investments 38,151   18,067 Consumer loans receivable, net 18,974   20,685 Commercial loans receivable, net 55,801   48,605 Commercial loans receivable from affiliates, net 3,519   4,768 Property, plant and equipment, net 278,890   227,620 Goodwill 208,841   121,969 Other intangibles, net 28,067   16,731 Operating lease right-of-use assets 33,578   35,576 Deferred income taxes —   1,853 Total assets$1,491,139  $1,406,645 LIABILITIES AND STOCKHOLDERS' EQUITY   Current liabilities   Accounts payable$44,168  $37,195 Accrued expenses and other current liabilities 291,230   265,971 Total current liabilities 335,398   303,166 Operating lease liabilities 30,747   31,538 Other liabilities 7,096   7,359 Deferred income taxes 14,716   — Total liabilities 387,957   342,063 Stockholders' equity   Preferred stock, $0.01 par value; 1,000,000 shares authorized; No shares issued or outstanding —   — Common stock, $0.01 par value; 40,000,000 shares authorized; Issued 9,474,288 and 9,436,732 shares, respectively; Outstanding 7,738,700 and 8,008,012 shares, respectively 95   94 Treasury stock, at cost; 1,735,588 and 1,428,720 shares, respectively (585,865)  (424,624)Additional paid-in capital 300,208   290,940 Retained earnings 1,388,714   1,198,163 Accumulated other comprehensive income (loss) 30   9 Total stockholders' equity 1,103,182   1,064,582 Total liabilities and stockholders' equity$1,491,139  $1,406,645          CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
(Unaudited)     Three Months Ended Year Ended March 28,
2026 March 29,
2025 March 28,
2026 March 29,
2025Net revenue$550,127  $508,358  $2,244,505  $2,015,458 Cost of sales 423,074   392,241   1,717,618   1,549,867 Gross profit 127,053   116,117   526,887   465,591 Selling, general and administrative expenses 75,580   77,487   298,318   275,315 Income from operations 51,473   38,630   228,569   190,276 Interest income 3,232   4,533   16,337   21,089 Interest expense (134)  (147)  (541)  (517)Other (expense) income, net (20)  (93)  335   222 Income before income taxes 54,551   42,923   244,700   211,070 Income tax expense (12,090)  (6,593)  (54,149)  (40,034)Net income$42,461  $36,330  $190,551  $171,036         Net income per share       Basic$5.48  $4.53  $24.26  $20.97 Diluted$5.42  $4.47  $23.98  $20.71 Weighted average shares outstanding       Basic 7,750,223   8,015,611   7,853,251   8,157,615 Diluted 7,840,942   8,120,407   7,946,049   8,259,956                  CAVCO INDUSTRIES, INC.
OTHER OPERATING DATA
(Dollars in thousands)
(Unaudited)       Three Months Ended Year Ended March 28,
2026 March 29,
2025 March 28,
2026 March 29,
2025Capital expenditures$8,046  $6,174  $35,406  $21,427 Depreciation$5,769  $4,578  $21,079  $17,729 Amortization of other intangibles$610  $376  $1,963  $1,530                  For additional information, contact:
Mark Fusler
Corporate Controller and Investor Relations
[email protected]
Phone: 602-256-6263
On the Internet: www.cavcoindustries.com