Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<div><ul><li>Solid start to 2026 amid volatile operating backdrop. </li><li>AVNT reported 1Q26 adjusted EPS of $0.83, ahead of guidance of $0.81 and up 9% Y/Y, while adjusted EBITDA increased to $149.9MM with margins expanding 20 bps to 17.7%.</li><li>Reported sales increased 2.5% Y/Y to $847.4MM despite continued softness in consumer, industrial, and transportation markets.</li></ul></div>

Solid start to 2026 amid volatile operating backdrop. AVNT reported 1Q26 adjusted EPS of $0.83, ahead of guidance of $0.81 and up 9% Y/Y, while adjusted EBITDA increased to $149.9MM with margins expanding 20 bps to 17.7%.Reported sales increased 2.5% Y/Y to $847.4MM despite continued softness in consumer, industrial, and transportation markets.

AVNT: Strong Execution and Margin Expansion Offset Macro Volatility as Secular Growth Accelerates

Avient

AVNT: Strong Execution and Margin Expansion Offset Macro Volatility as Secular Growth Accelerates