Dan Rosenthal

Dan Rosenthal asked for the outlook on the transportation market. He also inquired if the company's recent focus on organic growth, without acquisitions or divestitures over the past two years, is expected to continue.

Answer

Ashish K. Khandpur, President and CEO, reported that transportation sales were down 1% for the year, with regional variations, and projected flattish to low single-digit growth for 2026, with Q1 potentially softer due to China EV exports. Regarding M&A, he explained the current focus is on strengthening innovation and commercialization capabilities, and that future M&A would complement organic growth, likely not in 2026, and after further balance sheet improvement.

Dan Rosenthal inquired about Avient's future strategy regarding M&A versus organic growth, given the absence of acquisitions or divestitures in the past two years.

Answer

Ashish K. Khandpur, President and CEO, explained that Avient is focused on building internal capabilities in innovation and commercialization, particularly in new growth vectors. He stated that M&A would likely complement organic growth, not be standalone, and is not expected in 2026, with a stronger balance sheet desired before pursuing such opportunities.