avnt-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________________

FORM 10-Q

________________________________________________

(Mark One)


☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2026


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to .

Commission file number 1-16091

________________________________________________

AVIENT CORPORATION

(Exact name of registrant as specified in its charter)

________________________________________________


Ohio									34-1730488
(State or other jurisdiction									(I.R.S. Employer Identification No.)
of incorporation or organization)


33587 Walker Road									44012
Avon Lake, Ohio
(Address of principal executive offices)									(Zip Code)

Registrant’s telephone number, including area code: (440) 930-1000

Former name, former address and former fiscal year, if changed since last report: Not Applicable

_______________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, par value $.01 per share	AVNT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

The number of the registrant’s outstanding common shares, par value $.01 per share, as of March 31, 2026 was 91,710,167.

AVIENT CORPORATION

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

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)




Weighted-average shares used to compute earnings per common share:
Basic	91.7		91.5
Plus dilutive impact of share-based compensation	0.2		—
Diluted	91.9		91.5

Anti-dilutive share-based compensation awards	1.8		2.5

Cash dividends declared per share of common stock	$	0.2750	$	0.2700

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

1 AVIENT CORPORATION

Avient Corporation

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(In millions)


	Three Months Ended March 31,
	2026		2025
Net income (loss)	$	55.8	$	(19.9)
Other comprehensive income, net of tax:
Translation adjustments and related hedging instruments	1.2		29.5


Total other comprehensive income	1.2		29.5
Total comprehensive income	57.0		9.6
Comprehensive income attributable to noncontrolling interests	(0.1)		(0.3)
Comprehensive income attributable to Avient common shareholders	$	56.9	$	9.3

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

2 AVIENT CORPORATION

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

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

3 AVIENT CORPORATION

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

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

4 AVIENT CORPORATION

Avient Corporation

Condensed Consolidated Statements of Shareholders' Equity (Unaudited)

(In millions)


	Common Shares		Shareholders’ Equity
	Common Shares	Common Shares Held in Treasury	Common Shares		Additional Paid-in Capital		Retained Earnings		Common Shares Held in Treasury		Accumulated Other Comprehensive (Loss) Income		Total Avient Shareholders' Equity		Non-controlling Interests		Total Equity
Balance at January 1, 2026	122.2	(30.6)	$	1.2	$	1,542.4	$	1,865.1	$	(927.8)	$	(106.7)	$	2,374.2	$	12.1	$	2,386.3
Net income	—	—	—		—		55.7		—		—		55.7		0.1		55.8
Other comprehensive income	—	—	—		—		—		—		1.2		1.2		—		1.2

Cash dividends declared -- $0.2750 per share	—	—	—		—		(25.2)		—		—		(25.2)		—		(25.2)


Share-based compensation and exercise of awards	—	0.1	—		(1.3)		—		1.2		—		(0.1)		—		(0.1)

Balance at March 31, 2026	122.2	(30.5)	$	1.2	$	1,541.1	$	1,895.6	$	(926.6)	$	(105.5)	$	2,405.8	$	12.2	$	2,418.0


	Common Shares		Shareholders’ Equity
	Common Shares	Common Shares Held in Treasury	Common Shares		Additional Paid-in Capital		Retained Earnings		Common Shares Held in Treasury		Accumulated Other Comprehensive (Loss) Income		Total Avient Shareholders' Equity		Non-controlling Interests		Total Equity
Balance at January 1, 2025	122.2	(30.8)	$	1.2	$	1,537.5	$	1,882.5	$	(929.6)	$	(177.8)	$	2,313.8	$	15.8	$	2,329.6
Net loss	—	—	—		—		(20.2)		—		—		(20.2)		0.3		(19.9)
Other comprehensive income	—	—	—		—		—		—		29.5		29.5		—		29.5

Cash dividends declared -- $0.2700 per share	—	—	—		—		(24.7)		—		—		(24.7)		—		(24.7)


Share-based compensation and exercise of awards	—	0.1	—		(1.2)		—		1.1		—		(0.1)		—		(0.1)

Balance at March 31, 2025	122.2	(30.7)	$	1.2	$	1,536.3	$	1,837.6	$	(928.5)	$	(148.3)	$	2,298.3	$	16.1	$	2,314.4

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

5 AVIENT CORPORATION

Avient Corporation

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 — BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Form 10-Q instructions and in the opinion of management contain all adjustments, including those that are normal, recurring and necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. These interim financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2025 of Avient Corporation. When used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “Avient” and the “Company” mean Avient Corporation and its consolidated subsidiaries.

Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be attained in subsequent periods or for the year ending December 31, 2026.

Accounting Standards Adopted

In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05). This accounting standard provides a practical expedient allowing entities to assume that current conditions as of the balance sheet date remain unchanged over the remaining life of the asset when estimating expected credit losses. The Company adopted the ASU effective January 1, 2026 on a prospective basis. The adoption did not have a material impact on the Company's allowance for doubtful accounts.

Accounting Standards Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). This accounting standard requires disaggregated income statement expense disclosures on an annual and interim basis, including inventory purchases, employee compensation, depreciation, and intangible asset amortization for each income statement line item that contains theses expenses. The standard also requires disclosure of total selling expenses on an annual and interim basis, and the definition of those expenses disclosed annually. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and may be applied prospectively or retrospectively. The Company is evaluating the impact of ASU 2024-03. As the standard will only impact its disclosures, there will be no material impact to the consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06). This accounting standard changes when software project costs should be capitalized by removing all references to development stages and requiring costs to be capitalized when (1) the Company authorizes and commits to funding the software project and (2) it is probable the software project will be completed. The standard also requires additional annual and interim disclosures, including the capitalized software balance and accumulated amortization. ASU 2025-06 is effective for annual reporting periods, including interim reporting periods within those annual periods, beginning after December 15, 2027, with early adoption permitted and may be applied prospectively, retrospectively, or using a modified prospective transition approach. The Company is evaluating the impact of ASU 2025-06 and expects the standard will not have a material impact on the consolidated financial statements and related disclosures.

6 AVIENT CORPORATION

Note 2 — GOODWILL AND INTANGIBLE ASSETS

Goodwill as of March 31, 2026 and December 31, 2025 and changes in the carrying amount of goodwill by segment were as follows:


(In millions)	Specialty Engineered Materials		Color, Additives and Inks		Total
Balance at December 31, 2025	$	711.4	$	1,046.2	$	1,757.6

Currency translation	(11.0)		(7.4)		(18.4)
Balance at March 31, 2026	$	700.4	$	1,038.8	$	1,739.2

Indefinite and finite-lived intangible assets consisted of the following:


	As of March 31, 2026
(In millions)	Acquisition Cost		Accumulated Amortization		Currency Translation		Net
Customer relationships	$	726.2	$	(278.9)	$	31.5	$	478.8
Patents, technology and other	847.0		(313.2)		36.0		569.8
Indefinite-lived trade names	362.8		—		36.0		398.8
Total	$	1,936.0	$	(592.1)	$	103.5	$	1,447.4


	As of December 31, 2025
(In millions)	Acquisition Cost		Accumulated Amortization		Currency Translation		Net
Customer relationships	$	726.2	$	(269.7)	$	39.2	$	495.7
Patents, technology and other	847.0		(301.4)		46.2		591.8
Indefinite-lived trade names	362.8		—		42.1		404.9
Total	$	1,936.0	$	(571.1)	$	127.5	$	1,492.4

7 AVIENT CORPORATION

Note 3 — RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES

In the first quarter of 2025, the Company completed a review of its cloud-based enterprise resource planning system, S/4HANA, including updated project timelines, cost incurred to date, required internal resources and expected costs to complete the initial site implementations, and the evolution of options that could provide better returns for shareholders. As a result of this review, the Company determined it would cease the ongoing development of S/4HANA.

As a result of this decision, in the first quarter of 2025, the Company recognized a non-cash, pre-tax impairment charge of $71.6 million associated with capitalized implementation costs. The Company also recognized pre-tax charges of $14.7 million associated with unpaid contractual obligations for hosting fees. Further, the Company recognized charges of $2.8 million associated with severance actions resulting from the decision to cease development of S/4HANA. These charges are included in Selling and administrative expense within the Condensed Consolidated Statements of Income.

Further restructuring charges in 2026 and 2025 were recognized associated with workforce reductions and plant closures. These actions have been taken as a result of productivity initiatives and organizational changes.

A summary of all restructuring activity is shown below:


(in millions)	Workforce reductions		Plant closing and other		Total
Balance at January 1, 2025	$	10.1	$	0.8	$	10.9
Restructuring charges	38.1		7.5		45.6
Payments, utilization and translation	(12.9)		(8.3)		(21.2)
Balance at December 31, 2025	$	35.3	$	—	$	35.3
Restructuring charges	0.8		3.2		4.0
Payments, utilization and translation	(5.9)		(3.2)		(9.1)
Balance at March 31, 2026	$	30.2	$	—	$	30.2

These restructuring charges were included in Cost of sales and Selling and administrative expense.

Note 4 — INVENTORIES, NET

Components of Inventories, net are as follows:


(In millions)	As of March 31, 2026		As of December 31, 2025
Finished products	$	167.6	$	162.7
Work in process	23.6		23.7
Raw materials and supplies	195.2		180.8
Inventories, net	$	386.4	$	367.2

Note 5 — PROPERTY, NET

Components of Property, net are as follows:


(In millions)	As of March 31, 2026		As of December 31, 2025
Land and land improvements	$	99.1	$	100.8
Buildings	451.1		455.6
Machinery and equipment	1,375.4		1,382.5
Property, gross	1,925.6		1,938.9
Less accumulated depreciation	(957.7)		(950.1)
Property, net	$	967.9	$	988.8

Note 6 — INCOME TAXES

During the three months ended March 31, 2026, the Company’s effective tax rate of 22.8% was above the U.S federal rate of 21.0% primarily due to foreign earnings mix, U.S. global intangible low-taxed income (GILTI), and withholding taxes on foreign earnings. These unfavorable items were partially offset by U.S. research and development (R&D) credits, along with favorable foreign permanent items, most notably tax incentives associated with R&D.

8 AVIENT CORPORATION

During the three months ended March 31, 2025, the Company's effective tax rate resulted in a benefit of 25.2% as a result of pre-tax loss in the first quarter of 2025. The pre-tax loss was driven by the Company's cloud-based enterprise resource planning system impairment. The 25.2% income tax benefit was higher than the U.S. federal tax rate of 21.0% primarily due to the state and local tax benefit of the pre-tax loss.

In December 2024, Avient received a Notice of Deficiency (Notice) from the U.S. Internal Revenue Service (IRS) proposing an adjustment to the 2019 tax year resulting from a disallowed capital loss. The proposed incremental tax associated with the Notice is $23.8 million plus estimated interest of $7.8 million. We contested the Notice by filing a petition in U.S. Tax Court on March 4, 2025. The IRS' answer to Avient's petition included an additional accuracy-related penalty of $4.8 million and is subject to interest. The Company believes that the proposed penalty is also without merit, and we intend to contest the penalty vigorously in U.S. Tax Court. However, there can be no assurance this dispute with the IRS will be resolved favorably. As of March 31, 2026, the Company has not recorded any income tax provision related to this matter; therefore an unfavorable ruling in U.S. Tax Court or settlement would adversely impact our effective tax rate and result in a cash tax payment.

Note 7 — FINANCING ARRANGEMENTS

Debt consists of the following instruments:


As of March 31, 2026 (in millions)	Principal Amount		Unamortized discount and debt issuance cost		Net Debt		Weighted average interest rate
Senior secured revolving credit facility due 2030	$	—	$	—	$	—	—	%
Senior secured term loan due 2029	570.7		10.9		559.8		5.42	%
7.125% senior notes due 2030	725.0		5.9		719.1		7.125	%
6.250% senior notes due 2031	650.0		7.5		642.5		6.250	%
Other Debt	3.1		—		3.1
Total Debt	1,948.8		24.3		1,924.5
Less short-term and current portion of long-term debt	0.5		—		0.5
Total long-term debt, net of current portion	$	1,948.3	$	24.3	$	1,924.0


As of December 31, 2025 (in millions)	Principal Amount		Unamortized discount and debt issuance cost		Net Debt		Weighted average interest rate
Senior secured revolving credit facility due 2030	$	—	$	—	$	—	—	%
Senior secured term loan due 2029	570.7		11.7		559.0		6.01	%
7.125% senior notes due 2030	725.0		6.2		718.8		7.125	%
6.250% senior notes due 2031	650.0		7.9		642.1		6.250	%
Other Debt	3.2		—		3.2
Total Debt	1,948.9		25.8		1,923.1
Less short-term and current portion of long-term debt	0.5		—		0.5
Total long-term debt, net of current portion	$	1,948.4	$	25.8	$	1,922.6

On March 12, 2025, the Company refinanced its senior secured term loan by amending the credit agreement governing such term loan (the Term Loan Amendment). The Term Loan Amendment reduced the interest rate per annum by 25 basis points, which now is either (i) Adjusted Term SOFR (as defined in the Term Loan Amendment) plus 1.75%, or (ii) a Base Rate (as defined in the Term Loan Amendment) plus 0.75%. The maturity date and other terms and conditions are substantially the same as the terms and conditions under the credit agreement immediately prior to the Term Loan Amendment.

On June 12, 2025, the Company entered into a revolving credit agreement (the Revolving Credit Agreement) with various financial institutions as lenders, and JPMorgan Chase Bank, N.A., as administrative agent, which replaced our previous credit agreement set to mature in 2026. The Revolving Credit Agreement provides for a senior secured revolving credit facility of up to $500.0 million, which may be increased by up to $250.0 million, subject to certain conditions. Loans under the Revolving Credit Agreement will mature on June 12, 2030. The Revolving Credit Agreement contains representations and warranties, affirmative covenants, negative covenants and events of default that are substantially similar to those contained in the Company's existing term loan credit agreement.

9 AVIENT CORPORATION

During 2025, the Company made voluntary prepayments of $150.0 million on its senior secured term loan, which were applied to the principal installments in direct order of maturity. These prepayments were made without penalty or premium.

As of March 31, 2026, we had no borrowings outstanding under the senior secured revolving credit facility.

The agreements governing our senior secured revolving credit facility and our senior secured term loan, and the indentures and credit agreements governing our other debt, contain a number of customary financial and restrictive covenants that, among other things, limit our ability to: sell or otherwise transfer assets, including in a spin-off, incur additional debt or liens, consolidate or merge with any entity or transfer or sell all or substantially all of our assets, pay dividends or make certain other restricted payments, make investments, enter into transactions with affiliates, create dividend or other payment restrictions with respect to subsidiaries, make capital investments and alter the business we conduct. As of March 31, 2026, we were in compliance with all covenants.

The estimated fair value of Avient’s debt instruments at March 31, 2026 and December 31, 2025 was $1,947.6 million and $1,967.1 million, respectively. The fair value of Avient’s debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and represent Level 2 measurements within the fair value hierarchy.

Note 8 — DERIVATIVES AND HEDGING

We are exposed to market risks, such as changes in foreign currency exchange rates and interest rates. To manage the volatility related to these exposures we may enter into various derivative transactions. We formally assess, designate and document, as a hedge of an underlying exposure, the qualifying derivative instrument that will be accounted for as an accounting hedge at inception. Additionally, we assess both at inception and at least quarterly thereafter, whether the financial instruments used in the hedging transaction are effective at offsetting changes in either the fair values or cash flows of the underlying exposures. In accordance with ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12), that ongoing assessment may be done qualitatively for highly effective relationships.

Net Investment Hedge

As a means of mitigating the impact of currency fluctuations on our Euro investments in foreign entities, we have executed cross-currency swaps, in which we pay fixed-rate interest in Euros and receive fixed-rate interest in U.S. dollars related to our future obligations to exchange Euros for U.S. dollars. We designated the cross-currency swaps as net investment hedges of our net investment in our European operations under ASU 2017-12 and applied the spot method to these hedges. The changes in fair value of the derivative instruments that are designated and qualify as hedges of net investments in foreign operations are recognized within Accumulated Other Comprehensive Income (Loss) (AOCI) to offset the changes in the values of the net investment being hedged. For the three months ended March 31, 2026, a gain of $54.6 million was recognized within translation adjustments in AOCI, net of tax, compared to losses of $44.3 million, net of tax, for the three months ended March 31, 2025. Included in Interest expense, net on the Condensed Consolidated Statements of Income is income of $9.0 million, for the three months ended March 31, 2026 and March 31, 2025, respectively, related to interest payments received from counterparties.

All of our derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. We determine the fair value of our derivatives based on valuation methods, which project future cash flows and discount the future amounts present value using market based observable inputs, including interest rate curves and foreign currency rates. The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025 is as follows:


	As of March 31, 2026
(In millions)	Notional Amount		Other current assets		Other non-current assets		Other current liabilities		Other non-current liabilities
Cross-currency swaps	€	2,575.4	$	—	$	—	$	76.3	$	233.0

(In millions)	As of December 31, 2025
Cross-currency swaps	€	2,575.4	$	—	$	—	$	94.8	$	286.1

10 AVIENT CORPORATION

Note 9 — SEGMENT INFORMATION

Avient has two reportable segments: (1) Color, Additives and Inks and (2) Specialty Engineered Materials.

Operating income is the primary segment performance measure that is reported to our chief operating decision maker (CODM), which is the Company's chief executive officer. Our CODM utilizes this measure as an input to determine appropriate resource allocations to our segments in the annual planning process and to periodically assess segment performance, primarily by evaluating actual results in comparison to the annual operating plan and forecast. Operating income at the segment level does not include corporate general and administrative expenses that are not allocated to segments, restructuring charges, share-based compensation costs, environmental remediation costs and associated recoveries, asset impairments, acquisition-related charges, mark-to-market adjustments on pension and other post-retirement obligations, and certain other items that are not included in the measure of segment profit or loss that is reported to and reviewed by our CODM. These costs are included in Corporate.

Financial information by reportable segment is as follows:


(In millions) Three Months Ended March 31, 2026	Color, Additives and Inks		Specialty Engineered Materials		Corporate		Consolidated Total
Sales	$	528.1	$	320.2	$	(0.9)	$	847.4
Cost of sales	349.4		219.6		5.8		574.8
Selling and administrative expense	97.3		53.2		26.3		176.8
Operating income	$	81.4	$	47.4	$	(33.0)	$	95.8
Interest expense, net							(22.0)
Other expense, net							(1.5)
Income before income taxes							$	72.3


Three Months Ended March 31, 2025	Color, Additives and Inks		Specialty Engineered Materials		Corporate		Consolidated Total
Sales	$	519.7	$	308.4	$	(1.5)	$	826.6
Cost of sales	346.6		210.6		6.2		563.4
Selling and administrative expense	94.5		50.7		117.3		262.5
Operating income	$	78.6	$	47.1	$	(125.0)	$	0.7
Interest expense, net							(26.9)
Other expense, net							(0.4)
Loss before income taxes							$	(26.6)


	Three Months Ended March 31,
	2026		2025



Depreciation and amortization:
Color, Additives and Inks	$	22.4	$	21.7
Specialty Engineered Materials	22.6		21.5
Corporate	2.9		2.1
Depreciation and amortization	$	47.9	$	45.3

Capital expenditures:
Color, Additives and Inks	$	5.4	$	4.9
Specialty Engineered Materials	9.4		6.8
Corporate	4.2		0.8
Capital expenditures	$	19.0	$	12.5

11 AVIENT CORPORATION


	Total Assets
(In millions)	As of March 31, 2026		As of December 31, 2025
Color, Additives and Inks	$	2,629.0	$	2,602.4
Specialty Engineered Materials	2,566.6		2,578.0
Corporate	749.2		845.2
Total assets	$	5,944.8	$	6,025.6

Note 10 — COMMITMENTS AND CONTINGENCIES

We have been notified by federal and state environmental agencies and by private parties that we may be a potentially responsible party (PRP) in connection with the environmental investigation and remediation of certain sites. While government agencies frequently assert that PRPs are jointly and severally liable at these sites, in our experience, the interim and final allocations of liability costs are generally made based on the relative contribution of waste. We may also initiate corrective and preventive environmental projects of our own to support safe and lawful activities at our operations. We believe that compliance with current governmental regulations at all levels will not have a material adverse effect on our financial position, results of operations or cash flows.

In September 2007, the United States District Court for the Western District of Kentucky (Court) in the case of Westlake Vinyls, Inc. v. Goodrich Corporation, et al., held that Avient must pay the remediation costs at the former Goodrich Corporation Calvert City facility (now largely owned and operated by Westlake Vinyls, Inc. (Westlake Vinyls)), together with certain defense costs of Goodrich Corporation. The rulings also provided that Avient can seek indemnification for contamination attributable to Westlake Vinyls. Following the rulings, the parties to the litigation agreed to settle all claims regarding past environmental costs incurred at the site. The settlement agreement provides a mechanism to pursue allocation of future remediation costs at the Calvert City site to Westlake Vinyls.

The environmental obligation at the site arose as a result of an agreement between The B.F. Goodrich Company (n/k/a Goodrich Corporation) and our predecessor, The Geon Company, at the time of the initial public offering in 1993. Under the agreement, The Geon Company agreed to indemnify Goodrich Corporation for certain environmental costs at the site. Neither Avient nor The Geon Company ever operated the facility.

Since 2009, Avient, along with respondents Westlake Vinyls and Goodrich Corporation, has worked with the United States Environmental Protection Agency (USEPA) to address the remedial activities at the site. The USEPA issued its Record of Decision (ROD) in September 2018. In April 2019, the respondents signed an Administrative Settlement Agreement and Order on Consent with the USEPA to conduct the remedial actions at the site. In February 2020, three companies signed the agreed Consent Decree and remedial action Work Plan, which received Federal Court approval in January 2021.

In 2024, the Company finalized the design for the first phase of a barrier wall, as well as an updated remedial action timeline at the site, which resulted in charges of $19.8 million. Construction of the initial barrier wall was completed in the first quarter of 2025. Further, in 2025, the Company recognized charges of $21.3 million associated with incremental investigation and remedial design work deemed necessary based on results of ongoing findings at the site. This incremental work resulted in a two-year extension of the planned remedial action timeline, which also contributed to the charges. The remaining wall designs and construction are expected to be completed in phases through 2030. As the Company completes further design work and begins construction on the remaining sections of the barrier wall and other remedial components, the Company will update its accrual, which was $125.5 million as of March 31, 2026, for any new information as it becomes available.

Total environmental accruals of $134.9 million and $141.2 million are reflected within Accrued expenses and other current liabilities and Other non-current liabilities in our Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, respectively. These undiscounted accruals represent our best estimate of probable future costs that we can reasonably estimate, based upon currently available information and technology and how the remedy will be implemented. It is reasonably possible that we could incur additional costs in excess of the amount accrued, which could be material to our Condensed Consolidated Statements of Income. However, such additional costs cannot be currently estimated as they are dependent upon the results of future testing and findings during the execution of remedial design and remedial action, changes in the Calvert City construction timeline, changes in regulations, technology development, new information, newly discovered conditions and other factors that are not currently known.

12 AVIENT CORPORATION

During the three months ended March 31, 2026, Avient recognized costs of $3.9 million, primarily associated with the ongoing remedial design and remedial action at Calvert City, compared to costs of $4.9 million recognized during the three months ended March 31, 2025. These costs are recognized in Cost of Sales within the Condensed Consolidated Statements of Income.

We received $34.0 million of cash associated with Calvert City insurance recoveries in the first quarter of 2025. The associated gain was recognized in the fourth quarter of 2024. Further insurance recoveries, if any, related to remedial activities at the Calvert City site are expected to be immaterial.

Avient is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, product claims, personal injuries and employment related matters. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes our current reserves are appropriate and these matters will not have a material adverse effect on the condensed consolidated financial statements.

13 AVIENT CORPORATION

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our Business

We are an innovator of materials solutions to help our customers succeed, while enabling a sustainable world. Our products include specialty engineered materials, performance fibers, advanced composites, and color and additive solutions. We are also a highly specialized developer and manufacturer of performance enhancing additives, liquid colorants and silicone colorants. Headquartered in Avon Lake, Ohio, we have manufacturing sites, research and development facilities, design centers and warehouses around the globe. We provide value to our customers through our ability to link our knowledge of polymers and materials science with our manufacturing and supply chain capabilities to provide value-added solutions to designers, assemblers and processors of materials. When used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “Avient” and the “Company” mean Avient Corporation and its consolidated subsidiaries.

Results of Operations — The three months ended March 31, 2026 compared to the three months ended March 31, 2025:


	Three Months Ended March 31,				Variances — Favorable (Unfavorable)
(Dollars in millions, except per share data)	2026		2025		Change		% Change
Sales	$	847.4	$	826.6	$	20.8	2.5	%
Cost of sales	574.8		563.4		(11.4)		(2.0)	%
Gross margin	272.6		263.2		9.4		3.6	%
Selling and administrative expense	176.8		262.5		85.7		32.6	%

Operating income	95.8		0.7		95.1		nm
Interest expense, net	(22.0)		(26.9)		4.9		18.2	%
Other expense, net	(1.5)		(0.4)		(1.1)		nm
Income (loss) before income taxes	72.3		(26.6)		98.9		371.8	%
Income tax (expense) benefit	(16.5)		6.7		(23.2)		(346.3)	%


Net income (loss)	55.8		(19.9)		75.7		380.4	%
Net income attributable to noncontrolling interests	(0.1)		(0.3)		0.2		nm
Net income (loss) attributable to Avient common shareholders	$	55.7	$	(20.2)	$	75.9	375.7	%

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)

nm - not meaningful

Sales

Sales increased $20.8 million, or 2.5%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Favorable foreign currency impacts were 4.6%, while sales, excluding the impacts of foreign exchange, decreased 2.0%. Sales increases within the building & construction, packaging and healthcare end markets were more than offset by declines in the consumer, transportation and industrial end markets.

Gross Margin

Gross margin as a percentage of sales was 32.2% for the three months ended March 31, 2026 compared to 31.8% for the three months ended March 31, 2025. The increase was primarily driven by cost savings from productivity and restructuring actions.

Selling and administrative expense

Selling and administrative expense decreased $85.7 million for the three months ended March 31, 2026, primarily driven by the Company's decision to cease development of the cloud-based enterprise resource planning system, S/4HANA, in 2025, which resulted in an impairment charge of $71.6 million and additional charges of $14.7 million for unpaid contractual obligations for hosting fees.

14 AVIENT CORPORATION

Interest expense, net

Interest expense, net decreased $4.9 million for the three months ended March 31, 2026, primarily driven by the benefit of reduced interest rates resulting from refinancing activity during 2025, in addition to prepayments on Avient's senior secured term loan totaling $150.0 million during 2025.

Income taxes

SEGMENT INFORMATION

Avient has two reportable segments: (1) Color, Additives and Inks; and (2) Specialty Engineered Materials.

Sales and Operating Income — The three months ended March 31, 2026 compared to the three months ended March 31, 2025:


	Three Months Ended March 31,				Variances — Favorable (Unfavorable)
(Dollars in millions)	2026		2025		Change		% Change
Sales:
Color, Additives and Inks	$	528.1	$	519.7	$	8.4	1.6	%
Specialty Engineered Materials	320.2		308.4		11.8		3.8	%
Corporate	(0.9)		(1.5)		0.6		nm
Total sales	$	847.4	$	826.6	$	20.8	2.5	%

Operating income:
Color, Additives and Inks	$	81.4	$	78.6	$	2.8	3.6	%
Specialty Engineered Materials	47.4		47.1		0.3		0.6	%
Corporate	(33.0)		(125.0)		92.0		73.6	%
Total operating income	$	95.8	$	0.7	$	95.1	nm