AVIENT CORP
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
AVNT$45.47+0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0001122976-25-000053
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001122976-25-000088
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 76 previous paragraphs and 79 current paragraphs.
48 unchanged; 19 reworded; 12 added; 8 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Sales decreased $8.7 million, or 1.1%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Favorable foreign currency impacts were 1.8%, while sales, excluding the impacts of foreign exchange, decreased 2.9%. The sales decline was primarily within the consumer, industrial, building and construction and energy end markets, partially offset by sales increases in the defense, healthcare and telecommunications end markets.
Current report
Sales increased $5.7 million, or 0.2%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Favorable foreign currency impacts were 0.4%, while sales, excluding the impacts of foreign exchange, decreased 0.2%. Sales increases within the healthcare, defense and telecommunications end markets were offset by declines in the consumer, industrial and energy end markets.
Current report
During the three months ended September 30, 2025, the Company’s effective tax rate was 23.5%, compared to 22.5% in the same period of 2024. The increase was primarily driven by jurisdictional earnings mix, partially offset by lower global intangible low-taxed income (GILTI) tax and a benefit associated with a decrease in previously unrecognized tax benefits resulting from the expiration of statutes of limitations.
Current report
For the nine months ended September 30, 2025, the Company’s effective tax rate was 23.9%, compared to 24.3% in the prior-year period. The decrease was primarily due to a reduction in GILTI tax and the benefit associated with a decrease of previously unrecognized tax benefits resulting from the expiration of statutes of limitations. These benefits were partially offset by the jurisdictional earnings mix.
Current report
Sales decreased $11.6 million, or 2.2%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Favorable foreign currency impacts were 2.0%, while sales, excluding the impacts of foreign exchange, decreased 4.2%. The sales decrease was primarily within the consumer, packaging and building and construction end markets, partially offset by a sales increase in the healthcare end market.
Current report
Sales decreased $10.6 million, or 0.7%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Favorable foreign currency impacts were 0.4%, while sales, excluding the impacts of foreign exchange, decreased 1.1%. The sales decrease was primarily within the consumer, transportation and building and construction end markets, partially offset by a sales increase in the healthcare end market.
Current report
Operating income decreased $1.7 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease was primarily driven by lower sales, partially offset by cost savings from productivity and restructuring actions and lower incentive compensation.
Current report
Sales increased $3.1 million, or 1.1%, in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Favorable foreign currency impacts were 1.6%, while sales, excluding the impacts of foreign exchange, decreased 0.5%. The sales decrease was primarily within the energy, industrial and consumer end markets, partially offset by sales increases in the defense, telecommunications and healthcare end markets.
Current report
Operating income increased $0.9 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily driven by higher sales.
Current report
Corporate costs increased $9.3 million for the three months ended September 30, 2025, primarily driven by higher environmental remediation charges of $10.3 million, net of recoveries, and higher restructuring costs of $4.7 million, partially offset by productivity initiatives and lower incentive compensation.
Current report
Net cash used by financing activities for the nine months ended September 30, 2024 of $93.8 million primarily reflects payment on long-term borrowings of $659.1 million, $70.5 million of dividends paid and $9.6 million of debt financing costs, partially offset by $650.0 million of proceeds from long-term borrowings.
Current report
20 AVIENT CORPORATION
Removed paragraphs (8)
Previous report
Sales increased $14.4 million, or 0.9%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Unfavorable foreign currency impacts were 0.3%, while sales, excluding the impacts of foreign exchange, increased 1.2%. The sales increase was primarily within the packaging, defense and healthcare end markets, partially offset by declines in the consumer end market.
Previous report
14 AVIENT CORPORATION
Previous report
During the three months ended June 30, 2025, the Company’s effective tax rate was 24.5% compared to 24.9% in the three months ended June 30, 2024. The lower effective tax rate for the three months ended June 30, 2025 was primarily driven by a decrease in the tax on global intangible low-taxed income (GILTI) partially offset by a reduction in favorable foreign permanent items. During the six months ended June 30, 2025, the Company's effective tax rate was 24.2% compared to 25.1% in the six months ended June 30, 2024. The lower effective tax rate for the six months ended June 30, 2025 was primarily driven by a decrease in GILTI tax and increased favorable permanent items. Partially offsetting these benefits was an increase in valuation allowances.
Previous report
Sales decreased $3.4 million, or 0.6%, in the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Favorable foreign currency impacts were 1.4%, while sales, excluding the impacts of foreign exchange, decreased 2.0%. The sales decrease was primarily within the consumer and transportation end markets, partially offset by sales increases within the healthcare end market.
Previous report
Sales increased $1.0 million, or 0.1%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Unfavorable foreign currency impacts were 0.5%, while sales, excluding the impacts of foreign exchange, increased 0.6%. The sales increase was primarily within the packaging and healthcare end markets, partially offset by declines in the consumer and transportation end markets.
Previous report
Sales increased $21.6 million, or 7.0%, in the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Favorable foreign currency impacts were 1.3%, while sales, excluding the impacts of foreign exchange, increased 5.7%. The sales increase was primarily within the defense and healthcare end markets, partially offset by declines in the consumer end market.
Previous report
Sales increased $15.6 million, or 2.5%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Unfavorable foreign currency impacts were 0.1%, while sales, excluding the impacts of foreign exchange, increased 2.6%. The sales increase was primarily within the defense and healthcare end markets, partially offset by declines in the consumer and industrial end markets.
Previous report
Corporate costs decreased $22.0 million for the three months ended June 30, 2025, primarily driven by lower environmental costs of $20.6 million, net of recoveries.
Reworded paragraphs (19)
Previous wording
Results of Operations — The three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024:
Current wording
Results of Operations — The three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024:
Previous wording
Gross margin as a percentage of sales was 32.1% for the three months ended June 30, 2025 compared to 30.3% for the three months ended June 30, 2024. This increase was driven primarily by lower environmental remediation charges of $20.6 million, net of recoveries, partially offset by higher restructuring charges of $2.8 million.
Current wording
Gross margin as a percentage of sales was 30.4% for the three months ended September 30, 2025 compared to 32.1% for the three months ended September 30, 2024. This decrease was driven primarily by higher environmental remediation charges of $10.3 million, net of recoveries, and higher restructuring charges of $3.8 million.
Previous wording
Gross margin as a percentage of sales was 32.0% for the six months ended June 30, 2025 compared to 31.9% for the six months ended June 30, 2024. This increase was driven primarily by lower environmental remediation charges of $21.0 million, net of recoveries, partially offset by higher restructuring charges of $10.5 million.
Current wording
Gross margin as a percentage of sales was 31.4% for the nine months ended September 30, 2025 compared to 32.0% for the nine months ended September 30, 2024. This decrease was driven primarily by higher restructuring charges of $14.3 million and higher operating costs, primarily associated with planned maintenance in the second quarter of 2025, partially offset by lower environmental remediation charges of $10.7 million, net of recoveries.
Previous wording
Selling and administrative expense decreased $3.3 million for the three months ended June 30, 2025, primarily driven by lower compensation cost. Selling and administrative expense increased $75.0 million for the six months ended June 30, 2025, primarily driven by an impairment charge of $71.6 million associated with the Company's decision to cease development of the cloud-based enterprise resource planning system, S/4HANA, and charges of $14.7 million associated with unpaid contractual obligations for hosting fees. These charges were partially offset by lower compensation cost.
Current wording
Selling and administrative expense decreased $6.4 million for the three months ended September 30, 2025, primarily driven by productivity initiatives and lower incentive compensation cost. Selling and administrative expense increased $68.6 million for the nine months ended September 30, 2025, primarily driven by an impairment charge of $71.6 million associated with the Company's decision to cease development of the cloud-based enterprise resource planning system, S/4HANA, and charges of $14.7 million associated with unpaid contractual obligations for hosting fees. These charges were partially offset by productivity initiatives and lower incentive compensation cost.
Previous wording
Interest expense, net decreased $1.9 million and $1.6 million for the three and six months ended June 30, 2025, respectively, primarily driven by the benefit of reduced interest rates resulting from previous refinancing activity.
Current wording
Interest expense, net decreased $2.7 million and $4.3 million for the three and nine months ended September 30, 2025, respectively, primarily driven by the benefit of reduced interest rates resulting from previous refinancing activity, in addition to prepayments totaling $100.0 million made on our senior secured term loan in the second and third quarters of 2025.
Previous wording
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, for purposes of allocating resources and assessing performance. 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.
Current wording
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.
Previous wording
Sales and Operating Income —The three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024:
Current wording
Sales and Operating Income —The three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024:
Previous wording
Operating income increased $4.2 million and $8.0 million for the three and six months ended June 30, 2025, respectively, primarily driven by improved mix and cost savings from productivity and restructuring actions.
Current wording
Operating income increased $6.3 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily driven by improved mix and cost savings from productivity and restructuring actions.
Previous wording
Sales increased $16.8 million, or 2.0%, in the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Favorable foreign currency impacts were 1.4%, while sales, excluding the impacts of foreign exchange, increased 0.6%. The sales increase was primarily within the defense and healthcare end markets, partially offset by declines in the consumer and industrial end markets.
Current wording
Sales increased $18.7 million, or 2.0%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Favorable foreign currency impacts were 0.5%, while sales, excluding the impacts of foreign exchange, increased 1.5%. The sales increase was primarily within the healthcare, defense and telecommunications end markets, partially offset by declines in the consumer, industrial and energy end markets.
Previous wording
Operating income decreased $2.6 million and $8.9 million for the three and six months ended June 30, 2025, respectively, driven by higher operating costs, primarily associated with planned maintenance, and investments in the Company's growth vectors.
Current wording
Operating income decreased $8.0 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease was driven by higher operating costs, primarily associated with planned maintenance in the second quarter of 2025, and investments in the Company's growth vectors.
Previous wording
Corporate costs increased $68.8 million for the six months ended June 30, 2025, primarily driven by an impairment charge of $71.6 million associated with the Company's decision to cease development of the cloud-based enterprise resource planning system, S/4HANA, charges of $14.7 million associated with unpaid contractual obligations for hosting fees, and higher restructuring costs of $17.3 million. Partially offsetting these charges was lower environmental remediation charges of $21.0 million, net of recoveries, and lower compensation cost.
Current wording
Corporate costs increased $78.1 million for the nine months ended September 30, 2025, primarily driven by an impairment charge of $71.6 million associated with the Company's decision to cease development of the cloud-based enterprise resource planning system, S/4HANA, charges of $14.7 million associated with unpaid contractual obligations for hosting fees, and higher restructuring costs of $22.0 million. Partially offsetting these charges was lower environmental remediation charges of $10.7 million, net of recoveries, and lower incentive compensation.
Previous wording
As of June 30, 2025, approximately 73% of the Company’s cash and cash equivalents resided outside the United States.
Current wording
As of September 30, 2025, approximately 76% of the Company’s cash and cash equivalents resided outside the United States.
Previous wording
Expected sources of cash needed to satisfy cash requirements for 2025 include our cash on hand, cash from operations and available liquidity under our revolving credit facility, if necessary. We believe that these sources will also provide sufficient liquidity to satisfy our expected uses of cash for at least the next twelve months and the foreseeable future thereafter. Expected uses of cash for 2025 include debt payments, interest payments, cash taxes, dividend payments, environmental remediation payments and capital expenditures.
Current wording
Expected sources of cash needed to satisfy cash requirements for the remainder of 2025 include our cash on hand, cash from operations and available liquidity under our revolving credit facility, if necessary. We believe that these sources will also provide sufficient liquidity to satisfy our expected uses of cash for at least the next twelve months and the foreseeable future thereafter. Expected uses of cash for the remainder of 2025 include additional debt prepayments, interest payments, cash taxes, dividend payments, environmental remediation payments and capital expenditures.
Previous wording
The following describes the significant components of cash flows from operating, investing and financing activities for the six months ended June 30, 2025 and 2024.
Current wording
The following describes the significant components of cash flows from operating, investing and financing activities for the nine months ended September 30, 2025 and 2024.
Previous wording
Operating Activities —Net cash provided by operating activities decreased $1.4 million during the six months ended June 30, 2025 compared to the six months ended June 30, 2024, driven primarily by higher incentive compensation payments and increased working capital, partially offset by insurance proceeds of $34.0 million for previously incurred losses at the Calvert City site.
Current wording
Operating Activities —Net cash provided by operating activities decreased $0.4 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, driven primarily by higher incentive compensation payments in 2025 associated with 2024 performance and increased working capital, partially offset by insurance proceeds of $34.0 million for previously incurred losses at the Calvert City site and lower restructuring payments.
Previous wording
Investing Activities —Net cash used by investing activities during the six months ended June 30, 2025 and 2024 of $39.5 million and $54.5 million, respectively, primarily reflects the impact of capital expenditures.
Current wording
Investing Activities —Net cash used by investing activities during the nine months ended September 30, 2025 and 2024 of $64.2 million and $79.5 million, respectively, primarily reflects the impact of capital expenditures.
Previous wording
Financing Activities —Net cash used by financing activities for the six months ended June 30, 2025 of $106.4 million primarily reflects payment on long-term borrowings of $50.2 million and $49.4 million of dividends paid.
Current wording
Financing Activities —Net cash used by financing activities for the nine months ended September 30, 2025 of $181.7 million primarily reflects payment on long-term borrowings of $100.2 million and $74.1 million of dividends paid.
Previous wording
In the second quarter of 2025, the Company made a voluntary prepayment of $50.0 million on its senior secured term loan, which was applied to the principal installments in direct order of maturity. This prepayment was made without penalty or premium.
Current wording
During the three and nine months ended September 30, 2025, the Company made voluntary prepayments of $50.0 million and $100.0 million, respectively, 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.
Previous wording
We have future obligations under various contracts relating to debt and interest payments, operating leases, pension and post-retirement benefit plans, purchase obligations and environmental remediation obligations. During the six months ended June 30, 2025, we refinanced our senior secured term loan, which reduced the interest rate per annum by 25 basis points, and made a voluntary prepayment of $50.0 million, refer to Note 9, Financing Arrangements. There were no other material changes to these obligations as reported in our Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
We have future obligations under various contracts relating to debt and interest payments, operating leases, pension and post-retirement benefit plans, purchase obligations and environmental remediation obligations. During the nine months ended September 30, 2025, we refinanced our senior secured term loan, which reduced the interest rate per annum by 25 basis points, and made voluntary prepayments totaling $100.0 million, refer to Note 7, Financing Arrangements. There were no other material changes to these obligations as reported in our Annual Report on Form 10-K for the year ended December 31, 2024.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Net cash used by financing activities for the six months ended June 30, 2024 of $54.8 million primarily reflects $47.0 million of dividends paid.