AVIENT CORP
For the period ended Mar 31, 2026. Filed May 7, 2026.
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.
Mar 31, 2026 · Filed May 7, 2026
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 2025-09-30; filed 2025-11-05.
0001122976-25-000088
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001122976-26-000094
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 79 previous paragraphs and 70 current paragraphs.
44 unchanged; 20 reworded; 6 added; 15 removed; 0 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 (6)
Current report
14 AVIENT CORPORATION
Current report
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.
Current report
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.
Current report
Financing Activities —Net cash used in financing activities for the three months ended March 31, 2026 and 2025 of $27.8 million and $28.3 million, respectively, primarily reflects dividend payments.
Current report
•changes to foreign trade policy, including new or increased tariffs and changing import/export regulations
Current report
•information systems failures, cybersecurity breaches and cyberattacks;
Removed paragraphs (15)
Previous 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.
Previous report
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 report
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 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.
Previous 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.
Previous report
Refer to Note 6, Income Taxes, for further details.
Previous 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.
Previous 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.
Previous report
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 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.
Previous report
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 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.
Previous report
19 AVIENT CORPORATION
Previous report
•information systems failures and cyberattacks;
Previous report
20 AVIENT CORPORATION
Reworded paragraphs (20)
Previous wording
Results of Operations — The three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024:
Current wording
Results of Operations — The three months ended March 31, 2026 compared to the three months ended March 31, 2025:
Previous wording
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 wording
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.
Previous wording
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 wording
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.
Previous 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.
Current wording
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.
Previous 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.
Current wording
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.
Previous 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:
Current wording
Sales and Operating Income —The three months ended March 31, 2026 compared to the three months ended March 31, 2025:
Previous wording
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 wording
Sales increased $8.4 million, or 1.6%, in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Favorable foreign currency impacts were 5.1%, while sales, excluding the impacts of foreign exchange, decreased 3.5%. The sales decrease was primarily within the consumer, building & construction and transportation end markets, partially offset by a sales increase in the healthcare end market.
Previous 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.
Current wording
Operating income increased $2.8 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily driven by cost savings from productivity and restructuring actions.
Previous 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.
Current wording
Sales increased $11.8 million, or 3.8%, in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Favorable foreign currency impacts were 3.6%, while sales, excluding the impacts of foreign exchange, increased 0.2%. The sales increase was primarily within the building & construction and packaging end markets, partially offset by sales decreases in the consumer, industrial and transportation end markets.
Previous wording
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 wording
Operating income increased $0.3 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by higher sales.
Previous 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.
Current wording
Corporate costs decreased $92.0 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. Further, restructuring charges for the three months ended March 31, 2026 were $5.2 million lower, compared to the three months ended March 31, 2025.
Previous wording
As of September 30, 2025, approximately 76% of the Company’s cash and cash equivalents resided outside the United States.
Current wording
As of March 31, 2026, approximately 78% 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 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.
Current wording
Expected sources of cash needed to satisfy cash requirements for the remainder of 2026 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 2026 include interest payments, cash taxes, dividend payments, debt repayments, environmental remediation payments, restructuring payments and capital expenditures.
Previous 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.
Current wording
The following describes the significant components of cash flows from operating, investing and financing activities for the three months ended March 31, 2026 and 2025.
Previous 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.
Current wording
Operating Activities —Net cash used in operating activities decreased $16.6 million during the three months ended March 31, 2026 compared to the three months ended March 31, 2025, driven primarily by insurance proceeds of $34.0 million in 2025 for previously incurred losses at the Calvert City site partially offset by lower incentive compensation payments in 2026 associated with 2025 performance and lower working capital investment.
Previous 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.
Current wording
Investing Activities —Net cash used in investing activities during the three months ended March 31, 2026 and 2025 of $19.0 million and $12.5 million, respectively, reflects the impact of capital expenditures.
Previous wording
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. 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.
Current wording
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.
Previous 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.
Current wording
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.
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 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.
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, restructuring payments and environmental remediation obligations. During the three months ended March 31, 2026, there were no material changes to these obligations as reported in our Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
•disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future;
Current wording
•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;