AVIENT CORP
For the period ended Jun 30, 2026. Filed Aug 6, 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.
Jun 30, 2026 · Filed Aug 6, 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 2026-03-31; filed 2026-05-07.
0001122976-26-000094
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001122976-26-000126
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 70 previous paragraphs and 79 current paragraphs.
48 unchanged; 15 reworded; 15 added; 7 removed; 0 previous and 1 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 (15)
Current report
Sales increased $50.5 million, or 5.8%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Favorable foreign currency impacts were 1.5%, while sales, excluding the impacts of foreign exchange, increased 4.3%. Sales increases within the packaging, building & construction, consumer and defense end markets more than offset declines in the healthcare and transportation end markets.
Current report
Gross margin as a percentage of sales was 32.9% for the six months ended June 30, 2026 compared to 32.0% for the six months ended June 30, 2025. The increase was primarily driven by higher sales and the benefit of cost savings from productivity and restructuring actions. Further, 2025 included approximately $3.0 million of incremental planned maintenance costs within the SEM segment.
Current report
Selling and administrative expense increased $13.4 million for the three months ended June 30, 2026, primarily driven by higher employee costs partially offset by the benefit of productivity initiatives.
Current report
During the three months ended June 30, 2026, the Company’s effective tax rate was 26.3% compared to 24.5% in the three months ended June 30, 2025, while the six month period ended June 30, 2026 was 24.7% compared to 24.2% for the six month period ended June 30, 2025. The higher effective tax rate in 2026 is primarily driven by an increase in withholding taxes and higher unfavorable U.S. permanent items.
Current report
Refer to Note 6, Income Taxes, for further details.
Current report
Sales increased $44.0 million, or 4.2%, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Favorable foreign currency impacts were 3.3%, while sales, excluding the impacts of foreign exchange, increased 0.9%. The sales increase was primarily within the packaging end market, partially offset by a sales decrease in the transportation and consumer end markets.
Current report
Operating income increased $11.5 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily driven by higher sales while the benefit of cost savings from productivity and restructuring actions largely offset higher employee costs.
Current report
Operating income increased $14.3 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily driven by higher sales while the benefit of cost savings from productivity and restructuring actions largely offset higher employee costs.
Current report
Sales increased $14.2 million, or 4.3%, in the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Favorable foreign currency impacts were 1.0%, while sales, excluding the impacts of foreign exchange, increased 3.3%. The sales increase was primarily within the packaging, consumer, building & construction and defense end markets, partially offset by sales decreases in the transportation, industrial and healthcare end markets.
Current report
Operating income increased $12.5 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily driven by higher sales, favorable mix, and benefits of cost savings from productivity and restructuring actions that more than offset higher employee costs. Further, 2025 included approximately $3.0 million of incremental planned maintenance costs.
Current report
Operating income increased $12.8 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily driven by higher sales, favorable mix, and benefits of cost savings from productivity and restructuring actions that more than offset higher employee costs. Further, 2025 included approximately $3.0 million of incremental planned maintenance costs.
Current report
Corporate costs increased $7.7 million for the three months ended June 30, 2026, primarily driven by higher employee compensation costs.
Current report
Operating Activities —Net cash provided by operating activities decreased $2.4 million during the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by higher earnings offset by an investment in working capital and higher restructuring payments.
Current report
19 AVIENT CORPORATION
Current report
20 AVIENT CORPORATION
Removed paragraphs (7)
Previous report
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Previous report
14 AVIENT CORPORATION
Previous 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.
Previous 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.
Previous report
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 report
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 report
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.
Reworded paragraphs (15)
Previous wording
Results of Operations — The three months ended March 31, 2026 compared to the three months ended March 31, 2025:
Current wording
Results of Operations — The three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025:
Previous 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.
Current wording
Sales increased $71.3 million, or 4.2%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Favorable foreign currency impacts were 3.0%, while sales, excluding the impacts of foreign exchange, increased 1.2%. Sales increases within the packaging and building & construction end markets more than offset declines in the transportation and healthcare end markets.
Previous 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.
Current wording
Gross margin as a percentage of sales was 33.5% for the three months ended June 30, 2026 compared to 32.1% for the three months ended June 30, 2025. The increase was primarily driven by higher sales and the benefit of cost savings from productivity and restructuring actions. Further, 2025 included approximately $3.0 million of incremental planned maintenance costs within the SEM segment.
Previous 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.
Current wording
Selling and administrative expense decreased $72.3 million for the six months ended June 30, 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, which more than offset higher employer costs.
Previous 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.
Current wording
Interest expense, net decreased $2.4 million and $7.3 million for the three and six months ended June 30, 2026, respectively, 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 months ended March 31, 2026 compared to the three months ended March 31, 2025:
Current wording
Sales and Operating Income —The three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025:
Previous 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.
Current wording
Sales increased $35.6 million, or 6.6%, in the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Favorable foreign currency impacts were 1.6%, while sales, excluding the impacts of foreign exchange, increased 5.0%. The sales increase was primarily within the packaging, building & construction and industrial end markets, partially offset by a sales decrease in the healthcare end market.
Previous 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.
Current wording
Sales increased $26.0 million, or 4.1%, in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Favorable foreign currency impacts were 2.3%, while sales, excluding the impacts of foreign exchange, increased 1.8%. The sales increase was primarily within the packaging, building & construction and defense end markets, partially offset by sales decreases in the transportation and industrial end markets.
Previous 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.
Current wording
Corporate costs decreased $84.3 million for the six months ended June 30, 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. Additionally, lower restructuring charges for the six months ended June 30, 2026 offset higher employee costs compared to the six months ended June 30, 2025.
Previous 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.
Current wording
The following describes the significant components of cash flows from operating, investing and financing activities for the six months ended June 30, 2026 and 2025.
Previous 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.
Current wording
Investing Activities —Net cash used in investing activities during the six months ended June 30, 2026 and 2025 of $41.3 million and $39.5 million, respectively, reflects the impact of capital expenditures.
Previous wording
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 wording
Financing Activities —Net cash used in financing activities for the six months ended June 30, 2026 and 2025 of $103.0 million and $106.4 million, respectively, primarily reflects dividend payments and prepayments on Avient's senior secured term loan.
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 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.
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. 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 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.
Current wording
In 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 using cash on hand and 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, 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.
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 six months ended June 30, 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.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
In June 2026, the Company made voluntary a 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 using cash on hand and without penalty or premium.