AVIENT CORP

Condensed Consolidated Statements of Income (Unaudited)

(In millions, except per share data)

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Condensed Consolidated Statements of Comprehensive Income (Unaudited)

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Condensed Consolidated Balance Sheets

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Condensed Consolidated Statements of Cash Flows (Unaudited)

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Condensed Consolidated Statements of Shareholders' Equity (Unaudited)

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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 and nine months ended September 30, 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 Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 these 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.

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Note 2 — GOODWILL AND INTANGIBLE ASSETS

Goodwill as of September 30, 2026 and December 31, 2025 and changes in the carrying amount of goodwill by segment were as follows:

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

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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:

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:

Note 5 — PROPERTY, NET

Components of Property, netare as follows:

Note 6 — INCOME TAXES

During the three and nine months ended September 30, 2026, the Company’s effective tax rate was 25.6% and 25.0%, respectively, which is above the U.S federal rate of 21.0% primarily due to the tax rate differential on foreign earnings, withholding taxes on foreign earnings, and the impact of increased valuation allowances associated with restructuring charges within Europe. 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.

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During the three and nine months ended September 30, 2025, the Company's effective tax rate was 23.5% and 23.9%, respectively, compared to the U.S. federal statutory rate of 21.0%. The differences were primarily due to the tax rate differential on foreign earnings, and withholding taxes on foreign earnings. These unfavorable items were partially offset by U.S. R&D credits, along with favorable foreign permanent items, most notably tax incentives associated with R&D, and a benefit associated with the expiration of the statute of limitations on a previously unrecognized tax position.

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 Notice proposed additional tax of $23.8 million plus estimated interest of $8.6 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 September 30, 2026, the Company had 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.

In September 2026, the Company received a draft Notice of Proposed Adjustment (NOPA) from the IRS related to a capital loss taken by the Company on its 2022 tax return. The Company is currently engaged in discussions with the IRS regarding this matter and the audit examination is still ongoing. Based on the Company's evaluation of the relevant facts and applicable tax law, the Company continues to believe that its tax positions are appropriate and no reserve has been recorded related to this matter; however, there can be no assurance that this dispute will be resolved favorably, and an unfavorable resolution could have an adverse material impact on our effective tax rate and result in a cash tax payment.

Note 7 — FINANCING ARRANGEMENTS

Debt consists of the following instruments:

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.

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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.

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.

In June 2026 and September 2026, the Company made voluntary prepayments of $50.0 million each, totaling $100.0 million for the year, 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.

As of September 30, 2026, we hadno borrowings outstanding under the senior secured revolving credit facility.

The agreements governing our senior secured revolving credit facility, 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 September 30, 2026, we were in compliance with all covenants.

The estimated fair value of Avient’s debt instruments at September 30, 2026 and December 31, 2025 was $1,823.6 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.

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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 derivative instruments. 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. 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

To mitigate 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.

In June 2026, the Company completed a transaction to effectively amend and extend existing cross-currency swaps with a notional amount of €700 million and maturity of November 2026. The liability position of the existing cross-currency swaps was blended into new cross-currency swap agreements maturing in June 2029.

In July 2026, the Company completed a transaction to effectively amend and extend existing cross-currency swaps with a notional amount of €200 million and maturity of August 2027. The liability position of the existing cross-currency swaps was blended into new cross-currency swap agreements maturing in August 2028.

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 and nine months ended September 30, 2026, gains of $10.9 million and $61.1 million were recognized within translation adjustments in AOCI, net of tax, respectively, compared to a gain of $3.3 million and a loss of $207.3 million, net of tax, for the three and nine months ended September 30, 2025. Included in Interest expense, net on the Condensed Consolidated Statements of Income is income of $7.6 million and $25.6 million, for the three and nine months ended September 30, 2026 compared to income of $9.0 million and $27.1 million, respectively, for the three and nine months ended September 30, 2025, 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 to 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 September 30, 2026 and December 31, 2025 is as follows:

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Note 9 — SEGMENT INFORMATION

Avient hastwo 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, 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:

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(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Segment expense allocations are included within the amounts shown.

(b) Unallocated corporate costs are primarily comprised of corporate administrative expenses (e.g., legal, human

resources, finance, technology) that are not included in the measure of segment profit or loss.

(c) Corporate includes cash, pension assets, certain prepaid expenses and tax assets.

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(d) Capital expenditures and depreciation and amortization are related to corporate administrative functions.

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.

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 (Geon), at the time of Geon’s initial public offering in 1993. Under the agreement, Geon agreed to indemnify Goodrich Corporation for certain environmental costs at the site. Neither Avient nor Geon 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 complete remedial designs for the site. In February 2020, three companies signed the agreed Consent Decree and remedial action Work Plan to conduct the remedial action at the site, which received Federal Court approval in January 2021.

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In 2024, the Company finalized the design for the first phase of a barrier wall and construction of this phase was completed in 2025. As remedial design and supporting analyses have advanced in 2026, Avient has identified the need for certain modifications to the initially contemplated remedy. In addition, the USEPA issued a modification to the ROD that lowered certain tolerance thresholds of cleanup criterion at the site and requested evaluations of additional design criteria that may materially affect design requirements and construction costs. As a result, further design efforts are required, including updated analyses of construction approaches and methodologies. These design criteria currently under evaluation may ultimately not be incorporated into the final remedy. In the third quarter of 2026, Avient determined the impacts of the additional studies and ROD modifications is currently expected to result in atwo-year extension to the overall timeline along with additional costs to complete these new studies. The construction of the barrier wall is now assumed to be completed in 2032. These changes are the primary drivers of the $19.1 million of charges recognized in the third quarter of 2026. As remedial design progresses, including required remedy modifications, Avient will further update its environmental reserve as appropriate.

The accrual associated with Calvert City was $133.9 million as of September 30, 2026 and $133.2 million as of December 31, 2025. Total environmental accruals of $142.9 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 September 30, 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. Previous adjustments to the Calvert City environmental accrual have had a material impact on our Condensed Consolidated Statements of Income in the periods recognized. Due to the scale and complexity of the remedial actions required at Calvert City, it is probable that additional costs will be incurred in excess of the amounts accrued, which may have a material impact on our Condensed Consolidated Statements of Income, in the period recognized. However, such additional costs cannot currently be estimated as they are dependent upon the results of future testing and findings during the execution of remedial design and remedial action, changes to the construction timeline, changes in regulations, technology development, new information, newly discovered conditions and other factors that are not currently known.

During the three and nine months ended September 30, 2026, Avient recognized costs of $19.1 million and $27.7 million, primarily associated with the ongoing remedial design and remedial action at Calvert City, compared to costs of $12.8 million and $19.5 million recognized during the three and nine months ended September 30, 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.

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