AVIENT CORP
For the period ended Sep 30, 2026. Filed Nov 4, 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.
Sep 30, 2026 · Filed Nov 4, 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 2026-06-30; filed 2026-08-06.
0001122976-26-000126
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001122976-26-000148
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 80 current paragraphs.
47 unchanged; 14 reworded; 18 added; 18 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 (18)
Current report
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Current report
Sales increased $84.7 million, or 10.5%, for the three months ended September 30, 2026 compared with the prior-year quarter, primarily driven by increased demand for our growth vectors, favorable sales mix and pricing actions to offset inflation in input costs, including raw materials, wages, freight and energy. Sales growth was broad-based across our end markets. Packaging, our largest end market, contributed 2.5% to total company sales growth while building & construction, industrial and consumer each contributed approximately 1.5% and energy contributed 1.0%. Sales increases in our growth vectors was primarily driven by demand for high-performance computing and electronic applications and functional additives, which contributed to growth in packaging and consumer applications. Growth in building & construction and energy was driven by demand associated with commercial infrastructure investment, while growth in industrial applications reflected favorable pricing and mix.
Current report
Sales increased $156.0 million, or 6.2%, for the nine months ended September 30, 2026 compared with the prior-year period. Favorable foreign currency impacts contributed 2.0%, while organic sales increased 4.2%, driven by increased demand and pricing actions to offset inflation in input costs. Packaging contributed 1.8% to total Company sales growth, driven by demand for functional additives and high-performance computing and electronic applications. Building & construction contributed 1.2%, benefiting from commercial infrastructure investment.
Current report
18 AVIENT CORPORATION sales, which more than offset the impacts of increased environmental and restructuring costs which were $9.2 million higher in 2026.
Current report
Selling and administrative expense increased $11.4 million for the three months ended September 30, 2026, primarily driven by higher merit and variable compensation costs associated with 2026 performance.
Current report
During the three months ended September 30, 2026, the Company’s effective tax rate was 25.6% compared to 23.5% in the three months ended September 30, 2025. The higher effective tax rate in the three months ended September 30, 2026 is primarily driven by increased withholding taxes associated with foreign earnings growth, including Brazil’s 10% withholding tax implemented in the fourth quarter of 2025, and increased valuation allowances associated with European restructuring costs. During the nine months ended September 30, 2026, the Company's effective tax rate was 25.0% compared to 23.9% in the nine months ended September 30, 2025. The higher effective tax rate is primarily driven by increased withholding taxes associated with foreign earnings, while the nine months ended September 30, 2025 included a benefit associated with the statute of limitations expiring on a previously unrecognized tax position.
Current report
We are monitoring pending legislative developments in Luxembourg, including the Draft Budget Law currently before parliament, which would eliminate the 17-year limitation on tax loss carryforwards and reduce the corporate income tax rate. Because the legislation had not been enacted as of September 30, 2026, no impact has been reflected in our financial statements. As of September 30, 2026, we had $39.8 million of valuation allowance in Luxembourg attributable to the 17-year loss carryforward period, which would be reassessed if the 17-year limitation were eliminated. Any accounting impact from the proposed legislation would be recognized in the period of enactment.
Current report
Sales increased $41.6 million, or 8.2%, in the three months ended September 30, 2026 compared with the prior-year quarter, with growth across all end markets primarily driven by favorable sales mix and pricing. Our packaging and consumer end markets contributed 3.4% and 1.0%, respectively, to the segment’s sales growth, driven by demand for functional additives and color solutions used in food, beverage and personal care applications. Building & construction contributed 1.5%, driven by commercial infrastructure investment.
Current report
Sales increased $85.6 million, or 5.5%, in the nine months ended September 30, 2026 compared with the prior-year period. Excluding a favorable foreign currency impact of 2.3%, organic sales increased 3.2%, primarily driven by favorable sales mix and pricing actions to offset inflation. Packaging contributed 2.2% to the segment’s sales growth driven by demand for functional additives and color solutions used in food, beverage and personal care applications. Building and construction contributed 0.7% to the segment’s sales growth driven by commercial infrastructure investment.
Current report
Operating income increased $14.9 million and $29.3 million for the three and nine months ended September 30, 2026, respectively, compared to the three and nine months ended September 30, 2025. The increase was primarily driven by higher sales and favorable mix associated with the additive growth noted above, while the benefit of cost savings from productivity and restructuring actions offset higher merit and variable compensation costs.
Current report
Sales increased $42.9 million, or 14.4%, in the three months ended September 30, 2026 compared with the prior-year quarter, primarily driven by increased demand for our growth vectors, favorable sales mix and pricing actions to offset inflation in input costs. Defense, the segment’s largest end market, contributed 2.5% to sales growth amid higher government defense spending. Industrial and consumer contributed 2.4% and 1.7%, respectively, reflecting new business wins and favorable pricing and mix. Telecommunications contributed 2.2% driven by high-performance computing applications. Energy and building & construction contributed 2.1% and 1.8%, respectively, driven by commercial infrastructure investment, while healthcare contributed 1.7%, driven by demand for remote monitoring and drug delivery applications.
Current report
Sales increased $68.9 million, or 7.4%, in the nine months ended September 30, 2026 compared with the prior-year period. Favorable foreign currency impacts contributed 1.6%, while organic sales increased 5.8%, reflecting higher demand and pricing actions to offset inflation in input costs. Growth was broad-based across nearly all end markets. Most notably, building & construction contributed 2.0% to total segment sales growth, driven by commercial infrastructure investment; packaging contributed 1.2%, driven by growth in high-performance computing applications; and defense contributed 1.1%, reflecting higher government defense spending.
Current report
Corporate costs increased $11.8 million for the three months ended September 30, 2026, primarily driven by higher merit and variable compensation costs and environmental charges of $5.6 million, while inflation was partially offset by productivity and restructuring actions.
Current report
21 AVIENT CORPORATION
Current report
Operating Activities —Net cash provided by operating activities increased $46.2 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by higher 2026 earnings coupled with lower incentive payments in 2026 associated with 2025 performance. These increases were partially offset by the 2025 impairment of SAP S/4HANA for $71.6 million, a $34.0 million insurance recovery related to our remediation of the Calvert City site in 2025 as well as higher 2026 restructuring payments.
Current report
22 AVIENT CORPORATION
Current report
23 AVIENT CORPORATION
Current report
24 AVIENT CORPORATION
Removed paragraphs (18)
Previous 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.
Previous report
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 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.
Previous report
15 AVIENT CORPORATION
Previous 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.
Previous 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.
Previous report
16 AVIENT CORPORATION
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 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.
Previous report
Corporate costs increased $7.7 million for the three months ended June 30, 2026, primarily driven by higher employee compensation costs.
Previous report
17 AVIENT CORPORATION
Previous 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.
Previous report
18 AVIENT CORPORATION
Reworded paragraphs (14)
Previous wording
Results of Operations — The three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025:
Current wording
Results of Operations — The three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025:
Previous 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.
Current wording
Gross margin as a percentage of sales was 32.1% for the nine months ended September 30, 2026 compared to 31.4% for the nine months ended September 30, 2025. The increase was primarily driven by the impact ofhigher sales, which more than offset the impacts of increased environmental and restructuring costs, which were$10.8 million higher in 2026.
Previous 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.
Current wording
Selling and administrative expense decreased $60.9 million for the nine months ended September 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, as well as lower restructuring costs of $10.4 million, partially offset by higher merit and variable compensation costs associated with 2026 performance.
Previous 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.
Current wording
Interest expense, net decreased $1.5 million and $8.8 million for the three and nine months ended September 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 $100.0 million in 2026 and $150.0 million in 2025.
Previous 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:
Current wording
Sales and Operating Income —The three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025:
Previous wording
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 wording
Operating income increased $12.4 million and $25.2 million for the three and nine months ended September 30, 2026 compared to the three and nine months ended September 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 merit and variable compensation costs.
Previous 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.
Current wording
Corporate costs decreased $72.4 million for the nine months ended September 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 of $8.4 million along with cost savings from restructuring and productivity actions for the nine months ended September 30, 2026 partially offset higher merit and variable compensation costs compared to the nine months ended September 30, 2025.
Previous wording
As of June 30, 2026, approximately 78% of the Company’s cash and cash equivalents resided outside the United States.
Current wording
As of September 30, 2026, approximately 83% 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 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.
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, share repurchases, 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 six months ended June 30, 2026 and 2025.
Current wording
The following describes the significant components of cash flows from operating, investing and financing activities for the nine months ended September 30, 2026 and 2025.
Previous 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.
Current wording
Investing Activities —Net cash used in investing activities during the nine months ended September 30, 2026 and 2025 was $66.4 million and $64.2 million, respectively, which reflects the impact of capital expenditures.
Previous 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.
Current wording
Financing Activities —Net cash used in financing activities for the nine months ended September 30, 2026 and 2025 was $178.5 million and $181.7 million, respectively, which primarily reflects dividend payments and prepayments on Avient's senior secured term loan.
Previous wording
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.
Current wording
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.
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 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.
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 nine months ended September 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
Gross margin as a percentage of sales was 30.5% for the three months ended September 30, 2026 compared to 30.4% for the three months ended September 30, 2025. The increase was primarily driven by the impact ofhigher