avnt-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________________

FORM 10-Q

________________________________________________

(Mark One)


☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2025


☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to .

Commission file number 1-16091

________________________________________________

AVIENT CORPORATION

(Exact name of registrant as specified in its charter)

________________________________________________


Ohio									34-1730488
(State or other jurisdiction									(I.R.S. Employer Identification No.)
of incorporation or organization)


33587 Walker Road									44012
Avon Lake, Ohio
(Address of principal executive offices)									(Zip Code)

Registrant’s telephone number, including area code: (440) 930-1000

Former name, former address and former fiscal year, if changed since last report: Not Applicable

_______________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, par value $.01 per share	AVNT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

The number of the registrant’s outstanding common shares, par value $.01 per share, as of June 30, 2025 was 91,540,567.

AVIENT CORPORATION

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Avient Corporation

Condensed Consolidated Statements of Income (Unaudited)

(In millions, except per share data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Sales	$	866.5	$	849.7	$	1,693.1	$	1,678.7
Cost of sales	588.6		592.1		1,152.0		1,142.9
Gross margin	277.9		257.6		541.1		535.8
Selling and administrative expense	181.8		185.1		444.3		369.3


Operating income	96.1		72.5		96.8		166.5
Interest expense, net	(24.7)		(26.6)		(51.6)		(53.2)

Other expense, net	(0.5)		(0.9)		(0.9)		(1.8)
Income before income taxes	70.9		45.0		44.3		111.5
Income tax expense	(17.4)		(11.2)		(10.7)		(28.0)


Net income	$	53.5	$	33.8	$	33.6	$	83.5
Net income attributable to noncontrolling interests	(0.9)		(0.2)		(1.2)		(0.5)
Net income attributable to Avient common shareholders	$	52.6	$	33.6	$	32.4	$	83.0

Earnings per share attributable to Avient common shareholders - Basic:	$	0.57	$	0.37	$	0.35	$	0.91




Earnings per share attributable to Avient common shareholders - Diluted:	$	0.57	$	0.36	$	0.35	$	0.90




Weighted-average shares used to compute earnings per common share:
Basic	91.5		91.3		91.5		91.3
Plus dilutive impact of share-based compensation	0.3		0.9		0.3		0.7
Diluted	91.8		92.2		91.8		92.0

Anti-dilutive share-based compensation awards	1.6		0.4		1.5		1.1

Cash dividends declared per share of common stock	$	0.2700	$	0.2575	$	0.5400	$	0.5150

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

1 AVIENT CORPORATION

Avient Corporation

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(In millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net income	$	53.5	$	33.8	$	33.6	$	83.5
Other comprehensive income (loss), net of tax:
Translation adjustments and related hedging instruments	29.4		(18.5)		58.9		(44.4)


Total other comprehensive income (loss)	29.4		(18.5)		58.9		(44.4)
Total comprehensive income	82.9		15.3		92.5		39.1
Comprehensive income attributable to noncontrolling interests	(0.9)		(0.2)		(1.2)		(0.5)
Comprehensive income attributable to Avient common shareholders	$	82.0	$	15.1	$	91.3	$	38.6

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

2 AVIENT CORPORATION

Avient Corporation

Condensed Consolidated Balance Sheets

(In millions)


	(Unaudited) June 30, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	474.5	$	544.5
Accounts receivable, net	523.4		399.5
Inventories, net	387.5		346.8

Other current assets	109.0		131.3
Total current assets	1,494.4		1,422.1
Property, net	986.1		955.3
Goodwill	1,754.6		1,659.7
Intangible assets, net	1,529.3		1,450.4



Other non-current assets	368.9		323.6
Total assets	$	6,133.3	$	5,811.1

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt	$	0.5	$	7.7
Accounts payable	439.4		417.4


Accrued expenses and other current liabilities	297.4		331.0
Total current liabilities	737.3		756.1
Non-current liabilities:
Long-term debt	2,020.0		2,059.3

Deferred income taxes	306.9		260.4


Other non-current liabilities	695.1		405.7
Total non-current liabilities	3,022.0		2,725.4

SHAREHOLDERS' EQUITY
Avient shareholders’ equity	2,358.3		2,313.8
Noncontrolling interest	15.7		15.8
Total equity	2,374.0		2,329.6
Total liabilities and equity	$	6,133.3	$	5,811.1

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

3 AVIENT CORPORATION

Avient Corporation

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In millions)


	Six Months Ended June 30,
	2025		2024
Operating activities
Net income	$	33.6	$	83.5
Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization	91.9		89.2

Cloud-based enterprise resource planning system impairment	71.6		—



Share-based compensation expense	4.6		9.0


Changes in assets and liabilities:
Increase in accounts receivable	(102.9)		(97.0)
Increase in inventories	(20.8)		(27.3)
Increase in accounts payable	1.4		11.9



Environmental insurance recovery	34.0		—
(Decrease) increase in incentive accruals	(40.6)		5.1
Accrued expenses and other assets and liabilities, net	(11.1)		(11.3)

Net cash provided by operating activities	61.7		63.1

Investing activities
Capital expenditures	(39.5)		(55.8)



Proceeds from plant closures	—		3.4
Other investing activities	—		(2.1)
Net cash used by investing activities	(39.5)		(54.5)

Financing activities




Payments on long-term borrowings	(50.2)		(4.5)
Cash dividends paid	(49.4)		(47.0)





Other financing activities	(6.8)		(3.3)
Net cash used by financing activities	(106.4)		(54.8)
Effect of exchange rate changes on cash	14.2		(10.2)
Decrease in cash and cash equivalents	(70.0)		(56.4)
Cash and cash equivalents at beginning of year	544.5		545.8
Cash and cash equivalents at end of period	$	474.5	$	489.4

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

4 AVIENT CORPORATION

Avient Corporation

Condensed Consolidated Statements of Shareholders' Equity (Unaudited)

(In millions)


	Common Shares		Shareholders’ Equity
	Common Shares	Common Shares Held in Treasury	Common Shares		Additional Paid-in Capital		Retained Earnings		Common Shares Held in Treasury		Accumulated Other Comprehensive (Loss) Income		Total Avient Shareholders' Equity		Non-controlling Interests		Total Equity
Balance at January 1, 2025	122.2	(30.8)	$	1.2	$	1,537.5	$	1,882.5	$	(929.6)	$	(177.8)	$	2,313.8	$	15.8	$	2,329.6
Net loss	—	—	—		—		(20.2)		—		—		(20.2)		0.3		(19.9)
Other comprehensive income	—	—	—		—		—		—		29.5		29.5		—		29.5

Cash dividends declared -- $0.2700 per share	—	—	—		—		(24.7)		—		—		(24.7)		—		(24.7)


Share-based compensation and exercise of awards	—	0.1	—		(1.2)		—		1.1		—		(0.1)		—		(0.1)

Balance at March 31, 2025	122.2	(30.7)	$	1.2	$	1,536.3	$	1,837.6	$	(928.5)	$	(148.3)	$	2,298.3	$	16.1	$	2,314.4
Net income	—	—	—		—		52.6		—		—		52.6		0.9		53.5
Other comprehensive income	—	—	—		—		—		—		29.4		29.4		—		29.4
Noncontrolling interest activity	—	—	—		—		—		—		—		—		(1.3)		(1.3)
Cash dividends declared -- $0.2700 per share	—	—	—		—		(24.7)		—		—		(24.7)		—		(24.7)


Share-based compensation and exercise of awards	—	—	—		2.6		—		0.1		—		2.7		—		2.7

Balance at June 30, 2025	122.2	(30.7)	$	1.2	$	1,538.9	$	1,865.5	$	(928.4)	$	(118.9)	$	2,358.3	$	15.7	$	2,374.0


	Common Shares		Shareholders’ Equity
	Common Shares	Common Shares Held in Treasury	Common Shares		Additional Paid-in Capital		Retained Earnings		Common Shares Held in Treasury		Accumulated Other Comprehensive (Loss) Income		Total Avient Shareholders' Equity		Non-controlling Interests		Total Equity
Balance at January 1, 2024	122.2	(31.0)	$	1.2	$	1,529.7	$	1,808.2	$	(932.5)	$	(87.4)	$	2,319.2	$	18.8	$	2,338.0
Net income	—	—	—		—		49.4		—		—		49.4		0.3		49.7
Other comprehensive loss	—	—	—		—		—		—		(25.9)		(25.9)		—		(25.9)
Noncontrolling interest activity	—	—	—		0.3				—		—		0.3		(2.6)		(2.3)
Cash dividends declared -- $0.2575 per share	—	—	—		—		(23.5)		—		—		(23.5)		—		(23.5)


Share-based compensation and exercise of awards	—	0.1	—		0.9		—		0.9		—		1.8		—		1.8

Balance at March 31, 2024	122.2	(30.9)	$	1.2	$	1,530.9	$	1,834.1	$	(931.6)	$	(113.3)	$	2,321.3	$	16.5	$	2,337.8
Net income	—	—	—		—		33.6		—		—		33.6		0.2		33.8
Other comprehensive loss	—	—	—		—		—		—		(18.5)		(18.5)		—		(18.5)

Cash dividends declared -- $0.2575 per share	—	—	—		—		(23.5)		—		—		(23.5)		—		(23.5)

Share-based compensation and exercise of awards	—	—	—		3.9		—		0.7		—		4.6		—		4.6

Balance at June 30, 2024	122.2	(30.9)	$	1.2	$	1,534.8	$	1,844.2	$	(930.9)	$	(131.8)	$	2,317.5	$	16.7	$	2,334.2

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

5 AVIENT CORPORATION

Avient Corporation

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, 2024 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 six months ended June 30, 2025 are not necessarily indicative of the results that may be attained in subsequent periods or for the year ending December 31, 2025.

Accounting Standards Adopted

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires additional segment disclosures on an annual and interim basis, including significant segment expenses that are regularly provided to the chief operating decision maker. The Company adopted this standard for the year ended December 31, 2024, and interim periods thereafter, and applied retrospective changes to all periods presented in the condensed consolidated financial statements. The adoption of ASU 2023-07 impacted segment disclosures within Note 9, Segment Information.

Accounting Standards Not Yet Adopted

ASU 2023-09, Income Taxes, provides guidance requiring disaggregated income tax disclosures on an annual basis, including information on the Company's effective tax rate reconciliation and income taxes paid. This guidance is effective for fiscal years beginning after December 15, 2024, and may be applied prospectively or retrospectively. The Company is currently evaluating the impacts of adopting this standard to its income taxes disclosures.

ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures, provides guidance requiring disaggregated disclosure of income statement expenses. This guidance is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. This guidance may be applied prospectively or retrospectively. The Company is currently evaluating the impacts of adopting this standard to its financial statement disclosures.

Note 2 — GOODWILL AND INTANGIBLE ASSETS

Goodwill as of June 30, 2025 and December 31, 2024 and changes in the carrying amount of goodwill by segment were as follows:


(In millions)	Specialty Engineered Materials		Color, Additives and Inks		Total
Balance at December 31, 2024	$	656.3	$	1,003.4	$	1,659.7

Currency translation	52.6		42.3		94.9
Balance at June 30, 2025	$	708.9	$	1,045.7	$	1,754.6

6 AVIENT CORPORATION

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


	As of June 30, 2025
(In millions)	Acquisition Cost		Accumulated Amortization		Currency Translation		Net
Customer relationships	$	726.2	$	(252.0)	$	37.7	$	511.9
Patents, technology and other	847.0		(278.1)		44.9		613.8
Indefinite-lived trade names	362.8		—		40.8		403.6
Total	$	1,936.0	$	(530.1)	$	123.4	$	1,529.3


	As of December 31, 2024
(In millions)	Acquisition Cost		Accumulated Amortization		Currency Translation		Net
Customer relationships	$	726.2	$	(234.9)	$	(0.4)	$	490.9
Patents, technology and other	847.0		(255.8)		(6.1)		585.1
Indefinite-lived trade names	362.8		—		11.6		374.4
Total	$	1,936.0	$	(490.7)	$	5.1	$	1,450.4

Note 3 — RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES

Cloud-based Enterprise Resource Planning System Impairment and Other Related 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 to 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.

Clariant Color Integration Restructuring Program

We are engaged in a restructuring program associated with our integration of Clariant Color. These actions are expected to enable us to better serve customers, improve efficiency and deliver cost savings. We expect that the full restructuring plan will be implemented by the end of 2025 and anticipate that we will incur approximately $70.0 million of charges in connection with the restructuring plan. As of June 30, 2025, $63.8 million had been incurred.

A summary of the Clariant Color integration restructuring is shown below:

SEC Form 10-Q filed by Avient Corporation