Avient (NYSE: AVNT) 2025 earnings drop on ERP impairment and restructuring
Filing Impact
Filing Sentiment
Form Type
10-K
Avient Corporation reported modest 2025 sales growth but sharply lower profit. Sales rose 0.6% to
Gross margin slipped to 31.2% from 32.6% as higher restructuring costs, planned maintenance and lower environmental insurance gains offset stable revenue. A key drag was a
Cash generation improved, with operating cash flow increasing to
Positive
- None.
Negative
- Sharp earnings decline driven by significant charges: 2025 net income from continuing operations fell 51% to
$83.6 million and operating income dropped 38% to$203.5 million , hurt by a$71.6 million S/4HANA impairment,$14.7 million in hosting obligations and higher restructuring costs.
Insights
Profits fell sharply on sizable one-time charges despite stable revenue.
Avient held 2025 sales nearly flat at
The company recorded a
On the balance-sheet side, Avient used stronger operating cash flow of
United States
Securities and Exchange Commission
Washington, DC 20549
FORM 10-K
For the fiscal year ended December 31 , 2025
For the transition period from to .
Commission file number 1-16091
(Exact name of registrant as specified in its charter)
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Registrant’s telephone number, including area code (440 ) 930-1000
Securities registered pursuant to Section 12(b) of the Act:
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Securities registered pursuant to Section 12(g) of the Act:
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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☑
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.
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| Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
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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 has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑
The aggregate market value of the registrant’s outstanding common shares held by non-affiliates on June 30, 2025, determined using a per share closing price on that date of $32.31, as quoted on the New York Stock Exchange, was $3.0 billion.
The number of shares of common shares outstanding as of February 6, 2026 was 91,624,728 .
AVIENT CORPORATION
DOCUMENTS INCORPORATED BY REFERENCE
Part III of this Annual Report on Form 10-K incorporates by reference certain information from the registrant’s definitive Proxy Statement with respect to the 2026 Annual Meeting of Shareholders.
AVIENT CORPORATION
PART I
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS
In this Annual Report on Form 10-K, statements that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. You can identify these statements by the fact that they do not relate strictly to historic or current facts. They use words such as "will," “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales. In particular, these include statements relating to future actions; prospective changes in raw material costs, product pricing or product demand; future performance; estimated capital expenditures; results of current and anticipated market conditions and market strategies; sales efforts; expenses; the outcome of contingencies such as legal proceedings and environmental liabilities; and financial results. Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
•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;
•the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
•disruptions or inefficiencies in our supply chain, logistics, or operations;
•changes in laws and regulations in jurisdictions where we conduct business, including with respect to plastics and climate change;
•changes to foreign trade policy, including new or increased tariffs and changing import/export regulations;
•fluctuations in raw material prices, quality and supply, and in energy prices and supply;
•demand for our products and services;
•production outages or material costs associated with scheduled or unscheduled maintenance programs;
•unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
•our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;
•information systems failures, cybersecurity breaches and cyberattacks;
•our ability to service our indebtedness and restrictions on our current and future operations due to our indebtedness;
•amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions;
•other factors affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation, geopolitical conflicts and any recessionary conditions; and
•other factors described in this Annual Report on Form 10-K under Item 1A, “Risk Factors.”
We cannot guarantee that any forward-looking statement will be realized, although we believe we have been prudent in our plans and assumptions. Achievement of future results is subject to risks, uncertainties and assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Investors should bear this in mind as they consider forward-looking statements. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law. You are advised, however, to consult any further disclosures we make on related subjects in our reports on Forms 10-Q, 8-K and 10-K filed with the Securities and Exchange Commission (SEC). You should understand that it is not possible to predict or identify all risk factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.
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ITEM 1. BUSINESS
Business Overview
We are an innovator of materials solutions to help our customers succeed, while enabling a sustainable world. Our products include specialty engineered materials, performance fibers, advanced composites and color and additive solutions. We are also a highly specialized developer and manufacturer of performance enhancing additives, liquid colorants and silicone colorants. When used in this Annual Report on Form 10-K, the terms “we,” “us,” “our," "Avient" and the “Company” mean Avient Corporation and its consolidated subsidiaries.
Avient was formed as PolyOne Corporation on August 31, 2000, from the consolidation of The Geon Company (Geon) and M.A. Hanna Company (Hanna). Through a series of acquisitions, divestitures, operational improvements and cultural shifts, the Company has transformed to become an innovator of materials solutions. Effective June 30, 2020, the Company amended its existing Articles of Incorporation to change its name to Avient Corporation and changed its ticker symbol from “POL” to “AVNT”, effective at the start of trading on July 13, 2020.
Avient Corporation is incorporated in Ohio and headquartered in Avon Lake, Ohio. We currently have 98 manufacturing sites in North America, South America, Asia, Europe, the Middle East, and Africa (EMEA). In 2025, the Company had sales of $3.3 billion, approximately 61% of which were to customers outside the United States. Using formulation expertise, materials science and operational capabilities, we create an essential link between large chemical producers (our raw material suppliers) and designers, assemblers and processors of polymers (our customers). We believe that our role in the value chain continues to become more vital as our customers increasingly need reliable suppliers with global reach, a local touch, and highly effective materials-based solutions to help improve their products' performance, appeal, differentiation, profitability and competitive advantage. Our goal is to provide customers with innovative materials solutions through our global footprint, broad market knowledge, technical expertise, product breadth, manufacturing operations and raw materials procurement leverage. Our end markets include consumer, packaging, defense, healthcare, industrial, transportation, building and construction, telecommunications and energy.
Polymer Industry Overview
Avient is an innovator of materials solutions within the polymer industry. We have the scientific know-how in materials science required to bridge the large, commodity base resin producers and the companies who ultimately manufacture end products utilizing formulated polymer and composite materials.
Polymers are a class of organic materials that are generally produced by converting natural gas or crude oil derivatives into monomers, such as ethylene, propylene, and styrene. These monomers are then polymerized into chains called polymers, or plastic resin, such as polyethylene and polypropylene, in their most basic forms. Avient does not produce commodity base resins. Rather, Avient sources various resins, polymers and additives, then employs additional chemistry in formulating those materials into highly engineered, unique materials for a specific use.
Thermoplastic polymers are characterized by their ability to be reshaped repeatedly into new forms after heat and pressure are applied. Thermoplastics offer versatility and a wide range of applications. The major types of thermoplastics include polyethylene, polypropylene, polystyrene, polyester and a range of specialized engineering resins. Each type of thermoplastic has unique qualities and characteristics that make it appropriate for use in a particular application.
Thermoplastic composites include base resins, but are combined with a structural element such as glass, carbon or polymer fibers to enhance strength, rigidity and structure. Further performance can be delivered through an engineered thermoplastic sheet or thick film, which may incorporate more than one resin formulation or composite in multiple layers to impart additional properties, such as gas barrier, structural integrity and lightweighting.
Thermoplastics and polymer composites are found in a variety of end-use products and markets, including packaging, defense, building and construction, wire and cable, transportation, medical, furniture and furnishings, durable goods, outdoor high-performance equipment, electrical and electronics, adhesives, inks and coatings and fiber. Each type of thermoplastic resin has to ultimately achieve unique characteristics (such as flexibility, strength or durability) suitable for use in a particular end-use application. The materials science and manufacturing processes required to achieve those characteristics is the specialty role that Avient plays.
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The following are examples, by industry, where Avient materials solutions address specific market requirements or challenges. In the packaging industry, colorants and additives are used to lightweight, enhance consumer appeal, increase design freedom, improve recyclability, enable recycled content to be incorporated, and preserve and protect the packaging's contents. In wire and cable, thermoplastics and composites enhance performance and extend product life by providing electrical insulation, flame resistance, water resistance and strain resistance for highly engineered electrical and telecommunications wires, cables and connectors. In the defense industry, ultra-high molecular weight fiber is relied upon and incorporated into tactical vests, hard armor plates, shields, bomb suits, helmets, and military vehicles (air, sea and ground). In the transportation industry, plastic has proven to be durable, lightweight and corrosion resistant while offering fuel savings, design flexibility and high performance, often replacing traditional materials such as metal and glass. In the medical industry, plastics are used for a vast array of devices and equipment, including blood and intravenous bags, medical tubing, catheters, lead replacement for radiation shielding, clamps and connectors to bed frames, curtains and sheeting, electronic enclosures and equipment housing. In the outdoor high performance industry, plastic applications are used for components and colorants for all terrain vehicles, and reinforced polymers are used for various outdoor equipment and gear. In the electronics industry, plastic enclosures and connectors not only enhance safety through electrical insulation, but thermally and electrically conductive plastics provide heat transferring, cooling, anti-static, electrostatic discharge, and electromagnetic shielding performance for critical applications including integrated circuit chip packaging.
Various additives can also be formulated with a base resin and further engineered into a composite to provide them with greater versatility and performance. Polymer formulations and composites have advantages over metals, wood, rubber, glass and other traditional materials, which have resulted in the replacement of these materials across a wide spectrum of applications. These specialized polymers offer sustainability and performance advantages compared to traditional materials, including design freedom, processability, weight reduction, chemical resistance, flame retardance and lower cost. Plastics are renowned for their durability, aesthetics and ease of handling. Avient’s strategy and investments are aligned to enable these important benefits, now and in the future.
Avient Segments
We operate in two reportable segments: (1) Color, Additives and Inks and (2) Specialty Engineered Materials. Our segments are further detailed in Note 13, Segment Information, to the accompanying consolidated financial statements.
Competition
We compete with global companies and local niche producers on performance, innovation, service, quality, delivery, and price. Our strategy is to focus our technologies where they intersect secular growth trends and to build platforms of scale that differentiate on speed, global reach, and application expertise.
Raw Materials
We primarily purchase polyolefin and other thermoplastics, titanium dioxide, pigments, specialty additives, and ethylene for use in our manufacturing operations, all of which we believe are currently in adequate supply. See the discussion of risks associated with raw material supply and costs in Item 1A, “Risk Factors."
Patents and Trademarks
We own and maintain a number of patents and trademarks in the United States and other key countries that contribute to our competitiveness in the markets we serve because they protect our inventions and product names against infringement by others. Patents may exist for 20 years from filing date, and trademarks may have an indefinite life based upon continued use. While we view our patents and trademarks to be valuable because of the broad scope of our products and services and brand recognition we enjoy, we do not believe that the loss or expiration of any single patent or trademark would have a material adverse effect on our results of operations, financial position or cash flows. Nevertheless, we have management processes designed to rigorously protect our inventions and trademarks.
Seasonality
Sales of our products and services are typically seasonal, as demand has historically been slower in the third and fourth quarters of the calendar year. In addition, our defense business is, in part, associated with tenders and project-based work, which can lead to inconsistent order patterns on a quarter over quarter basis.
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Working Capital Practices
Our products are generally manufactured with a short turnaround time, and the scheduling of manufacturing activities from customer orders generally includes enough lead time to assure delivery of an adequate supply of raw materials. We agree to payment terms with our customers and suppliers that are competitive.
Significant Customers
No customer accounted for more than 3% of our consolidated revenues in 2025.
Research and Development
One of our strategic drivers is to "Amplify Innovation," and we have substantial technology and development capabilities, powered by approximately 1,100 employees serving in technical capacities, approximately 120 of whom have PhD level educations. Our efforts are largely devoted to developing new materials solutions to address evolving market and sustainability needs. We do this by providing quality technical services to evaluate alternative raw materials, facilitating the continued success of our products for customer applications, providing technology to improve our products, processes and applications and providing support to our manufacturing plants for cost reduction, productivity and quality improvement programs. We operate research and development centers that support our commercial development activities and manufacturing operations. These facilities are equipped with state-of-the-art analytical, synthesis, polymer characterization and testing equipment, along with pilot plants and polymer manufacturing operations that simulate specific production processes. Our investment in product research and development was $96.7 million in 2025, $98.7 million in 2024, and $90.3 million in 2023.
Methods of Distribution
We sell products primarily through direct sales personnel, distributors, and commissioned sales agents. We primarily use truck carriers to transport our products to customers, although some customers pick up product at our manufacturing facilities or warehouses.
Human Capital Resources
The success and growth of our business depend in large part on our ability to attract, develop and retain talented and high-performing employees at all levels of our organization. We are committed to building additional capabilities within our organization to meet the changing needs of our customers and the dynamic macro environment in which we operate.
We have developed key recruitment and retention strategies, objectives and measures that guide our human capital management approach as part of the overall management of our business. These strategies, objectives and measures are advanced through a number of programs, policies and initiatives, as described below.
As of December 31, 2025, Avient employed approximately 9,000 people, 33% of which were located in the U.S. and Canada, 33% were located in EMEA, 26% were located in Asia, and 8% were located in Latin America.
Safety and Health
A top priority at Avient is the safety and health of our employees, and our ultimate goal is to operate injury free. Progress toward this goal is measured at the business unit and regional levels, communicated globally, and linked to a number of recognition programs. In 2025, we continued our strong focus on safety with a recordable incident rate of 0.60 per 100 full-time workers per year, compared to the Plastics and Rubber Products Manufacturing industry (NAICS Code 326) average of 2.80 in 2024. Continuous improvement and preventative risk reductions are key focus areas, including the active engagement of our employees in safety activities. We also continue to be recognized as an American Chemistry Counsel Responsible Care® company and set high standards for our operations as we strive to achieve our goal of zero recordable injuries.
Employee Recruitment
Avient’s success is driven by having the best talent in the right roles. We actively seek collaborative and innovative change-makers who are passionate about our strategy and values through numerous channels, including employee referrals, job fairs, talent networks, industry associations, and directly from universities. As a key aspect of our talent pipeline, we partner with leading universities around the world to hire employees into full-time, co-op and internship opportunities. These roles include rotational development programs where individuals are able to gain experience in various departments and jobs within or across functions, contributing their skills while also building well-rounded knowledge of our Company and its many stakeholders.
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Training and Development
We provide meaningful learning engagements and skill development opportunities to all global employees. Learning is ingrained in our culture and every Avient employee participates in training annually. We manage training and development through global programs and technology, to provide a consistent and high-quality experience for all. Each year, training is completed through a variety of different methods, which focus on leadership development, safety, Lean Six Sigma concepts, technical and operational skills and ethics and compliance.
Our key development opportunities include nomination-based leadership programs, foundational leadership training for all current or aspiring people managers, and Lean Six Sigma training at a variety of levels, where individuals can be certified for job-specific Lean Six Sigma programs, up through Master Black Belt certification. We also focus on development for our production employees in aspects of Lean Six Sigma, safety, continuous improvement, and our ENGAGE program.
Inclusion and Impact
Our talented people leverage their unique backgrounds across a myriad of aspects and skills toward a common goal: meeting the needs of the present without compromising the ability of future generations to do the same. This spirit of inclusive collaboration can be felt throughout our Company. It drives the innovation that earns us leadership positions in the markets we serve and underpins the high level of respect we show each other every day.
The vision that guides our collective efforts is consistent and unwavering: to be the Company of choice for all. We leverage Employee Resource Groups to help educate and inspire our global workforce and fortify strong business practices. Other initiatives, including Mentoring at Avient and campus partnerships, are vital for progress in our inclusion journey. We require equality of opportunity for all qualified individuals in accordance with applicable laws.
Decisions on hiring, promotion, development, compensation or advancement are based solely on a person’s qualifications, abilities, experience and performance, except where local law requires us take specific action. The Avient Ethics Hotline serves as a mechanism for employees to anonymously report any perceived concerns regarding these topics.
Compensation and Benefits Programs
We strive to remain competitive in the global marketplace and provide foundational rewards to attract and retain top talent. In general, our overall philosophy on compensation encompasses the following principles:
•provide all levels of employees with a compensation package that aligns Avient’s and the employees’ interests through the use of base and incentive or bonus programs;
•maintain a competitive pay program that serves to attract, retain, motivate and reward employees; and
•award individual pay commensurate with experience, level of responsibility, and marketability.
We celebrate, reward and share our employees’ great work through our recognition programs, including those that all employees can earn for their extra effort and impact. In addition, we provide our employees an opportunity to support communities by giving each individual 16 hours of paid time off each year. In 2025, all of our sites and more than 6,000 employees generously gave over 13,000 volunteer hours and $1.4 million in donations around the world.
A Great Place to Work®
Our ongoing employee feedback is highly valued, discussed, and most importantly, acted upon, to make improvements. In addition to holding action planning sessions, new manager assimilations, and 360 reviews, we also conduct annual employee engagement surveys. Last year, we continued to focus on our action plans for each site location and team to improve the experience and engagement of our global teams. We are proud that our employees feel we are a Great Place to Work®, as evidenced by our six Great Place to Work® certifications. Understanding how our employees feel about their experiences at Avient and our culture is critical and helps us ensure that the right capabilities and behaviors are developed across the organization.
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Environmental, Health and Safety and Other Regulations
We are also subject to extensive and varied laws and regulations in the jurisdictions in which we operate, including those relating to anti‑corruption and trade, anti-money laundering, import and export compliance, antitrust, data security and privacy, employment, public health and safety, intellectual property, transportation, zoning, and fire codes. Our policies mandate compliance with all applicable laws and regulations, and we operate our business in accordance with standards and procedures designed to comply with these laws and regulations. We believe that we are in compliance with such laws and regulations in all material respects.
We are strongly committed to safety as evidenced by our low injury incidence rate of 0.60 per 100 full-time workers per year in 2025 and 0.40 in 2024. The 2024 average injury incidence rate for our NAICS Code (326 Plastics and Rubber Products Manufacturing) was 2.80. We hold the American Chemistry Council's certification as a Responsible Care Management System® (RCMS) company. Certification was granted based on Avient's conformance to the RCMS's comprehensive environmental health, safety and security requirements. The RCMS certification affirms the importance Avient places on having strong environmental, health, safety and security performance. In our operations, we must comply with product-related governmental law and regulations affecting the plastics industry generally and also with content-specific law, regulations and non-governmental standards. We believe that compliance with current governmental laws and regulations and with non-governmental content-specific standards will not have a material adverse effect on our financial position, results of operations or cash flows. The risk of additional costs and liabilities, however, is inherent in certain plant operations and certain products produced at these plants, as is the case with other companies in the plastics industry. Therefore, we may incur additional costs or liabilities in the future. Other developments, such as increasingly strict environmental, safety and health laws, regulations and related enforcement policies, including those under the European Union Restriction of the Use of Certain Hazardous Substances Directive (RoHS), Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), the Dodd-Frank Wall Street Reform and Consumer Protection Act (covering Conflict Minerals), and the Consumer Product Safety Improvement Act, the implementation of additional content-specific standards, discovery of unknown conditions, and claims for damages to property, persons or natural resources resulting from plant emissions or products, could also result in additional costs or liabilities.
Refer to Note 10, Commitments and Contingencies, to the accompanying consolidated financial statements for discussion of environmental investigation and remediation matters and Item 1A, "Risk Factors" for discussion of matters pertaining to other regulation.
International Operations
Our international operations are subject to a variety of risks, including currency fluctuations and devaluations, exchange controls, import/export restrictions, currency restrictions and changes in local economic conditions. While the impact of these risks is difficult to predict, any one or more of them could adversely affect our future operations. For more information about the noted risks, see Item 1A, "Risk Factors." For more information about our international operations, see Note 13, Segment Information, to the accompanying consolidated financial statements.
Where You Can Find Additional Information
Our principal executive offices are located at 33587 Walker Road, Avon Lake, Ohio 44012, and our telephone number is +1 (440) 930-1000. We are subject to the information reporting requirements of the Securities Exchange Act of 1934 (the Exchange Act), and, in accordance with these requirements, we file annual, quarterly and other reports, proxy statements and other information with the SEC relating to our business, financial results and other matters.
Our internet address is www.avient.com. Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available, free of charge, on our website (select Investors and then SEC Filings) or upon written request, as soon as reasonably practicable after we electronically file or furnish them to the SEC. The contents of our website are not part of this Annual Report on Form 10-K, and the reference to our website does not constitute incorporation by reference into this Form 10-K of the information contained at that site.
6 AVIENT CORPORATION
ITEM 1A. RISK FACTORS
The following are certain risk factors that could affect our business, results of operations, financial position or cash flows. Although the risks are organized by headings and each risk is described separately, many of the risks are interrelated. These risk factors should be considered along with the forward-looking statements contained in this Annual Report on Form 10-K because these factors could cause our actual results or financial condition to differ materially from those projected in forward-looking statements. The following discussion is not an all-inclusive listing of risks, although we believe these are the more material risks that we face. If any of the following occur, our business, results of operations, financial position or cash flows could be adversely affected.
Global Operating Risks
Our operations have in the past been and could in the future be adversely affected by various risks inherent in conducting operations worldwide.
We conduct a substantial portion of our business outside the U.S., with approximately 61% of our sales outside the U.S. We also have many facilities located outside the U.S., as detailed in Item 2, “Properties.” Accordingly, our business is subject to risks related to the differing legal, political, social and regulatory requirements, and economic conditions of many jurisdictions. Risks inherent in international operations include, but are not limited to, the following:
•changes in local government regulations and policies including, but not limited to, duty or tariff restrictions, foreign currency exchange controls or monetary policy, repatriation of earnings, expropriation of property, investment limitations and tax policies;
•political and economic instability and disruptions, including labor unrest, withdrawal or renegotiation of trade agreements, natural disasters, major public health issues, pandemics, civil strife, acts of war, insurrection and terrorism;
•supply chain disruptions;
•compliance with international trade laws and regulations, including tariffs, export control and economic sanctions, and other trade barriers;
•legislation that regulates the use of chemicals;
•disadvantages of competing against companies from countries that are not subject to U.S. laws and regulations, including the Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act;
•difficulties in staffing and managing multi-national operations;
•limitations on our ability to enforce legal rights and remedies;
•reduced protection of intellectual property rights;
•other risks arising out of foreign sovereignty over the areas where our operations are conducted; and
•increasingly complex laws and regulations concerning privacy and data security, including, but not limited to, the European Union's General Data Protection Regulation.
We could be adversely affected by violations of the FCPA, UK Bribery Act and similar worldwide anti-bribery laws, as well as export controls and economic sanction laws. As a global company, we operate in many parts of the world that have experienced governmental corruption. While we have no basis to believe such actions are occurring, if we are found to be liable for FCPA, UK Bribery Act, export control or sanction violations, we could suffer from criminal or civil penalties or other sanctions, including loss of export privileges or authorization needed to conduct aspects of our international business, which could have a material adverse effect on our business. We have robust policies that require compliance with all laws and regulations and we strictly enforce those policies. However, it is always possible an employee's or agent's unlawful actions may avoid detection.
Any of these risks could have an adverse effect on our international operations by reducing demand for our products.
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Changes to foreign trade policy, including new or increased tariffs and changing import/export regulations, could adversely affect our operating results, and the impacts could be material.
Changes in foreign trade policy, regulatory or economic conditions or in laws governing international trade could materially adversely affect our business. The U.S. has instituted certain changes, and may propose additional changes, in trade policies that include the negotiation or termination of trade agreements, the imposition of higher tariffs on goods exported from the U.S. or imported into the U.S., and other government regulations affecting trade between the U.S. and other countries (such as Canada, Mexico, China, and the European Union) where we conduct our business. Global trade disruption or significant introduction of trade barriers, together with any future downturns in the global economy, could further materially and adversely affect our financial performance.
As a result of policy changes and government proposals, there may be greater restrictions and economic disincentives on international trade. The new tariffs and other changes in U.S. trade policy have triggered retaliatory actions by affected countries, and foreign governments have instituted or are considering imposing tariffs and trade sanctions. Such changes have the potential to adversely impact the global economy, our industry and the global demand for our products, and as a result, could have a negative impact on our business, financial condition and results of operations.
Business Risks
Demand for and supply of our products and services have in the past been, and may in the future be, adversely affected by several factors, some of which we cannot predict or control.
Several factors have in the past and may in the future affect the demand for and supply of of products and services, including:
•economic downturns, inflation or other uncertainty or volatility in the significant end markets that we serve;
•product obsolescence or technological changes that unfavorably alter the value/cost proposition of our products and services;
•competition from existing and unforeseen polymer and non-polymer based products;
•declines in general economic conditions or reductions in industrial production growth rates, both domestically and globally, which could impact customer confidence and demand, and our customers’ ability to pay amounts owed to us;
•changes in environmental regulations that limit our ability to purchase materials or sell our products and services in specific markets;
•changes in demand for, and laws and regulations regarding, plastic materials; and
•inability to obtain raw materials or supply products to customers due to factors such as supplier work stoppages or insolvency, supply shortages, plant outages or regulatory changes that may limit or prohibit overland transportation of certain hazardous materials and exogenous factors, like severe weather.
If any of these events occur in the future, the demand for and supply of our products and services could suffer and potentially lead to asset impairment or otherwise adversely affect our results.
Our manufacturing operations are subject to hazards and other risks associated with specialty formulation and the related storage and transportation of raw materials, products and waste.
The occurrence of an operating problem at our facilities may have a material adverse effect on the productivity and profitability of a particular manufacturing facility, or on our operations as a whole, during and after the period of these operating difficulties. Operating problems may cause personal injury and/or loss of life, customer attrition and severe damage to or destruction of property and equipment and environmental damage. Our property and casualty insurance, which we believe are of the types and in the amounts that are customary for the industry, may not fully insure us against all potential hazards that are incident to our business or otherwise could occur.
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Environmental, health and safety laws and regulations impact our operations and financial statements.
Our operations on, and ownership of, real property are subject to environmental, health and safety laws and regulations at the national, state and local governmental levels (including, but not limited to, the Regulation, Evaluation, Authorization, and Restriction of Chemicals (REACH), the Classification, Labeling, and Packaging Regulation (CLP), Restriction of Hazardous Substances (RoHS) and the Consumer Product Safety Improvement Act of 2008). The nature of our business exposes us to compliance costs and risks of liability under these laws and regulations due to the production, storage, transportation, recycling or disposal and/or sale of materials that can cause contamination and other harm to the environment or personal injury if they are improperly handled and released. Environmental compliance requirements imposed on us and our vendors may significantly increase the costs of these activities involving raw materials, energy, finished products and wastes. We may incur substantial costs, including fines, criminal or civil sanctions, damages, and remediation costs, or experience interruptions in our operations for violations of these laws.
Our accruals for such costs and associated liabilities are subject to changes in estimates on which the accruals are based. For example, any amounts accrued for environmental matters reflect the best information available and our assumptions about remediation requirements at the applicable site, the nature of the remedy, the outcome of discussions with regulatory agencies and other potentially responsible parties at multi-party sites. Changes in estimates on which accruals are based, unanticipated government actions, or changes in health, safety, environmental or chemical control regulations could result in higher costs.
Electricity, fuel, logistics and raw material availability and costs have in the past and could in the future cause volatility in our results.
The cost of our electricity, fuel, logistics and raw materials may not correlate with changes in the prices we receive for our products, either in the direction of the price change or in absolute magnitude. Electricity and raw materials costs represent a substantial part of our manufacturing costs. We source certain strategic raw materials that may be difficult to replace or for our customers to requalify, which could result in the need to accept price increases. Most of the raw materials we use are commodities and the price of each can fluctuate widely for a variety of reasons, including changes in availability because of major capacity additions or reductions or significant facility operating problems. Other external factors beyond our control, including, but not limited to, trade barriers due to geopolitical tensions, can also cause fluctuations in raw materials prices, which could negatively impact demand for our products and cause volatility in our results.
Increased competition can negatively impact sales, earnings and cash flow performance.
We encounter competition in price, payment terms, delivery, service, performance, product innovation, product recognition and quality, depending on the product involved. Avient's operating results depend, in part, on continued successful research, development, and marketing of new products, and some of such efforts may not come to fruition or may be delayed.
We expect that our competitors will continue to develop and introduce new and enhanced products, which could cause a decline in the market acceptance of our products. In addition, our competitors could cause a reduction in the selling prices of some of our products as a result of intensified price competition. Competitive pressures could also result in the loss of customers.
Cybersecurity breaches, global information systems security threats and computer crime pose a risk to our systems, networks and products, which could harm our business.
We depend on integrated information systems to conduct our business, including communicating with employees and customers, ordering and managing materials from suppliers, shipping products to customers, and analyzing and reporting results of operations. Avient's IT capabilities are delivered through a combination of internal and external services and service providers. In addition, some of our systems, tools and resources use, integrate, or will integrate some form of artificial intelligence (AI), which has the potential to result in bias, miscalculations, data errors, and intellectual property infringement, and introduces additional risk associated with unauthorized access to our intellectual property, data security events, and disruption to our business. Further, we store sensitive data, including proprietary business information, intellectual property and confidential employee or other personal data, on our servers and databases.
9 AVIENT CORPORATION
Cybersecurity breaches, global information systems security threats and more sophisticated and targeted computer crime, including from threat actors who are increasingly leveraging AI for cyberattacks, pose a risk to the security of our systems and networks and the confidentiality, availability and integrity of our data and communications. We continue to update our infrastructure, security tools, employee training and processes to protect against security incidents, including both external and internal threats, and to prevent their recurrence; however, our systems, networks and products may nevertheless be vulnerable to advanced persistent threats or other types of system failures. Depending on their nature and scope, such threats and system failures could lead to the compromising of confidential information and communications, improper use of our systems and networks, manipulation and destruction of data, defective products, production downtimes and operational disruptions, which in turn could cause customers to cancel orders or otherwise adversely affect our reputation, competitiveness and results of operations. We have experienced targeted and non-targeted cybersecurity attacks in the past and we could experience similar incidents in the future. To date, no cybersecurity incident or attack has had a material impact on our business or consolidated financial statements.
We are currently involved in various legal proceedings, and may be subject to future claims or other liability that could negatively impact our business and results of operations.
From time to time, we are involved in various legal proceedings or in commercial disputes and other legal and regulatory proceedings related to our business. Additionally, our development, manufacture and sale of specialty materials, including those sold to medical, automotive, consumer packaging, and construction end markets, involves risk of exposure to product liability claims, warranty claims, product recalls and related adverse publicity. While management establishes reserves based on assessments of the contingencies related to legal claims asserted against the Company, subsequent developments may affect such assessments and our estimates of the loss contingency and require payments in excess of the Company's reserves. An adverse judgment or significant product liability, warranty, or recall action could result in substantial expenditures, affect consumer confidence in our products and divert management's attention from other matters. While we maintain product liability insurance, insurance coverage may not be adequate.
Failure to develop new products and protect our intellectual property could negatively impact our future performance and growth.
Innovation and product development are foundational to our strategy and important to our future growth. Failure to create or acquire new technologies and new products could negatively impact our ability to deliver strong financial results. We may face challenges in customer qualification and adoption of new technologies, and failure of our products to work as predicted could lead to liability and damage to customer relationships and our reputation. We continually apply for and obtain U.S. and foreign patents to protect the results of our research and development efforts. Failure to protect our intellectual property could negatively affect our future performance and growth.
We are subject to risks associated with climate change and climate change legislation, regulation and international agreements.
Carbon emissions have become the subject of state and local, regional, national, and international attention. Concerns about climate change have resulted and may continue to result in the imposition of additional regulations or restrictions to which we may become subject. These regulatory developments related to climate change and climate disclosure and diligence, including the Corporate Sustainability Reporting Directive, could increase our operating and compliance costs, thereby impacting our business and consolidated financial statements.
From time to time, we establish strategies and expectations related to climate change and other environmental matters. Our ability to achieve any such strategies or expectations is subject to numerous factors and conditions, many of which are outside of our control. Examples of such factors include, but are not limited to, evolving legal, regulatory, and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets. Failures or delays (whether actual or perceived) in achieving our strategies or expectations related to climate change and other environmental matters could adversely affect our business, operations, and reputation, and increase risk of litigation.
10 AVIENT CORPORATION
Capital and Credit Risks
Fluctuation of foreign currency exchange rates may adversely impact our financial results.
We conduct business in various regions throughout the world and are therefore exposed to fluctuations in foreign currency exchange rates in relation to the U.S. dollar. Any significant change in the value of the currencies of the countries in which we do business against the U.S. dollar, whether precipitated by governmental monetary policy or otherwise, could affect our ability to sell products competitively and control our cost structure, which could have a material adverse effect on our business, financial condition and results of operations. Further, because our Consolidated Financial Statements are presented in U.S. dollars, increases or decreases in the value of the U.S. dollar relative to other currencies in which we conduct business have in the past and could in the future adversely impact our financial results. For additional detail related to this risk, see Item 7A, "Quantitative and Qualitative Disclosures About Market Risk."
Disruptions in the global credit, financial and/or currency markets could limit our access to credit or otherwise harm our financial results, which could have a material adverse impact on our business.
Global credit and financial markets experience volatility, including volatility in security prices, liquidity and credit availability, declining valuations of certain investments and significant changes in the capital and organizational structures of certain financial institutions. Market conditions may limit our ability to access the capital necessary to grow and maintain our business. Accordingly, we may be forced to delay raising capital, issue debt with shorter tenors than we prefer or pay unattractive interest rates, which could increase our interest expense, decrease our profitability and significantly reduce our financial flexibility.
The agreements governing our debt, including our revolving credit facility, term loan and other debt instruments, contain various covenants that limit our ability to take certain actions and in certain circumstances require us to meet financial maintenance tests, failure to comply with which could have a material adverse effect on us.
The agreements governing our senior secured revolving credit facility and our senior secured term loan, and the indentures and credit agreements governing our other debt, contain a number of customary 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.
In addition, depending on our level of borrowing, our revolving credit facility requires us to comply under certain circumstances with specific financial tests, under which we are required to achieve certain or specific financial and operating results. Our ability to comply with these provisions may be affected by events beyond our control. A breach of any of these covenants would result in a default under such agreements and instruments, which in certain circumstances could be a default under all of these agreements and instruments. In the event of any default, our lenders could elect to declare all amounts borrowed under the agreements, together with accrued interest thereon, to be due and payable. In such event, we cannot assure that we would have sufficient assets to pay debt then outstanding under the agreements governing our debt.
Furthermore, certain of these agreements condition our ability to obtain additional borrowing capacity, engage in certain transactions or take certain other actions, on our achievement of certain or specific financial and operating results, although our failure to achieve such results would not result in a default under such agreements. Any future refinancing of our senior secured revolving credit facility or other debt may contain similar restrictive covenants.
Our ability to service long-term indebtedness requires cash.
Our ability to pay interest on our debt and to satisfy our other debt obligations depends in part upon our future financial and operating performance and that of our subsidiaries, and upon our ability to renew or refinance borrowings. Prevailing economic conditions and financial, business, competitive, legislative, regulatory and other factors, many of which are beyond our control, affect our ability to make these payments. While we believe that cash flow from our current level of operations, available cash and available borrowings under our revolving credit facility provide adequate sources of liquidity, a significant drop in operating cash flow resulting from economic conditions, competition or other uncertainties beyond our control could create the need for alternative sources of liquidity. If we are unable to generate sufficient cash flow to meet our debt service obligations, we will have to pursue one or more alternatives, such as reducing or delaying capital or other expenditures, refinancing debt, selling assets, or raising equity capital.
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We have a significant amount of goodwill, and any future goodwill impairment charges could adversely impact our results of operations.
As of December 31, 2025, we had goodwill of $1,757.6 million. The future occurrence of a potential indicator of impairment, such as a significant adverse change in business climate, an adverse action or assessment by a regulator, unanticipated competition, a material negative change in relationships with customers, strategic decisions made in response to economic or competitive conditions could result in goodwill impairment charges, which could adversely impact our results of operations. For additional information on the results of our annual impairment testing, see Note 2, Goodwill and Intangible Assets, to the accompanying consolidated financial statements and “Critical Accounting Policies and Estimates” included in Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
Avient may be subject to risks relating to changes in tax rates, changes in global tax laws and regulations, or exposure to additional income tax liabilities.
Avient is subject to income taxes in many jurisdictions around the world. Income tax liabilities are subject to the allocation of income among various tax jurisdictions. Our effective tax rate could be affected materially by changes in the mix among earnings in countries with differing statutory tax rates, changes in the valuation allowance of deferred tax assets, or changes in tax legislation, regulations, and policies. The amount of income taxes paid is subject to ongoing audits and litigation by tax authorities in the countries in which we operate. If these audits and/or litigation result in assessments different from amounts reserved, future financial results may include material unfavorable adjustments to our tax liabilities and cash taxes.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
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ITEM 1C. CYBERSECURITY
Risk Management and Strategy
Cybersecurity education is a priority for our employees and business partners. Employees complete cybersecurity training to help identify and respond to potential cybersecurity risks and reinforce safe behaviors. We also impose security requirements upon our third-party services and software providers, including: maintaining an effective security management program; abiding by information handling and asset management requirements; and notifying us in the event of any known or suspected cyber incident; however, we rely on such third parties to implement security programs commensurate with their risk, and their efforts may not be successful.
Governance
Our Chief Information Security Officer (CISO) , who reports to our Chief Information Officer (CIO), is generally responsible for management of cybersecurity risk and the protection and defense of our networks and systems.
Avient's CISO has more than two decades of experience in information security across the pharmaceutical, medical device, and insurance sectors. This background includes responsibility for global functions such as data protection, insider risk management, threat detection and response, incident handling, vulnerability management, penetration testing, cloud security operations, and security engineering. The CISO's prior roles include the development and execution of information protection programs, management of third-party security and audit activities, and oversight of compliance initiatives aligned with frameworks and regulatory requirements including the National Institute of Standards and Technology, the International Organization for Standardization 27001, the Sarbanes-Oxley Act, and the Global Data Protection Regulation. The CISO holds professional certifications including Certified Information Systems Auditor (CISA), Certified Information Security Manager (CISM), and Certified Information Systems Security Professional (CISSP).
Our CISO is informed about and monitors prevention, detection, mitigation, and remediation efforts through regular communication and reporting from professionals on the information security team, and through the use of technological tools and software and results from third-party audits. Our CISO has a clear escalation path to senior management for cyber-related events.
Our CISO manages a team of cybersecurity professionals with broad experience and expertise, including in cybersecurity threat assessments and detection, mitigation technologies, cybersecurity training, incident response, cyber forensics, insider threats and regulatory compliance. Our cybersecurity teams hold relevant certifications, including, but not limited to: CISA, CISM, CISSP, Certified in Risk and Information Systems Control, Factor Analysis for Information Risk (FAIR) Analyst, Security Systems Certified Practitioner (SSCP) or Certified Federal Information Security Management Act Compliance Practitioner. We also supplement our cybersecurity program with third-party experts, who provide assessments of our program, testing of our environment, monitoring support, as well as insights into evolving trends in this space.
Further, Avient has a Cyber and Data Incident Response Team (CDIRT), which is a cross-functional group established to provide a quick, effective and orderly response to cyber and data related events. The CDIRT's mission is to prevent a material loss of profits, public confidence, or information assets by providing an immediate, effective, and skillful response to any unexpected event in which there is an unauthorized release or access of sensitive information.
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ITEM 2. PROPERTIES
Headquartered in Avon Lake, Ohio, we operate globally with principal locations consisting of 98 manufacturing sites in North America, South America, Asia, Europe, the Middle East, and Africa. We own the majority of our manufacturing sites. We believe that the quality and production capacity of our facilities is sufficient to maintain our competitive position for the foreseeable future. The following table identifies the principal facilities of our segments:
| Specialty Engineered Materials | Color, Additives and Inks | |||||||||||||
| 1. Birmingham, Alabama | 1. Glendale, Arizona | 28. Chuzhou, China | 56. Karachi, Pakistan | |||||||||||
| 2. Mesa, Arizona | 2. Phoenix, Arizona | 29. Guangzhou, China | 57. Lima, Peru | |||||||||||
| 3. Englewood, Colorado | 3. Bethel, Connecticut | 30. Pudong, China | 58. Konstantynow, Poland | |||||||||||
| 4. Montrose, Colorado | 4. Kennesaw, Georgia | 31. & 32. Shanghai, China (c) | 59. Kutno, Poland | |||||||||||
| 5. North Haven, Connecticut | 5. West Chicago, Illinois | 33. Suzhou, China | 60. Jeddah, Saudi Arabia | |||||||||||
| 6. McHenry, Illinois | 6. La Porte, Indiana | 34. Tianjin, China | 61. Riyadh, Saudi Arabia | |||||||||||
| 7. Winona, Minnesota | 7. Lewiston, Maine | 35. Cota, Colombia | 62. Jurong, Singapore | |||||||||||
| 8. Greenville, North Carolina | 8. Holden, Massachusetts | 36. Aland, Finland | 63. Randburg, South Africa | |||||||||||
| 9. Hickory, North Carolina | 9. Albion, Michigan | 37. Cergy, France | 64. Alicante, Spain | |||||||||||
| 10. Avon Lake, Ohio | 10. Minneapolis, Minnesota | 38. Tossiat, France | 65. Barcelona, Spain | |||||||||||
| 11. Hatfield, Pennsylvania | 11. St. Louis, Missouri | 39. Ahrensburg, Germany | 66. Pamplona, Spain | |||||||||||
| 12. Changzhou, China | 12. Mooresville, North Carolina | 40. Lahnstein, Germany | 67. Sant Andreu, Spain | |||||||||||
| 13. Laiwu, China | 13. Berea, Ohio | 41. Guatemala City, Guatemala | 68. Malmoe, Sweden | |||||||||||
| 14. Shenzhen, China | 14. Massillon, Ohio | 42. Gyor, Hungary | 69. Taoyuan, Taiwan | |||||||||||
| 15. Suzhou, China | 15. North Baltimore, Ohio | 43. Kalol, India | 70. Bangkok, Thailand | |||||||||||
| 16. Gaggenau, Germany | 16. Norwalk, Ohio | 44. Pune, India (d) | 71. Phan Thong, Thailand | |||||||||||
| 17. Melle, Germany | 17. Lehigh Valley, Pennsylvania | 45. Rania, India | 72. Gazientep, Turkey | |||||||||||
| 18. Geleen, Netherlands | 18. Mountain Top, Pennsylvania | 46. Vashere, India | 73. Gebze, Turkey | |||||||||||
| 19. Heerlen, Netherlands | 19. Vonore, Tennessee | 47. Tangerang, Indonesia | 74. Barnsley, United Kingdom | |||||||||||
| 20. Barbastro, Spain | 20. Winchester, Virginia | 48. Naas, Ireland | 75. Knowsley, United Kingdom | |||||||||||
| 21. Istanbul, Turkey | 21. Lomas de Zamora, Argentina | 49. Lomagna, Italy | 76. Thuan An, Vietnam | |||||||||||
| 22. Leek, United Kingdom | 22. Assesse, Belgium | 50. Merate, Italy | Suwanee, Georgia (b) | |||||||||||
| Maryland Heights, Missouri (b) | 23. Louvain-La-Nueve, Belgium | 51. Pogliano, Italy | ||||||||||||
| Shanghai, China (b) | 24. Itupeva, Brazil | 52. Butterworth, Malaysia | ||||||||||||
| Stanley, North Carolina (b) | 25. Suzano, Brazil | 53. Santa Clara, Mexico | ||||||||||||
| Pune, India (a), (d) | 26. Toronto, Canada | 54. Toluca, Mexico | ||||||||||||
| Pamplona, Spain (a) | 27. Maipu, Chile | 55. Auckland, New Zealand | ||||||||||||
(a)Facility is not included in manufacturing plants total as it is also included in the Color, Additives and Inks segment.
(b)Facility is not included in manufacturing plants total as it is a design center/lab.
(c)There are two manufacturing plants located in Shanghai, China.
(d)Location also includes a design center/lab.
ITEM 3. LEGAL PROCEEDINGS
Information regarding certain legal proceedings can be found in Note 10, Commitments and Contingencies, to the accompanying consolidated financial statements and is incorporated by reference herein.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
14 AVIENT CORPORATION
INFORMATION ABOUT OUR EXECUTIVE OFFICERS
Executive officers are elected by our Board of Directors to serve one-year terms. The following table lists the name of each person serving as an executive officer of the Company, their age, and position with the Company as of February 6, 2026.
| Name | Age | Position | ||||||||||||
| Ashish K. Khandpur | 58 | Chairman, President and Chief Executive Officer | ||||||||||||
| Jamie A. Beggs | 49 | Senior Vice President and Chief Financial Officer | ||||||||||||
| Philip G. Clark, Jr. | 56 | Senior Vice President and Chief Technology Officer | ||||||||||||
| Kristen A. Gajewski | 44 | Senior Vice President and Chief Human Resources Officer | ||||||||||||
| Michael J. Irwin | 47 | Senior Vice President, New Business Development & Marketing Excellence | ||||||||||||
| Woon Keat Moh | 52 | Senior Vice President and President of Color, Additives and Inks | ||||||||||||
| Nello Rizzo | 58 | Senior Vice President, Global Supply Chain | ||||||||||||
| Amy M. Sanders | 53 | Senior Vice President, General Counsel and Secretary | ||||||||||||
| David Schneider | 56 | Senior Vice President and President of Specialty Engineered Materials | ||||||||||||
Ashish K. Khandpur, Ph.D.: Chairman, May 2025 to date; President and Chief Executive Officer, December 2023 to date; Director, December 2023 to date. Group President of the Transportation & Electronics business group for 3M Company (a global manufacturing and technology company) ("3M") from April 2021 to November 2023. During his 28-year career with 3M, Dr. Khandpur held a series of roles with increasing responsibility, including Executive Vice President, Transportation & Electronic business group, from April 2019 to April 2021; Executive Vice President, Electronics & Energy business group, from July 2017 to March 2019; and Senior Vice President, Research & Development and Chief Technology Officer, from July 2014 to June 2017, among other roles.
Jamie A. Beggs: Senior Vice President and Chief Financial Officer, August 2020 to date. Senior Vice President and Chief Financial Officer of Hunt Consolidated, Inc. (a diversified holding company focused primarily in the energy industry) from January 2017 through December 2019. Vice President and Treasurer at Celanese Corporation (a global technology leader in the production of specialty materials and chemical products) from 2015 to 2017. Chief Financial Officer, Material Solutions at Celanese Corporation from 2011 to 2015. Prior to 2011, Ms. Beggs worked in various roles of increasing responsibility at Celanese in both business and finance from May 2007.
Philip G. Clark, Jr., Ph.D.: Senior Vice President and Chief Technology Officer, November 2024 to date. Senior Vice President and Chief Technology Officer, Nouryon (global specialty chemicals organization) from December 2022 to October 2024. Vice President for Research and Development in the Automotive and Aerospace Solutions division at 3M from August 2019 to December 2022. Throughout his 17-year tenure at 3M, Dr. Clark advanced through various positions including Technical Director, Corporate Research Process Laboratory, from March 2017 to July 2019; Laboratory Manager, Corporate Research Materials Laboratory, from March 2016 to February 2017; Laboratory Manager (Korea), from March 2015 to March 2016; Laboratory Manager, Electronics Materials Solutions division, from September 2010 to March 2015; Technical Manager, Electronics Markets Materials division, from April 2007 to August 2010; and Advanced Product Development Specialist, Electronics Markets Materials division from July 2005 to March 2007.
Kristen A. Gajewski: Senior Vice President and Chief Human Resources Officer, February 2023 to date. Global HR Director, Talent Management and Corporate Functions, September 2022 to January 2023. Global HR Director, Color, Additives and Inks, February 2017 to August 2022, including an international assignment from December 2017 to September 2019 with additional responsibility for the EMEA and India region. Global Training and Organizational Development Director from January 2016 to January 2017. Training and Organizational Development Senior Manager from March 2015 to December 2015. Training and Organizational Development Manager from July 2013 to February 2015. Prior to joining Avient, Ms. Gajewski held HR roles of increasing responsibility at AkzoNobel Decorative Coatings (a business unit of AkzoNobel specializing in manufacturing paints and coatings) from May 2009 to June 2013.
Michael J. Irwin: Senior Vice President, New Business Development & Marketing Excellence, October 2024 to date. Vice President, Abrasive Systems Division at 3M from October 2018 to October 2024. During his 22-year career at 3M, Mr. Irwin progressed through a series of roles, including U.S. Vice President, Abrasive Systems division, from June 2018 to October 2018; U.S. Business Director, from March 2017 to May 2018; Regional Business Leader, Precision Grinding & Finishing, from January 2016 to March 2017; Global Business Leader, from February 2014 to December 2015; Global Business manager, from September 2012 to February 2014; Global Market Development Manager, from February 2011 to August 2012; Global Marketing Manager, from July 2010 to January 2011; Marketing Supervisor, from December 2008 to June 2010; and other positions beginning in November 2002 including Lean Six Sigma Black Belt.
15 AVIENT CORPORATION
Woon Keat Moh: Senior Vice President and President of Color, Additives and Inks, July 2024 to date. Senior Vice President and President of Color, Additives and Inks — Americas and Asia, April 2020 to July 2024. Senior Vice President and President of Color, Additives and Inks, January 2020 to March 2020. Vice President of Asia, January 2019 to December 2019. General Manager of Specialty Engineered Materials Asia, December 2014 to December 2018. Sales Director of Color and Additives Asia, February 2011 to November 2014. Business Development Manager, Color and Additives Asia, February 2010 to January 2011. From October 1999 to January 2010, Mr. Moh worked for Clariant AG (a global manufacturer of color and additives masterbatch) in various roles of increasing responsibility, culminating in a commercial leadership role in Southeast Asia. He also served as a technical sales executive for Bayer AG (a manufacturer of pigments, dyestuffs, additives, chemical auxiliaries for textile, leather, paper and plastic industry) with its Specialty Products division from 1997 to 1999.
Nello Rizzo: Senior Vice President, Global Supply Chain, January 2026 to date. Senior Vice President and Chief Supply Chain Officer, Momentive Performance Materials (a plastic fabrication company) ("Momentive") from November 2014 to December 2025, and Vice President of Supply Chain Global Operations from 2012 to 2014. Prior to Momentive, Mr. Rizzo held operations roles at PPG Industries, 3M, ThyssenKrupp, and ENEL SpA.
Amy M. Sanders: Senior Vice President, General Counsel and Secretary, April 2024 to date. Senior Vice President and Deputy Chief Legal Officer, Global Operations, Eaton Corporation (a power management company) from October 2023 to April 2024. Senior Vice President and Deputy General Counsel, Business Counsel, 3M from February 2022 to October 2023. Over her 20-year career at 3M, Ms. Sanders held roles of increasing responsibility within the legal department, including Vice President and General Counsel, Transportation and Electronics Business Group, from July 2017 to February 2022; Assistant General Counsel, from March 2016 to July 2017, among other roles from November 2002 to March 2016.
David Schneider: Senior Vice President and President of Specialty Engineered Materials, September 2025 to date. Vice President, Electronics Materials Solutions Division, 3M from February 2022 to September 2025. Over his nearly 33-year career at 3M, Mr. Schneider held roles of increasing responsibility, including Vice President, Automotive Aftermarket Division, from April 2018 to February 2022; Integration and Global Business Director, Separation and Purification Sciences Division, from March 2015 to April 2018, among other roles beginning in 1993.
16 AVIENT CORPORATION
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Our common shares, $0.01 par value per share, are traded on the New York Stock Exchange under the symbol “AVNT.”
As of February 6, 2026, there were 1,285 holders of record of our common shares.
We currently have an authorized common share repurchase program. During the twelve months ended December 31, 2025, we did not repurchase any common shares.
| Period | Total Number of Shares Purchased | Weighted Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Maximum Number of Shares that May Yet be Purchased Under the Program(1) | |||||||||||||||||||
| October 1 to October 31 | — | $ | — | — | 4,957,472 | ||||||||||||||||||
| November 1 to November 30 | — | $ | — | — | 4,957,472 | ||||||||||||||||||
| December 1 to December 31 | — | $ | — | — | 4,957,472 | ||||||||||||||||||
| Total | — | $ | — | — | |||||||||||||||||||
(1) Our Board of Directors approved a common share repurchase program authorizing Avient to purchase its common shares in August 2008, which share repurchase authorization has been subsequently increased from time to time. On December 9, 2020, we announced that we would increase our share buyback by an additional 5.0 million shares. As of December 31, 2025, approximately 5.0 million shares remained available for purchase under these authorizations, which have no expiration. Purchases of common shares may be made by open market purchases or privately negotiated transactions and may be made pursuant to Rule 10b5-1 plans and accelerated share repurchases.
ITEM 6. [RESERVED]
17 AVIENT CORPORATION
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is designed to provide information that is supplemental to, and should be read together with, our consolidated financial statements and the accompanying notes contained in this Annual Report on Form 10-K. Information in this Item 7 is intended to assist the reader in obtaining an understanding of our consolidated financial statements, the changes in certain key items in those financial statements from year to year, the primary factors that accounted for those changes, and any known trends or uncertainties that we are aware of that may have a material effect on our future performance, as well as how certain accounting principles affect our consolidated financial statements. Unless otherwise noted, the discussion that follows includes a comparison of our results of operations, liquidity and capital resources, and cash flows for fiscal years 2025 and 2024. For a discussion of changes from fiscal year 2024 to fiscal year 2023, refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 18, 2025.
The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those discussed below and elsewhere in this Annual Report on Form 10-K, particularly in “Cautionary Note on Forward-Looking Statements” and Item 1A, “Risk Factors.”
Our Business
We are an innovator of materials solutions to help our customers succeed, while enabling a sustainable world. Our products include specialty engineered materials, performance fibers, advanced composites, and color and additive solutions. We are also a highly specialized developer and manufacturer of performance enhancing additives, liquid colorants and silicone colorants. Headquartered in Avon Lake, Ohio, with 2025 sales of $3.3 billion, we have manufacturing and warehouses around the globe, with 61% of our sales to customers outside the United States. We provide value to our customers through our ability to link our knowledge of polymers and materials science with our manufacturing and supply chain capabilities to provide value-added solutions to designers, assemblers and processors of materials.
Strategy and Key Trends
In 2024, we unveiled Avient's new strategic direction guided by our purpose: to be an innovator of materials solutions to help our customers succeed, while enabling a sustainable world. We seek to achieve this with a two-pronged strategic approach: 1) building new platforms of scale, to play bigger and bolder in high-growth markets, and 2) catalyzing our core business, to maximize the impact of our existing portfolio. We have identified growth vectors — specific markets and applications targeted for above-market growth — in both accelerating markets and in our core business, by intersecting secular trends with our technologies.
We seek to operationalize our strategy using four strategic drivers: Portfolio Prioritization; Amplify Innovation; Digital for Operational Excellence and Growth; and Leadership, Talent, and Culture for the Avient of the Future. Our strategy builds upon Avient's foundational strengths refined over our history: unwavering customer focus; global reach with a local touch; diverse technology portfolio; commercial excellence; financial rigor and prudence; and a culture of safety and sustainability. The safety and health of our employees remain top priorities, and our ultimate goal is to operate injury-free.
In 2025, we made significant progress implementing our new strategy. Our growth vector sales are outpacing the rest of the Company, with defense and healthcare leading the way. Internal R&D collaboration has increased, resulting in technology sharing across businesses and geographies. We have bolstered digital capabilities with a focus on pilot projects designed to improve speed and efficiency. We continued to foster the culture needed to execute our strategy, and to build our talent pipeline by promoting leaders from within while bringing in external expertise as needed.
18 AVIENT CORPORATION
| Results of Operations | Variances — Favorable (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||
2025 versus 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions, except per share data) | 2025 | 2024 | 2023 | Change | % Change | |||||||||||||||||||||||||||||||||||||||
| Sales | $ | 3,260.2 | $ | 3,240.4 | $ | 3,142.8 | $ | 19.8 | 0.6 | % | ||||||||||||||||||||||||||||||||||
| Cost of sales | 2,244.6 | 2,183.7 | 2,250.3 | (60.9) | (2.8) | % | ||||||||||||||||||||||||||||||||||||||
| Gross margin | 1,015.6 | 1,056.7 | 892.5 | (41.1) | (3.9) | % | ||||||||||||||||||||||||||||||||||||||
| Selling and administrative expense | 812.1 | 727.4 | 695.7 | (84.7) | (11.6) | % | ||||||||||||||||||||||||||||||||||||||
| Operating income | 203.5 | 329.3 | 196.8 | (125.8) | (38.2) | % | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (98.6) | (105.6) | (115.3) | 7.0 | 6.6 | % | ||||||||||||||||||||||||||||||||||||||
| Other income, net | 6.8 | 1.1 | 5.8 | 5.7 | nm | |||||||||||||||||||||||||||||||||||||||
| Income from continuing operations before income taxes | 111.7 | 224.8 | 87.3 | (113.1) | (50.3) | % | ||||||||||||||||||||||||||||||||||||||
| Income tax expense | (28.1) | (54.1) | (11.0) | 26.0 | nm | |||||||||||||||||||||||||||||||||||||||
| Net income from continuing operations | $ | 83.6 | $ | 170.7 | $ | 76.3 | $ | (87.1) | (51.0) | % | ||||||||||||||||||||||||||||||||||
| Loss from discontinued operations, net of income taxes | — | — | (0.1) | — | nm | |||||||||||||||||||||||||||||||||||||||
| Net income | 83.6 | 170.7 | 76.2 | (87.1) | (51.0) | % | ||||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | (1.7) | (1.2) | (0.5) | (0.5) | nm | |||||||||||||||||||||||||||||||||||||||
| Net income attributable to Avient common shareholders | $ | 81.9 | $ | 169.5 | $ | 75.7 | $ | (87.6) | (51.7) | % | ||||||||||||||||||||||||||||||||||
| Earnings per share attributable to Avient common shareholders - basic: | $ | 0.90 | $ | 1.86 | $ | 0.83 | ||||||||||||||||||||||||||||||||||||||
| Earnings per share attributable to Avient common shareholders - diluted: | $ | 0.89 | $ | 1.84 | $ | 0.83 | ||||||||||||||||||||||||||||||||||||||
| Gross margin as a percentage of sales | 31.2 | % | 32.6 | % | 28.4 | % | ||||||||||||||||||||||||||||||||||||||
nm - not meaningful
Sales
Sales increased $19.8 million, or 0.6%, in 2025 compared to 2024. Favorable foreign currency impacts were 0.9%, while sales, excluding the impacts of foreign exchange, decreased 0.3%. The sales decline was primarily within the consumer, industrial and energy end markets, partially offset by sales increases in the healthcare, defense and telecommunications end markets.
Gross Margin
Gross margin decreased to 31.2% from 32.6% in 2025 compared to 2024, primarily driven by higher restructuring charges of $22.2 million and higher operating costs, which included planned maintenance in the second quarter of 2025. Further, in 2024, Avient recognized a gain from insurance recoveries associated with previously incurred environmental remediation costs of $34.7 million as compared to a gain of $2.0 million in 2025. This was partially offset by lower environmental remediation charges of $11.6 million.
Selling and administrative expense
These costs include selling, technology, administrative functions, amortization of intangible assets, corporate and general expenses. Selling and administrative expense in 2025 increased $84.7 million compared to 2024, 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 charges of $21.7 million. These charges were partially offset by productivity initiatives and lower incentive compensation cost.
Interest expense, net
Interest expense, net decreased $7.0 million in 2025 as compared to 2024, primarily driven by the benefit of reduced interest rates resulting from previous refinancing activity, in addition to prepayments totaling $150.0 million made on our senior secured term loan throughout 2025.
19 AVIENT CORPORATION
Other income, net
Other income, net increased $5.7 million in 2025 as compared to 2024, primarily associated to a $5.4 million increase in mark-to-market income associated with pension and post-retirement plans.
Income taxes
The 2025 consolidated effective tax rate was 25.2% compared to 24.1% in 2024. The higher tax rate was primarily attributable to higher Global Intangible Low-tax Income (GILTI) and Subpart F income and increases in valuation allowances. These increases were partially offset by the tax effects of intercompany transactions, including statutory impairments and the intercompany sale of intellectual property. Refer to Note 11 - Income Taxes for further detail, including a rate reconciliation.
Segment Information
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 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, mark-to-market adjustments on pension and other post-retirement obligations, 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.
Avient has two reportable segments: (1) Color, Additives and Inks and (2) Specialty Engineered Materials. Our segments are further discussed in Note 13, Segment Information, to the accompanying consolidated financial statements.
Sales and Operating Income
2025 versus 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2025 | 2024 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||
| Sales: | ||||||||||||||||||||||||||||||||||||||||||||
| Color, Additives and Inks | $ | 2,034.2 | $ | 2,046.5 | $ | (12.3) | (0.6) | % | ||||||||||||||||||||||||||||||||||||
| Specialty Engineered Materials | 1,231.3 | 1,196.8 | 34.5 | 2.9 | % | |||||||||||||||||||||||||||||||||||||||
| Corporate | (5.3) | (2.9) | (2.4) | (82.8) | % | |||||||||||||||||||||||||||||||||||||||
| Total sales | $ | 3,260.2 | $ | 3,240.4 | $ | 19.8 | 0.6 | % | ||||||||||||||||||||||||||||||||||||
| Operating income: | ||||||||||||||||||||||||||||||||||||||||||||
| Color, Additives and Inks | $ | 301.3 | $ | 296.2 | $ | 5.1 | 1.7 | % | ||||||||||||||||||||||||||||||||||||
| Specialty Engineered Materials | 163.6 | 167.2 | (3.6) | (2.2) | % | |||||||||||||||||||||||||||||||||||||||
| Corporate | (261.4) | (134.1) | (127.3) | (94.9) | % | |||||||||||||||||||||||||||||||||||||||
| Total operating income | $ | 203.5 | $ | 329.3 | $ | (125.8) | (38.2) | % | ||||||||||||||||||||||||||||||||||||
Color, Additives and Inks
Sales decreased $12.3 million, or 0.6%, in 2025 compared to 2024. Favorable foreign currency impacts were 1.0%, while sales, excluding the impacts of foreign exchange, decreased 1.6%. The sales decrease was primarily within the consumer, building and construction, industrial and transportation end markets, partially offset by growth in the healthcare end market.
Operating income increased $5.1 million, or 1.7%, in 2025 compared to 2024. The increase was primarily driven by improved mix and cost savings from productivity and restructuring actions, in addition to lower incentive compensation cost.
Specialty Engineered Materials
Sales increased $34.5 million, or 2.9%, in 2025 compared to 2024. Favorable foreign currency impacts were 0.9%, while sales, excluding the impacts of foreign exchange, increased 2.0%. The sales increase was primarily within the healthcare, defense and telecommunications end markets, partially offset by declines in the industrial, consumer and energy end markets.
20 AVIENT CORPORATION
Operating income decreased by $3.6 million, or 2.2%, in 2025 compared to 2024. The increase in sales was more than offset by higher operating costs, including costs associated with planned maintenance in the second quarter of 2025, raw material inflation, and investments in the Company's growth vectors.
Corporate
Corporate costs increased $127.3 million in 2025 compared to 2024, 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 $43.9 million. Further, in 2024, Avient recognized a gain from insurance recoveries associated with previously incurred environmental remediation costs of $34.7 million as compared to a gain of $2.0 million in 2025. This was partially offset by lower environmental remediation charges of $11.6 million in 2025, lower incentive compensation cost, and benefits from productivity initiatives.
Liquidity and Capital Resources
Our objective is to finance our business through operating cash flow and an appropriate mix of debt and equity. By laddering the maturity structure, we avoid concentrations of debt maturities, reducing liquidity risk. We may from time to time seek to retire or purchase our outstanding debt with cash on hand and/or exchanges for equity securities, in open market purchases, privately negotiated transactions or otherwise. We may also seek to repurchase our outstanding common shares. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved have been and may continue to be material.
The following table summarizes our liquidity as of December 31, 2025:
| (In millions) | |||||
| Cash and cash equivalents | $ | 510.5 | |||
| Revolving credit availability | 490.3 | ||||
| Liquidity | $ | 1,000.8 | |||
As of December 31, 2025, 76% of the Company’s cash and cash equivalents resided outside the United States.
Based on current projections, we believe that we will be able to continue to manage and control working capital, discretionary spending and capital expenditures and that cash provided by operating activities, along with available borrowing capacity under our revolving credit facilities, will allow us to maintain adequate levels of available capital to fund our operations, meet debt service obligations, continue paying dividends, and pay down debt and/or opportunistically repurchase outstanding common shares for at least twelve months and the foreseeable future thereafter.
Expected sources of cash needed to satisfy cash requirements in 2026 include our cash on hand, cash from operations and available liquidity under our revolving credit facility, if necessary. Expected uses of cash in 2026 include interest payments, cash taxes, dividend payments, debt repayment, share repurchases, environmental remediation payments and capital expenditures. Capital expenditures are currently estimated to be approximately $140 million in 2026, primarily to support organic sales growth and other strategic investments.
Cash Flows
The following table summarizes our cash flows from operating, investing and financing activities:
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Cash provided by (used by): | ||||||||||||||||||||
| Operating Activities | $ | 301.6 | $ | 256.8 | $ | 201.6 | ||||||||||||||
| Investing Activities | (97.0) | (120.6) | (94.2) | |||||||||||||||||
| Financing Activities | (257.1) | (120.9) | (201.7) | |||||||||||||||||
| Effect of exchange rate on cash | 18.5 | (16.6) | (1.0) | |||||||||||||||||
| Net decrease in cash and cash equivalents | $ | (34.0) | $ | (1.3) | $ | (95.3) | ||||||||||||||
21 AVIENT CORPORATION
Operating Activities
Net cash provided by operating activities increased to $301.6 million in 2025, as compared to $256.8 million in 2024, driven primarily by insurance proceeds of $34.0 million for previously incurred losses at the Calvert City site, a $23.0 million reduction in pension, retirement benefits and deferred compensation plan obligations, primarily associated with 2024 benefit payments for executive retirements, and a $17.9 million decrease in environmental remediation payments. This was partially offset by higher incentive payments in 2025 associated with 2024 performance and increased working capital.
Investing Activities
Net cash used by investing activities during 2025 of $97.0 million primarily reflects the impact of capital expenditures of $106.6 million, which were partially offset by proceeds from plant closures of $12.9 million.
Financing Activities
Net cash used by financing activities of $257.1 million in 2025 primarily reflects repayment on long-term borrowings of $150.3 million and $98.8 million of dividends paid.
Total Debt
The following table summarizes debt as of December 31, 2025 and 2024.
| (In millions) | 2025 | 2024 | |||||||||
| Senior secured revolving credit facility | — | — | |||||||||
| Senior secured term loan due 2029 | 559.0 | 705.2 | |||||||||
| 7.125% senior notes due 2030 | 718.8 | 717.5 | |||||||||
| 6.250% senior notes due 2031 | 642.1 | 640.8 | |||||||||
| Other Debt | 3.2 | 3.5 | |||||||||
| Total Debt | $ | 1,923.1 | $ | 2,067.0 | |||||||
| Less short-term debt | 0.5 | 7.7 | |||||||||
| Total long-term debt, net of current portion | $ | 1,922.6 | $ | 2,059.3 | |||||||
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.
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.
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.
As of December 31, 2025 and 2024, we had no borrowings outstanding under our Revolving Credit Facility. As of December 31, 2025, remaining availability under our Revolving Credit Facility was $490.3 million.
As of December 31, 2025, we were in compliance with all customary financial and restrictive covenants pertaining to our debt. For additional information regarding our debt, please see Note 4, Financing Arrangements to the accompanying consolidated financial statements.
Letters of Credit
Our Revolving Credit Facility provides up to $50.0 million for the issuance of letters of credit, $9.7 million of which was used at December 31, 2025. These letters of credit are issued by the bank in favor of third parties and are mainly related to required insurance programs.
22 AVIENT CORPORATION
Material Cash Requirements
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. The following table summarizes our obligations as of December 31, 2025 that are expected to impact liquidity and cash flow in future periods. See Liquidity and Capital Resources for additional discussion of our ability to generate and access cash to meet requirements as well as plans for use of cash in both the short-term and long-term.
| Payment Due by Period | ||||||||||||||||||||||||||||||||
| (In millions) | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | |||||||||||||||||||||||||||
| Total debt | $ | 1,948.9 | $ | 0.5 | $ | 0.8 | $ | 1,296.6 | $ | 651.0 | ||||||||||||||||||||||
| Operating leases | 95.0 | 22.8 | 32.1 | 13.3 | 26.8 | |||||||||||||||||||||||||||
| Interest on debt obligations (1) | 585.1 | 124.9 | 244.0 | 195.8 | 20.4 | |||||||||||||||||||||||||||
| Pension and post-retirement obligations (2) | 70.2 | 7.9 | 14.5 | 14.7 | 33.1 | |||||||||||||||||||||||||||
| Purchase obligations (3) | 118.5 | 67.6 | 44.2 | 4.5 | 2.2 | |||||||||||||||||||||||||||
| Environmental remediation obligations | 141.2 | 28.1 | 57.0 | 35.3 | 20.8 | |||||||||||||||||||||||||||
| Total | $ | 2,958.9 | $ | 251.8 | $ | 392.6 | $ | 1,560.2 | $ | 754.3 | ||||||||||||||||||||||
(1)Represents estimated contractual interest payments for all outstanding debt. Excludes cash receipts from cross-currency swaps as described in Note 14, Derivatives and Hedging.
(2)This represents estimates related to the funding obligations of our pension and other post retirement plans. These contributions are based on actuarial estimates of future assumed payments based upon retirement and payment patterns for a 10-year period. The estimates in the table may differ materially from actual future payments due to uncertainties regarding the assumptions involved in estimating future required contributions to our pension and non-pension post retirement benefit plans, including (i) interest rate levels (ii) the amount and timing of asset returns and (iii) what, if any, changes may occur in pension funding legislation.
(3)Purchase obligations are primarily comprised of service agreements related to telecommunication, information technology, utilities and other manufacturing plant services and certain capital commitments.
Critical Accounting Policies and Estimates
Significant accounting policies are described more fully in Note 1, Description of Business and Summary of Significant Accounting Policies, to the accompanying consolidated financial statements. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and accompanying notes. We base our estimates on historical experience and assumptions that we believe are reasonable considering the related facts and circumstances. The application of these critical accounting policies involves the exercise of judgment and use of assumptions for future uncertainties. Accordingly, actual results could differ significantly from these estimates. We believe that the following discussion addresses our most critical accounting policies, which are those that are the most important to the portrayal of our financial condition and results of operations and require our most difficult, subjective and complex judgments.
Revenue Recognition
Sales are recognized when control of promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services, which is typically when products are shipped from our facilities. The majority of the Company’s sales agreements contain performance obligations satisfied at a point in time when control is transferred to the customer. Avient records reductions to sales for customer incentives, primarily comprised of rebates, at the time of the initial sale. Rebates are estimated based on sales terms, historical experience along with annual sales projections. Rebate programs offered are typically credited to customers for achieving defined volume levels.
Environmental Liabilities
We are a party to a Consent Decree related to remedial actions at the former Goodrich Corporation Calvert City site and will incur environmental remediation costs related to this matter. We recognize an estimate of environmental liabilities on an undiscounted basis for probable future environmental expenditures. Any such provision is recognized using the Company's best estimate of the amount of loss incurred, or at the lower end of an estimated range, when a single best estimate is not determinable. In some cases, the Company recovers a portion of the costs relating to these obligations from insurers or other third parties, and the recovery is recognized when realization of the proceeds is deemed as probable.
23 AVIENT CORPORATION
Environmental liabilities represents our best estimate of the remaining probable costs based upon information and technology currently available. Depending upon the results of future testing, the ultimate remediation alternatives undertaken, changes in regulations, new information, newly discovered conditions and other factors, it is reasonably possible that we could incur additional costs in excess of the amount accrued. However, such additional costs, if any, cannot currently be estimated. Our estimate of this liability may be revised as new regulations or technologies are developed or additional information is obtained. As we progress through remedial design and remedial action related to the Goodrich Corporation Calvert City site, additional information will become available that may require an adjustment to our existing accrual. Adjustments have been material to our financial statements in the past and it is reasonably possible that they could be in the future.
Additional information related to the accounting for environmental liabilities is found in Note 10, Commitments and Contingencies.
Pension Benefit Plans
The measurement of liabilities related to pension benefit plans is based on assumptions related to future events including interest rates, return on plan assets, and mortality assumptions. We immediately recognize actuarial gains and losses in our operating results in the year in which the gains or losses occur.
Asset returns and interest rates significantly affect the value of assets and liabilities related to our pension plans and therefore the funded status of our plans. It is difficult to predict these factors due to the volatility of market conditions. To develop our discount rate, we consider the yields of high-quality corporate bonds with maturities that correspond to the timing of our benefit obligations, referred to as the bond matching approach. To develop our expected long-term return on plan assets, we consider forward looking long-term asset returns and the expected investment portfolio mix of plan assets. Life expectancy is another significant assumption that impacts our pension obligation, which is based on mortality data and improvement scales issued by the Society of Actuaries.
Additional information related to the accounting for pension and other post-retirement benefits is found in Note 9, Employee Benefit Plans.
Income Taxes
We account for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. In addition, deferred tax assets are also recorded with respect to net operating losses and other tax attribute carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when realization of the benefit of deferred tax assets is not deemed to be more likely than not. The utilization of certain deferred tax assets is dependent on the amount and timing of taxable income that we will ultimately generate in the future and other factors, such as changes in tax laws.
We recognize net tax benefits under the recognition and measurement criteria, which prescribes requirements and other guidance for financial statement recognition and measurement of positions taken or expected to be taken on tax returns. We recognize an income tax benefit from an uncertain tax position only if it is more likely than not that the benefit would be sustained upon examination by taxing authorities, based on the technical merits of the position. The Company evaluates and adjusts the amount of unrecognized income tax benefits based on changes in law, facts and circumstances. We record interest and penalties related to uncertain tax positions as a component of income tax expense. The ultimate resolution of unrecognized income tax benefits is often dependent upon uncontrollable factors such as the timing of finalizing resolutions of audit disputes through reaching settlement agreements, or changes in law.
Additional information related to the accounting for income taxes is found in Note 11, Income Taxes.
Goodwill
Goodwill is evaluated annually for impairment as of October 1 using either a quantitative or qualitative analysis. Goodwill is tested for impairment at the reporting unit level and is based on the net assets for each reporting unit, including goodwill and intangible assets. The Company’s reporting units are at a level below the Company’s reportable operating segments. Goodwill is assigned to each reporting unit, as this represents the lowest level that constitutes a business and is the level at which management regularly reviews the operating results.
24 AVIENT CORPORATION
Additionally, goodwill is evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Events or circumstances that may result in an impairment review include changes in macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, other relevant entity-specific events, specific events affecting the reporting unit or sustained decrease in share price.
Quantitative analyses are performed by estimating the fair value for each reporting unit using a discounted cash flow model. These analyses include estimates of future cash flows, future growth rates, terminal value amounts, and the applicable weighted-average cost of capital used to discount estimated cash flows. The future cash flows are based on the Company's long-term strategic plan, and a terminal value is used to estimate the reporting unit's cash flows beyond the period covered by the strategic plan. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of judgments, including judgments about appropriate discount rates, revenue growth, operating margins, and long-term growth rates.
A qualitative analysis is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and operating profit margins, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative analysis performed for each reporting unit.
In 2025, the annual goodwill impairment test was performed using a qualitative analysis with the exception of certain reporting units where management elected to bypass the qualitative analysis and perform a quantitative analysis. Based on the analyses performed in 2025, the fair value of the Company's reporting units continues to exceed their respective carrying amounts, and accordingly, no impairment charges were recognized.
Indefinite-lived Trade Names
Indefinite-lived trade names are evaluated annually for impairment as of October 1 using either a quantitative or qualitative analysis to determine whether their fair values exceed their respective carrying amounts. Additionally, indefinite-lived trade names are evaluated for impairment whenever an event occurs or circumstances change that would indicate that it is more likely than not that the asset is impaired. Events or circumstances that may result in an impairment review include changes in industry and market considerations, cost factors, financial performance, and other relevant entity-specific events that could affect inputs used to determine the respective fair values of the indefinite-lived trade names.
Quantitative analyses are performed by estimating the fair value for each indefinite-lived trade name using a royalty relief methodology. These analyses include estimates of future cash flows that are based on the Company's long-term strategic plan and the applicable weighted-average cost of capital used to discount estimated cash flows. The primary inputs to these estimates require the exercise of judgments, including judgments about appropriate discount rates, revenue growth, royalty rates, and long-term growth rates.
A qualitative analysis is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales, discount rates, industry data, and other relevant qualitative factors. These trends and factors are compared to, and based on, the assumptions used in the most recent quantitative analysis performed for each indefinite-lived trade name.
In 2025, the indefinite-lived trade names impairment tests were performed using a qualitative approach. Based on this qualitative assessment, management concluded that the fair values of the Company's indefinite-lived trade names continued to exceed their carrying values, and accordingly, no impairment charges were recognized.
For additional information about goodwill and intangible assets see Note 2, Goodwill and Intangible Assets.
Recent and Future Adoption of Accounting Standards
Information regarding recent and future adoption of accounting standards can be found in Note 1, Description of Business and Summary of Significant Accounting Policies, to the accompanying consolidated financial statements and is incorporated by reference herein.
25 AVIENT CORPORATION
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to certain market risks as part of our ongoing business operations, including risks from changes in interest rates on debt obligations and foreign currency exchange rates that could impact our financial condition, results of operations and cash flows. We manage our exposure to these and other market risks through regular operating and financing activities, including the use of derivative financial instruments. We intend to use these derivative financial instruments as risk management tools and not for speculative investment purposes.
Interest rate exposure — Interest on our Revolving Credit Facility and senior secured term loan is based upon a Base Rate or Adjusted Term SOFR, plus a margin. There would be no material impact on our interest expense or cash flows from either a 100 basis point increase or decrease in market rates of interest on our outstanding variable rate debt as of December 31, 2025.
Foreign currency exposure — We have exposure from both third-party and intercompany transactions that are denominated in various foreign currencies and are subject to foreign exchange rate movements. To mitigate this risk, we may enter into foreign exchange forward contracts and derivative instruments. Gains and losses on these contracts generally offset gains and losses on the assets and liabilities being hedged.
We also face translation risks related to the changes in foreign currency exchange rates. Amounts invested in our foreign operations are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. The resulting translation adjustments are recorded as a component of Accumulated other comprehensive income (loss) in the Shareholders’ equity section of the accompanying Consolidated Balance Sheets. To mitigate a portion of this risk, we may enter into cross-currency swaps. Gains and losses on these contracts generally offset gains and losses on the Euro denominated investment in our foreign entities. Net sales and expenses in our foreign operations’ foreign currencies are translated into varying amounts of U.S. dollars depending upon whether the U.S. dollar weakens or strengthens against other currencies. Therefore, changes in exchange rates may either positively or negatively affect our net sales and expenses from foreign operations as expressed in U.S. dollars.
26 AVIENT CORPORATION
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Index to Financial Statements
| Page | |||||
| Management’s Report | 28 | ||||
Reports of Independent Registered Public Accounting Firm (PCAOB ID: | 29 | ||||
| Consolidated Financial Statements: | |||||
| Consolidated Statements of Income | 32 | ||||
| Consolidated Statements of Comprehensive Income | 33 | ||||
| Consolidated Balance Sheets | 34 | ||||
| Consolidated Statements of Cash Flows | 35 | ||||
| Consolidated Statements of Shareholders’ Equity | 36 | ||||
| Notes to Consolidated Financial Statements | 37 | ||||
27 AVIENT CORPORATION
MANAGEMENT’S REPORT
The management of Avient Corporation is responsible for preparing the consolidated financial statements and disclosures included in this Annual Report on Form 10-K. The consolidated financial statements and disclosures included in this Annual Report fairly present in all material respects the consolidated financial position, results of operations, shareholders’ equity and cash flows of Avient Corporation as of and for the year ended December 31, 2025.
Management is responsible for establishing and maintaining disclosure controls and procedures designed to ensure that the information required to be disclosed by the Company is captured and reported in a timely manner. Management has evaluated the design and operation of the Company’s disclosure controls and procedures at December 31, 2025 and found them to be effective.
Management is also responsible for establishing and maintaining a system of internal control over financial reporting that is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Internal control over financial reporting includes policies and procedures that provide reasonable assurance that: Avient Corporation’s accounting records accurately and fairly reflect the transactions and dispositions of the assets of the Company; unauthorized or improper acquisition, use or disposal of Company assets will be prevented or timely detected; the Company’s transactions are properly recorded and reported to permit the preparation of the Company’s consolidated financial statements in conformity with generally accepted accounting principles; and the Company’s receipts and expenditures are made only in accordance with authorizations of management and the Board of Directors of the Company.
Management has assessed the effectiveness of Avient’s internal control over financial reporting as of December 31, 2025 and has prepared Management’s Annual Report On Internal Control Over Financial Reporting contained on page 63 of this Annual Report, which concludes that as of December 31, 2025, Avient’s internal control over financial reporting was effective and that no material weaknesses were identified.
| /s/ ASHISH K. KHANDPUR | /s/ JAMIE A. BEGGS | |||||||
| Ashish K. Khandpur | Jamie A. Beggs | |||||||
| Chairman, President and Chief Executive Officer | Senior Vice President and Chief Financial Officer | |||||||
February 17, 2026
28 AVIENT CORPORATION
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of Avient Corporation
Opinion on Internal Control over Financial Reporting
We have audited Avient Corporation’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Avient Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, cash flows and shareholders' equity for each of the three years in the period ended December 31, 2025, and the related notes and our report dated February 17, 2026, expressed an unqualified opinion thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report On Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young LLP
Cleveland, Ohio
February 17, 2026
29 AVIENT CORPORATION
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of Avient Corporation
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Avient Corporation (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, cash flows and shareholders' equity for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 17, 2026 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.
30 AVIENT CORPORATION
| Environmental Accrued Liabilities - Calvert City | ||||||||
Description of the Matter | As described in Note 10 to the consolidated financial statements, the environmental accrued liability as of December 31, 2025 is approximately $141.2 million and is comprised primarily of the cost estimate for the Calvert City location of $133.2 million. The Company records an accrual for probable future environmental remediation projects on an undiscounted basis which represents management’s best estimate of probable future costs based upon currently available information and technology and management’s view of the most likely remedy. | |||||||
| Auditing the determination of the accrual involved a high degree of subjectivity as estimates underlying the determination of the accrual were based on assumptions unique to the affected site and subject to various laws and regulations governing the protection of the applicable environment. Actual costs incurred in future periods could differ from amounts estimated and future changes to environmental laws and regulations could change the extent of remediation work required, therefore the calculation is complicated due to uncertainty in determining the probable future costs and the extent of the remediation efforts. | ||||||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s process to estimate the Calvert City environmental-related accrual. For example, we tested controls over management’s review of the estimate and key assumptions, as well as monitoring for current year developments. | |||||||
| With the assistance of our specialists, we tested the balance of the Calvert City environmental accrued liability and the disclosure of the expected costs to remediate. Our audit procedures included, among others, making inquiries of internal general counsel and obtaining legal letters from internal and external counsel. We also evaluated external communications including those from the U.S. Environmental Protection Agency (U.S. EPA) and cost estimates from management’s specialists and other third parties used in determining the environmental accrued liability. We tested the key assumptions used by management by comparing those assumptions to accepted industry practice and information included in the Record of Decision issued by the U.S. EPA, as applicable. We examined historical costs for recurring items and evaluated updated cost estimates for any current period changes. We searched publicly available information that might indicate facts contrary to the cost estimates and timeline used to determine the Calvert City accrual. | ||||||||
/s/ Ernst & Young LLP
We have served as the Company's auditor since 1993.
February 17, 2026
31 AVIENT CORPORATION
Consolidated Statements of Income
| Year Ended December 31, | ||||||||||||||||||||
| (In millions, except per share data) | 2025 | 2024 | 2023 | |||||||||||||||||
| Sales | $ | $ | $ | |||||||||||||||||
| Cost of sales | ||||||||||||||||||||
| Gross margin | ||||||||||||||||||||
| Selling and administrative expense | ||||||||||||||||||||
| Operating income | ||||||||||||||||||||
| Interest expense, net | ( | ( | ( | |||||||||||||||||
| Other income, net | ||||||||||||||||||||
| Income from continuing operations before income taxes | ||||||||||||||||||||
| Income tax expense | ( | ( | ( | |||||||||||||||||
| Net income from continuing operations | ||||||||||||||||||||
| Loss from discontinued operations, net of income taxes | ( | |||||||||||||||||||
| Net income | ||||||||||||||||||||
| Net income attributable to noncontrolling interests | ( | ( | ( | |||||||||||||||||
| Net income attributable to Avient common shareholders | $ | $ | $ | |||||||||||||||||
| Earnings per share attributable to Avient common shareholders - Basic: | $ | $ | $ | |||||||||||||||||
| Earnings per share attributable to Avient common shareholders - Diluted: | $ | $ | $ | |||||||||||||||||
| Weighted-average shares used to compute earnings per common share: | ||||||||||||||||||||
| Basic | ||||||||||||||||||||
| Plus dilutive impact of share-based compensation | ||||||||||||||||||||
| Diluted | ||||||||||||||||||||
| Anti-dilutive shares not included in diluted common shares outstanding | ||||||||||||||||||||
| Cash dividends declared per share of common stock | $ | $ | $ | |||||||||||||||||
The accompanying notes to the consolidated financial statements are an integral part of these statements.
32 AVIENT CORPORATION
Consolidated Statements of Comprehensive Income
| Year Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Net income | $ | $ | $ | ||||||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||
| Translation adjustments and related hedging instruments | ( | ( | |||||||||||||||
| Pension and postretirement benefits | ( | ||||||||||||||||
| Total other comprehensive income (loss) | ( | ( | |||||||||||||||
| Total comprehensive income | |||||||||||||||||
| Comprehensive income attributable to noncontrolling interests | ( | ( | ( | ||||||||||||||
| Comprehensive income attributable to Avient common shareholders | $ | $ | $ | ||||||||||||||
The accompanying notes to the consolidated financial statements are an integral part of these statements.
33 AVIENT CORPORATION
Consolidated Balance Sheets
| Year Ended December 31, | |||||||||||
| (In millions, except par value per share) | 2025 | 2024 | |||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Accounts receivable, net | |||||||||||
| Inventories, net | |||||||||||
| Other current assets | |||||||||||
| Total current assets | |||||||||||
| Property, net | |||||||||||
| Goodwill | |||||||||||
| Intangible assets, net | |||||||||||
| Operating lease assets, net | |||||||||||
| Deferred income tax assets | |||||||||||
| Other non-current assets | |||||||||||
| Total assets | $ | $ | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Short-term and current portion of long-term debt | $ | $ | |||||||||
| Accounts payable | |||||||||||
| Accrued expenses and other current liabilities | |||||||||||
| Total current liabilities | |||||||||||
| Non-current liabilities: | |||||||||||
| Long-term debt | |||||||||||
| Deferred income taxes | |||||||||||
| Other non-current liabilities | |||||||||||
| Total non-current liabilities | |||||||||||
| SHAREHOLDERS' EQUITY | |||||||||||
Common Shares, $ | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
Common shares held in treasury, at cost, | ( | ( | |||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Avient shareholders’ equity | |||||||||||
| Noncontrolling interest | |||||||||||
| Total equity | |||||||||||
| Total liabilities and equity | $ | $ | |||||||||
The accompanying notes to the consolidated financial statements are an integral part of these statements.
34 AVIENT CORPORATION
Consolidated Statements of Cash Flows
| Year Ended December 31, | |||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Operating activities | |||||||||||||||||
| Net income | $ | $ | $ | ||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | |||||||||||||||||
| Cloud-based enterprise resource planning system impairment | |||||||||||||||||
| Deferred income tax benefit | ( | ( | ( | ||||||||||||||
| Share-based compensation expense | |||||||||||||||||
| Changes in assets and liabilities: | |||||||||||||||||
| (Increase) decrease in accounts receivable | ( | ( | |||||||||||||||
| Decrease (increase) in inventories | ( | ||||||||||||||||
| (Decrease) increase in accounts payable | ( | ( | |||||||||||||||
| Decrease in pension, retirement benefits and deferred compensation | ( | ( | ( | ||||||||||||||
| Increase (decrease) in restructuring obligations | ( | ||||||||||||||||
| Taxes paid on gain on sale of business | ( | ||||||||||||||||
| (Decrease) increase in environmental obligations | ( | ( | |||||||||||||||
| Decrease (increase) in environmental insurance receivable | ( | ||||||||||||||||
| (Decrease) increase in incentive accruals | ( | ||||||||||||||||
| Accrued expenses and other assets and liabilities, net | |||||||||||||||||
| Net cash provided by operating activities | |||||||||||||||||
| Investing activities | |||||||||||||||||
| Capital expenditures | ( | ( | ( | ||||||||||||||
| Net proceeds from divestiture | |||||||||||||||||
| Proceeds from plant closures | |||||||||||||||||
| Other investing activities | ( | ( | |||||||||||||||
| Net cash used by investing activities | ( | ( | ( | ||||||||||||||
| Financing activities | |||||||||||||||||
| Proceeds from long-term borrowings | |||||||||||||||||
| Payments on long-term borrowings | ( | ( | ( | ||||||||||||||
| Cash dividends paid | ( | ( | ( | ||||||||||||||
| Payments on withholding tax on share awards | ( | ( | ( | ||||||||||||||
| Debt financing costs | ( | ( | ( | ||||||||||||||
| Net cash used by financing activities | ( | ( | ( | ||||||||||||||
| Effect of exchange rate changes on cash | ( | ( | |||||||||||||||
| Decrease in cash and cash equivalents | ( | ( | ( | ||||||||||||||
| Cash and cash equivalents at beginning of year | |||||||||||||||||
| Cash and cash equivalents at end of year | $ | $ | $ | ||||||||||||||
The accompanying notes to the consolidated financial statements are an integral part of these statements.
35 AVIENT CORPORATION
Consolidated Statements of Shareholders' Equity
| Common Shares | Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | 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, 2023 | ( | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared -- $ | — | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation and exercise of awards | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | ( | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interest activity | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared -- $ | — | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation and exercise of awards | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | ( | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interest activity | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared -- $ | — | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation and exercise of awards | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | ( | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes to the consolidated financial statements are an integral part of these statements.
36 AVIENT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 — DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Business
We are an innovator of materials solutions to help our customers succeed, while enabling a sustainable world. Our products include specialty engineered materials, performance fibers, advanced composites, and color and additive solutions. We are also a highly specialized developer and manufacturer of performance enhancing additives, liquid colorants, and fluoropolymer and silicone colorants. Headquartered in Avon Lake, Ohio, we have employees at sales and manufacturing sites across North America, South America, Europe, the Middle East, Asia, and Africa. We provide value to our customers through our ability to link our knowledge of polymers and materials science with our manufacturing and supply chain to provide value added solutions to designers, assemblers and processors of materials. When used in these notes to the consolidated financial statements, the terms “we,” “us,” “our,” “Avient” and the “Company” mean Avient Corporation and its consolidated subsidiaries.
Our operations are reported in two reportable segments: Color, Additives and Inks, and Specialty Engineered Materials. See Note 13, Segment Information, for more information.
Accounting Standards Adopted
In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregated income tax disclosures on an annual basis, including information on the Company's effective tax rate reconciliation and income taxes paid. The Company adopted ASU 2023-09 on a prospective basis for the year ended December 31, 2025. The adoption of ASU 2023-09 impacted income tax disclosures within Note 11, Income Taxes.
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 July 2025, the FASB issued 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. ASU 2025-05 is effective for annual reporting periods, including interim reporting periods within those annual periods, beginning after December 15, 2025, with early adoption permitted and should be applied prospectively. The Company is evaluating the impact of ASU 2025-05 and expects the standard will not have a material impact on the consolidated financial statements and related disclosures.
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 to the consolidated financial statements and related disclosures.
37 AVIENT CORPORATION
Consolidation and Basis of Presentation
Use of Estimates
Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying consolidated financial statements and notes. Actual results could differ from these estimates.
Cash and Cash Equivalents
We consider all highly liquid investments purchased with a maturity of less than three months to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value.
Allowance for Doubtful Accounts
Inventories
Raw materials and finished goods are carried at lower of cost or net realizable value using either the weighted average cost or the first-in, first-out (FIFO) method. We record reserves for inventory that is damaged, obsolete, excess and slow-moving to Cost of sales.
Long-lived Assets
Property, plant and equipment is carried at historical cost, net of depreciation and amortization that is computed using the straight-line method over the estimated useful lives of the assets, which generally ranges from 3 to 15 years for machinery and equipment and up to 40 years for buildings. We depreciate certain assets associated with closing manufacturing locations over a shortened life (through the cease-use date). We expense repair and maintenance costs as incurred. We capitalize replacements and improvements that increase the estimated useful life of an asset. We retain fully depreciated assets in property and accumulated depreciation accounts until we remove them from service.
We account for operating and finance leases under the provisions of FASB Accounting Standards Codification (ASC) Topic 842.
Finite-lived intangible assets, which consist primarily of customer relationships, patents and technology are amortized over their estimated useful lives. The useful lives range up to 25 years.
We assess the recoverability of long-lived assets when events or changes in circumstances indicate that we may not be able to recover the assets’ carrying amount. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset to the expected future undiscounted cash flows associated with the asset. We measure the amount of impairment of long-lived assets as the amount by which the carrying value of the asset exceeds the fair value of the asset, which is generally determined based on projected discounted future cash flows or appraised values.
Internal-Use Software and Cloud Computing Arrangements
We capitalize costs related to computer software obtained or developed for internal use. Software obtained for internal use has generally been enterprise-level business software that the Company customizes to meet its specific operational needs. Costs incurred in the application development phase are capitalized as Property, Net in the Company’s Consolidated Balance Sheets and are depreciated using the straight-line method over their estimated useful lives.
38 AVIENT CORPORATION
We also enter into certain cloud-based software hosting arrangements. Capitalizable cloud computing arrangement costs are generally consistent with those incurred during the application development stage for internal-use software, however, these costs are capitalized as Other assets in the Company's Consolidated Balance Sheets. As of December 31, 2025 and 2024, there was $5.8 million and $76.4 million capitalized within Other non-current assets, respectively. 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. Refer to Note 3, Employee Separation and Restructuring Costs, for more information.
Goodwill and Indefinite Lived Intangible Assets
Goodwill is the excess of the purchase price paid over the fair value of the net assets of the acquired business. We assess goodwill for impairment on an annual basis or more frequently when events or changes in circumstance indicate that the asset may be impaired. Goodwill is tested for impairment at the reporting unit level. The Company's reporting units are at a level below the Company's reportable operating segments. Goodwill is allocated to the reporting units based on the estimated fair value at the date of acquisition. Our annual measurement date for testing impairment of goodwill assets is October 1.
The Company may perform a qualitative test to determine whether it is more likely than not the fair value of a reporting unit is less than its carrying amount in order to determine whether it is necessary to perform a quantitative goodwill impairment test. For our quantitative test, we use an income approach to estimate the fair value of our reporting units. The income approach uses a reporting unit’s projection of estimated operating results and cash flows that is discounted using a weighted-average cost of capital that is determined based on current market conditions. The projection uses management’s best estimates of economic and market conditions over the projected period, including sales growth rates, operating margins, capital expenditures, working capital, discount rates and terminal value growth rates. We validate our estimates of fair value under the income approach by considering the implied control premium and conclude whether the implied control premium is reasonable based on other recent market transactions.
In 2025, the annual goodwill impairment test was performed using a qualitative analysis with the exception of certain reporting units where management elected to bypass the qualitative analysis and perform a quantitative analysis. Based on the analyses performed in 2025, the fair value of the Company's reporting units continue to exceed their respective carrying amounts, and accordingly, no impairment charges were recognized.
Indefinite-lived intangible assets primarily consist of certain trade names. Indefinite-lived intangible assets are tested qualitatively or quantitatively for impairment at least annually as of October 1 to determine whether their fair values exceed their respective carrying amounts, unless events or changes in circumstance indicate that the asset may be impaired prior to the annual test. For our quantitative test, the implied fair value of indefinite-lived intangible assets is determined based on significant unobservable inputs. The fair value of the trade names is calculated using a “relief from royalty” methodology. This approach involves two steps: (1) estimating reasonable royalty rates for the trade name and (2) applying this royalty rate to a net sales stream and discounting the resulting cash flows to determine fair value using a weighted-average cost of capital that is determined based on current market conditions. This fair value is then compared with the carrying value of the trade name.
The Company performed its annual impairment testing of indefinite-lived intangible assets using a qualitative approach. Management assessed relevant trends and factors, including projected market outlook and growth rates, forecasted and actual sales performance, discount rates, and other qualitative considerations. Based on these assessments, management concluded that no quantitative analysis is required and the fair values of the Company's indefinite-lived intangible assets exceeded their carrying values, and accordingly, no impairment charges were recognized.
Litigation Reserves
39 AVIENT CORPORATION
Derivative Financial Instruments
All derivative financial instruments, such as foreign exchange contracts, are recognized in the financial statements and measured at fair value, regardless of the purpose or intent in holding them.
In the normal course of business, we are exposed to fluctuations in foreign currency exchange rates as well as variability in cash flows resulting from changes in contractually specified interest rates (e.g., SOFR). We have established policies and procedures that manage this exposure through the use of financial instruments. By policy, we do not enter into these instruments for trading purposes or speculation. 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 at inception. Additionally, we assess at inception whether the financial instruments used in the hedging transaction are highly effective at offsetting changes in either the fair values or cash flows of the underlying exposures. If highly effective, any subsequent test may be done qualitatively.
We have cross-currency swaps which are documented and designated as net investment hedges of our Euro denominated investment in foreign entities. 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. The interest receivable on the swaps is accrued each month for effective instruments designated as a hedge and is reflected within Interest expense, net within the Consolidated Statements of Income and the remaining change in the fair value of the derivatives is recorded as a component of Accumulated Other Comprehensive Income (Loss) (AOCI). From time to time, we may enter into certain foreign currency exchange forward contracts, which are not designated as hedges and are adjusted to fair value at each period end, with the resulting gains and losses recognized in the accompanying Consolidated Statements of Income immediately.
Refer to Note 14, Derivatives and Hedging, for more information.
Pension and Other Post-retirement Plans
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss) in 2025, 2024 and 2023 were as follows:
| (In millions) | Cumulative Translation Adjustment and Related Hedging Instruments | Pension and other post-retirement benefits | Total | |||||||||||||||||||||||||||||
| Balance at January 1, 2023 | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
| Translation Adjustments | — | |||||||||||||||||||||||||||||||
| Unrealized losses on derivatives | ( | — | ( | |||||||||||||||||||||||||||||
| Amortization of prior service credit | — | ( | ( | |||||||||||||||||||||||||||||
| Balance at December 31, 2023 | ( | ( | ||||||||||||||||||||||||||||||
| Translation Adjustments | ( | — | ( | |||||||||||||||||||||||||||||
| Unrealized gains on derivatives | — | |||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | ( | ( | ||||||||||||||||||||||||||||||
| Translation Adjustments | — | |||||||||||||||||||||||||||||||
| Unrealized losses on derivatives | ( | — | ( | |||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
Fair Value of Financial Instruments
Foreign Currency Translation
Revenues and expenses are translated at average currency exchange rates during the related period. Assets and liabilities of foreign subsidiaries are translated using the exchange rate at the end of the reporting period. The resulting translation adjustments are recorded as accumulated other comprehensive income or loss. Gains and losses resulting from foreign currency transactions, including intercompany transactions that are not considered long-term investments, are included in Other income, net.
40 AVIENT CORPORATION
Revenue Recognition
Shipping and Handling Costs
Shipping and handling costs are included in Cost of sales.
Research and Development Expense
Research and development costs of $96.7 million in 2025, $98.7 million in 2024 and $90.3 million in 2023 are charged to expense as incurred.
Environmental Remediation Costs
We expense costs that are associated with managing hazardous substances and pollution in ongoing operations on a current basis. Costs associated with environmental contamination are accrued when it becomes probable that a liability has been incurred and our proportionate share of the cost can be reasonably estimated. Any such provision is recognized using the Company's best estimate of the amount of loss incurred, or at the lower end of an estimated range, when a single best estimate is not determinable. In some cases, the Company recovers a portion of the costs relating to these obligations from insurers or other third parties, and the recovery is recognized when realization of the proceeds is deemed as probable.
Share-Based Compensation
Income Taxes
Note 2 — GOODWILL AND INTANGIBLE ASSETS
Changes in the carrying amount of goodwill by segment were as follows:
| (In millions) | Specialty Engineered Materials | Color, Additives and Inks | Total | ||||||||||||||||||||
| Balance at January 1, 2024 | $ | $ | $ | ||||||||||||||||||||
| Currency translation | ( | ( | ( | ||||||||||||||||||||
| Balance at December 31, 2024 | |||||||||||||||||||||||
| Currency translation | |||||||||||||||||||||||
| Balance at December 31, 2025 | $ | $ | $ | ||||||||||||||||||||
41 AVIENT CORPORATION
Indefinite and finite-lived intangible assets consisted of the following:
| As of December 31, 2025 | ||||||||||||||||||||||||||
| (In millions) | Acquisition Cost | Accumulated Amortization | Currency Translation | Net | ||||||||||||||||||||||
| Customer relationships | $ | $ | ( | $ | $ | |||||||||||||||||||||
| Patents, technology and other | ( | |||||||||||||||||||||||||
| Indefinite-lived trade names | — | |||||||||||||||||||||||||
| Total | $ | $ | ( | $ | $ | |||||||||||||||||||||
| As of December 31, 2024 | ||||||||||||||||||||||||||
| (In millions) | Acquisition Cost | Accumulated Amortization | Currency Translation | Net | ||||||||||||||||||||||
| Customer relationships | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
| Patents, technology and other | ( | ( | ||||||||||||||||||||||||
| Indefinite-lived trade names | — | |||||||||||||||||||||||||
| Total | $ | $ | ( | $ | $ | |||||||||||||||||||||
Amortization of finite-lived intangible assets for the years ended December 31, 2025, 2024 and 2023 was $80.4 million, $77.8 million and $79.8 million, respectively.
We expect finite-lived intangibles amortization expense for the next five years as follows:
| (In millions) | 2026 | 2027 | 2028 | 2029 | 2030 | ||||||||||||||||||||||||
| Expected amortization expense | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Note 3 — EMPLOYEE SEPARATION AND RESTRUCTURING COSTS
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 Consolidated Statements of Income.
Clariant Color Integration Restructuring Program
We completed a restructuring program associated with our integration of Clariant Color, which is expected to enable us to better serve customers, improve efficiency and deliver cost savings. This program resulted in total charges of $64.0 million.
42 AVIENT CORPORATION
A summary of the Clariant Color integration restructuring is shown below:
| (In millions) | Employee severance | Other restructuring costs | Total | ||||||||||||||
| Balance at January 1, 2023 | $ | $ | $ | ||||||||||||||
| Restructuring charges | |||||||||||||||||
| Payments, utilization and translation | ( | ( | ( | ||||||||||||||
| Balance at December 31, 2023 | $ | $ | $ | ||||||||||||||
| Restructuring charges | |||||||||||||||||
| Payments, utilization and translation | ( | ( | ( | ||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | ||||||||||||||
| Restructuring charges | |||||||||||||||||
| Payments, utilization and translation | ( | ( | ( | ||||||||||||||
| Balance at December 31, 2025 | $ | $ | $ | ||||||||||||||
Other Restructuring Actions
During the years ended December 31, 2025, 2024 and 2023, additional charges 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 this activity is shown below:
| (In millions) | Employee severance | Other restructuring costs | Total | ||||||||||||||
| Balance at January 1, 2023 | $ | $ | $ | ||||||||||||||
| Restructuring charges | |||||||||||||||||
| Payments, utilization and translation | ( | ( | ( | ||||||||||||||
| Balance at December 31, 2023 | $ | $ | $ | ||||||||||||||
| Restructuring charges | |||||||||||||||||
| Payments, utilization and translation | ( | ( | ( | ||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | ||||||||||||||
| Restructuring charges | |||||||||||||||||
| Payments, utilization and translation | ( | ( | ( | ||||||||||||||
| Balance at December 31, 2025 | $ | $ | $ | ||||||||||||||
Total restructuring costs included in the Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023 are shown in the table below.
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Cost of goods sold | $ | $ | ( | $ | |||||||||||||
| Selling and administrative expenses | |||||||||||||||||
| Total employee separation and restructuring charges | $ | $ | $ | ||||||||||||||
43 AVIENT CORPORATION
Note 4 — FINANCING ARRANGEMENTS
For each of the periods presented, total debt consisted of the following:
| As of December 31, 2025 (in millions) | Principal Amount | Unamortized discount and debt issuance cost | Net Debt | Weighted average interest rate | |||||||||||||||||||
| Senior secured revolving credit facility due 2030 | $ | $ | $ | % | |||||||||||||||||||
| Senior secured term loan due 2029 | % | ||||||||||||||||||||||
| % | |||||||||||||||||||||||
| % | |||||||||||||||||||||||
| Other Debt | |||||||||||||||||||||||
| Total Debt | |||||||||||||||||||||||
| Less short-term and current portion of long-term debt | |||||||||||||||||||||||
| Total long-term debt, net of current portion | $ | $ | $ | ||||||||||||||||||||
| As of December 31, 2024 (in millions) | Principal Amount | Unamortized discount and debt issuance cost | Net Debt | Weighted average interest rate | |||||||||||||||||||
| Senior secured revolving credit facility due 2026 | $ | $ | $ | % | |||||||||||||||||||
| Senior secured term loan due 2029 | % | ||||||||||||||||||||||
| % | |||||||||||||||||||||||
| % | |||||||||||||||||||||||
| Other Debt | |||||||||||||||||||||||
| Total Debt | |||||||||||||||||||||||
| Less short-term and current portion of long-term debt | |||||||||||||||||||||||
| Total long-term debt, net of current portion | $ | $ | $ | ||||||||||||||||||||
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.
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.
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.
As of December 31, 2025 and 2024, we had no 490.3 million.
The agreements governing our Revolving Credit Facility and our senior secured term loan, and the indentures and credit agreements governing 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 December 31, 2025, we were in compliance with all covenants.
44 AVIENT CORPORATION
The estimated fair value of Avient’s debt instruments at December 31, 2025 and 2024 was $1,967.1 million and $2,083.3 million, respectively, compared to carrying values of $1,923.1 million and $2,067.0 million as of December 31, 2025 and 2024, 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.
Aggregate maturities of the principal amount of debt for the next five years and thereafter are as follows:
| (In millions) | ||||||||
| 2026 | $ | |||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| 2030 | ||||||||
| Thereafter | ||||||||
| Aggregate maturities | $ | |||||||
Included in Interest expense, net for the years ended December 31, 2025, 2024 and 2023 was interest income of $46.3 million, $50.1 million, and $49.8 million, respectively. Interest income includes the impact of cross-currency swaps, as described in Note 14, Derivatives and Hedging. Total interest paid on debt, net of the impact of hedging, was $97.6 million in 2025, $85.2 million in 2024 and $106.3 million in 2023.
Note 5 — LEASING ARRANGEMENTS
We lease certain manufacturing facilities, warehouse space, machinery and equipment, vehicles and information technology equipment under operating leases. The majority of our leases are operating leases. Finance leases are immaterial to our consolidated financial statements. Operating lease assets and obligations are reflected within Operating lease assets, net, Accrued expenses and other current liabilities, and Other non-current liabilities, respectively.
Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The components of lease cost recognized within our Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023 were as follows:
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Cost of sales | $ | $ | $ | |||||||||||||||||
| Selling and administrative expense | ||||||||||||||||||||
| Total operating lease cost | $ | $ | $ | |||||||||||||||||
We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options are generally at our sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at our discretion. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for our operating leases as of December 31, 2025 and 2024 was 5.1 years and 5.6 years, respectively. The non-cash net increase in operating lease liabilities was $10.0 million, $37.3 million and $18.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The discount rate implicit within our leases is generally not determinable and, therefore, the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for our leases is determined based on lease term and currency in which lease payments are made, adjusted for impacts of collateral.
The weighted average discount rate used to measure our operating lease liabilities as of December 31, 2025 and 2024 were 5.7 % and 6.0 %, respectively.
45 AVIENT CORPORATION
Maturities of lease liabilities at December 31, 2025 are as follows:
| (In millions) | ||||||||||||||
| 2026 | $ | |||||||||||||
| 2027 | ||||||||||||||
| 2028 | ||||||||||||||
| 2029 | ||||||||||||||
| 2030 | ||||||||||||||
| Thereafter | ||||||||||||||
| Total | $ | |||||||||||||
| Less amount of lease payment representing interest | ( | |||||||||||||
| Total present value of lease payments | $ | |||||||||||||
Note 6 — INVENTORIES, NET
Components of Inventories, net as of December 31, 2025 and 2024 are as follows:
| (In millions) | 2025 | 2024 | ||||||||||||
| Finished products | $ | $ | ||||||||||||
| Work in process | ||||||||||||||
| Raw materials and supplies | ||||||||||||||
| Inventories, net | $ | $ | ||||||||||||
Inventory reserves totaled $33.2 million and $36.3 million at December 31, 2025 and 2024, respectively, and are included within the table above.
Note 7 — PROPERTY, NET
Components of Property, net as of December 31, 2025 and 2024 are as follows:
| (In millions) | 2025 | 2024 | ||||||||||||
Land and land improvements | $ | $ | ||||||||||||
Buildings | ||||||||||||||
| Machinery and equipment | ||||||||||||||
| Property, gross | ||||||||||||||
| Less accumulated depreciation | ( | ( | ||||||||||||
| Property, net | $ | $ | ||||||||||||
Depreciation expense, including accelerated depreciation associated with restructuring actions, was $105.5 million in 2025, $101.9 million in 2024 and $109.0 million in 2023.
46 AVIENT CORPORATION
Note 8 — OTHER BALANCE SHEET LIABILITIES
Other current and non-current liabilities as of December 31, 2025 and 2024 consist of the following:
| Accrued expenses and other current liabilities | Other non-current liabilities | |||||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Employment costs | $ | $ | $ | $ | ||||||||||||||||||||||
| Deferred compensation | ||||||||||||||||||||||||||
| Restructuring costs | ||||||||||||||||||||||||||
| Environmental liabilities | ||||||||||||||||||||||||||
| Accrued taxes | ||||||||||||||||||||||||||
| Pension benefits | ||||||||||||||||||||||||||
| Accrued interest | ||||||||||||||||||||||||||
| Dividends payable | ||||||||||||||||||||||||||
| Unrecognized tax benefits | ||||||||||||||||||||||||||
| Derivatives | ||||||||||||||||||||||||||
| Operating lease obligations | ||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
Note 9 — EMPLOYEE BENEFIT PLANS
All U.S. qualified defined benefit pension plans are frozen, no longer accrue benefits and are closed to new participants. We have foreign pension plans that accrue benefits. The plans generally provide benefit payments using a formula that is based upon employee compensation and length of service.
The following tables present the change in benefit obligation, change in plan assets and components of funded status for defined benefit pension plans.
| Pension Benefits | ||||||||||||||||||||||||||
| (In millions) | 2025 | 2024 | ||||||||||||||||||||||||
| Change in benefit obligation: | ||||||||||||||||||||||||||
| Projected benefit obligation - beginning of year | $ | $ | ||||||||||||||||||||||||
| Service cost | ||||||||||||||||||||||||||
| Interest cost | ||||||||||||||||||||||||||
| Actuarial loss / (gain) | ( | |||||||||||||||||||||||||
| Benefits paid | ( | ( | ||||||||||||||||||||||||
| Currency translation and other | ( | |||||||||||||||||||||||||
| Projected benefit obligation - end of year | ||||||||||||||||||||||||||
| Projected salary increases | ( | ( | ||||||||||||||||||||||||
| Accumulated benefit obligation | $ | $ | ||||||||||||||||||||||||
| Change in plan assets: | ||||||||||||||||||||||||||
| Plan assets - beginning of year | $ | $ | ||||||||||||||||||||||||
| Actual return on plan assets | ||||||||||||||||||||||||||
| Company contributions | ||||||||||||||||||||||||||
| Benefits paid | ( | ( | ||||||||||||||||||||||||
| Currency translation and other | ||||||||||||||||||||||||||
| Plan assets - end of year | $ | $ | ||||||||||||||||||||||||
| Overfunded (unfunded) status at end of year | $ | $ | ( | |||||||||||||||||||||||
47 AVIENT CORPORATION
Amounts included in the accompanying Consolidated Balance Sheets as of December 31 are as follows:
| Pension Benefits | ||||||||||||||||||||||||||
| (In millions) | 2025 | 2024 | ||||||||||||||||||||||||
| Non-current assets | $ | $ | ||||||||||||||||||||||||
| Accrued expenses and other liabilities | ||||||||||||||||||||||||||
| Other non-current liabilities | ||||||||||||||||||||||||||
As of December 31, 2025 and 2024, we had plans with total projected and accumulated benefit obligations in excess of the related plan assets as follows:
| Pension Benefits | ||||||||||||||||||||||||||
| (In millions) | 2025 | 2024 | ||||||||||||||||||||||||
| Projected benefit obligation | $ | $ | ||||||||||||||||||||||||
| Fair value of plan assets | ||||||||||||||||||||||||||
| Accumulated benefit obligation | ||||||||||||||||||||||||||
| Fair value of plan assets | ||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31:
| Pension Benefits | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| Discount rate | % | % | ||||||||||||||||||||||||
The following table summarizes the components of net periodic benefit cost (income) that was recognized during each of the years in the three-year period ended December 31, 2025.
| Pension Benefits | ||||||||||||||||||||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||
| Components of net periodic benefit cost (income): | ||||||||||||||||||||||||||||||||||||||
| Service cost | $ | $ | $ | |||||||||||||||||||||||||||||||||||
| Interest cost | ||||||||||||||||||||||||||||||||||||||
| Expected return on plan assets | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Amortization of prior service cost | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Mark-to-market actuarial net gains | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Net periodic income | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
| Pension Benefits | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||
| Discount rate* | % | % | % | |||||||||||||||||||||||||||||||||||
| Expected long-term return on plan assets* | % | % | % | |||||||||||||||||||||||||||||||||||
The expected long-term rate of return on pension assets was determined after considering the forward looking long-term asset returns by asset category and the expected investment portfolio mix.
Our pension investment strategy is to diversify the portfolio among asset categories to enhance the portfolio’s risk-adjusted return as well as insulate it from exposure to changes in interest rates. Our asset mix considers the duration of plan liabilities, historical and expected returns of the investments, and the funded status of the plan. The pension asset allocation is reviewed and actively managed based on the funded status of the plan. Based on the current funded status of the plan, our pension asset investment allocation guidelines are weighted heavily to fixed income securities. The plan keeps a minimal amount of cash available to fund benefit payments. See the following table for the plans' asset allocation.
48 AVIENT CORPORATION
The fair values of pension plan assets at December 31, 2025 and 2024, by asset category, are as follows:
Fair Value of Plan Assets at December 31, 2025 | ||||||||||||||||||||||||||
| (In millions) | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Investments (at Fair Value) | ||||||||||||||||||||||
| Asset category | ||||||||||||||||||||||||||
| Cash | $ | $ | $ | $ | ||||||||||||||||||||||
| Bonds and notes | ||||||||||||||||||||||||||
| Global equity | ||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
| Investments measured at NAV: | ||||||||||||||||||||||||||
| Common collective funds: | ||||||||||||||||||||||||||
| United States equity | ||||||||||||||||||||||||||
| International equity | ||||||||||||||||||||||||||
| Fixed income | ||||||||||||||||||||||||||
| Total common collective funds | $ | |||||||||||||||||||||||||
| Total investments at fair value | $ | |||||||||||||||||||||||||
Fair Value of Plan Assets at December 31, 2024 | ||||||||||||||||||||||||||
| (In millions) | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Investments (at Fair Value) | ||||||||||||||||||||||
| Asset category | ||||||||||||||||||||||||||
| Cash | $ | $ | $ | $ | ||||||||||||||||||||||
| Bonds and notes | ||||||||||||||||||||||||||
| Global equity | ||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
| Investments measured at NAV: | ||||||||||||||||||||||||||
| Common collective funds: | ||||||||||||||||||||||||||
| United States equity | ||||||||||||||||||||||||||
| International equity | ||||||||||||||||||||||||||
| Fixed income | ||||||||||||||||||||||||||
| Total common collective funds | $ | |||||||||||||||||||||||||
| Total investments at fair value | $ | |||||||||||||||||||||||||
Pension Plan Assets
Other assets are primarily insurance contracts for international plans. The U.S. equity common collective funds are predominately invested in equity securities actively traded in public markets. The international and global equity common collective funds have broadly diversified investments across economic sectors and focus on low volatility, long-term investments. The fixed income common collective funds consist primarily of publicly traded United States fixed interest obligations (principally investment grade bonds and government securities).
Level 1 assets are valued based on quoted market prices. Level 2 investments are valued based on quoted market prices and/or other market data for the same or comparable instruments and transactions of the underlying fixed income investments. The insurance contracts included in the other asset category are valued at the transacted price. Common collective funds are valued at the net asset value of units held by the fund at year-end. The unit value is determined by the total value of fund assets divided by the total number of units of the fund owned.
49 AVIENT CORPORATION
The estimated future benefit payments for our pension plans are as follows:
| (In millions) | Pension Benefits | |||||||||||||
| 2026 | $ | |||||||||||||
| 2027 | ||||||||||||||
| 2028 | ||||||||||||||
| 2029 | ||||||||||||||
| 2030 | ||||||||||||||
| 2031 through 2035 | ||||||||||||||
We currently estimate that employer contributions will be $7.5 million to all qualified and non-qualified pension plans in 2026.
The Company sponsors various voluntary retirement savings plans (RSP). Under the provisions of the plans, eligible employees receive defined Company contributions and are eligible for Company matching contributions based on their eligible earnings contributed to the plan. In addition, we may make discretionary contributions to the plans for eligible employees based on a specific percentage of each employee’s compensation.
Following are our contributions to the RSP:
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Retirement savings match | $ | $ | $ | |||||||||||||||||
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. We believe that compliance with current governmental regulations at all levels will not have a material adverse effect on our financial position, results of operations or cash flows.
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, at the time of the initial public offering in 1993. Under the agreement, The Geon Company agreed to indemnify Goodrich Corporation for certain environmental costs at the site. Neither Avient nor The Geon Company 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 conduct the remedial actions at the site. In February 2020, three companies signed the agreed Consent Decree and remedial action Work Plan, which received Federal Court approval in January 2021.
50 AVIENT CORPORATION
In 2023, the Company recognized charges of $20.6 million associated with the completion of certain remedial action activities at the site. Further, the Company received construction bids based on an interim design for the largest component of remedial action at Calvert City, the construction of a barrier wall around the site, which began in 2024. These construction cost updates resulted in an additional charge of $36.2 million in 2023. In 2024, the Company finalized the design and construction estimates for one phase of the barrier wall, as well as an updated remedial action timeline at the site, which resulted in charges of $19.8 million. Construction of the initial barrier wall section began in 2024 and was completed in the first quarter of 2025. In 2025, the Company recognized charges of $21.3 million associated with Calvert City, primarily driven by incremental investigation and remedial design work deemed necessary based on results of ongoing findings at the site. Further, this incremental work resulted in a two-year extension of the planned remedial action timeline, which also contributed to the charges. The remaining wall designs and construction are now expected to be completed in phases through 2030. As the Company completes further design work and begins construction on the remaining sections of the barrier wall, the Company will update its accrual, which was $133.2 million as of December 31, 2025, for any new information as it becomes available.
Total environmental accruals of $141.2 million and $146.0 million are reflected within Accrued expenses and other current liabilities and Other non-current liabilities in our Consolidated Balance Sheets as of December 31, 2025 and December 31, 2024, 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. It is reasonably possible that we could incur additional costs in excess of the amount accrued, which could be material to our Consolidated Statements of Income. 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 in the Calvert City construction timeline, changes in regulations, technology development, new information, newly discovered conditions and other factors that are not currently known.
The following table details the changes in the environmental accrued liabilities:
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Balance at beginning of the year | $ | $ | $ | |||||||||||||||||
| Environmental expenses | ||||||||||||||||||||
| Net cash payments | ( | ( | ( | |||||||||||||||||
| Currency translation | ( | |||||||||||||||||||
| Balance at the end of year | $ | $ | $ | |||||||||||||||||
The environmental expenses noted in the table above, primarily related to the ongoing remedial action at Calvert City, are included in Cost of sales within the Consolidated Statements of Income.
We recognized gains from insurance recoveries of $2.0 million, $34.7 million and $1.7 million in 2025, 2024 and 2023, respectively. These gains are included in Cost of sales within the Consolidated Statements of Income. Cash received from insurance recoveries totaled $36.0 million, $0.7 million and $1.7 million in 2025, 2024 and 2023, respectively. Further insurance recoveries 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 that these matters will not have a material adverse effect on the consolidated financial statements.
Note 11 — INCOME TAXES
Income (loss) from continuing operations, before income taxes consists of the following:
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Domestic | $ | ( | $ | ( | $ | ( | ||||||||||||||
| International | ||||||||||||||||||||
Income from continuing operations, before income taxes | $ | $ | $ | |||||||||||||||||
51 AVIENT CORPORATION
A summary of income tax expense (benefit) from continuing operations is as follows:
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Current income tax expense: | ||||||||||||||||||||
| Domestic | $ | $ | $ | |||||||||||||||||
| International | ||||||||||||||||||||
| Total current income tax expense | $ | $ | $ | |||||||||||||||||
| Deferred income tax benefit: | ||||||||||||||||||||
| Domestic | $ | ( | $ | ( | $ | ( | ||||||||||||||
| International | ( | ( | ( | |||||||||||||||||
| Total deferred income tax benefit | $ | ( | $ | ( | $ | ( | ||||||||||||||
| Total income tax expense | $ | $ | $ | |||||||||||||||||
52 AVIENT CORPORATION
A reconciliation of the applicable U.S. federal statutory tax rate to the consolidated effective income tax rate along with a description of significant reconciling items is included below for the year ended December 31, 2025.
| 2025 | ||||||||||||||
| (Dollars in millions) | Amount | Rate | ||||||||||||
| U.S. federal income tax rate | $ | % | ||||||||||||
| Domestic: | ||||||||||||||
| Effects of cross border tax laws: | ||||||||||||||
| Global Intangible Low-taxed Income, net of credits | ||||||||||||||
| Subpart F income, net of credits | ( | ( | ||||||||||||
| Withholding tax | ||||||||||||||
| Tax credits: | ||||||||||||||
| Research & development credits | ( | ( | ||||||||||||
| Non-deductible executive compensation | ||||||||||||||
| Domestic state & local income taxes, net of federal benefit (a) | ( | ( | ||||||||||||
| Foreign: | ||||||||||||||
| Luxembourg | ||||||||||||||
| Foreign rate differential | ( | ( | ||||||||||||
| Statutory impairment | ( | ( | ||||||||||||
| Intellectual property transfer | ( | ( | ||||||||||||
| Valuation allowance | ||||||||||||||
| Withholding tax | ||||||||||||||
| Other | ||||||||||||||
| Cyprus | ||||||||||||||
| Foreign rate differential | ( | ( | ||||||||||||
| Intellectual property transfer | ||||||||||||||
| Tax incentives | ( | ( | ||||||||||||
| Other | ||||||||||||||
| Netherlands | ||||||||||||||
| Foreign rate differential | ||||||||||||||
| Tax incentives | ( | ( | ||||||||||||
| Other | ||||||||||||||
| Switzerland | ||||||||||||||
| Withholding tax | ||||||||||||||
| Other | ( | ( | ||||||||||||
| China | ||||||||||||||
| Foreign rate differential | ||||||||||||||
| Valuation allowance | ( | ( | ||||||||||||
| Other | ||||||||||||||
| Germany | ||||||||||||||
| Valuation allowance | ||||||||||||||
| Other | ||||||||||||||
| Other foreign jurisdictions | ||||||||||||||
| Worldwide changes in unrecognized tax benefits | ( | ( | ||||||||||||
| Total income tax expense | $ | % | ||||||||||||
(a)California, Wisconsin, and Georgia make up the majority of the state & local income tax benefit.
53 AVIENT CORPORATION
In 2025, Luxembourg recognized a statutory impairment that gave rise to a $28.9 million tax benefit. Further, in 2025, the Company completed an intercompany transfer of intellectual property between entities in different tax jurisdictions resulting in a net tax benefit of $12.1 million. These benefits increased deferred tax assets in Luxembourg; however, based on an evaluation of available evidence, the Company determined that it is more likely than not that a portion of these deferred tax assets will not be fully realized. As a result, the Company recorded a valuation allowance of $41.2 million in Luxembourg.
As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the effective tax rate differs from the statutory tax rate as follows:
2024 | 2023 | |||||||||||||||||||||||||
| U.S. federal income tax rate | % | % | ||||||||||||||||||||||||
| International tax rate differential: | ||||||||||||||||||||||||||
| Asia | ||||||||||||||||||||||||||
| Europe | ( | ( | ||||||||||||||||||||||||
| North and South America | ||||||||||||||||||||||||||
| Total international tax rate differential | ||||||||||||||||||||||||||
| Net tax on GILTI and Subpart F Income | ( | |||||||||||||||||||||||||
| International tax on certain current and prior year earnings | ||||||||||||||||||||||||||
| Non-deductible interest | ||||||||||||||||||||||||||
| Research and development credit | ( | ( | ||||||||||||||||||||||||
| Capital losses | ( | |||||||||||||||||||||||||
| State and local tax, net | ( | ( | ||||||||||||||||||||||||
| International permanent items | ( | |||||||||||||||||||||||||
| U.S. permanent items | ||||||||||||||||||||||||||
| Net impact of uncertain tax positions | ( | ( | ||||||||||||||||||||||||
| Changes in valuation allowances | ||||||||||||||||||||||||||
| Other | ( | |||||||||||||||||||||||||
| Effective income tax rate | % | % | ||||||||||||||||||||||||
In 2023, the tax rate included the recognition of tax benefits of 7.5 % associated with tax impairments of investments in affiliates, driven in part from European restructuring actions. Further, we recognized a 5.4 % tax benefit from federal and state capital losses associated with an international affiliate's tax status change in 2022. Finally, we recognized tax benefits from the reduction of uncertain tax positions as well as the U.S. R&D tax credit, which reduced the tax rate, 5.3 % and 3.7 %, respectively. Partially offsetting these benefits were non-deductible foreign interest, 5.3 %, tax associated with foreign income repatriation, 3.9 %, and an increase of our valuation allowance which impacted the rate 3.6 %.
54 AVIENT CORPORATION
Components of our deferred tax assets (liabilities) as of December 31, 2025 and 2024 were as follows:
| (In millions) | 2025 | 2024 | ||||||||||||
| Deferred tax assets: | ||||||||||||||
| Employment costs | ||||||||||||||
| Environmental accruals | ||||||||||||||
| Net operating loss carryforwards | ||||||||||||||
| Operating leases | ||||||||||||||
| Research and development | ||||||||||||||
| Capitalized and carryforward interest | ||||||||||||||
| Financial derivatives | ||||||||||||||
| Other | ||||||||||||||
| Gross deferred tax assets | $ | $ | ||||||||||||
| Valuation allowances | ( | ( | ||||||||||||
| Total deferred tax assets, net of valuation allowances | $ | $ | ||||||||||||
| Deferred tax liabilities: | ||||||||||||||
| Property, plant and equipment | $ | ( | $ | ( | ||||||||||
| Goodwill and intangibles | ( | ( | ||||||||||||
| Operating leases | ( | ( | ||||||||||||
| Other | ( | ( | ||||||||||||
| Total deferred tax liabilities | $ | ( | $ | ( | ||||||||||
| Net deferred tax liabilities | $ | ( | $ | ( | ||||||||||
| Consolidated Balance Sheets: | ||||||||||||||
| Non-current deferred income tax assets | $ | $ | ||||||||||||
| Non-current deferred income tax liabilities | $ | ( | $ | ( | ||||||||||
As of December 31, 2025, we had gross state net operating loss carryforwards of $
As of December 31, 2025, no tax provision has been made relating to undistributed earnings of certain non-U.S. subsidiaries, as these amounts continue to be indefinitely reinvested, consistent with our policy. The cash that is permanently reinvested is typically used for operations. It is not practical to estimate the additional income taxes and applicable withholding taxes that would be payable upon the remittance of such undistributed earnings. Taxes on certain foreign earnings as of December 31, 2025 and 2024 included in the Other deferred tax liabilities line in the table above are $10.0 million and $9.7 million, respectively.
55 AVIENT CORPORATION
In accordance with the updated requirements of ASU 2023-09 for the year ended December 31, 2025, cash paid for income taxes was as follows:
| (In millions) | 2025 | |||||||
| Income taxes paid, net of refunds: | ||||||||
| U.S. Federal | $ | |||||||
| U.S. State | ( | |||||||
| Brazil | ||||||||
| China | ||||||||
| Italy | ||||||||
| Mexico | ||||||||
| Netherlands | ||||||||
| Switzerland | ||||||||
| Other International | ||||||||
| Total income taxes paid, net of refunds | $ | |||||||
For the years ended December 31, 2024 and 2023, income taxes paid, net of refunds, were $65.9 million and $151.2 million, respectively.
A reconciliation of unrecognized tax benefits is as follows:
| Unrecognized Tax Benefits | ||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Balance as of January 1, | $ | $ | $ | |||||||||||||||||
| Increases as a result of positions taken during current year | ||||||||||||||||||||
| Increases as a result of positions taken for prior years | ||||||||||||||||||||
| Reductions for tax positions of prior years | ( | ( | ||||||||||||||||||
| Decreases as a result of lapse of statute of limitations | ( | ( | ( | |||||||||||||||||
| Other, net | ( | |||||||||||||||||||
| Balance as of December 31, | $ | $ | $ | |||||||||||||||||
We recognize interest and penalties related to uncertain tax positions in the tax provision. We had $2.2 million and $2.5 million accrued as of December 31, 2025 and 2024, respectively.
If all unrecognized tax benefits were recognized, the net impact on the tax provision would be a benefit of $9.8 million.
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 proposed incremental tax associated with the Notice is $23.8 million plus estimated interest of $7.3 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 December 31, 2025, the Company has not recorded any income tax provision related to this matter; therefore an unfavorable ruling or settlement in U.S. Tax Court would adversely impact our effective tax rate and result in a cash tax payment.
Note 12 — SHARE-BASED COMPENSATION
Share-based compensation cost recognized in the accompanying Consolidated Statements of Income includes compensation cost for share-based payment awards based on an estimated grant date fair value. Share-based compensation expense is based on awards expected to vest and therefore has been reduced for estimated forfeitures.
56 AVIENT CORPORATION
In May 2020, our shareholders approved the Avient Corporation 2020 Equity and Incentive Compensation Plan (2020 Plan). This plan reserved 2.5 million common shares for the award of a variety of share-based compensation alternatives, including non-qualified stock options, incentive stock options, restricted stock, restricted stock units (RSUs), performance shares, performance units and stock appreciation rights (SARs). It is anticipated that all share-based grants and awards that are earned and exercised will be issued from Avient common shares that are held in treasury.
In May 2023, our shareholders voted to approve an amendment and restatement of the 2020 Plan (Amended 2020 Plan). The Amended 2020 Plan increases the number of common shares available for awards under the 2020 plan by 2.5 million common shares.
Share-based compensation is included in Selling and administrative expense. A summary of compensation expense by type of award follows:
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Stock appreciation rights | $ | $ | $ | |||||||||||||||||
| Performance shares | ||||||||||||||||||||
| Restricted stock units | ||||||||||||||||||||
| Total share-based compensation | $ | $ | $ | |||||||||||||||||
Stock Appreciation Rights
During the years ended December 31, 2024 and 2023, the total number of SARs granted was 0.5 million and 0.5 million, respectively. No SARs were granted in 2025. Awards vest in one-third increments upon the later of the attainment of time-based vesting over a three-year service period and stock price targets. Awards granted in 2024 and 2023 are subject to an appreciation cap of 200 ten years from the date of the grant.
The SARs were valued using a Monte Carlo simulation method as the vesting is dependent on the achievement of certain stock price targets. The SARs have time and stock price target requirements, both of which must be achieved in order to vest. Forfeitures were estimated at 3 % per year based on our historical experience.
A summary of SAR activity for 2025 is presented below:
(In millions, except per share data) | Shares | Weighted-Average Exercise Price per Share | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic value | ||||||||||||||||||||||
| Outstanding as of January 1, 2025 | $ | $ | ||||||||||||||||||||||||
| Exercised | ( | |||||||||||||||||||||||||
| Forfeited or expired | ( | |||||||||||||||||||||||||
| Outstanding as of December 31, 2025 | $ | $ | ||||||||||||||||||||||||
| Vested and exercisable as of December 31, 2025 | $ | $ | ||||||||||||||||||||||||
The total intrinsic value of SARs exercised during 2025, 2024 and 2023 was $0.4 million, $5.6 million and $0.7 million, respectively. As of December 31, 2025, there was $0.7 million of total unrecognized compensation cost related to SARs, which is expected to be recognized over the weighted average remaining vesting period of 13 months.
Restricted Stock Units
RSUs represent contingent rights to receive one common share at a future date provided certain vesting criteria are met. During 2025, 2024 and 2023, the total number of RSUs granted were 0.2 million, 0.2 million and 0.3 million, respectively. In 2025, 0.2 million RSUs vested and 0.1 million RSUs were forfeited. RSUs granted in 2024 and 2023, which generally vest on the third anniversary of the grant date, were granted to executives and other key employees. RSUs granted in 2025 vest annually over a three-year period. Compensation expense is measured on the grant date using the quoted market price of our common shares and is recognized on a straight-line basis over the requisite service period.
As of December 31, 2025, 0.5 million RSUs remain unvested with a weighted-average grant date fair value of $41.09 . Unrecognized compensation cost for RSUs at December 31, 2025 was $11.1 million, which is expected to be recognized over the weighted average remaining vesting period of 20 months.
57 AVIENT CORPORATION
Note 13 — SEGMENT INFORMATION
Operating segments are components of the Company about which separate financial information is available and evaluated on a regular basis by the chief operating decision maker (CODM), which is the Company's chief executive officer. Operating income is the primary segment performance measure that is reported to CODM. Our CODM utilizes this measure 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, mark-to-market adjustments on pension and other post-retirement obligations, 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.
Segment assets are primarily customer receivables, inventories, net property, plant and equipment, intangible assets and goodwill. Corporate assets and liabilities primarily include cash, debt, pension and other employee benefits, environmental liabilities, and other unallocated corporate assets and liabilities. The accounting policies of each segment are consistent with those described in Note 1, Description of Business and Summary of Significant Accounting Policies.
Avient has two reportable segments: (1) Color, Additives and Inks and (2) Specialty Engineered Materials. The following is a description of each reportable segment.
Color, Additives and Inks
Color, Additives and Inks is a leading innovator of specialized custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, as well as specialty inks. Color and additive solutions include an innovative array of colors, special effects and performance-enhancing and sustainable solutions. When combined with polymer resins, our solutions help customers achieve differentiated specialized colors and effects targeted at the demands of today’s highly design-oriented consumer and industrial end markets. Our additive concentrates encompass a wide variety of performance and process enhancing characteristics and are commonly categorized by the function that they perform, including UV light stabilization and blocking, antimicrobial, anti-static, blowing or foaming, antioxidant, lubricant, oxygen and visible light blocking and productivity enhancement. Of growing importance is our portfolio of additives that enable our customers to achieve their sustainability goals, regarding improved recyclability, reduced energy use, light weighting, and renewable energy applications. Our colorant and additives concentrates are used in a broad range of polymers, including those used in medical and pharmaceutical devices, food packaging, personal care and cosmetics, transportation, building products, wire and cable markets. We also provide custom-formulated liquid systems that meet a variety of customer needs and chemistries, including polyester, vinyl, natural rubber and latex, polyurethane and silicone. Our offerings also include proprietary inks and latexes for diversified markets such as recreational and athletic apparel, construction and filtration, outdoor furniture and healthcare. Our liquid polymer coatings and additives are largely based on vinyl and are used in a variety of markets, including consumer, packaging, healthcare, industrial, transportation, building and construction, wire and cable, textiles and appliances. Color, Additives and Inks has manufacturing, sales and service facilities located throughout North America, South America, Asia, Europe, Middle East, and Africa.
58 AVIENT CORPORATION
Specialty Engineered Materials
Specialty Engineered Materials is a leading innovator of specialty polymer materials, services and solutions for designers, assemblers and processors of thermoplastic materials across a wide variety of markets and end-use applications. Our product portfolio, which we believe to be one of the most diverse in our industry, includes specialty formulated high-performance polymer materials that are manufactured using thermoplastic resins and elastomers, which are then combined with advanced polymer additives, reinforcement, filler, colorant and/or biomaterial technologies. We also have what we believe is the broadest composite platform of solutions, which include a full range of thermoset and thermoplastic composites, reinforced with glass, carbon, aramid, and ultrahigh molecular weight polyethylene fibers. These solutions meet a wide variety of unique customer requirements, in particular light weighting. Our technical and market expertise enables us to expand the performance range and structural properties of traditional engineering-grade thermoplastic resins to meet evolving customer needs in a variety of markets, including defense, consumer, industrial, transportation, energy, building and construction and healthcare. Specialty Engineered Materials has manufacturing, sales and service facilities located throughout North America, Europe, and Asia. Our product development and application reach is further enhanced by the capabilities of our Innovation Centers in the United States, Germany, The Netherlands and China, which produce and evaluate prototype and sample parts to help assess end-use performance and guide product development. Our manufacturing capabilities are targeted at meeting our customers’ demand for speed, flexibility and critical quality.
59 AVIENT CORPORATION
Financial information by reportable segment is as follows:
(In millions) Year Ended December 31, 2025 | Color, Additives and Inks | Specialty Engineered Materials | Corporate | Consolidated Total | |||||||||||||||||||||||||||||||||||||||||||
| Sales | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||||||||||||||||||||||||
| Selling and administrative expense | |||||||||||||||||||||||||||||||||||||||||||||||
| Operating income | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Other income | |||||||||||||||||||||||||||||||||||||||||||||||
| Income from continuing operations before income taxes | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| Other disclosures: | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | |||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2024 | Color, Additives and Inks | Specialty Engineered Materials | Corporate | Consolidated Total | |||||||||||||||||||||||||||||||||||||||||||
| Sales | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Selling and administrative expense | |||||||||||||||||||||||||||||||||||||||||||||||
| Operating income | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Other income | |||||||||||||||||||||||||||||||||||||||||||||||
| Income from continuing operations before income taxes | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| Other disclosures: | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | |||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2023 | Color, Additives and Inks | Specialty Engineered Materials | Corporate | Consolidated Total | |||||||||||||||||||||||||||||||||||||||||||
| Sales | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||||||||||||||||||||||||
| Selling and administrative expense | |||||||||||||||||||||||||||||||||||||||||||||||
| Operating income | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | ( | ||||||||||||||||||||||||||||||||||||||||||||||
| Other income | |||||||||||||||||||||||||||||||||||||||||||||||
| Income from continuing operations before income taxes | $ | ||||||||||||||||||||||||||||||||||||||||||||||
| Other disclosures: | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | |||||||||||||||||||||||||||||||||||||||||||||||
60 AVIENT CORPORATION
Our sales are primarily to customers in the United States, Canada, Mexico, Europe, South America and Asia, and the majority of our assets are located in these same geographic areas. The following is a summary of sales and property based on the geographic areas where the sales originated and where the assets are located, in addition to other relevant financial information by reportable segment:
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Sales: | ||||||||||||||||||||
| United States and Canada | $ | $ | $ | |||||||||||||||||
| Latin America | ||||||||||||||||||||
| EMEA | ||||||||||||||||||||
| Asia | ||||||||||||||||||||
| Total Sales | $ | $ | $ | |||||||||||||||||
| Property, net: | ||||||||||||||||||||
| United States and Canada | $ | $ | ||||||||||||||||||
| Latin America | ||||||||||||||||||||
| EMEA | ||||||||||||||||||||
| Asia | ||||||||||||||||||||
| Total Property, net | $ | $ | ||||||||||||||||||
Note 14 — 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 various derivative transactions. 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 at inception. 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
As a means of mitigating 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 November 2024, the Company completed a transaction to effectively amend and extend cross-currency swaps maturing in May 2025, which had a combined notional amount of €1,467.2 million. The liability position of the existing cross-currency swaps was blended into new cross-currency swap agreements. In November 2024, the Company also entered into an additional cross-currency swap agreement, which had a combined notional amount of €208.2 million, to further hedge its net investment in its European operations.
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 years ended December 31, 2025 and 2024, a loss of $210.2 million and a gain of $77.3 million, respectively, were recognized within translation adjustments in AOCI, net of tax.
These cross-currency swaps effectively convert a portion of our U.S. dollar denominated fixed-rate debt to Euro denominated fixed-rate debt. Included in Interest expense, net within the Consolidated Statements of Income are benefits of $36.1 million, $38.4 million and $38.8 million for the years ended December 31, 2025, 2024 and 2023, respectively, related to net interest payments received from counterparties.
61 AVIENT CORPORATION
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 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 Consolidated Balance Sheets as of December 31, 2025 and 2024 is as follows:
| (In millions) | Notional Amount | Other non-current assets | Other current liabilities | Other non-current liabilities | |||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||
| November 2026 maturity | € | $ | $ | $ | |||||||||||||||||||||||||
| August 2027 maturity | |||||||||||||||||||||||||||||
| January 2028 maturity | |||||||||||||||||||||||||||||
| January 2029 maturity | |||||||||||||||||||||||||||||
| Total | € | $ | $ | $ | |||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||
| November 2026 maturity | € | $ | $ | $ | |||||||||||||||||||||||||
| August 2027 maturity | |||||||||||||||||||||||||||||
| January 2028 maturity | |||||||||||||||||||||||||||||
| January 2029 maturity | |||||||||||||||||||||||||||||
| Total | € | $ | $ | $ | |||||||||||||||||||||||||
62 AVIENT CORPORATION
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Disclosure controls and procedures
Avient’s management, with the participation of the Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of the design and operation of Avient’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2025. Based on this evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of December 31, 2025.
Management’s Annual Report On Internal Control Over Financial Reporting
The following report is provided by management in respect of Avient’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act):
| 1. | Avient’s management is responsible for establishing and maintaining adequate internal control over financial reporting. | ||||
| 2. | Under the supervision of and with participation of Avient’s management, including the Chief Executive Officer and the Chief Financial Officer, we conducted an evaluation of the effectiveness of internal control over financial reporting as of December 31, 2025 based on the guidelines established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) (2013 Framework). Management believes that the 2013 Framework is a suitable framework for its evaluation of financial reporting because it is free from bias, permits reasonably consistent qualitative and quantitative measurements of Avient’s internal control over financial reporting, is sufficiently complete so that those relevant factors that would alter a conclusion about the effectiveness of Avient’s internal control over financial reporting are not omitted and is relevant to an evaluation of internal control over financial reporting. | ||||
| 3. | Based on the results of our evaluation, management has concluded that such internal control over financial reporting was effective as of December 31, 2025. There were no material weaknesses in internal control over financial reporting identified by management. The results of management's assessment were reviewed with our Audit Committee. | ||||
| 4. | Ernst & Young LLP, who audited the consolidated financial statements of Avient for the year ended December 31, 2025, also issued an attestation report on Avient’s internal control over financial reporting under Auditing Standard No. 2201 of the Public Company Accounting Oversight Board. This attestation report is set forth on page 28 of this Annual Report on Form 10-K and is incorporated by reference into this Item 9A. | ||||
Changes in internal control over financial reporting
There were no changes in the Company’s internal control over financial reporting that occurred during the quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
Limitations in internal control over financial reporting
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
ITEM 9B. OTHER INFORMATION
Trading Arrangements
None of the Company's directors or officers (as defined in Rule 16a-1(f) promulgated under the Exchange Act) adopted terminated
63 AVIENT CORPORATION
Departure of Directors or Certain Officers
On February 15, 2026, Gregory J. Goff notified the Board of Directors of the Company that he does not intend to stand for reelection at the Company's 2026 Annual Meeting of Shareholders. Mr. Goff will continue to serve as a member of the Board until the expiration of his current term at the Annual Meeting. Mr. Goff's decision not to stand for reelection was not the result of any disagreement with the Company on any matter relating to the Company's operations, policies, or practices.
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.
64 AVIENT CORPORATION
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information regarding Avient’s directors, including the identification of the audit committee and audit committee financial experts, and Avient's insider trading policies and procedures is incorporated by reference to the information contained in Avient’s Proxy Statement with respect to the 2026 Annual Meeting of Shareholders (2026 Proxy Statement). Information concerning executive officers is contained in Part I of this Annual Report on Form 10-K under the heading “Information About Our Executive Officers.”
The information regarding any changes in procedures by which shareholders may recommend nominees to Avient’s Board of Directors is incorporated by reference to the information contained in the 2026 Proxy Statement.
Avient has adopted a code of ethics that applies to its principal executive officer, principal financial officer and principal accounting officer. Avient’s code of ethics is posted under the Corporate Governance tab of the Investor Relations page of its website at www.avient.com. Avient will post any amendments to, or waivers of, its code of ethics that apply to its principal executive officer, principal financial officer and principal accounting officer on its website.
ITEM 11. EXECUTIVE COMPENSATION
The information regarding executive officer and director compensation is incorporated by reference to the information contained in the 2026 Proxy Statement.
The information regarding compensation committee interlocks and insider participation and the compensation committee report is incorporated by reference to the information contained in the 2026 Proxy Statement.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
| Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (1) | Weighted-average exercise price of outstanding options, warrants and rights (2) | Number of securities remaining available for future issuance under equity compensation plans (3) | |||||||||||||||||
Equity compensation plans approved by security holders | 2,874,139 | $40.76 | 2,642,371 | |||||||||||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||||||||||
| Total | 2,874,139 | $40.76 | 2,642,371 | |||||||||||||||||
(1) This amount represents shares of common stock underlying awards that have been granted under the terms of the PolyOne Corporation 2010 Equity and Performance Incentive Plan, the PolyOne Corporation 2017 Equity and Performance Incentive Plan, and the Amended 2020 Plan, including 2,338,215 shares issuable pursuant to outstanding stock appreciation rights (SARs) (assuming maximum achievement, so this aggregate reported number may overstate actual dilution) and 535,924 shares issuable pursuant to outstanding restricted stock unit (RSU) and performance share awards.
(2) Reflects the weighted-average exercise price of SARs, and does not take into account RSUs or performance shares, as such awards have no exercise price.
(3) Represents the number of shares of common stock remaining available for future awards (options, warrants, restricted stock, unrestricted stock, or performance shares) under the Amended 2020 Plan.
The information regarding security ownership of certain beneficial owners is incorporated by reference to the information contained in the 2026 Proxy Statement.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information regarding certain relationships and related transactions and director independence is incorporated by reference to the information contained in the 2026 Proxy Statement.
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Information regarding fees paid to and services provided by Avient’s independent registered public accounting firm and the pre-approval policies and procedures of the audit committee is incorporated by reference to the information contained in the 2026 Proxy Statement.
65 AVIENT CORPORATION
PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a)(1) Financial Statements:
The following consolidated financial statements of Avient Corporation are included in Item 8:
Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023
Consolidated Statements of Comprehensive Income for the years ended December 31, 2025, 2024 and 2023
Consolidated Balance Sheets at December 31, 2025 and 2024
Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023
Consolidated Statements of Shareholders’ Equity for the years ended December 31, 2025, 2024 and 2023
Notes to Consolidated Financial Statements
All other schedules for which provision is made in Regulation S-X of the SEC are not required under the related instructions or are inapplicable and, therefore, have been omitted.
(a)(3) Exhibits:
| Exhibit No. | Exhibit Description | ||||
3.1 | Amended and Restated Articles of Incorporation of Avient Corporation (as amended through June 30, 2020) (incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, SEC File No. 1-16091) | ||||
3.2 | Avient Corporation Regulations (amended and restated, effective May 11, 2023) (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on May 16, 2023, SEC File No. 1-16091) | ||||
4.1 | Indenture, dated August 10, 2022, between Avient Corporation and U.S. Bank Trust Company, National Association as trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on August 10, 2022, SEC File No. 1-16091) | ||||
4.2 | Indenture, dated September 19, 2024, between Avient Corporation and U.S. Bank Trust Company, National Association as trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on September 19, 2024, SEC File No. 1-16091) | ||||
4.3 | Description of Securities (incorporated by reference to Exhibit 4.2 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, SEC File No. 1-16091). | ||||
10.1† | Revolving Credit Agreement, dated as of June 12, 2025, by and among Avient Corporation, JPMorgan Chase Bank, N.A., as administrative agent, and the various lenders party thereto (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed June 16, 2025, SEC File No. 1-16091) | ||||
10.2 | Credit Agreement, dated November 12, 2015, by and among PolyOne Corporation, as borrower, Citibank, N.A., as administrative agent, each of Citigroup Global Markets Inc., Wells Fargo Securities LLC, Goldman, Sachs & Co., HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC, as joint-lead arrangers and joint-book managers, Jefferies Finance LLC, KeyBanc Capital Markets Inc. and SunTrust Robinson Humphrey, Inc., as co-managers, and several other commercial lending institutions that are parties thereto (incorporated by reference to Exhibit 10.6 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, SEC File No. 1-16091) | ||||
10.3 | Amendment Agreement No. 1 to the Credit Agreement, dated as of June 15, 2016, among PolyOne Corporation, the subsidiaries of PolyOne Corporation party thereto, the existing lenders under the Credit Agreement, and Citibank, N.A., as administrative agent and the Additional Term B-1 Lender (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, SEC File No. 16091) | ||||
10.4 | Amendment Agreement No. 2, dated August 3, 2016, by and among PolyOne Corporation, the subsidiaries of PolyOne Corporation party thereto, Citibank, N.A., as administrative agent, and Citibank, N.A., as the incremental term lender (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on August 5, 2016, SEC File No. 1-16091) | ||||
10.5 | Amendment Agreement No. 3, dated January 24, 2017, by and among PolyOne Corporation, the subsidiaries of PolyOne Corporation party thereto, the existing lenders under the Credit Agreement, and Citibank, N.A., as administrative agent and the Additional Term B-2 Lender (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, SEC File No. 1-16091) | ||||
10.6 | Amendment Agreement No. 4, dated August 15, 2017, by and among PolyOne Corporation, the subsidiaries of PolyOne Corporation party thereto, the existing lenders under the Credit Agreement, and Citibank, N.A., as administrative agent and the Additional Term B-3 Lender (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, SEC File No. 1-16091) | ||||
10.7 | Amendment Agreement No. 5, dated April 11, 2018, by and among PolyOne Corporation, the subsidiaries of PolyOne Corporation party thereto, the existing lenders under the Credit Agreement, Citibank, N.A., as administrative agent, and SunTrust Bank, as the Additional Term B-4 Lender (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, SEC File No. 1-16091) | ||||
10.8 | Amendment Agreement No. 6, dated November 9, 2018, by and among PolyOne Corporation, the subsidiaries of PolyOne Corporation party thereto, the existing lenders under the Credit Agreement, Citibank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as the Additional Term B-5 Lender (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on November 13, 2018, SEC File No. 1-16091) | ||||
66 AVIENT CORPORATION
10.9 | Amendment Agreement No. 7, dated as of August 29, 2022, by and among Avient Corporation, the subsidiaries of Avient Corporation party thereto, Citibank, N.A., as administrative agent, and the Term B-6 Lenders party thereto (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on September 1, 2022, SEC File No. 1-16091) | ||||
10.10 | Amendment Agreement No. 8, dated August 16, 2023, by and among Avient Corporation, the subsidiaries of Avient Corporation party thereto, the existing lenders under the Credit Agreement, Citibank, N.A., as administrative agent, and Morgan Stanley Bank, N.A., as the Amendment No. 8 Additional Term Lender (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on August 17, 2023, SEC File No. 1-16091) | ||||
10.11 | Amendment Agreement No. 9, dated as of April 9, 2024, by and among Avient Corporation, the subsidiaries of Avient Corporation party thereto, the existing lenders under the Credit Agreement, and Citibank, N.A., as the administrative agent and as the Amendment No. 9 Additional Term Lender (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024, SEC File No. 1-16091) | ||||
10.12 | Amendment Agreement No. 10, dated as of March 12, 2025, by and among Avient Corporation, the subsidiaries of Avient Corporation party thereto, the existing lenders under the Term Loan Agreement, Citibank, N.A, as administrative agent, and Truist Bank, as the Amendment No. 10 Additional Term Lender (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed March 17, 2025, SEC File No. 1-16091) | ||||
10.13+ | Amended and Restated Avient Corporation 2010 Equity and Performance Incentive Plan (incorporated by reference to Appendix B to the Company’s definitive proxy statement on Schedule 14A filed on April 3, 2015, SEC File No. 1-16091) | ||||
10.14+ | First Amendment to the Avient Supplemental Retirement Benefit Plan (As Amended and Restated Effective January 1, 2014), dated as of March 16, 2016; Amendment No. 2 to the Avient Supplemental Retirement Benefit Plan (As Amended and Restated Effective January 1, 2014), dated as of December 19, 2018; Amendment No. 3 to the Avient Supplemental Retirement Benefit Plan (As Amended and Restated Effective January 1, 2014), dated as of April 18, 2019; and Amendment No. 4 to the Avient Supplemental Retirement Benefit Plan (As Amended and Restated Effective January 1, 2014), dated as of December 18, 2019 (incorporated by reference to Exhibit 10.15 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, SEC File No. 1-16091) | ||||
10.15+ | Avient 2017 Equity and Incentive Compensation Plan (incorporated by reference to Appendix B to the Company's definitive proxy statement on Schedule 14A filed on March 31, 2017, SEC File No. 1-16091) | ||||
10.16+ | Avient Corporation Deferred Compensation Plan for Non-Employee Directors (As Amended and Restated Effective July 15, 2021) (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, SEC File No. 1-16091) | ||||
10.17+ | Form of Management Continuity Agreement for Executive Officers after 2011 (incorporated by reference to Exhibit 10.12 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, SEC File No. 1-16091) | ||||
10.18+** | Schedule of Executive Officers and Others with Management Continuity Agreements | ||||
10.19+ | Avient Supplemental Retirement Benefit Plan (As Amended and Restated Effective January 1, 2014) (incorporated by reference to Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, SEC file No. 1-16091) | ||||
10.20 | Assumption of Liabilities and Indemnification Agreement, dated March 1, 1993, amended and restated by Amended and Restated Assumption of Liabilities and Indemnification Agreement, dated April 27, 1993 (incorporated by reference to Exhibit 10.14 to The Geon Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 1996, SEC File No. 1-11804) | ||||
10.21+ | Executive Severance Plan, as amended and restated effective May 15, 2014 (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, SEC File No. 1-16091) | ||||
10.22+ | Form of Director and Officer Indemnification Agreement (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on July 5, 2006, SEC File No. 1-16091) | ||||
10.23+ | Form of 2021 Award Agreement under the Avient Corporation 2020 Equity and Incentive Compensation Plan (incorporated by reference to Exhibit 10.25 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, SEC File No. 1-16091) | ||||
10.24+ | Form of 2022 Award Agreement under the Avient Corporation 2020 Equity and Incentive Compensation Plan (incorporated by reference to Exhibit 10.26 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, SEC File No. 1-16091) | ||||
10.25+ | Form of 2023 Award Agreement under the Avient Corporation 2020 Equity and Incentive Compensation Plan (incorporated by reference to Exhibit 10.27 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, SEC File No. 1-16091) | ||||
10.26+ | Avient Corporation 2020 Equity and Incentive Compensation Plan (Amended and Restated Effective May 11, 2023) (incorporated by reference to Appendix B to the Registrant's Definite Proxy Statement on Schedule 14A, filed March 29, 2023, SEC File No. 1-16091) | ||||
10.27+ | Form of 2024 Award Agreement under the Avient Corporation 2020 Equity and Incentive Compensation Plan (incorporated by reference to Exhibit 10.29 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, SEC File No. 1-16091) | ||||
10.28+ | Form of 2025 Award Agreement under the Avient Corporation 2020 Equity and Incentive Compensation Plan (incorporated by reference to Exhibit 10.29 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, SEC File No. 1-16091) | ||||
10.29+** | Form of 2026 Award Agreement under the Avient Corporation 2020 Equity and Incentive Compensation Plan | ||||
10.30+ | Letter agreement, dated February 11, 2025, between Joel R. Rathbun and Avient Corporation (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, SEC File No. 1-16091) | ||||
19.1 | |||||
67 AVIENT CORPORATION
21.1** | Subsidiaries of the Company | ||||
23.1** | Consent of Independent Registered Public Accounting Firm - Ernst & Young LLP | ||||
31.1** | Certification of Ashish K. Khandpur, Chairman, President and Chief Executive Officer, pursuant to SEC Rules 13a-14(a) and 15d-14(a), adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||
31.2** | Certification of Jamie A. Beggs, Senior Vice President and Chief Financial Officer, pursuant to SEC Rules 13a-14(a) and 15d-14(a), adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||
32.1* | Certification pursuant to 18 U.S.C. § 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as signed by Ashish K. Khandpur, Chairman, President and Chief Executive Officer | ||||
32.2* | Certification pursuant to 18 U.S.C. § 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as signed by Jamie A. Beggs, Senior Vice President and Chief Financial Officer | ||||
97.1+ | Avient Corporation Compensation Clawback Policy Effective October 2, 2023 (incorporated by reference to Exhibit 97.1 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, SEC File No. 1-16091) | ||||
| 101 .INS** | Inline XBRL Instance Document | ||||
| 101 .SCH** | Inline XBRL Taxonomy Extension Schema Document | ||||
| 101 .CAL** | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
| 101 .LAB** | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
| 101 .PRE** | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
| 101 .DEF** | Inline XBRL Taxonomy Definition Linkbase Document | ||||
| 104** | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | ||||
| + | Indicates management contract or compensatory plan, contract or arrangement in which one or more directors or executive officers of the Registrant may be participants | ||||
| † | Certain exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K and will be provided to the Securities and Exchange Commission upon request. | ||||
| * | Furnished herewith. | ||||
| ** | Filed herewith. | ||||
ITEM 16. FORM 10-K SUMMARY
None.
68 AVIENT CORPORATION
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| AVIENT CORPORATION | |||||||||||||||||
| February 17, 2026 | BY: | /S/ JAMIE A. BEGGS | |||||||||||||||
| Jamie A. Beggs Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | |||||||||||||||||
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated and on the dates indicated.
| Signature and Title | ||||||||||||||
| /S/ ASHISH K. KHANDPUR | Chairman, President Chief Executive Officer (Principal Executive Officer) | February 17, 2026 | ||||||||||||
| Ashish K. Khandpur | ||||||||||||||
| /S/ JAMIE A. BEGGS | Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | February 17, 2026 | ||||||||||||
| Jamie A. Beggs | ||||||||||||||
| /S/ ROBERT E. ABERNATHY | Director | February 17, 2026 | ||||||||||||
| Robert E. Abernathy | ||||||||||||||
| /S/ RICHARD H. FEARON | Director | February 17, 2026 | ||||||||||||
| Richard H. Fearon | ||||||||||||||
| /S/ GREGORY J. GOFF | Director | February 17, 2026 | ||||||||||||
| Gregory J. Goff | ||||||||||||||
| /S/ NEIL GREEN | Director | February 17, 2026 | ||||||||||||
| Neil Green | ||||||||||||||
| /S/ WILLIAM R. JELLISON | Director | February 17, 2026 | ||||||||||||
| William R. Jellison | ||||||||||||||
| /S/ SANDRA BEACH LIN | Director | February 17, 2026 | ||||||||||||
| Sandra Beach Lin | ||||||||||||||
| /S/ KIM ANN MINK | Director | February 17, 2026 | ||||||||||||
| Kim Ann Mink | ||||||||||||||
| /S/ ERNEST NICOLAS | Director | February 17, 2026 | ||||||||||||
| Ernest Nicolas | ||||||||||||||
| /S/ KERRY J. PREETE | Director | February 17, 2026 | ||||||||||||
| Kerry J. Preete | ||||||||||||||
| /S/ PATRICIA VERDUIN | Director | February 17, 2026 | ||||||||||||
| Patricia Verduin | ||||||||||||||
| /S/ WILLIAM A. WULFSOHN | Director | February 17, 2026 | ||||||||||||
| William A. Wulfsohn | ||||||||||||||
69 AVIENT CORPORATION
FAQ
How did Avient (AVNT) perform financially in 2025?
Avient delivered nearly flat 2025 sales but sharply lower profit. Sales rose 0.6% to $3.26 billion, while net income from continuing operations fell 51% to $83.6 million and diluted EPS declined to $0.89, mainly due to restructuring and technology-related charges.
Why did Avient’s 2025 earnings decline despite stable sales?
Earnings fell mainly because of higher non-recurring costs, not revenue weakness. Avient booked a $71.6 million impairment from stopping its S/4HANA ERP project, $14.7 million of related hosting obligations and higher restructuring charges, which drove operating income down 38% to $203.5 million.
What were Avient’s 2025 segment results for Color, Additives and Inks and Specialty Engineered Materials?
Color, Additives and Inks 2025 sales were $2.03 billion with operating income of $301.3 million. Specialty Engineered Materials generated $1.23 billion of sales and $163.6 million of operating income, with gains in healthcare, defense and telecommunications partly offset by higher costs.
What was Avient’s cash flow and liquidity position at the end of 2025?
Avient’s operating cash flow increased to $301.6 million in 2025. The company ended the year with $510.5 million of cash and $490.3 million of available revolver capacity, for total liquidity of $1.00 billion, supporting operations, debt service and dividends.
How much debt does Avient have outstanding and what are the key components?
Total debt was $1.92 billion at December 31, 2025. This included a $559.0 million senior secured term loan due 2029, $718.8 million of 7.125% senior notes due 2030, $642.1 million of 6.250% senior notes due 2031 and smaller other debt balances.
Did Avient repurchase any of its common shares in 2025?
Avient did not repurchase any common shares during 2025. However, the company retained board authorization to repurchase approximately 5.0 million shares as of December 31, 2025, with no stated expiration on this share repurchase capacity.
How much did Avient spend on research and development in 2025?
Avient continued investing in innovation, spending $96.7 million on research and development in 2025. This followed R&D expenditures of $98.7 million in 2024 and $90.3 million in 2023, supporting new materials solutions and technology development.
Avient Corp
NYSE:AVNT
AVNT Rankings
AVNT Latest News
AVNT Latest SEC Filings
Feb 12, 2026
[8-K] AVIENT CORP Reports Material Event
Jan 22, 2026
[Form 4] AVIENT CORP Insider Trading Activity
Jan 21, 2026
[Form 4] AVIENT CORP Insider Trading Activity
Jan 5, 2026
[Form 4] AVIENT CORP Insider Trading Activity
AVNT Stock Data
3.94B
90.77M
Specialty Chemicals
Plastic Materials, Synth Resins & Nonvulcan Elastomers
United States
AVON LAKE