Q1 turnaround: Avient (NYSE: AVNT) returns to profit on margin gains

Rhea-AI Filing Summary

Avient Corporation reported a solid turnaround for the quarter ended March 31, 2026. Sales rose to $847.4 million from $826.6 million, while gross margin edged up to 32.2% as productivity and restructuring savings more than offset higher costs.

Operating income jumped to $95.8 million from $0.7 million, mainly because last year’s period included a large impairment tied to the S/4HANA ERP project that was discontinued in 2025. Net income attributable to common shareholders improved to $55.7 million, or $0.61 per diluted share, compared with a loss of $20.2 million, or $(0.22) per share, as lower interest expense and steadier segment performance supported results. The company ended the quarter with $427.6 million in cash, $1,924.5 million of net debt and total liquidity of $917.9 million.

Key Figures

Sales: $847.4 million Net income attributable to common shareholders: $55.7 million Diluted EPS: $0.61 per share +5 more

8 metrics

Sales $847.4 million Three months ended March 31, 2026

Net income attributable to common shareholders $55.7 million Three months ended March 31, 2026

Diluted EPS $0.61 per share Three months ended March 31, 2026

Operating income $95.8 million Three months ended March 31, 2026

Cash and cash equivalents $427.6 million As of March 31, 2026

Total net debt $1,924.5 million As of March 31, 2026

Liquidity $917.9 million As of March 31, 2026

Environmental accruals $134.9 million As of March 31, 2026

Key Terms

gross margin, restructuring charges, cloud-based enterprise resource planning system, net investment hedges, +2 more

6 terms

gross margin financial

"Gross margin as a percentage of sales was 32.2% for the three months ended March 31, 2026"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

restructuring charges financial

"Further restructuring charges in 2026 and 2025 were recognized associated with workforce reductions and plant closures."

Restructuring charges are costs that a company pays when it changes how it operates, like closing factories or laying off employees. These expenses are often one-time and happen to help the company become more efficient in the long run. They matter because they can affect the company's profits and how investors see its future prospects.

cloud-based enterprise resource planning system technical

"the Company determined it would cease the ongoing development of S/4HANA, its cloud-based enterprise resource planning system"

net investment hedges financial

"We designated the cross-currency swaps as net investment hedges of our net investment in our European operations"

A net investment hedge is a financial step a company takes to protect the reported value of its ownership in foreign subsidiaries from swings in exchange rates. By using derivatives or foreign‑currency borrowings to offset translation gains or losses, the company reduces how much its balance sheet and reported equity jump around when currencies move — like locking a price tag on a foreign store so its value in the home currency stays steadier for investors.

Accumulated Other Comprehensive Income (Loss) financial

"The changes in fair value of the derivative instruments ... are recognized within Accumulated Other Comprehensive Income (Loss) (AOCI)"

A balance-sheet line that tracks certain gains and losses that haven’t flowed through the company’s profit-and-loss statement, such as unrealized changes in the value of investments, foreign-currency adjustments, and some pension-related items. Think of it like a storage closet for value swings the company hasn’t ‘realized’ by selling or settling them yet; it changes shareholders’ equity and helps investors see hidden volatility or potential future impacts on book value.

effective tax rate financial

"the Company’s effective tax rate of 22.8% was above the U.S federal rate of 21.0%"

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

10-Q Quarterly Reports: What Changes Quarter to Quarter →

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________________

FORM 10-Q

________________________________________________

(Mark One)

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

For the quarterly period ended March 31, 2026

OR    

 

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

For the transition period from             to             .

Commission file number 1-16091

 ________________________________________________

AVIENT CORPORATION

(Exact name of registrant as specified in its charter)

________________________________________________

Ohio									34-1730488
(State or other jurisdiction									(I.R.S. Employer Identification No.)
of incorporation or organization)
33587 Walker Road									44012
Avon Lake, Ohio
(Address of principal executive offices)									(Zip Code)

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

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

_______________________________________________

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

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

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

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

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

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

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

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

The number of the registrant’s outstanding common shares, par value $.01 per share, as of March 31, 2026 was 91,710,167.

AVIENT CORPORATION

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Avient Corporation

Condensed Consolidated Statements of Income (Unaudited)

(In millions, except per share data)

			Three Months Ended March 31,
			2026						2025
Sales			$	847.4					$	826.6
Cost of sales			574.8						563.4
Gross margin			272.6						263.2
Selling and administrative expense			176.8						262.5
Operating income			95.8						0.7
Interest expense, net			(22.0)						(26.9)
Other expense, net			(1.5)						(0.4)
Income (loss) before income taxes			72.3						(26.6)
Income tax (expense) benefit			(16.5)						6.7
Net income (loss)			$	55.8					$	(19.9)
Net income attributable to noncontrolling interests			(0.1)						(0.3)
Net income (loss) attributable to Avient common shareholders			$	55.7					$	(20.2)
Earnings (loss) per share attributable to Avient common shareholders - Basic:			$	0.61					$	(0.22)
Earnings (loss) per share attributable to Avient common shareholders - Diluted:			$	0.61					$	(0.22)
Weighted-average shares used to compute earnings per common share:
Basic			91.7						91.5
Plus dilutive impact of share-based compensation			0.2						—
Diluted			91.9						91.5
Anti-dilutive share-based compensation awards			1.8						2.5
Cash dividends declared per share of common stock			$	0.2750					$	0.2700

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

1 AVIENT CORPORATION

Avient Corporation

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(In millions)

			Three Months Ended March 31,
			2026						2025
Net income (loss)			$	55.8					$	(19.9)
Other comprehensive income, net of tax:
Translation adjustments and related hedging instruments			1.2						29.5
Total other comprehensive income			1.2						29.5
Total comprehensive income			57.0						9.6
Comprehensive income attributable to noncontrolling interests			(0.1)						(0.3)
Comprehensive income attributable to Avient common shareholders			$	56.9					$	9.3

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

2 AVIENT CORPORATION

Avient Corporation

Condensed Consolidated Balance Sheets

(In millions)

			(Unaudited) March 31, 2026						December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents			$	427.6					$	510.5
Accounts receivable, net			513.4						435.0
Inventories, net			386.4						367.2
Other current assets			96.5						88.2
Total current assets			1,423.9						1,400.9
Property, net			967.9						988.8
Goodwill			1,739.2						1,757.6
Intangible assets, net			1,447.4						1,492.4
Other non-current assets			366.4						385.9
Total assets			$	5,944.8					$	6,025.6
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt			$	0.5					$	0.5
Accounts payable			426.1						410.0
Accrued expenses and other current liabilities			376.5						435.8
Total current liabilities			803.1						846.3
Non-current liabilities:
Long-term debt			1,924.0						1,922.6
Deferred income taxes			280.5						285.7
Other non-current liabilities			519.2						584.7
Total non-current liabilities			2,723.7						2,793.0
SHAREHOLDERS' EQUITY
Avient shareholders’ equity			2,405.8						2,374.2
Noncontrolling interest			12.2						12.1
Total equity			2,418.0						2,386.3
Total liabilities and equity			$	5,944.8					$	6,025.6

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

3 AVIENT CORPORATION

Avient Corporation

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In millions)

			Three Months Ended March 31,
			2026						2025
Operating activities
Net income (loss)			$	55.8					$	(19.9)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization			47.9						45.3
Cloud-based enterprise resource planning system impairment			—						71.6
Share-based compensation expense			2.1						2.4
Changes in assets and liabilities:
Increase in accounts receivable			(83.7)						(83.7)
Increase in inventories			(22.9)						(20.3)
Increase (decrease) in accounts payable			20.0						(1.0)
(Decrease) increase in restructuring obligations			(4.7)						2.5
Decrease in incentive accruals			(24.8)						(53.1)
Environmental insurance recovery			—						34.0
Accrued expenses and other assets and liabilities, net			(24.2)						(28.9)
Net cash used in operating activities			(34.5)						(51.1)
Investing activities
Capital expenditures			(19.0)						(12.5)
Net cash used in investing activities			(19.0)						(12.5)
Financing activities
Cash dividends paid			(25.2)						(24.7)
Other financing activities			(2.6)						(3.6)
Net cash used in financing activities			(27.8)						(28.3)
Effect of exchange rate changes on cash and cash equivalents			(1.6)						3.4
Decrease in cash and cash equivalents			(82.9)						(88.5)
Cash and cash equivalents at beginning of year			510.5						544.5
Cash and cash equivalents at end of period			$	427.6					$	456.0

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

4 AVIENT CORPORATION

Avient Corporation

Condensed Consolidated Statements of Shareholders' Equity (Unaudited)

(In millions)

						Common Shares												Shareholders’ Equity
						Common Shares						Common Shares Held in Treasury						Common Shares						Additional Paid-in Capital						Retained Earnings						Common Shares Held in Treasury						Accumulated Other Comprehensive (Loss) Income						Total Avient Shareholders' Equity						Non-controlling Interests						Total Equity
Balance at January 1, 2026						122.2						(30.6)						$	1.2					$	1,542.4					$	1,865.1					$	(927.8)					$	(106.7)					$	2,374.2					$	12.1					$	2,386.3
Net income						—						—						—						—						55.7						—						—						55.7						0.1						55.8
Other comprehensive income						—						—						—						—						—						—						1.2						1.2						—						1.2
Cash dividends declared -- $0.2750 per share						—						—						—						—						(25.2)						—						—						(25.2)						—						(25.2)
Share-based compensation and exercise of awards						—						0.1						—						(1.3)						—						1.2						—						(0.1)						—						(0.1)
Balance at March 31, 2026						122.2						(30.5)						$	1.2					$	1,541.1					$	1,895.6					$	(926.6)					$	(105.5)					$	2,405.8					$	12.2					$	2,418.0

						Common Shares												Shareholders’ Equity
						Common Shares						Common Shares  Held in Treasury						Common Shares						Additional Paid-in Capital						Retained Earnings						Common Shares  Held in Treasury						Accumulated Other Comprehensive (Loss) Income						Total Avient Shareholders' Equity						Non-controlling Interests						Total Equity
Balance at January 1, 2025						122.2						(30.8)						$	1.2					$	1,537.5					$	1,882.5					$	(929.6)					$	(177.8)					$	2,313.8					$	15.8					$	2,329.6
Net loss						—						—						—						—						(20.2)						—						—						(20.2)						0.3						(19.9)
Other comprehensive income						—						—						—						—						—						—						29.5						29.5						—						29.5
Cash dividends declared -- $0.2700 per share						—						—						—						—						(24.7)						—						—						(24.7)						—						(24.7)
Share-based compensation and exercise of awards						—						0.1						—						(1.2)						—						1.1						—						(0.1)						—						(0.1)
Balance at March 31, 2025						122.2						(30.7)						$	1.2					$	1,536.3					$	1,837.6					$	(928.5)					$	(148.3)					$	2,298.3					$	16.1					$	2,314.4

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

5 AVIENT CORPORATION

Avient Corporation

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 — BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Form 10-Q instructions and in the opinion of management contain all adjustments, including those that are normal, recurring and necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. These interim financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2025 of Avient Corporation. When used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “Avient” and the “Company” mean Avient Corporation and its consolidated subsidiaries.

Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be attained in subsequent periods or for the year ending December 31, 2026.

Accounting Standards Adopted

In July 2025, the 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. The Company adopted the ASU effective January 1, 2026 on a prospective basis. The adoption did not have a material impact on the Company's allowance for doubtful accounts.

Accounting Standards Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). This accounting standard requires disaggregated income statement expense disclosures on an annual and interim basis, including inventory purchases, employee compensation, depreciation, and intangible asset amortization for each income statement line item that contains theses expenses. The standard also requires disclosure of total selling expenses on an annual and interim basis, and the definition of those expenses disclosed annually. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and may be applied prospectively or retrospectively. The Company is evaluating the impact of ASU 2024-03. As the standard will only impact its disclosures, there will be no material impact to the consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06). This accounting standard changes when software project costs should be capitalized by removing all references to development stages and requiring costs to be capitalized when (1) the Company authorizes and commits to funding the software project and (2) it is probable the software project will be completed. The standard also requires additional annual and interim disclosures, including the capitalized software balance and accumulated amortization. ASU 2025-06 is effective for annual reporting periods, including interim reporting periods within those annual periods, beginning after December 15, 2027, with early adoption permitted and may be applied prospectively, retrospectively, or using a modified prospective transition approach. The Company is evaluating the impact of ASU 2025-06 and expects the standard will not have a material impact on the consolidated financial statements and related disclosures.

6 AVIENT CORPORATION

Note 2 — GOODWILL AND INTANGIBLE ASSETS

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

(In millions)			Specialty Engineered Materials						Color, Additives and Inks												Total
Balance at December 31, 2025			$	711.4					$	1,046.2											$	1,757.6
Currency translation			(11.0)						(7.4)												(18.4)
Balance at March 31, 2026			$	700.4					$	1,038.8											$	1,739.2

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

			As of March 31, 2026
(In millions)			Acquisition Cost						Accumulated Amortization						Currency Translation						Net
Customer relationships			$	726.2					$	(278.9)					$	31.5					$	478.8
Patents, technology and other			847.0						(313.2)						36.0						569.8
Indefinite-lived trade names			362.8						—						36.0						398.8
Total			$	1,936.0					$	(592.1)					$	103.5					$	1,447.4

			As of December 31, 2025
(In millions)			Acquisition Cost						Accumulated Amortization						Currency Translation						Net
Customer relationships			$	726.2					$	(269.7)					$	39.2					$	495.7
Patents, technology and other			847.0						(301.4)						46.2						591.8
Indefinite-lived trade names			362.8						—						42.1						404.9
Total			$	1,936.0					$	(571.1)					$	127.5					$	1,492.4

7 AVIENT CORPORATION

Note 3 — RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES

In the first quarter of 2025, the Company completed a review of its cloud-based enterprise resource planning system, S/4HANA, including updated project timelines, cost incurred to date, required internal resources and expected costs to complete the initial site implementations, and the evolution of options that could provide better returns for shareholders. As a result of this review, the Company determined it would cease the ongoing development of S/4HANA.

As a result of this decision, in the first quarter of 2025, the Company recognized a non-cash, pre-tax impairment charge of $71.6 million associated with capitalized implementation costs. The Company also recognized pre-tax charges of $14.7 million associated with unpaid contractual obligations for hosting fees. Further, the Company recognized charges of $2.8 million associated with severance actions resulting from the decision to cease development of S/4HANA. These charges are included in Selling and administrative expense within the Condensed Consolidated Statements of Income.

Further restructuring charges in 2026 and 2025 were recognized associated with workforce reductions and plant closures. These actions have been taken as a result of productivity initiatives and organizational changes.

A summary of all restructuring activity is shown below:

(in millions)			Workforce reductions						Plant closing and other						Total
Balance at January 1, 2025			$	10.1					$	0.8					$	10.9
Restructuring charges			38.1						7.5						45.6
Payments, utilization and translation			(12.9)						(8.3)						(21.2)
Balance at December 31, 2025			$	35.3					$	—					$	35.3
Restructuring charges			0.8						3.2						4.0
Payments, utilization and translation			(5.9)						(3.2)						(9.1)
Balance at March 31, 2026			$	30.2					$	—					$	30.2

These restructuring charges were included in Cost of sales and Selling and administrative expense.

Note 4 — INVENTORIES, NET

Components of Inventories, net are as follows:

(In millions)			As of March 31, 2026						As of December 31, 2025
Finished products			$	167.6					$	162.7
Work in process			23.6						23.7
Raw materials and supplies			195.2						180.8
Inventories, net			$	386.4					$	367.2

Note 5 — PROPERTY, NET

Components of Property, net are as follows:

(In millions)			As of March 31, 2026						As of December 31, 2025
Land and land improvements			$	99.1					$	100.8
Buildings			451.1						455.6
Machinery and equipment			1,375.4						1,382.5
Property, gross			1,925.6						1,938.9
Less accumulated depreciation			(957.7)						(950.1)
Property, net			$	967.9					$	988.8

Note 6 — INCOME TAXES

During the three months ended March 31, 2026, the Company’s effective tax rate of 22.8% was above the U.S federal rate of 21.0% primarily due to foreign earnings mix, U.S. global intangible low-taxed income (GILTI), and withholding taxes on foreign earnings. These unfavorable items were partially offset by U.S. research and development (R&D) credits, along with favorable foreign permanent items, most notably tax incentives associated with R&D.

8 AVIENT CORPORATION

During the three months ended March 31, 2025, the Company's effective tax rate resulted in a benefit of 25.2% as a result of pre-tax loss in the first quarter of 2025. The pre-tax loss was driven by the Company's cloud-based enterprise resource planning system impairment. The 25.2% income tax benefit was higher than the U.S. federal tax rate of 21.0% primarily due to the state and local tax benefit of the pre-tax loss.

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 $7.8 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 March 31, 2026, the Company has not recorded any income tax provision related to this matter; therefore an unfavorable ruling in U.S. Tax Court or settlement would adversely impact our effective tax rate and result in a cash tax payment.

Note 7 — FINANCING ARRANGEMENTS

Debt consists of the following instruments:

As of March 31, 2026 (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			570.7						10.9						559.8						5.42		%
7.125% senior notes due 2030			725.0						5.9						719.1						7.125		%
6.250% senior notes due 2031			650.0						7.5						642.5						6.250		%
Other Debt			3.1						—						3.1
Total Debt			1,948.8						24.3						1,924.5
Less short-term and current portion of long-term debt			0.5						—						0.5
Total long-term debt, net of current portion			$	1,948.3					$	24.3					$	1,924.0

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			570.7						11.7						559.0						6.01		%
7.125% senior notes due 2030			725.0						6.2						718.8						7.125		%
6.250% senior notes due 2031			650.0						7.9						642.1						6.250		%
Other Debt			3.2						—						3.2
Total Debt			1,948.9						25.8						1,923.1
Less short-term and current portion of long-term debt			0.5						—						0.5
Total long-term debt, net of current portion			$	1,948.4					$	25.8					$	1,922.6

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.

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.

9 AVIENT CORPORATION

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.

As of March 31, 2026, we had no borrowings outstanding under the senior secured revolving credit facility.

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 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 March 31, 2026, we were in compliance with all covenants.

The estimated fair value of Avient’s debt instruments at March 31, 2026 and December 31, 2025 was $1,947.6 million and $1,967.1 million, respectively. The fair value of Avient’s debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and represent Level 2 measurements within the fair value hierarchy.

Note 8 — DERIVATIVES AND HEDGING

We are exposed to market risks, such as changes in foreign currency exchange rates and interest rates. To manage the volatility related to these exposures we may enter into 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. We designated the cross-currency swaps as net investment hedges of our net investment in our European operations under ASU 2017-12 and applied the spot method to these hedges. The changes in fair value of the derivative instruments that are designated and qualify as hedges of net investments in foreign operations are recognized within Accumulated Other Comprehensive Income (Loss) (AOCI) to offset the changes in the values of the net investment being hedged. For the three months ended March 31, 2026, a gain of $54.6 million was recognized within translation adjustments in AOCI, net of tax, compared to losses of $44.3 million, net of tax, for the three months ended March 31, 2025. Included in Interest expense, net on the Condensed Consolidated Statements of Income is income of $9.0 million, for the three months ended March 31, 2026 and March 31, 2025, respectively, related to interest payments received from counterparties.

All of our derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. We determine the fair value of our derivatives based on valuation methods, which project future cash flows and discount the future amounts present value using market based observable inputs, including interest rate curves and foreign currency rates. The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025 is as follows:

			As of March 31, 2026
(In millions)			Notional Amount						Other current assets						Other non-current assets						Other current liabilities						Other non-current liabilities
Cross-currency swaps			€	2,575.4					$	—					$	—					$	76.3					$	233.0
(In millions)			As of December 31, 2025
Cross-currency swaps			€	2,575.4					$	—					$	—					$	94.8					$	286.1

10 AVIENT CORPORATION

Note 9 — SEGMENT INFORMATION

Avient has two reportable segments: (1) Color, Additives and Inks and (2) Specialty Engineered Materials.

Operating income is the primary segment performance measure that is reported to our chief operating decision maker (CODM), which is the Company's chief executive officer. Our CODM utilizes this measure as an input to determine appropriate resource allocations to our segments in the annual planning process and to periodically assess segment performance, primarily by evaluating actual results in comparison to the annual operating plan and forecast. Operating income at the segment level does not include corporate general and administrative expenses that are not allocated to segments, restructuring charges, share-based compensation costs, environmental remediation costs and associated recoveries, asset impairments, acquisition-related charges, 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.

Financial information by reportable segment is as follows:

(In millions) Three Months Ended March 31, 2026															Color, Additives and Inks						Specialty Engineered Materials						Corporate						Consolidated Total
Sales															$	528.1					$	320.2					$	(0.9)					$	847.4
Cost of sales															349.4						219.6						5.8						574.8
Selling and administrative expense															97.3						53.2						26.3						176.8
Operating income															$	81.4					$	47.4					$	(33.0)					$	95.8
Interest expense, net																																	(22.0)
Other expense, net																																	(1.5)
Income before income taxes																																	$	72.3

Three Months Ended March 31, 2025															Color, Additives and Inks						Specialty Engineered Materials						Corporate						Consolidated Total
Sales															$	519.7					$	308.4					$	(1.5)					$	826.6
Cost of sales															346.6						210.6						6.2						563.4
Selling and administrative expense															94.5						50.7						117.3						262.5
Operating income															$	78.6					$	47.1					$	(125.0)					$	0.7
Interest expense, net																																	(26.9)
Other expense, net																																	(0.4)
Loss before income taxes																																	$	(26.6)

			Three Months Ended March 31,
			2026						2025
Depreciation and amortization:
Color, Additives and Inks			$	22.4					$	21.7
Specialty Engineered Materials			22.6						21.5
Corporate			2.9						2.1
Depreciation and amortization			$	47.9					$	45.3
Capital expenditures:
Color, Additives and Inks			$	5.4					$	4.9
Specialty Engineered Materials			9.4						6.8
Corporate			4.2						0.8
Capital expenditures			$	19.0					$	12.5

11 AVIENT CORPORATION

			Total Assets
(In millions)			As of March 31, 2026						As of December 31, 2025
Color, Additives and Inks			$	2,629.0					$	2,602.4
Specialty Engineered Materials			2,566.6						2,578.0
Corporate			749.2						845.2
Total assets			$	5,944.8					$	6,025.6

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.

In 2024, the Company finalized the design for the first phase of a 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 was completed in the first quarter of 2025. Further, in 2025, the Company recognized charges of $21.3 million associated with incremental investigation and remedial design work deemed necessary based on results of ongoing findings at the site. 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 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 and other remedial components, the Company will update its accrual, which was $125.5 million as of March 31, 2026, for any new information as it becomes available.

Total environmental accruals of $134.9 million and $141.2 million are reflected within Accrued expenses and other current liabilities and Other non-current liabilities in our Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025, respectively. These undiscounted accruals represent our best estimate of probable future costs that we can reasonably estimate, based upon currently available information and technology and how the remedy will be implemented. It is reasonably possible that we could incur additional costs in excess of the amount accrued, which could be material to our Condensed Consolidated Statements of Income. However, such additional costs cannot be currently 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.

12 AVIENT CORPORATION

During the three months ended March 31, 2026, Avient recognized costs of $3.9 million, primarily associated with the ongoing remedial design and remedial action at Calvert City, compared to costs of $4.9 million recognized during the three months ended March 31, 2025. These costs are recognized in Cost of Sales within the Condensed Consolidated Statements of Income.

We received $34.0 million of cash associated with Calvert City insurance recoveries in the first quarter of 2025. The associated gain was recognized in the fourth quarter of 2024. Further insurance recoveries, if any, related to remedial activities at the Calvert City site are expected to be immaterial.

Avient is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, product claims, personal injuries and employment related matters. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes our current reserves are appropriate and these matters will not have a material adverse effect on the condensed consolidated financial statements.

13 AVIENT CORPORATION

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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, we have manufacturing sites, research and development facilities, design centers and warehouses around the globe. 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. When used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “Avient” and the “Company” mean Avient Corporation and its consolidated subsidiaries.

Results of Operations — The three months ended March 31, 2026 compared to the three months ended March 31, 2025:

			Three Months Ended March 31,												Variances — Favorable (Unfavorable)
(Dollars in millions, except per share data)			2026						2025						Change						% Change
Sales			$	847.4					$	826.6					$	20.8					2.5		%
Cost of sales			574.8						563.4						(11.4)						(2.0)		%
Gross margin			272.6						263.2						9.4						3.6		%
Selling and administrative expense			176.8						262.5						85.7						32.6		%
Operating income			95.8						0.7						95.1						nm
Interest expense, net			(22.0)						(26.9)						4.9						18.2		%
Other expense, net			(1.5)						(0.4)						(1.1)						nm
Income (loss) before income taxes			72.3						(26.6)						98.9						371.8		%
Income tax (expense) benefit			(16.5)						6.7						(23.2)						(346.3)		%
Net income (loss)			55.8						(19.9)						75.7						380.4		%
Net income attributable to noncontrolling interests			(0.1)						(0.3)						0.2						nm
Net income (loss) attributable to Avient common shareholders			$	55.7					$	(20.2)					$	75.9					375.7		%
Earnings (loss) per share attributable to Avient common shareholders - Basic:			$	0.61					$	(0.22)
Earnings (loss) per share attributable to Avient common shareholders - Diluted:			$	0.61					$	(0.22)

nm - not meaningful

Sales

Sales increased $20.8 million, or 2.5%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Favorable foreign currency impacts were 4.6%, while sales, excluding the impacts of foreign exchange, decreased 2.0%. Sales increases within the building & construction, packaging and healthcare end markets were more than offset by declines in the consumer, transportation and industrial end markets.

Gross Margin

Gross margin as a percentage of sales was 32.2% for the three months ended March 31, 2026 compared to 31.8% for the three months ended March 31, 2025. The increase was primarily driven by cost savings from productivity and restructuring actions.

Selling and administrative expense

Selling and administrative expense decreased $85.7 million for the three months ended March 31, 2026, primarily driven by the Company's decision to cease development of the cloud-based enterprise resource planning system, S/4HANA, in 2025, which resulted in an impairment charge of $71.6 million and additional charges of $14.7 million for unpaid contractual obligations for hosting fees.

14 AVIENT CORPORATION

Interest expense, net

Interest expense, net decreased $4.9 million for the three months ended March 31, 2026, primarily driven by the benefit of reduced interest rates resulting from refinancing activity during 2025, in addition to prepayments on Avient's senior secured term loan totaling $150.0 million during 2025.

Income taxes

During the three months ended March 31, 2026, the Company’s effective tax rate of 22.8% was above the U.S federal rate of 21.0% primarily due to foreign earnings mix, U.S. global intangible low-taxed income (GILTI), and withholding taxes on foreign earnings. These unfavorable items were partially offset by U.S. research and development (R&D) credits, along with favorable foreign permanent items, most notably tax incentives associated with R&D.

During the three months ended March 31, 2025, the Company's effective tax rate resulted in a benefit of 25.2% as a result of pre-tax loss in the first quarter of 2025. The pre-tax loss was driven by the Company's cloud-based enterprise resource planning system impairment. The 25.2% income tax benefit was higher than the U.S. federal tax rate of 21.0% primarily due to the state and local tax benefit of the pre-tax loss.

SEGMENT INFORMATION

Avient has two reportable segments: (1) Color, Additives and Inks; and (2) Specialty Engineered Materials.

Operating income is the primary segment performance measure that is reported to our chief operating decision maker (CODM), which is the Company's chief executive officer. Our CODM utilizes this measure as an input to determine appropriate resource allocations to our segments in the annual planning process and to periodically assess segment performance, primarily by evaluating actual results in comparison to the annual operating plan and forecast. Operating income at the segment level does not include corporate general and administrative expenses that are not allocated to segments, restructuring charges, share-based compensation costs, environmental remediation costs and associated recoveries, asset impairments, acquisition-related charges, 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.

Sales and Operating Income — The three months ended March 31, 2026 compared to the three months ended March 31, 2025: 

			Three Months Ended March 31,												Variances — Favorable (Unfavorable)
(Dollars in millions)			2026						2025						Change						%  Change
Sales:
Color, Additives and Inks			$	528.1					$	519.7					$	8.4					1.6		%
Specialty Engineered Materials			320.2						308.4						11.8						3.8		%
Corporate			(0.9)						(1.5)						0.6						nm
Total sales			$	847.4					$	826.6					$	20.8					2.5		%
Operating income:
Color, Additives and Inks			$	81.4					$	78.6					$	2.8					3.6		%
Specialty Engineered Materials			47.4						47.1						0.3						0.6		%
Corporate			(33.0)						(125.0)						92.0						73.6		%
Total operating income			$	95.8					$	0.7					$	95.1					nm

Color, Additives and Inks

Sales increased $8.4 million, or 1.6%, in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Favorable foreign currency impacts were 5.1%, while sales, excluding the impacts of foreign exchange, decreased 3.5%. The sales decrease was primarily within the consumer, building & construction and transportation end markets, partially offset by a sales increase in the healthcare end market.

Operating income increased $2.8 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily driven by cost savings from productivity and restructuring actions.

15 AVIENT CORPORATION

Specialty Engineered Materials

Sales increased $11.8 million, or 3.8%, in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Favorable foreign currency impacts were 3.6%, while sales, excluding the impacts of foreign exchange, increased 0.2%. The sales increase was primarily within the building & construction and packaging end markets, partially offset by sales decreases in the consumer, industrial and transportation end markets.

Operating income increased $0.3 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily driven by higher sales.

Corporate

Corporate costs decreased $92.0 million for the three months ended March 31, 2026, primarily driven by the Company's decision to cease development of the cloud-based enterprise resource planning system, S/4HANA, in 2025, which resulted in an impairment charge of $71.6 million and additional charges of $14.7 million for unpaid contractual obligations for hosting fees. Further, restructuring charges for the three months ended March 31, 2026 were $5.2 million lower, compared to the three months ended March 31, 2025.

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 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 March 31, 2026 and December 31, 2025:

(In millions)			As of March 31, 2026						As of December 31, 2025
Cash and cash equivalents			$	427.6					$	510.5
Revolving credit availability			490.3						490.3
Liquidity			$	917.9					$	1,000.8

As of March 31, 2026, approximately 78% of the Company’s cash and cash equivalents resided outside the United States.

Expected sources of cash needed to satisfy cash requirements for the remainder of 2026 include our cash on hand, cash from operations and available liquidity under our revolving credit facility, if necessary. We believe that these sources will also provide sufficient liquidity to satisfy our expected uses of cash for at least the next twelve months and the foreseeable future thereafter. Expected uses of cash for the remainder of 2026 include interest payments, cash taxes, dividend payments, debt repayments, environmental remediation payments, restructuring payments and capital expenditures.

Cash Flows

The following describes the significant components of cash flows from operating, investing and financing activities for the three months ended March 31, 2026 and 2025.

Operating Activities — Net cash used in operating activities decreased $16.6 million during the three months ended March 31, 2026 compared to the three months ended March 31, 2025, driven primarily by insurance proceeds of $34.0 million in 2025 for previously incurred losses at the Calvert City site partially offset by lower incentive compensation payments in 2026 associated with 2025 performance and lower working capital investment.

Investing Activities — Net cash used in investing activities during the three months ended March 31, 2026 and 2025 of $19.0 million and $12.5 million, respectively, reflects the impact of capital expenditures.

Financing Activities — Net cash used in financing activities for the three months ended March 31, 2026 and 2025 of $27.8 million and $28.3 million, respectively, primarily reflects dividend payments.

16 AVIENT CORPORATION

Debt

As of March 31, 2026, aggregate maturities of the principal amount of debt for the current year, next four years and thereafter, are as follows:

(In millions)
2026						$	0.4
2027						0.4
2028						0.4
2029						571.1
2030						725.5
Thereafter						651.0
Aggregate maturities						$	1,948.8

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.

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.

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.

As of March 31, 2026, we were in compliance with all financial and restrictive covenants pertaining to our debt. For additional information regarding our debt, please see Note 7, Financing Arrangements, to the accompanying condensed consolidated financial statements.

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. For additional information regarding our derivative instruments, please see Note 8, Derivatives and Hedging, to the accompanying condensed consolidated financial statements.

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, restructuring payments and environmental remediation obligations. During the three months ended March 31, 2026, there were no material changes to these obligations as reported in our Annual Report on Form 10-K for the year ended December 31, 2025.

17 AVIENT CORPORATION

CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS

In this Quarterly Report on Form 10-Q, 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, tariffs and any recessionary conditions; and

•other factors described in our Annual Report on Form 10-K for the year ended December 31, 2025 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. 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.

18 AVIENT CORPORATION

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes to exposures to market risk as reported in our Annual Report on Form 10-K for the year ended December 31, 2025.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure controls and procedures

Avient’s management, under the supervision of and with the participation of its Chief Executive Officer and its 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 Securities Exchange Act of 1934, as of the end of the period covered by this Quarterly Report. Based upon this evaluation, Avient’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this Quarterly Report, its disclosure controls and procedures were effective.

Changes in internal control over financial reporting

There were no changes in Avient’s internal control over financial reporting during the quarter ended March 31, 2026 that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Information regarding certain legal proceedings can be found in Note 10, Commitments and Contingencies, to the accompanying condensed consolidated financial statements and is incorporated by reference herein.

ITEM 1A. RISK FACTORS

We face a number of risks that could adversely affect our business, results of operations, financial position or cash flows. A discussion of our risk factors can be found in Item 1A, Risk factors, in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. During the three months ended March 31, 2026, there have been no material changes to the risk factors that were previously disclosed.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The table below sets forth information regarding the repurchase of shares of our common shares during the periods indicated.

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)
January 1 to January 31			—						$	—					—						4,957,472
February 1 to February 28			—						—						—						4,957,472
March 1 to March 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 March 31, 2026, 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.

19 AVIENT CORPORATION

ITEM 5. OTHER INFORMATION

Trading Arrangements

None of the Company's directors or officers (as defined in Rule 16a-1(f) promulgated under the Securities Exchange Act of 1934) adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K, during the Company's fiscal quarter ended March 31, 2026.

20 AVIENT CORPORATION

ITEM 6. EXHIBITS

EXHIBIT INDEX

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 May 16, 2023, SEC File No. 1-16091)
10.1†						Form of 2026 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, 2025, SEC File No. 1-16091)
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
101.INS						Inline XBRL Instance Document
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation 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
*						Furnished herewith.
**						Filed herewith.

21 AVIENT CORPORATION

SIGNATURES

Pursuant to the requirements 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.

 

May 7, 2026			AVIENT CORPORATION
			/s/ Jamie A. Beggs
			Jamie A. Beggs Senior Vice President and Chief Financial Officer

22 AVIENT CORPORATION

FAQ

How did Avient (AVNT) perform financially in Q1 2026?

Avient returned to profitability in Q1 2026, reporting net income of $55.7 million versus a loss of $20.2 million a year earlier. Sales rose to $847.4 million, and operating income improved sharply as prior-year ERP impairment charges did not repeat.

What were Avient (AVNT) earnings per share for Q1 2026?

Avient earned $0.61 per diluted share in Q1 2026, compared with a loss of $0.22 per share in Q1 2025. The swing reflects better operating performance, lower interest expense and the absence of last year’s large S/4HANA impairment.

How did Avient (AVNT) sales and margins change in Q1 2026?

Sales increased to $847.4 million in Q1 2026 from $826.6 million, a 2.5% gain, helped by foreign currency. Gross margin improved to 32.2% from 31.8%, driven mainly by productivity initiatives and restructuring-related cost savings.

What is Avient (AVNT)'s liquidity and debt position as of March 31, 2026?

At March 31, 2026, Avient held $427.6 million in cash and had $1,924.5 million of net debt outstanding. Including $490.3 million of revolving credit availability, total stated liquidity was $917.9 million, and the company was in covenant compliance.

How are Avient (AVNT)'s business segments performing?

In Q1 2026, Color, Additives and Inks sales were $528.1 million and operating income was $81.4 million. Specialty Engineered Materials delivered $320.2 million of sales and $47.4 million of operating income, with both segments aided by cost savings and modest sales growth.

What environmental obligations does Avient (AVNT) report for Calvert City?

Avient recorded total environmental accruals of $134.9 million as of March 31, 2026, including $125.5 million related to the Calvert City site. It recognized $3.9 million of remedial design and action costs in Q1 2026, with barrier wall construction continuing in phases through 2030.