Avient (AVNT) - 2025 Q2 - Quarterly Report

PART I — FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Presents Avient's unaudited condensed consolidated financial statements, including income, comprehensive income, balance sheets, cash flows, and equity, with detailed notes Condensed Consolidated Statements of Income (Unaudited) Avient reported increased net income and diluted EPS for Q2 2025, but a decrease for the six months, impacted by expenses | Metric (in millions, except per share) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Sales | $866.5 | $849.7 | $1,693.1 | $1,678.7 | | Gross margin | $277.9 | $257.6 | $541.1 | $535.8 | | Operating income | $96.1 | $72.5 | $96.8 | $166.5 | | Net income | $53.5 | $33.8 | $33.6 | $83.5 | | Net income attributable to Avient common shareholders | $52.6 | $33.6 | $32.4 | $83.0 | | Diluted EPS | $0.57 | $0.36 | $0.35 | $0.90 | | Cash dividends declared per share | $0.2700 | $0.2575 | $0.5400 | $0.5150 | Condensed Consolidated Statements of Comprehensive Income (Unaudited) Total comprehensive income significantly increased for both periods ended June 30, 2025, driven by favorable translation adjustments | Metric (in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $53.5 | $33.8 | $33.6 | $83.5 | | Translation adjustments and related hedging instruments | $29.4 | $(18.5) | $58.9 | $(44.4) | | Total comprehensive income | $82.9 | $15.3 | $92.5 | $39.1 | | Comprehensive income attributable to Avient common shareholders | $82.0 | $15.1 | $91.3 | $38.6 | Condensed Consolidated Balance Sheets Total assets increased to $6,133.3 million as of June 30, 2025, driven by higher receivables, inventories, goodwill, and intangibles | Metric (in millions) | As of June 30, 2025 | As of December 31, 2024 | | :------------------- | :------------------ | :---------------------- | | Cash and cash equivalents | $474.5 | $544.5 | | Total current assets | $1,494.4 | $1,422.1 | | Goodwill | $1,754.6 | $1,659.7 | | Intangible assets, net | $1,529.3 | $1,450.4 | | Total assets | $6,133.3 | $5,811.1 | | Total current liabilities | $737.3 | $756.1 | | Long-term debt | $2,020.0 | $2,059.3 | | Total non-current liabilities | $3,022.0 | $2,725.4 | | Total equity | $2,374.0 | $2,329.6 | | Total liabilities and equity | $6,133.3 | $5,811.1 | Condensed Consolidated Statements of Cash Flows (Unaudited) Operating cash flow slightly decreased, investing cash flow decreased, and financing cash flow significantly increased for the six months ended June 30, 2025 | Metric (in millions) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------- | :--------------------------- | :--------------------------- | | Net income | $33.6 | $83.5 | | Net cash provided by operating activities | $61.7 | $63.1 | | Net cash used by investing activities | $(39.5) | $(54.5) | | Net cash used by financing activities | $(106.4) | $(54.8) | | Decrease in cash and cash equivalents | $(70.0) | $(56.4) | | Cash and cash equivalents at end of period | $474.5 | $489.4 | Condensed Consolidated Statements of Shareholders' Equity (Unaudited) Total equity increased to $2,374.0 million by June 30, 2025, driven by net income and other comprehensive income, partially offset by dividends - Net income attributable to Avient common shareholders for the six months ended June 30, 2025 was $32.4 million, contributing to the increase in retained earnings[6][19] - Other comprehensive income for the six months ended June 30, 2025 was $58.9 million, positively impacting total equity[9][19] | Metric (in millions) | Balance at January 1, 2025 | Balance at June 30, 2025 | | :------------------- | :------------------------- | :----------------------- | | Total Avient Shareholders' Equity | $2,313.8 | $2,358.3 | | Total Equity | $2,329.6 | $2,374.0 | Notes to Condensed Consolidated Financial Statements Provides essential context for financial statements, covering accounting policies, estimates, standard adoptions, and specific financial line items Note 1 — BASIS OF PRESENTATION Outlines financial statement preparation basis, GAAP adherence, ASU 2023-07 adoption, and evaluation of upcoming accounting standards - The Company adopted ASU 2023-07, Segment Reporting, for the year ended December 31, 2024, applying retrospective changes to all periods presented[24] - ASU 2023-09 (Income Taxes) and ASU 2024-03 (Expense Disaggregation Disclosures) are effective for fiscal years beginning after December 15, 2024, and December 15, 2026, respectively, with impacts currently under evaluation[25][26] Note 2 — GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets, net, increased to $1,754.6 million and $1,529.3 million respectively, primarily due to currency translation adjustments - Goodwill increased by $94.9 million due to currency translation during the six months ended June 30, 2025[27] - Intangible assets, net, saw a $123.4 million favorable impact from currency translation as of June 30, 2025[28] | Metric (in millions) | As of June 30, 2025 | As of December 31, 2024 | | :------------------- | :------------------ | :---------------------- | | Total Goodwill | $1,754.6 | $1,659.7 | | Total Intangible assets, net | $1,529.3 | $1,450.4 | Note 3 — RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES Avient recognized a $71.6 million non-cash impairment for its ERP system and $14.7 million for related contractual obligations in H1 2025 - A non-cash, pre-tax impairment charge of $71.6 million was recognized in Q1 2025 due to the decision to cease development of the S/4HANA ERP system[29][30] - Additional pre-tax charges of $14.7 million for hosting fees and $2.8 million for severance were incurred related to the S/4HANA decision[30] - Other restructuring actions resulted in charges of $2.6 million for the three months and $10.2 million for the six months ended June 30, 2025, primarily for plant closure costs and workforce reduction[33] | Clariant Color Integration Restructuring (in millions) | Balance at January 1, 2024 | Restructuring charges (6M 2024) | Payments, utilization and translation (6M 2024) | Balance at December 31, 2024 | Restructuring charges (6M 2025) | Payments, utilization and translation (6M 2025) | Balance at June 30, 2025 | | :------------------------------------- | :------------------------- | :------------------------------ | :---------------------------------------------- | :--------------------------- | :------------------------------ | :---------------------------------------------- | :----------------------- | | Workforce reductions | $30.3 | $0.4 | $(23.3) | $7.4 | $1.4 | $(1.9) | $6.9 | | Plant closing and other | $0.8 | $1.6 | $(1.6) | $0.8 | $0.1 | $(0.1) | $0.8 | | Total | $31.1 | $2.0 | $(24.9) | $8.2 | $1.5 | $(2.0) | $7.7 | Note 4 — INVENTORIES, NET Net inventories increased to $387.5 million as of June 30, 2025, primarily driven by an increase in raw materials and supplies | Component (in millions) | As of June 30, 2025 | As of December 31, 2024 | | :---------------------- | :------------------ | :---------------------- | | Finished products | $154.7 | $159.2 | | Work in process | $25.8 | $21.0 | | Raw materials and supplies | $207.0 | $166.6 | | Inventories, net | $387.5 | $346.8 | Note 5 — PROPERTY, NET Property, net, increased to $986.1 million as of June 30, 2025, reflecting an increase in gross property, partially offset by accumulated depreciation | Component (in millions) | As of June 30, 2025 | As of December 31, 2024 | | :---------------------- | :------------------ | :---------------------- | | Property, gross | $1,914.8 | $1,823.8 | | Less accumulated depreciation | $(928.7) | $(868.5) | | Property, net | $986.1 | $955.3 | Note 6 — INCOME TAXES Effective tax rates for Q2 and H1 2025 were 24.5% and 24.2%, respectively, above the U.S. federal statutory rate due to international tax differentials - The Company is contesting a $23.8 million proposed tax adjustment from the IRS for the 2019 tax year, along with $6.5 million in estimated interest and a $4.8 million accuracy-related penalty[39] - The One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025, includes significant tax law changes effective in 2025 and 2026, which the Company is evaluating but does not expect to materially impact current year financial statements[40] | Period | Effective Tax Rate (2025) | Effective Tax Rate (2024) | | :----- | :------------------------ | :------------------------ | | 3 Months Ended June 30 | 24.5% | 24.9% | | 6 Months Ended June 30 | 24.2% | 25.1% | Note 7 — FINANCING ARRANGEMENTS Total debt decreased to $2,049.1 million as of June 30, 2025, following a refinancing and a $50.0 million prepayment, with a new revolving credit facility established - On March 12, 2025, the senior secured term loan was refinanced, reducing the interest rate by 25 basis points[42] - A voluntary prepayment of $50.0 million was made on the senior secured term loan in Q2 2025[43] - A new $500.0 million senior secured revolving credit facility was entered into on June 12, 2025, maturing in June 2030, with no outstanding borrowings as of June 30, 2025[44][45] | Debt Instrument (in millions) | Principal Amount (June 30, 2025) | Principal Amount (Dec 31, 2024) | Weighted Average Interest Rate (June 30, 2025) | | :---------------------------- | :------------------------------- | :------------------------------ | :--------------------------------------------- | | Senior secured term loan due 2029 | $670.7 | $720.7 | 5.97% | | 7.125% senior notes due 2030 | $725.0 | $725.0 | 7.125% | | 6.250% senior notes due 2031 | $650.0 | $650.0 | 6.250% | | Total Debt | $2,049.1 | $2,099.2 | | Note 8 — DERIVATIVES AND HEDGING Avient uses cross-currency swaps to mitigate foreign currency exchange rate volatility, recognizing significant losses in AOCI for Q2 and H1 2025 - Cross-currency swaps are designated as net investment hedges for European operations, with changes in fair value recognized in Accumulated Other Comprehensive Income (AOCI)[49][50] | Metric (in millions) | 3 Months Ended June 30, 2025 | 6 Months Ended June 30, 2025 | | :------------------- | :--------------------------- | :--------------------------- | | Losses recognized in AOCI, net of tax | $(166.3) | $(210.6) | | Income included in Interest expense, net | $9.1 | $18.1 | | Derivative Financial Instruments (in millions) | As of June 30, 2025 | As of December 31, 2024 | | :--------------------------------------------- | :------------------ | :---------------------- | | Cross-currency Swaps (Net Investment Hedge) - Assets | $0.0 | $6.1 | | Cross-currency Swaps (Net Investment Hedge) - Liabilities | $380.6 | $104.7 | Note 9 — SEGMENT INFORMATION Avient operates in Color, Additives and Inks, and Specialty Engineered Materials segments, with varied performance and operating income as the primary measure - Avient's two reportable segments are Color, Additives and Inks and Specialty Engineered Materials[52] - Operating income is the primary segment performance measure, excluding unallocated corporate expenses, restructuring charges, share-based compensation, environmental costs, asset impairments, and acquisition-related charges[53] | Segment Performance (in millions) | 3 Months Ended June 30, 2025 (Sales) | 3 Months Ended June 30, 2024 (Sales) | 3 Months Ended June 30, 2025 (Operating Income) | 3 Months Ended June 30, 2024 (Operating Income) | | :-------------------------------- | :----------------------------------- | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Color, Additives and Inks | $538.6 | $542.0 | $90.3 | $86.1 | | Specialty Engineered Materials | $329.7 | $308.1 | $40.2 | $42.8 | | Corporate | $(1.8) | $(0.4) | $(34.4) | $(56.4) | | Total | $866.5 | $849.7 | $96.1 | $72.5 | | Segment Performance (in millions) | 6 Months Ended June 30, 2025 (Sales) | 6 Months Ended June 30, 2024 (Sales) | 6 Months Ended June 30, 2025 (Operating Income) | 6 Months Ended June 30, 2024 (Operating Income) | | :-------------------------------- | :----------------------------------- | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Color, Additives and Inks | $1,058.3 | $1,057.3 | $168.9 | $160.9 | | Specialty Engineered Materials | $638.1 | $622.5 | $87.3 | $96.2 | | Corporate | $(3.3) | $(1.1) | $(159.4) | $(90.6) | | Total | $1,693.1 | $1,678.7 | $96.8 | $166.5 | Note 10 — COMMITMENTS AND CONTINGENCIES Avient is involved in environmental remediation, with a $133.3 million accrual for Calvert City and $34.0 million in insurance recoveries in Q1 2025 - Avient is a potentially responsible party (PRP) for environmental investigation and remediation at certain sites, including the former Goodrich Corporation Calvert City facility[58][59] - An accrual of $133.3 million was recorded as of June 30, 2025, for the Calvert City remediation, with the largest component being barrier wall construction expected to complete in phases through 2028[62] - The Company received $34.0 million in cash from Calvert City insurance recoveries in Q1 2025[65] | Environmental Accruals (in millions) | As of June 30, 2025 | As of December 31, 2024 | | :----------------------------------- | :------------------ | :---------------------- | | Total environmental accruals | $141.3 | $146.0 | ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Management discusses Avient's financial performance for Q2 and H1 2025, detailing changes in sales, margins, expenses, taxes, liquidity, and cash flows Our Business Avient Corporation is a global innovator of materials solutions, specializing in engineered materials, performance fibers, advanced composites, and color and additive solutions - Avient is an innovator of materials solutions, including specialty engineered materials, performance fibers, advanced composites, and color and additive solutions[68] - The Company provides value by linking knowledge of polymers and materials science with manufacturing and supply chain capabilities[68] Results of Operations Avient's Q2 2025 results showed sales growth and increased operating income, but H1 2025 operating income and net income decreased due to an ERP impairment | Metric (in millions, except per share) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (Favorable/Unfavorable) | % Change | | :------------------------------------ | :--------------------------- | :--------------------------- | :----------------------------- | :------- | | Sales | $866.5 | $849.7 | $16.8 | 2.0% | | Gross margin | $277.9 | $257.6 | $20.3 | 7.9% | | Operating income | $96.1 | $72.5 | $23.6 | 32.6% | | Net income attributable to Avient common shareholders | $52.6 | $33.6 | $19.0 | 56.5% | | Diluted EPS | $0.57 | $0.36 | | | | Metric (in millions, except per share) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (Favorable/Unfavorable) | % Change | | :------------------------------------ | :--------------------------- | :--------------------------- | :----------------------------- | :------- | | Sales | $1,693.1 | $1,678.7 | $14.4 | 0.9% | | Gross margin | $541.1 | $535.8 | $5.3 | 1.0% | | Operating income | $96.8 | $166.5 | $(69.7) | (41.9)% | | Net income attributable to Avient common shareholders | $32.4 | $83.0 | $(50.6) | (61.0)% | | Diluted EPS | $0.35 | $0.90 | | | Sales Sales increased by 2.0% to $866.5 million for Q2 2025, driven by defense and healthcare, and by 0.9% to $1,693.1 million for H1 2025 - Three months ended June 30, 2025: Sales increased by $16.8 million (2.0%), with 0.6% growth excluding foreign currency impacts, primarily in defense and healthcare, offset by declines in consumer and industrial[70] - Six months ended June 30, 2025: Sales increased by $14.4 million (0.9%), with 1.2% growth excluding foreign currency impacts, primarily in packaging, defense, and healthcare, offset by declines in consumer[71] Gross Margin Gross margin as a percentage of sales improved to 32.1% for Q2 and 32.0% for H1 2025, primarily due to lower environmental remediation charges - Gross margin as a percentage of sales increased to 32.1% for the three months ended June 30, 2025 (from 30.3% in 2024), driven by $20.6 million lower environmental remediation charges, net of recoveries[72] - Gross margin as a percentage of sales increased to 32.0% for the six months ended June 30, 2025 (from 31.9% in 2024), driven by $21.0 million lower environmental remediation charges, net of recoveries[74] Selling and administrative expense Selling and administrative expense decreased by $3.3 million for Q2 2025, but increased significantly by $75.0 million for H1 2025 due to an ERP impairment - Selling and administrative expense decreased by $3.3 million for the three months ended June 30, 2025, primarily due to lower compensation cost[75] - Selling and administrative expense increased by $75.0 million for the six months ended June 30, 2025, primarily due to a $71.6 million impairment charge for the S/4HANA ERP system and $14.7 million for unpaid hosting fees[75] Interest expense, net Interest expense, net, decreased by $1.9 million and $1.6 million for the three and six months ended June 30, 2025, respectively, due to reduced interest rates - Interest expense, net, decreased by $1.9 million for the three months and $1.6 million for the six months ended June 30, 2025[76] - The decrease in interest expense was primarily driven by reduced interest rates resulting from previous refinancing activity[76] Income taxes Effective tax rates decreased to 24.5% for Q2 and 24.2% for H1 2025, primarily due to lower GILTI tax and increased favorable permanent items - The lower effective tax rate for both periods in 2025 was primarily driven by a decrease in GILTI tax and increased favorable permanent items[77] | Period | Effective Tax Rate (2025) | Effective Tax Rate (2024) | | :----- | :------------------------ | :------------------------ | | 3 Months Ended June 30 | 24.5% | 24.9% | | 6 Months Ended June 30 | 24.2% | 25.1% | SEGMENT INFORMATION Segment performance shows mixed results, with Color, Additives and Inks improving operating income, Specialty Engineered Materials growing sales but declining operating income, and corporate costs fluctuating | Segment (in millions) | 3 Months Ended June 30, 2025 (Sales) | 3 Months Ended June 30, 2024 (Sales) | 3 Months Ended June 30, 2025 (Operating Income) | 3 Months Ended June 30, 2024 (Operating Income) | | :-------------------- | :----------------------------------- | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Color, Additives and Inks | $538.6 | $542.0 | $90.3 | $86.1 | | Specialty Engineered Materials | $329.7 | $308.1 | $40.2 | $42.8 | | Corporate | $(1.8) | $(0.4) | $(34.4) | $(56.4) | | Total | $866.5 | $849.7 | $96.1 | $72.5 | | Segment (in millions) | 6 Months Ended June 30, 2025 (Sales) | 6 Months Ended June 30, 2024 (Sales) | 6 Months Ended June 30, 2025 (Operating Income) | 6 Months Ended June 30, 2024 (Operating Income) | | :-------------------- | :----------------------------------- | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Color, Additives and Inks | $1,058.3 | $1,057.3 | $168.9 | $160.9 | | Specialty Engineered Materials | $638.1 | $622.5 | $87.3 | $96.2 | | Corporate | $(3.3) | $(1.1) | $(159.4) | $(90.6) | | Total | $1,693.1 | $1,678.7 | $96.8 | $166.5 | Color, Additives and Inks Sales for Color, Additives and Inks slightly decreased in Q2 but increased in H1 2025, while operating income grew by 4.9% and 5.0% respectively due to improved mix and cost savings - Sales decreased by 0.6% for the three months ended June 30, 2025, with a 2.0% decrease excluding foreign currency impacts, primarily in consumer and transportation end markets[82] - Sales increased by 0.1% for the six months ended June 30, 2025, with a 0.6% increase excluding foreign currency impacts, primarily in packaging and healthcare end markets[83] - Operating income increased by $4.2 million (4.9%) for the three months and $8.0 million (5.0%) for the six months, driven by improved mix and cost savings from productivity and restructuring[84] Specialty Engineered Materials Specialty Engineered Materials sales increased by 7.0% for Q2 and 2.5% for H1 2025, driven by defense and healthcare, but operating income decreased due to higher costs and growth investments - Sales increased by 7.0% for the three months ended June 30, 2025, with a 5.7% increase excluding foreign currency impacts, primarily in defense and healthcare end markets[85] - Sales increased by 2.5% for the six months ended June 30, 2025, with a 2.6% increase excluding foreign currency impacts, primarily in defense and healthcare end markets[86] - Operating income decreased by $2.6 million (6.1%) for the three months and $8.9 million (9.3%) for the six months, due to higher operating costs (planned maintenance) and investments in growth vectors[87] Corporate Corporate costs decreased by $22.0 million for Q2 2025 due to lower environmental costs, but increased by $68.8 million for H1 2025 due to ERP impairment and restructuring - Corporate costs decreased by $22.0 million for the three months ended June 30, 2025, primarily due to lower environmental costs, net of recoveries[88] - Corporate costs increased by $68.8 million for the six months ended June 30, 2025, primarily due to a $71.6 million ERP impairment charge, $14.7 million in hosting fees, and $17.3 million in higher restructuring costs[89] Liquidity and Capital Resources Avient's total liquidity reached $961.6 million as of June 30, 2025, with 73% of cash held outside the U.S., sufficient for foreseeable cash requirements - Approximately 73% of the Company's cash and cash equivalents resided outside the United States as of June 30, 2025[91] - Expected sources of cash for 2025 include cash on hand, cash from operations, and available liquidity under the revolving credit facility[92] | Metric (in millions) | As of June 30, 2025 | As of December 31, 2024 | | :------------------- | :------------------ | :---------------------- | | Cash and cash equivalents | $474.5 | $544.5 | | Revolving credit availability | $487.1 | $211.4 | | Total Liquidity | $961.6 | $755.9 | Cash Flows Operating cash flow slightly decreased, investing cash flow decreased, and financing cash flow significantly increased for the six months ended June 30, 2025 - Operating cash flow decreased by $1.4 million, primarily due to higher incentive compensation payments and increased working capital, partially offset by $34.0 million in insurance proceeds[94] - Financing activities included $50.2 million in payments on long-term borrowings and $49.4 million in cash dividends paid for the six months ended June 30, 2025[95] | Cash Flow Activity (in millions) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------- | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $61.7 | $63.1 | | Net cash used by investing activities | $(39.5) | $(54.5) | | Net cash used by financing activities | $(106.4) | $(54.8) | Debt Avient's aggregate debt maturities total $2,049.1 million as of June 30, 2025, following a term loan refinancing, a $50.0 million prepayment, and a new revolving credit facility - The senior secured term loan was refinanced on March 12, 2025, reducing the interest rate by 25 basis points[97] - A voluntary prepayment of $50.0 million was made on the senior secured term loan in the second quarter of 2025[98] - A new $500.0 million revolving credit agreement was entered into on June 12, 2025, maturing in June 2030[99] | Debt Maturities (in millions) | Amount | | :---------------------------- | :----- | | 2025 | $0.3 | | 2026 | $0.5 | | 2027 | $0.4 | | 2028 | $0.4 | | 2029 | $671.1 | | Thereafter | $1,376.4 | | Aggregate maturities | $2,049.1 | Derivatives and Hedging Avient utilizes derivative transactions, specifically cross-currency swaps, to manage market risks associated with foreign currency exchange rates and interest rates - Avient uses derivative transactions to manage market risks from foreign currency exchange rates and interest rates[101] - Further details on derivative instruments are provided in Note 8, Derivatives and Hedging[101] Material Cash Requirements Avient's future cash obligations include debt, interest, operating leases, pension benefits, purchase obligations, and environmental remediation, with a $50.0 million debt prepayment in H1 2025 - Future obligations include debt, interest, operating leases, pension/post-retirement benefits, purchase obligations, and environmental remediation[102] - The senior secured term loan was refinanced and a $50.0 million prepayment was made during the six months ended June 30, 2025[102] - No other material changes to these obligations were reported compared to the 2024 Annual Report on Form 10-K[102] CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS This section identifies forward-looking statements and outlines business risks and uncertainties that could cause actual results to differ materially from projections - Statements in the report that are not historical facts are considered 'forward-looking statements' under the Private Securities Litigation Reform Act of 1995[104] - Factors that could cause actual results to differ materially include disruptions in credit markets, currency fluctuations, supply chain inefficiencies, changes in laws, raw material and energy price fluctuations, demand for products, production outages, litigation, environmental matters, ability to pay dividends, cyberattacks, debt restrictions, and other macroeconomic factors[104][106] - The Company undertakes no obligation to publicly update forward-looking statements, except as required by law[105] PART II — OTHER INFORMATION ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK No material changes to Avient's exposures to market risk have occurred since the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to market risk exposures have occurred since the Annual Report on Form 10-K for the year ended December 31, 2024[107] ITEM 4. CONTROLS AND PROCEDURES Avient's management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Avient's disclosure controls and procedures were effective as of June 30, 2025[108] - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[109] ITEM 1. LEGAL PROCEEDINGS Information regarding Avient's legal proceedings is incorporated by reference from Note 10, Commitments and Contingencies, to the accompanying condensed consolidated financial statements - Legal proceedings information is incorporated by reference from Note 10, Commitments and Contingencies[110] ITEM 1A. RISK FACTORS This section refers to risk factors from the 2024 Annual Report on Form 10-K, highlighting that changes in foreign trade policy could materially and adversely affect Avient's operating results - A discussion of risk factors can be found in Item 1A of the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[111] - Changes to foreign trade policy, including new or increased tariffs and changing import/export regulations, could adversely affect operating results and may be material[112] - Such policy changes and retaliatory actions by foreign governments have the potential to negatively impact the global economy, Avient's industry, and demand for its products[113] ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS Avient did not repurchase any common shares during Q2 2025, with approximately 5.0 million shares remaining available under its ongoing repurchase authorization - As of June 30, 2025, approximately 5.0 million shares remained available for purchase under the Company's share repurchase authorization, which has no expiration[115] | Period | Total Number of Shares Purchased | Weighted Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Number of Shares that May Yet be Purchased Under the Program | | :---------------- | :------------------------------- | :------------------------------------ | :----------------------------------------------------------- | :----------------------------------------------------------- | | April 1 to April 30 | — | $— | — | 4,957,472 | | May 1 to May 31 | — | $— | — | 4,957,472 | | June 1 to June 30 | — | $— | — | 4,957,472 | | Total | — | $— | — | | ITEM 5. OTHER INFORMATION No directors or officers adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended June 30, 2025 - No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025[116] ITEM 6. EXHIBITS This section lists all exhibits filed with the Form 10-Q, including organizational documents, the Revolving Credit Agreement, and certifications - Key exhibits include the Amended and Restated Articles of Incorporation, Avient Corporation Regulations, and the Revolving Credit Agreement dated June 12, 2025[119] - Certifications from the Chairman, President and CEO, and Senior Vice President and CFO are included pursuant to SEC Rules 13a-14(a) and 15d-14(a) and 18 U.S.C. § 1350[119] - Inline XBRL documents (Instance, Schema, Calculation, Definition, Label, Presentation Linkbase Documents) are also part of the exhibits[119] SIGNATURES The Form 10-Q was formally signed on August 1, 2025, by Jamie A. Beggs, Senior Vice President and Chief Financial Officer of Avient Corporation - The report was signed on August 1, 2025, by Jamie A. Beggs, Senior Vice President and Chief Financial Officer of Avient Corporation[123]