Avient第二季銷售9.17億美元增5.8% 純利升22.8% 上調全年展望

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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 June 30, 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)
________________________________________________

Ohio34-1730488
(State or other jurisdiction(I.R.S. Employer Identification No.)
of incorporation or organization)

33587 Walker Road44012
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 classTrading Symbol(s)Name of each exchange on which registered
Common Shares, par value $.01 per shareAVNTNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒    Yes   ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒    Yes   ☐ No

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

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

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

The number of the registrant’s outstanding common shares, par value $.01 per share, as of June 30, 2026 was 91,719,550.

AVIENT CORPORATION

PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Avient Corporation
Condensed Consolidated Statements of Income (Unaudited) 
(In millions, except per share data) 
Three Months Ended
June 30,Six Months Ended
June 30,

2026202520262025
Sales$917.0 $866.5 $1,764.4 $1,693.1 
Cost of sales609.4 588.6 1,184.2 1,152.0 
Gross margin307.6 277.9 580.2 541.1 
Selling and administrative expense195.2 181.8 372.0 444.3 

Operating income112.4 96.1 208.2 96.8 
Interest expense, net(22.3)(24.7)(44.3)(51.6)

Other expense, net(1.0)(0.5)(2.5)(0.9)
Income before income taxes89.1 70.9 161.4 44.3 
Income tax expense(23.4)(17.4)(39.9)(10.7)

Net income$65.7 $53.5 $121.5 $33.6 
Net income attributable to noncontrolling interests(0.9)(0.9)(1.0)(1.2)
Net income attributable to Avient common shareholders$64.8 $52.6 $120.5 $32.4 

Earnings per share attributable to Avient common shareholders - Basic:$0.71 $0.57 $1.31 $0.35 

Earnings per share attributable to Avient common shareholders - Diluted:$0.70 $0.57 $1.31 $0.35 

Weighted-average shares used to compute earnings per common share:
Basic91.7 91.5 91.7 91.5 
Plus dilutive impact of share-based compensation0.5 0.3 0.5 0.3 
Diluted92.2 91.8 92.2 91.8 

Anti-dilutive share-based compensation awards1.7 1.6 1.8 1.5 

Cash dividends declared per share of common stock$0.2750 $0.2700 $0.5500 $0.5400 

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

1 AVIENT CORPORATION

Avient Corporation
Condensed Consolidated Statements of Comprehensive Income (Unaudited) 
(In millions)

Three Months Ended
June 30,Six Months Ended
June 30,

2026202520262025
Net income$65.7 $53.5 $121.5 $33.6 
Other comprehensive income (loss), net of tax:
Translation adjustments and related hedging instruments(11.1)29.4 (9.9)58.9 

Total other comprehensive income (loss)(11.1)29.4 (9.9)58.9 
Total comprehensive income54.6 82.9 111.6 92.5 
Comprehensive income attributable to noncontrolling interests(0.9)(0.9)(1.0)(1.2)
Comprehensive income attributable to Avient common shareholders$53.7 $82.0 $110.6 $91.3 

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.

2 AVIENT CORPORATION

Avient Corporation
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited) 
June 30, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents$425.6 $510.5 
Accounts receivable, net553.5 435.0 
Inventories, net443.0 367.2 

Other current assets111.3 88.2 
Total current assets1,533.4 1,400.9 
Property, net961.9 988.8 
Goodwill1,737.6 1,757.6 
Intangible assets, net1,420.8 1,492.4 

Other non-current assets351.1 385.9 
Total assets$6,004.8 $6,025.6 

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term and current portion of long-term debt$0.5 $0.5 
Accounts payable474.7 410.0 

Accrued expenses and other current liabilities331.7 435.8 
Total current liabilities806.9 846.3 
Non-current liabilities:
Long-term debt1,875.3 1,922.6 

Deferred income taxes278.1 285.7 

Other non-current liabilities594.5 584.7 
Total non-current liabilities2,747.9 2,793.0 

SHAREHOLDERS' EQUITY
Avient shareholders’ equity2,436.9 2,374.2 
Noncontrolling interest13.1 12.1 
Total equity2,450.0 2,386.3 
Total liabilities and equity$6,004.8 $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)
Six Months Ended
June 30,
20262025
Operating activities
Net income$121.5 $33.6 
Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization96.7 91.9 

Cloud-based enterprise resource planning system impairment— 71.6 

Share-based compensation expense4.1 4.6 

Changes in assets and liabilities:
Increase in accounts receivable(124.8)(102.9)
Increase in inventories(80.5)(20.8)
Increase in accounts payable69.0 1.4 

(Decrease) increase in restructuring obligations(11.1)3.2 

Decrease in incentive accruals(2.3)(40.6)
Environmental insurance recovery— 34.0 
Accrued expenses and other assets and liabilities, net(13.3)(14.3)

Net cash provided by operating activities59.3 61.7 

Investing activities
Capital expenditures(41.3)(39.5)

Net cash used in investing activities(41.3)(39.5)

Financing activities

Cash dividends paid(50.4)(49.4)

Payments on long-term borrowings(50.0)(50.2)

Other financing activities(2.6)(6.8)
Net cash used in financing activities(103.0)(106.4)
Effect of exchange rate changes on cash0.1 14.2 

Decrease in cash and cash equivalents(84.9)(70.0)
Cash and cash equivalents at beginning of year510.5 544.5 
Cash and cash equivalents at end of period$425.6 $474.5 

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 SharesShareholders’ Equity
Common
SharesCommon
Shares Held
in TreasuryCommon
SharesAdditional
Paid-in
CapitalRetained EarningsCommon
Shares Held
in TreasuryAccumulated
Other
Comprehensive
(Loss) IncomeTotal Avient Shareholders' EquityNon-controlling InterestsTotal 
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 
Net income— — — — 64.8 — — 64.8 0.9 65.7 
Other comprehensive loss— — — — — — (11.1)(11.1)— (11.1)

Cash dividends declared -- $0.2750 per share
— — — — (25.2)— — (25.2)— (25.2)

Share-based compensation and exercise of awards— — — 2.4 — 0.2 — 2.6 — 2.6 

Balance at June 30, 2026
122.2 (30.5)$1.2 $1,543.5 $1,935.2 $(926.4)$(116.6)$2,436.9 $13.1 $2,450.0 

Common SharesShareholders’ Equity
Common
SharesCommon
Shares  Held
in TreasuryCommon
SharesAdditional
Paid-in
CapitalRetained EarningsCommon
Shares  Held
in TreasuryAccumulated
Other
Comprehensive
(Loss) IncomeTotal Avient Shareholders' EquityNon-controlling InterestsTotal 
Equity
Balance at January 1, 2025
122.2 (30.8)$1.2 $1,537.5 $1,882.5 $(929.6)$(177.8)$2,313.8 $15.8 $2,329.6 
Net loss— — — — (20.2)— — (20.2)0.3 (19.9)
Other comprehensive income— — — — — — 29.5 29.5 — 29.5 

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

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

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

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

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

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 and six months ended June 30, 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 Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 these expenses. The standard also requires disclosure of total selling expenses on an annual and interim basis, and the definition of those expenses disclosed annually. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and may be applied prospectively or retrospectively. The Company is evaluating the impact of ASU 2024-03. As the standard will only impact its disclosures, there will be no material impact to the consolidated financial statements.
In 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 June 30, 2026 and December 31, 2025 and changes in the carrying amount of goodwill by segment were as follows:
(In millions)Specialty Engineered MaterialsColor, Additives and InksTotal
Balance at December 31, 2025$711.4 $1,046.2 $1,757.6 

Currency translation(14.0)(6.0)(20.0)
Balance at June 30, 2026$697.4 $1,040.2 $1,737.6 

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

As of June 30, 2026
(In millions)Acquisition CostAccumulated AmortizationCurrency TranslationNet
Customer relationships$726.2 $(287.7)$29.2 $467.7 
Patents, technology and other847.0 (324.5)33.9 556.4 
Indefinite-lived trade names362.8 — 33.9 396.7 
Total$1,936.0 $(612.2)$97.0 $1,420.8 

As of December 31, 2025
(In millions)Acquisition CostAccumulated AmortizationCurrency TranslationNet
Customer relationships$726.2 $(269.7)$39.2 $495.7 
Patents, technology and other847.0 (301.4)46.2 591.8 
Indefinite-lived trade names362.8 — 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 reductionsPlant closing and otherTotal
Balance at January 1, 2025$10.1 $0.8 $10.9 
Restructuring charges38.1 7.5 45.6 
Payments, utilization and translation(12.9)(8.3)(21.2)
Balance at December 31, 2025$35.3 $— $35.3 
Restructuring charges1.6 4.8 6.4 
Payments, utilization and translation(12.6)(4.8)(17.4)
Balance at June 30, 2026$24.3 $— $24.3 

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 June 30, 2026As of December 31, 2025
Finished products$188.7 $162.7 
Work in process26.6 23.7 
Raw materials and supplies227.7 180.8 
Inventories, net$443.0 $367.2 

Note 5 — PROPERTY, NET 
Components of Property, net are as follows:

(In millions)As of June 30, 2026As of December 31, 2025
Land and land improvements$99.1 $100.8 
Buildings453.8 455.6 
Machinery and equipment1,394.9 1,382.5 
Property, gross1,947.8 1,938.9 
Less accumulated depreciation(985.9)(950.1)
Property, net$961.9 $988.8 

Note 6 — INCOME TAXES
During the three and six months ended June 30, 2026, the Company’s effective tax rate of 26.3% and 24.7%, respectively, which is above the U.S federal rate of 21.0% primarily due to the tax rate differential on foreign earnings, unfavorable U.S. permanent items, 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 and six months ended June 30, 2025, the Company's effective tax rate was 24.5% and 24.2%, respectively, which is above the U.S. federal statutory rate of 21.0% primarily due to the international tax rate differential and withholding tax on foreign earnings. These unfavorable items were partially offset by the favorable impact of foreign permanent items, most notably tax incentives associated with R&D.
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 $8.2 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 June 30, 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 June 30, 2026 (in millions)Principal AmountUnamortized discount and debt issuance costNet DebtWeighted average interest rate
Senior secured revolving credit facility due 2030$— $— $— — %
Senior secured term loan due 2029520.7 10.1 510.6 5.43 %
7.125% senior notes due 2030
725.0 5.5 719.5 7.125 %
6.250% senior notes due 2031
650.0 7.2 642.8 6.250 %
Other Debt2.9 — 2.9 
Total Debt1,898.6 22.8 1,875.8 
Less short-term and current portion of long-term debt0.5 — 0.5 
Total long-term debt, net of current portion$1,898.1 $22.8 $1,875.3 

As of December 31, 2025 (in millions)Principal AmountUnamortized discount and debt issuance costNet DebtWeighted average interest rate
Senior secured revolving credit facility due 2030$— $— $— — %
Senior secured term loan due 2029570.7 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 Debt3.2 — 3.2 
Total Debt1,948.9 25.8 1,923.1 
Less short-term and current portion of long-term debt0.5 — 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. 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

In 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 using cash on hand and without penalty or premium.
In June 2026, the Company made voluntary prepayments of $50.0 million on its senior secured term loan, which were applied to the principal installments in direct order of maturity. These prepayments were made using cash on hand and without penalty or premium.
As of June 30, 2026, we had no borrowings outstanding under the senior secured revolving credit facility.
The agreements governing our senior secured revolving credit facility, 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 June 30, 2026, we were in compliance with all covenants.
The estimated fair value of Avient’s debt instruments at June 30, 2026 and December 31, 2025 was $1,903.1 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.

10 AVIENT CORPORATION

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. 
In June 2026, the Company completed a transaction to effectively amend and extend existing cross-currency swaps with a notional amount of €700 million and maturity of November 2026. The liability position of the existing cross-currency swaps was blended into new cross-currency swap agreements maturing in June 2029. 
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 and six months ended June 30, 2026, a loss of $4.4 million and a gain of $50.2 million were recognized within translation adjustments in AOCI, net of tax, respectively, compared to losses of $166.3 million and $210.6 million, net of tax, for the three and six months ended June 30, 2025. Included in Interest expense, net on the Condensed Consolidated Statements of Income is income of $9.0 million and $18.0 million, for the three and six months ended June 30, 2026 compared to income of $9.1 million and $18.1 million, respectively, for the three and six months ended June 30, 2025, 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 June 30, 2026 and December 31, 2025 is as follows:

As of June 30, 2026
(In millions)Notional AmountOther current assetsOther non-current assetsOther current liabilitiesOther non-current liabilities
Cross-currency swaps€2,575.4 $— $— $— $315.8 

(In millions)As of December 31, 2025
Cross-currency swaps€2,575.4 $— $— $94.8 $286.1 

11 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 June 30, 2026
Color, Additives and InksSpecialty Engineered MaterialsCorporateConsolidated
Total
Sales$574.2 $343.9 $(1.1)$917.0 
Cost of sales369.0 234.6 5.8 609.4 
Selling and administrative expense103.4 56.6 35.2 195.2 
Operating income$101.8 $52.7 $(42.1)$112.4 
Interest expense, net(22.3)
Other expense, net(1.0)
Income before income taxes$89.1 

(In millions)

Three Months Ended June 30, 2025
Color, Additives and InksSpecialty Engineered MaterialsCorporateConsolidated
Total
Sales$538.6 $329.7 $(1.8)$866.5 
Cost of sales350.6 235.9 2.1 588.6 
Selling and administrative expense97.7 53.6 30.5 181.8 
Operating income$90.3 $40.2 $(34.4)$96.1 
Interest expense, net(24.7)
Other expense, net(0.5)
Loss before income taxes$70.9 

(In millions)

Six Months Ended June 30, 2026
Color, Additives and InksSpecialty Engineered MaterialsCorporateConsolidated
Total
Sales$1,102.3 $664.1 $(2.0)$1,764.4 
Cost of sales718.4 454.2 11.6 1,184.2 
Selling and administrative expense200.7 109.8 61.5 372.0 
Operating income$183.2 $100.1 $(75.1)$208.2 
Interest expense, net(44.3)
Other expense, net(2.5)
Income before income taxes$161.4 

12 AVIENT CORPORATION

(In millions)

Six Months Ended June 30, 2025
Color, Additives and InksSpecialty Engineered MaterialsCorporateConsolidated
Total
Sales$1,058.3 $638.1 $(3.3)$1,693.1 
Cost of sales697.2 446.5 8.3 1,152.0 
Selling and administrative expense192.2 104.3 147.8 444.3 
Operating income$168.9 $87.3 $(159.4)$96.8 
Interest expense, net(51.6)
Other expense(0.9)
Income before income taxes$44.3 

Three Months Ended
June 30,Six Months Ended
June 30,
2026202520262025

Depreciation and amortization:
Color, Additives and Inks$22.7 $22.4 $45.1 $44.1 
Specialty Engineered Materials23.1 22.4 45.7 43.9 
Corporate2.8 1.8 5.9 3.9 
Depreciation and amortization$48.6 $46.6 $96.7 $91.9 

Capital expenditures:
Color, Additives and Inks$8.7 $8.4 $14.2 $13.3 
Specialty Engineered Materials10.1 14.7 19.5 21.5 
Corporate3.5 3.9 7.6 4.7 
Capital expenditures$22.3 $27.0 $41.3 $39.5 

Total Assets
(In millions)As of June 30, 2026As of December 31, 2025
Color, Additives and Inks$2,679.5 $2,602.4 
Specialty Engineered Materials2,573.8 2,578.0 
Corporate751.5 845.2 
Total assets$6,004.8 $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. 
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 (Geon), at the time of Geon’s initial public offering in 1993. Under the agreement, Geon agreed to indemnify Goodrich Corporation for certain environmental costs at the site. Neither Avient nor Geon ever operated the facility.

13 AVIENT CORPORATION

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 complete remedial designs for the site. In February 2020, three companies signed the agreed Consent Decree and remedial action Work Plan to conduct the remedial action at the site, which received Federal Court approval in January 2021.
In 2024, the Company finalized the design for the first phase of a barrier wall and construction of this phase was completed in 2025. 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 and, depending on the outcome of additional investigations and finalization of remedial designs, may extend beyond 2030.
As remedial design and supporting analyses have advanced in 2026, Avient has identified the need for certain modifications to the initially contemplated remedy. In addition, the USEPA has issued a modification to the ROD that lowers certain tolerance thresholds of clean up criterion at the site and has also requested evaluations of additional design criteria that may materially affect design requirements and construction costs. As a result, further design efforts are required, including updated analyses of construction approaches and methodologies. Certain design criteria currently under evaluation may ultimately not be incorporated into the final remedy. Given the ongoing analyses and associated design evaluations, the impact of the lowered tolerance threshold of clean up criterion and potential additional modifications under evaluation cannot yet be reasonably estimated. As remedial design progresses, including refinement of the overall implementation schedule and required remedy modifications, Avient will update its environmental reserve as appropriate.
The accrual associated with Calvert City was $123.1 million as of June 30, 2026 and $133.2 million as of December 31, 2025. Total environmental accruals of $132.3 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 June 30, 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. Previous adjustments to the Calvert City environmental accrual have had a material impact on our Condensed Consolidated Statements of Income in the periods recognized. Due to the scale and complexity of the remedial actions required at Calvert City, it is probable that additional costs will be incurred in excess of the amounts accrued, which would have a material impact on our Condensed Consolidated Statements of Income, in the period recognized. However, such additional costs cannot currently be estimated as they are dependent upon the results of future testing and findings during the execution of remedial design and remedial action, changes to the construction timeline, changes in regulations, technology development, new information, newly discovered conditions and other factors that are not currently known.
During the three and six months ended June 30, 202