Financial Analysis

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 settleme …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 4 FINANCING ARRANGEMENTS For each of the periods presented, total debt consisted of the following: As of December 31, 2025 (in millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Weighted average interest rate Senior secured revolving credit facility due 2030 $ $ $ % Senior secured term loan due 2029 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 As of December 31, 2024 (in millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Weighted average interest rate Senior secured revolving credit facility due 2026 $ $ $ % Senior secured term loan due 2029 720.7 15.5 705.2 7.30 % 7.125% senior notes due 2030 725.0 7.5 717.5 7.125 % 6.250% senior notes due 2031 650.0 9.2 640.8 6.250 % Other Debt 3.5 3.5 Total Debt 2,099.2 32.2 2,067.0 Less short-term and current portion of long-term debt 7.7 7.7 Total long-term debt, net of current portion $ 2,091.5 $ 32.2 $ 2,059.3 On March 12, 2025, the Company refinanced its senior secured term loan by amending the credit agreement governing such term loan (the Term Loan Amendment). The Term Loan Amendment reduced the interest rate per annum by 25 basis points, which now is either (i) Adjusted Term SOFR (as defined in the Term L …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 12 SHARE-BASED COMPENSATION Share-based compensation cost recognized in the accompanying Consolidated Statements of Income includes compensation cost for share-based payment awards based on an estimated grant date fair value. Share-based compensation expense is based on awards expected to vest and therefore has been reduced for estimated forfeitures. In May 2020, our shareholders approved the Avient Corporation 2020 Equity and Incentive Compensation Plan (2020 Plan). This plan reserved 2.5 million common shares for the award of a variety of share-based compensation alternatives, including non-qualified stock options, incentive stock options, restricted stock, restricted stock units (RSUs), performance shares, performance units and stock appreciation rights (SARs). It is anticipated that all share-based grants and awards that are earned and exercised will be issued from Avient common shares that are held in treasury. In May 2023, our shareholders voted to approve an amendment and restatement of the 2020 Plan (Amended 2020 Plan). The Amended 2020 Plan increases the number of common shares available for awards under the 2020 plan by 2.5 million common shares. Share-based compensation is included in Selling and administrative expense . A summary of compensation expense by type of award follows: (In millions) 2025 2024 2023 Stock appreciation rights $ 2.6 $ 6.5 $ 6.1 Performance shares 0.1 0.2 Restricted stock units 6.5 8.8 6.9 Total share-based compensation $ 9.1 $ 15.4 $ 13 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 2 GOODWILL AND INTANGIBLE ASSETS Changes in the carrying amount of goodwill by segment were as follows: (In millions) Specialty Engineered Materials Color, Additives and Inks Total Balance at January 1, 2024 $ 682.5 $ 1,036.8 $ 1,719.3 Currency translation (26.2) (33.4) (59.6) Balance at December 31, 2024 656.3 1,003.4 1,659.7 Currency translation 55.1 42.8 97.9 Balance at December 31, 2025 $ 711.4 $ 1,046.2 $ 1,757.6 Indefinite and finite-lived intangible assets consisted of the following: As of December 31, 2025 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 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 As of December 31, 2024 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 726.2 $ (234.9) $ (0.4) $ 490.9 Patents, technology and other 847.0 (255.8) (6.1) 585.1 Indefinite-lived trade names 362.8 11.6 374.4 Total $ 1,936.0 $ (490.7) $ 5.1 $ 1,450.4 Amortization of finite-lived intangible assets for the years ended December 31, 2025, 2024 and 2023 was $80.4 million, $77.8 million and $79.8 million, respectively. We expect finite-lived intangibles amortization expense for the next five years as follows: (In millions) 2026 2027 2028 2029 2030 Expected amortization expense $ 84.6 $ 82.4 $ 81.8 $ 81.5 $ 80.6 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Note 11 INCOME TAXES Income (loss) from continuing operations, before income taxes consists of the following: (In millions) 2025 2024 2023 Domestic $ (112.9) $ (25.3) $ (2.7) International 224.6 250.1 90.0 Income from continuing operations, before income taxes $ 111.7 $ 224.8 $ 87.3 A summary of income tax expense (benefit) from continuing operations is as follows: (In millions) 2025 2024 2023 Current income tax expense: Domestic $ 3.4 $ 7.5 $ 18.5 International 70.1 70.4 53.8 Total current income tax expense $ 73.5 $ 77.9 $ 72.3 Deferred income tax benefit: Domestic $ (31.9) $ (11.4) $ (35.8) International (13.5) (12.4) (25.5) Total deferred income tax benefit $ (45.4) $ (23.8) $ (61.3) Total income tax expense $ 28.1 $ 54.1 $ 11.0 A reconciliation of the applicable U.S. federal statutory tax rate to the consolidated effective income tax rate along with a description of significant reconciling items is included below for the year ended December 31, 2025. 2025 (Dollars in millions) Amount Rate U.S. federal income tax rate $ 23.5 21.0 % Domestic: Effects of cross border tax laws: Global Intangible Low-taxed Income, net of credits 3.6 3.2 Subpart F income, net of credits (1.6) (1.4) Withholding tax 3.8 3.4 Tax credits: Research & development credits (3.9) (3.5) Non-deductible executive compensation 2.0 1.8 Domestic state & local income taxes, net of federal benefit (a) (4.5) (4.0) Foreign: Luxembourg Foreign rate differential (1.8) (1.6) Statutory impairment (28.9) (25. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 5 LEASING ARRANGEMENTS We lease certain manufacturing facilities, warehouse space, machinery and equipment, vehicles and information technology equipment under operating leases. The majority of our leases are operating leases. Finance leases are immaterial to our consolidated financial statements. Operating lease assets and obligations are reflected within Operating lease assets, net, Accrued expenses and other current liabilities , and Other non-current liabilities , respectively. Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The components of lease cost recognized within our Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023 were as follows: (In millions) 2025 2024 2023 Cost of sales $ 21.3 $ 20.8 $ 19.7 Selling and administrative expense 14.5 11.2 11.6 Total operating lease cost $ 35.8 $ 32.0 $ 31.4 We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options are generally at our sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at our discretion. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for our operating leases as of De …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Accounting Standards Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregated income tax disclosures on an annual basis, including information on the Company's effective tax rate reconciliation and income taxes paid. The Company adopted ASU 2023-09 on a prospective basis for the year ended December 31, 2025. The adoption of ASU 2023-09 impacted income tax disclosures within Note 11, Income Taxes. Accounting Standards Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). This accounting standard requires disaggregated income statement expense disclosures on an annual and interim basis, including inventory purchases, employee compensation, depreciation, and intangible asset amortization for each income statement line item that contains these expenses. The standard also requires disclosure of total selling expenses on an annual and interim basis, and the definition of those expenses disclosed annually. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and may be applied prospectively or retrospectively. The Company is evaluating the impact of ASU 2024 …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 9 EMPLOYEE BENEFIT PLANS All U.S. qualified defined benefit pension plans are frozen, no longer accrue benefits and are closed to new participants. We have foreign pension plans that accrue benefits. The plans generally provide benefit payments using a formula that is based upon employee compensation and length of service. The following tables present the change in benefit obligation, change in plan assets and components of funded status for defined benefit pension plans. Pension Benefits (In millions) 2025 2024 Change in benefit obligation: Projected benefit obligation - beginning of year $ 391.7 $ 423.8 Service cost 2.8 2.7 Interest cost 18.4 18.2 Actuarial loss / (gain) 3.7 (9.1) Benefits paid (38.2) (39.1) Currency translation and other 7.4 (4.8) Projected benefit obligation - end of year 385.8 391.7 Projected salary increases (6.2) (5.5) Accumulated benefit obligation $ 379.6 $ 386.2 Change in plan assets: Plan assets - beginning of year $ 386.5 $ 400.5 Actual return on plan assets 34.3 17.9 Company contributions 6.9 7.0 Benefits paid (38.2) (39.1) Currency translation and other 1.0 0.2 Plan assets - end of year $ 390.5 $ 386.5 Overfunded (unfunded) status at end of year $ 4.7 $ (5.2) Amounts included in the accompanying Consolidated Balance Sheets as of December 31 are as follows: Pension Benefits (In millions) 2025 2024 Non-current assets $ 69.0 $ 55.5 Accrued expenses and other liabilities 5.7 5.7 Other non-current liabilities 58.6 55.0 As of December 31, 2025 an …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Note 3 EMPLOYEE SEPARATION AND RESTRUCTURING COSTS Cloud-based Enterprise Resource Planning System Impairment and Other Related Charges In the first quarter of 2025, the Company completed a review of its cloud-based enterprise resource planning system, S/4HANA, including updated project timelines, cost incurred to date, required internal resources and expected costs to complete the initial site implementations, and the evolution of options that could provide better returns for shareholders. As a result of this review, the Company determined it would cease the ongoing development of S/4HANA. As a result of this decision, in the first quarter of 2025, the Company recognized a non-cash, pre-tax impairment charge of $71.6 million associated with capitalized implementation costs. The Company also recognized pre-tax charges of $14.7 million associated with unpaid contractual obligations for hosting fees. Further, the Company recognized charges of $2.8 million associated to severance actions resulting from the decision to cease development of S/4HANA. These charges are included in Selling and administrative expense within the Consolidated Statements of Income . Clariant Color Integration Restructuring Program We completed a restructuring program associated with our integration of Clariant Color, which is expected to enable us to better serve customers, improve efficiency and deliver cost savings. This program resulted in total charges of $64.0 million. A summary of the Clariant Colo …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Note 13 SEGMENT INFORMATION Operating segments are components of the Company about which separate financial information is available and evaluated on a regular basis by the chief operating decision maker (CODM), which is the Company's chief executive officer. Operating income is the primary segment performance measure that is reported to CODM. Our CODM utilizes this measure to determine appropriate resource allocations to our segments in the annual planning process and to periodically assess segment performance, primarily by evaluating actual results in comparison to the annual operating plan and forecast. Operating income at the segment level does not include corporate general and administrative expenses that are not allocated to segments, restructuring charges, share-based compensation costs, environmental remediation costs and associated recoveries, asset impairments, acquisition-related charges, mark-to-market adjustments on pension and other post-retirement obligations, and certain other items that are not included in the measure of segment profit or loss that is reported to and reviewed by our CODM. These costs are included in Corporate . Segment assets are primarily customer receivables, inventories, net property, plant and equipment, intangible assets and goodwill. Corporate assets and liabilities primarily include cash, debt, pension and other employee benefits, environmental liabilities, and other unallocated corporate assets and liabilities. The accounting policies …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing