Company: AVNT
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001122976-25-000053
Chunk: 1

Company: AVIENT CORP
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 1
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, increased 1.2%. The sales increase was primarily within the packaging, defense and healthcare end markets, partially offset by declines in the consumer end market.

Gross Margin

Gross margin as a percentage of sales was 32.1% for the three months ended June 30, 2025 compared to 30.3% for the three months ended June 30, 2024. This increase was driven primarily by lower environmental remediation charges of $20.6 million, net of recoveries, partially offset by higher restructuring charges of $2.8 million.

14 AVIENT CORPORATION

Gross margin as a percentage of sales was 32.0% for the six months ended June 30, 2025 compared to 31.9% for the six months ended June 30, 2024. This increase was driven primarily by lower environmental remediation charges of $21.0 million, net of recoveries, partially offset by higher restructuring charges of $10.5 million.

Selling and administrative expense

Selling and administrative expense decreased $3.3 million for the three months ended June 30, 2025, primarily driven by lower compensation cost. Selling and administrative expense increased $75.0 million for the six months ended June 30, 2025, primarily driven by an impairment charge of $71.6 million associated with the Company's decision to cease development of the cloud-based enterprise resource planning system, S/4HANA, and charges of $14.7 million associated with unpaid contractual obligations for hosting fees. These charges were partially offset by lower compensation cost.

Interest expense, net

Interest expense, net decreased $1.9 million and $1.6 million for the three and six months ended June 30, 2025, respectively, primarily driven by the benefit of reduced interest rates resulting from previous refinancing activity.

Income taxes

During the three months ended June 30, 2025, the Company’s effective tax rate was 24.5% compared to 24.9% in the three months ended June 30, 2024. The lower effective tax rate for the three months ended June 30, 2025 was primarily driven by a decrease in the tax on global intangible low-taxed income (GILTI) partially offset by a reduction in favorable foreign permanent items. During the six months ended June 30, 2025, the Company's effective tax rate was 24.2% compared to 25.1%