Company: AVNT
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001122976-25-000030
Chunk: 0

Company: AVIENT CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 0
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Loss) income before income taxes                                                                (26.6)                    66.5                 (93.1)                                               (140.0)  
  Income tax benefit (expense)                                                                        6.7                  (16.8)                 23.5                                                 nm       
  Net (loss) income                                                                                (19.9)                    49.7                 (69.6)                                               (140.0)  
  Net income attributable to noncontrolling interests                                               (0.3)                   (0.3)                 —                                                    nm       
  Net (loss) income attributable to Avient common shareholders                                          $      (20.2)           $       49.4      $                                        (69.6)      (140.9)  
  (Loss) earnings per share attributable to Avient common shareholders - Basic:                         $      (0.22)           $       0.54                                                                    
  (Loss) earnings per share attributable to Avient common shareholders - Diluted:                       $      (0.22)           $       0.54                                                                    

nm - not meaningful

Sales

Sales decreased $2.4 million, or 0.3%, for the three months ended March 31, 2025. Unfavorable foreign currency impacts were 2.1%, while sales, excluding the impacts of foreign exchange, increased 1.8%. The sales increases were primarily within the packaging and healthcare end markets, partially offset by declines in the transportation and defense end markets.

Gross Margin

Gross margin as a percentage of sales was 31.8% for the three months ended March 31, 2025 compared to 33.6% for the three months ended March 31, 2024. This decrease was driven primarily by higher restructuring charges of $7.7 million and the mix impacts of lower defense sales.

Selling and administrative expense

Selling and administrative expense increased $78.3 million for the three months ended March 31, 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. Offsetting these charges was lower compensation cost for the three months ended March 31, 2025 and unfavorable foreign currency impacts.

13 AVIENT CORPORATION

Interest expense, net

Interest expense, net increased $0.3 million for