Avient Announces First Quarter 2025 Results

Attachment 1

 Avient Corporation
Reconciliation of Adjusted Net Income and Earnings Per Share (Unaudited)
(In millions, except per share data)

Senior management uses comparisons of adjusted net income attributable to Avient common shareholders and diluted adjusted
earnings per share (EPS) attributable to Avient common shareholders, excluding special items, to assess performance and
facilitate comparability of results. Further, as a result of Avient's strategic shift to an innovator of materials solutions, it has
completed several acquisitions and divestitures which have resulted in a significant amount of intangible asset amortization.
Management excludes intangible asset amortization from adjusted EPS as it believes excluding acquired intangible asset
amortization is a useful measure of current period earnings per share. Senior management believes these measures are useful
to investors because they allow for comparison to Avient's performance in prior periods without the effect of items that, by their
nature, tend to obscure Avient's operating results due to the potential variability across periods based on timing, frequency and
magnitude. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or
solely as alternatives to, financial measures prepared in accordance with GAAP. Below is a reconciliation of these non-GAAP
financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. See
Attachment 3 for a definition and summary of special items.

Three Months Ended March 31,

2025

2024

Reconciliation to Condensed Consolidated Statements of Income

$

EPS⁽¹⁾ 

$

EPS⁽¹⁾ 

Net (loss) income attributable to Avient common shareholders

$       (20.2)

$       (0.22)

$         49.4

$         0.54

Special items, after-tax (Attachment 3)

75.7

0.82

5.5

0.06

Amortization expense, after-tax

14.5

0.16

14.9

0.16

Adjusted net income / EPS

$         70.0

$         0.76

$         69.8

$         0.76

⁽¹⁾ Per share amounts may not recalculate from figures presented herein due to rounding

Attachment 2

Avient Corporation

Condensed Consolidated Statements of Income (Unaudited)

(In millions, except per share data)

Three Months Ended

March 31,

2025

2024

Sales

$        826.6

$        829.0

Cost of sales

563.4

550.8

Gross margin

263.2

278.2

Selling and administrative expense

262.5

184.2

Operating income

0.7

94.0

Interest expense, net

(26.9)

(26.6)

Other expense, net

(0.4)

(0.9)

(Loss) income before income taxes

(26.6)

66.5

Income tax benefit (expense)

6.7

(16.8)

Net (loss) income

$        (19.9)

$          49.7

Net income attributable to noncontrolling interests

(0.3)

(0.3)

Net (loss) income attributable to Avient common shareholders

$        (20.2)

$          49.4

(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

Cash dividends declared per share of common stock

$     0.2700

$     0.2575

Weighted-average shares used to compute (loss) earnings per common share:

Basic

91.5

91.2

Diluted

91.5

92.0

Attachment 3

Avient Corporation

Summary of Special Items (Unaudited)

(In millions, except per share data)

Special items ⁽¹⁾

Three Months Ended
March 31,

2025

2024

Cost of sales:

Restructuring costs, including accelerated depreciation

$          (4.1)

$            3.6

Environmental remediation costs

(4.9)

(4.0)

Reimbursement of previously incurred environmental costs

1.3

—

Impact on cost of sales

(7.7)

(0.4)

Selling and administrative expense:

Restructuring and employee separation costs

(5.1)

(0.7)

Legal and other

(0.4)

(3.5)

Cloud-based enterprise resource planning system impairment

(86.3)

—

Acquisition related costs

—

(1.6)

Impact on selling and administrative expense

(91.8)

(5.8)

Impact on operating income

(99.5)

(6.2)

Interest expense, net - financing costs

(1.7)

—

Impact on (loss) income before income taxes

(101.2)

(6.2)

Income tax benefit on special items

25.5

1.4

Tax adjustments⁽²⁾

—

(0.7)

Impact of special items on net (loss) income

$        (75.7)

$          (5.5)

Diluted (loss) earnings per common share impact

$        (0.82)

$        (0.06)

Weighted average shares used to compute adjusted earnings per share:

Diluted

91.8

92.0

⁽¹⁾

Special items include charges related to specific strategic initiatives or financial restructuring such as: consolidation of operations; debt extinguishment costs; costs incurred directly in relation to acquisitions or divestitures; employee separation costs resulting from personnel reduction programs, plant realignment costs, executive separation agreements; asset impairments; settlement gains or losses and mark-to-market adjustments associated with gains and losses on pension and other post-retirement benefit plans; environmental remediation costs, fines, penalties and related insurance recoveries related to facilities no longer owned or closed in prior years; gains and losses on facility or property sales or disposals; results of litigation, fines or penalties, where such litigation (or action relating to the fines or penalties) arose prior to the commencement of the performance period; one-time, non-recurring items; and the effect of changes in accounting principles or other such laws or provisions affecting reported results.

⁽²⁾

Tax adjustments include the net tax impact from non-recurring income tax items and certain adjustments to uncertain tax position reserves and valuation allowances.

Attachment 4

Avient Corporation

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)

March 31, 2025

December 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

$                         456.0

$                         544.5

Accounts receivable, net

489.6

399.5

Inventories, net

372.8

346.8

Other current assets

111.9

131.3

Total current assets

1,430.3

1,422.1

Property, net

951.8

955.3

Goodwill

1,684.0

1,659.7

Intangible assets, net

1,464.5

1,450.4

Other non-current assets

280.6

323.6

Total assets

$                     5,811.2

$                     5,811.1

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term and current portion of long-term debt

$                             7.8

$                             7.7

Accounts payable

422.2

417.4

Accrued expenses and other current liabilities

268.2

331.0

Total current liabilities

698.2

756.1

Non-current liabilities:

Long-term debt

2,061.3

2,059.3

Deferred income taxes

268.0

260.4

Other non-current liabilities

469.3

405.7

Total non-current liabilities

2,798.6

2,725.4

SHAREHOLDERS' EQUITY

Avient shareholders' equity

2,298.3

2,313.8

Noncontrolling interest

16.1

15.8

Total equity

2,314.4

2,329.6

Total liabilities and equity

$                     5,811.2

$                     5,811.1

Attachment 5

Avient Corporation

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In millions)

Three Months Ended

March 31,

2025

2024

Operating activities

Net (loss) income

$              (19.9)

$                49.7

Adjustments to reconcile net (loss) income to net cash used by operating activities:

Depreciation and amortization

45.3

44.3

Cloud-based enterprise resource planning system impairment

71.6

—

Share-based compensation expense

2.4

3.3

Changes in assets and liabilities:

Increase in accounts receivable

(83.7)

(81.9)

Increase in inventories

(20.3)

(12.3)

(Decrease) increase in accounts payable

(1.0)

1.7

Environmental insurance recovery

34.0

—

Decrease in incentive accruals

(53.1)

(16.8)

Accrued expenses and other assets and liabilities, net

(26.4)

(30.8)

Net cash used by operating activities

(51.1)

(42.8)

Investing activities

Capital expenditures

(12.5)

(24.4)

Proceeds from plant closures

—

2.0

Other investing activities

—

(2.1)

Net cash used by investing activities

(12.5)

(24.5)

Financing activities

Payments on long-term borrowings

—

(2.7)

Cash dividends paid

(24.7)

(23.5)

Other financing activities

(3.6)

(1.9)

Net cash used by financing activities

(28.3)

(28.1)

Effect of exchange rate changes on cash

3.4

(6.1)

Decrease in cash and cash equivalents

(88.5)

(101.5)

Cash and cash equivalents at beginning of year

544.5

545.8

Cash and cash equivalents at end of period

$              456.0

$              444.3

Attachment 6

Avient Corporation

Business Segment Operations (Unaudited)

(In millions)

Operating income and earnings before interest, taxes, depreciation and amortization (EBITDA) at the segment level does not
include: special items as defined in Attachment 3; corporate general and administration costs that are not allocated to segments;
intersegment sales and profit eliminations; share-based compensation costs; and certain other items that are not included in the
measure of segment profit and loss that is reported to and reviewed by the chief operating decision maker. These costs are
included in Corporate.

Three Months Ended

March 31,

2025

2024

Sales:

   Color, Additives and Inks

$           519.7

$           515.3

   Specialty Engineered Materials

308.4

314.4

   Corporate

(1.5)

(0.7)

      Sales

$           826.6

$           829.0

Gross margin:

   Color, Additives and Inks

$           173.1

$           171.2

   Specialty Engineered Materials

97.8

107.0

   Corporate

(7.7)

—

      Gross margin

$           263.2

$           278.2

Selling and administrative expense:

   Color, Additives and Inks

$             94.5

$             96.4

   Specialty Engineered Materials

50.7

53.6

   Corporate

117.3

34.2

      Selling and administrative expense

$           262.5

$           184.2

Operating income:

   Color, Additives and Inks

$             78.6

$             74.8

   Specialty Engineered Materials

47.1

53.4

   Corporate

(125.0)

(34.2)

      Operating income

$                0.7

$             94.0

Depreciation & amortization:

Color, Additives and Inks

$             21.7

$             21.9

Specialty Engineered Materials

21.5

19.6

Corporate

2.1

2.8

Depreciation & amortization

$             45.3

$             44.3

Earnings before interest, taxes, depreciation and amortization (EBITDA):

   Color, Additives and Inks

$           100.3

$             96.7

   Specialty Engineered Materials

68.6

73.0

   Corporate

(122.9)

(31.4)

Other expense, net

(0.4)

(0.9)

EBITDA

$             45.6

$           137.4

Special items, before tax

101.2

6.2

Interest expense included in special items

(1.7)

—

Depreciation & amortization included in special items

(0.4)

(0.5)

Adjusted EBITDA

$           144.7

$           143.1

Attachment 7

Avient Corporation

Reconciliation of Non-GAAP Financial Measures (Unaudited)

(In millions, except per share data)

Senior management uses operating income before special items to assess performance and allocate resources because senior
management believes that this measure is most useful in understanding current profitability levels and how it may serve as a
basis for future performance. In addition, operating income before the effect of special items is a component of Avient's annual
incentive plans and is used in debt covenant computations. Senior management believes this measure is useful to investors
because it allows for comparison to Avient's performance in prior periods without the effect of items that, by their nature, tend to
obscure Avient's operating results due to the potential variability across periods based on timing, frequency and magnitude. Non-
GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or solely as
alternatives to, financial measures prepared in accordance with GAAP. Below is a reconciliation of these non-GAAP financial
measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. See
Attachment 3 for a definition and summary of special items.

Three Months Ended

March 31,

Reconciliation to Consolidated Statements of Income

2025

2024

Sales

$          826.6

$          829.0

Gross margin - GAAP

263.2

278.2

Special items in gross margin (Attachment 3)

7.7

0.4

Adjusted gross margin

$          270.9

$          278.6

Adjusted gross margin as a percent of sales

32.8 %

33.6 %

Operating income - GAAP

0.7

94.0

Special items in operating income (Attachment 3)

99.5

6.2

Adjusted operating income

$          100.2

$          100.2

Adjusted operating income as a percent of sales

12.1 %

12.1 %

Three Months Ended

March 31,

Reconciliation to EBITDA and Adjusted EBITDA:

2025

2024

Net (loss) income – GAAP

$           (19.9)

$             49.7

Income tax (benefit) expense

(6.7)

16.8

Interest expense, net

26.9

26.6

Depreciation & amortization

45.3

44.3

EBITDA

$             45.6

$          137.4

Special items, before tax

101.2

6.2

Interest expense included in special items

(1.7)

—

Depreciation & amortization included in special items

(0.4)

(0.5)

Adjusted EBITDA 

$          144.7

$          143.1

Adjusted EBITDA as a percent of sales

17.5 %

17.3 %

Year Ended

December 31, 2024

Reconciliation to Condensed Consolidated Statements of Income

$

EPS⁽¹⁾ 

Net income attributable to Avient common shareholders

$                 169.5

$                   1.84

Special items, after-tax

15.9

0.17

Amortization expense, after-tax

59.5

0.65

Adjusted net income / EPS

$                 244.9

$                   2.66

⁽¹⁾ Per share amounts may not recalculate from figures presented herein due to rounding

Three Months Ended

June 30, 2024

Reconciliation to Condensed Consolidated Statements of Income

$

EPS⁽¹⁾ 

Net income attributable to Avient common shareholders

$                   33.6

$                   0.36

Special items, after-tax

21.8

0.24

Amortization expense, after-tax

14.8

0.16

Adjusted net income / EPS

$                   70.2

$                   0.76

⁽¹⁾ Per share amounts may not recalculate from figures presented herein due to rounding