Core Viewpoint - AdvanSix will release its fourth quarter and full year 2025 financial results on February 20, 2026, before the NYSE opens, followed by a conference call with investors at 9:30 a.m. ET [1] Group 1: Conference Call Details - Investors can participate in the conference call by dialing (844) 855-9494 for domestic calls or (412) 858-4602 for international calls approximately 10 minutes before the start time [2] - A replay of the conference call will be available from 12 noon ET on February 20 until 12 noon ET on February 27, accessible by dialing (855) 669-9658 for domestic or (412) 317-0088 for international calls, with access code 2514016 [2] Group 2: Presentation Materials / Webcast Details - A real-time audio webcast of the presentation can be accessed at the AdvanSix investor website, with related materials posted prior to the presentation [3] - A replay of the webcast will also be available on the AdvanSix investor website following the presentation [3] Group 3: About AdvanSix - AdvanSix is an integrated chemistry company producing essential materials for various end markets, including building and construction, fertilizers, agrochemicals, plastics, and more [4] - The company operates five U.S.-based manufacturing facilities that play a critical role in global supply chains, focusing on innovation and delivery of essential products [4] - AdvanSix emphasizes core values of Safety, Integrity, Accountability, and Respect, aiming to provide best-in-class customer experiences and differentiated products in nylon solutions, plant nutrients, and chemical intermediates [4]

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Core Viewpoint - AdvanSix has appointed Jeffrey J. Bird to its Board of Directors, indicating a strategic move to enhance governance and leadership within the company [1] Company Summary - The appointment of Jeffrey J. Bird is expected to bring valuable experience and insights to AdvanSix, potentially influencing its strategic direction and operational effectiveness [1] - Jeffrey J. Bird has a strong background in the chemical industry, which aligns with AdvanSix's business focus [1]

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Sales Performance - Sales for the three months ended September 30, 2025, decreased by $23.7 million (approximately 6%) compared to the prior year period, primarily due to lower raw material pass-through pricing and decreased volume [92]. - The decrease in sales volume was approximately 3%, driven by softer demand in chemical intermediate and nylon end markets [92]. - The company's sales for the nine months ended September 30, 2025, were $1,162,286, a decrease of 2.2% compared to $1,188,495 in the prior year [92]. - Sales decreased by $26.2 million (approximately 2%) in the nine months ended September 30, 2025, due to decreased volume driven by softer demand in nylon end markets [94]. Pricing and Costs - The average ammonium sulfate industry prices in the corn belt have declined approximately 12% from the second quarter to the third quarter since 2016 [86]. - The company experienced a 5% decrease in raw material pass-through pricing due to a net cost decrease in benzene and propylene, which are key feedstocks [92]. - Costs of goods sold increased by $8.2 million (approximately 2%) in the three months ended September 30, 2025, primarily due to increased plant costs and raw material costs [95]. - Gross margin percentage decreased by approximately 8% in the three months ended September 30, 2025, primarily due to pricing impacts and increased plant costs [97]. - Gross margin percentage was approximately flat in the nine months ended September 30, 2025, due to insurance proceeds collected offsetting pricing impacts [98]. Income and Earnings - Net income (loss) was ($2.6) million for the three months ended September 30, 2025, compared to $22.3 million in the prior year period [107]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $132.0 million, compared to $131.9 million in the prior year [110]. - Adjusted EPS - Basic (non-GAAP) for the nine months ended September 30, 2025, was $2.28, compared to $1.90 in the prior year [112]. - The effective tax rate for the nine months ended September 30, 2025, was lower than the prior year period due to the impact of IRC Section 45Q tax credits [104]. - The Company anticipates a $10 million reduction in cash taxes due to new tax provisions from the One Big Beautiful Bill Act [105]. Cash Flow and Capital Expenditures - Cash provided by operating activities decreased by $12.1 million for the nine months ended September 30, 2025, compared to the prior year, primarily due to unfavorable impacts from taxes and working capital [135]. - Capital expenditures for 2025 are expected to be between $120 million and $125 million, down from $134 million in 2024 [116]. - Cash used for investing activities decreased by $10.4 million for the nine months ended September 30, 2025, due to the timing of cash payments for capital expenditures [136]. - Cash provided by financing activities increased by $18.3 million for the nine months ended September 30, 2025, primarily due to net borrowings of $55 million [137]. - The company had a borrowed balance of $250 million under the revolving credit facility as of September 30, 2025 [131]. Share Repurchase and Stock Information - The company repurchased a total of 6,313,789 shares of common stock for an aggregate of $194.1 million at a weighted average price of $30.74 per share [120]. - No shares were repurchased under the share repurchase program during the quarter ended September 30, 2025, with 5,690 shares withheld for tax obligations [155]. - The approximate dollar value of shares that may yet be purchased under the repurchase plan is $61,957,898 [156]. Compliance and Risk Management - The company is in compliance with all covenants of its credit agreement as of September 30, 2025 [130]. - The company has not identified any changes in internal control over financial reporting that materially affect its operations as of September 30, 2025 [148]. - The company maintains effective disclosure controls and procedures as of September 30, 2025, providing reasonable assurance of compliance [147]. - There have been no material changes to the company's risk factors as previously disclosed [153]. Operational Efficiency and Production - The company is the world's largest single-site producer of ammonium sulfate fertilizer as of September 30, 2025, due to the scale and technology of its Hopewell manufacturing facility [85]. - The company’s ammonium sulfate product is positioned to increase yields of key crops, leveraging its nutrient density compared to other fertilizers [83]. - The company’s differentiated product offerings include high-purity applications and high-value intermediates, such as the U.S. Amines portfolio and EZ-Blox™ anti-skinning agent [87]. - The company’s production facilities are designed for nearly continuous operation to maximize efficiency, although this exposes it to risks associated with material disruptions [88]. Legal and Regulatory Matters - The company reported insurance settlement proceeds of approximately $26 million related to the Philadelphia Energy Solutions refinery shutdown, with total aggregate insurance proceeds reaching approximately $39 million [91]. - The company entered into an Order by Consent with the Virginia Department of Environmental Quality regarding alleged water discharge violations, resulting in a civil charge of $55,841 [151]. - Selling, general and administrative expenses increased by $3.2 million in the three months ended September 30, 2025, mainly due to legal and professional fees associated with strategic regulatory matters [100]. Interest Rate Exposure - The company has a floating interest rate exposure related to its Revolving Credit Facility, which may impact future earnings and cash flows [143]. - A 25-basis point fluctuation in interest rates would result in an increase or decrease of approximately $0.6 million in interest expense based on current borrowing levels [144].

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $374 million, a decrease of approximately 6% compared to the prior year, primarily due to softer demand in chemical intermediates and nylon end markets [8][9] - Adjusted EBITDA was $25 million, down $28 million from last year, with an adjusted EBITDA margin of 6.6% [8][9] - Free cash flow for the trailing 12 months through Q3 2025 was approximately break-even, with a target for positive free cash flow for the full year of 2025 [14][15] Business Line Data and Key Metrics Changes - Plant nutrients showed strong performance, with a year-over-year granular volume increase of 20%, contributing to higher revenue generation [29] - Domestic nylon solution margins expanded year-over-year, but overall nylon markets faced pressure [10][11] - Acetone pricing moderated from multi-year highs, impacting overall earnings [9][10] Market Data and Key Metrics Changes - The agricultural and fertilizer market continues to grow, with sulfur nutrition demand estimated to grow 3%-4% per year [11] - The building construction market remains largely unchanged, while the plastics sector faces broader macro softness [12] - Demand in the semiconductor space is anticipated to improve sequentially into Q4 and 2026 [12] Company Strategy and Development Direction - The company is focused on optimizing operational and commercial performance while managing inventory levels and free cash flow [4][6] - Strategic investments are being made in growth initiatives, including a sustained growth program that is tracking favorably against its capital budget [6][7] - The company aims to leverage its low-cost position and integrated production capabilities to navigate cycles and capitalize on emerging opportunities [16][17] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenging industry dynamics and the need for a disciplined approach to cash management [4][6] - The company expects strong free cash flow in Q4, supported by working capital tailwinds [14] - There is confidence in the long-term positioning of the company despite current market pressures [16][17] Other Important Information - A site-wide electrical outage at the Chesterfield nylon plant is expected to impact Q4 EBITDA by $7 million-$9 million [5] - The company successfully completed a planned plant turnaround at the Hopewell facility [5] - Two new members were added to the board of directors, enhancing corporate governance [7] Q&A Session Summary Question: Insights on the chemical intermediates market and pricing environment - Management indicated that acetone represents roughly 50% of sales in chemical intermediates, with Q3 results aligning with expectations of subdued phenol demand [21][22] Question: Update on ammonium sulfate results - The company reported the highest third-quarter revenue for ammonium sulfate, driven by increased granular volume and favorable pricing [27][29] Question: Raw material cost trends and purchasing strategy - Management clarified that they typically do not execute hedges on raw materials, with natural gas prices significantly impacting costs [30][31] Question: Update on Section 45Q carbon capture credits - The timing for receiving credits has shifted to 2026 due to the government shutdown, but the company remains confident in achieving positive free cash flow for 2025 [33][34] Question: Impact of bonus depreciation on financial results - Bonus depreciation primarily affects the cash tax rate, with significant benefits expected in future years [36][38] Question: Cost reduction initiatives for 2026 - The company is focusing on productivity improvements and targeting non-manpower fixed costs as part of its cost reduction strategy [41][42] Question: Nature of the settlement regarding intellectual property - The settlement included a monetary component and an agreement on patent use, which is expected to enhance future sales [45][46]

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $374 million, a decrease of approximately 6% compared to the prior year, primarily due to softer demand in chemical intermediates and nylon end markets [8][9] - Adjusted EBITDA was $25 million, down $28 million from last year, with an adjusted EBITDA margin of 6.6% [8] - The decline in earnings was driven by lower acetone price raw spreads and higher utility costs due to increasing natural gas prices [9] Business Line Data and Key Metrics Changes - Plant nutrients showed strong performance with a year-over-year pricing increase in the fall fill program, contributing positively to sales [10] - Domestic nylon solution margins expanded year-over-year, but overall demand remained under pressure [10] - Granular ammonium sulfate volume increased by 20% year-over-year, contributing to record revenue for the segment [29] Market Data and Key Metrics Changes - The agricultural and fertilizer market is expected to grow at an average rate of 3%-4% per year, driven by robust demand for sulfur nutrition [11] - The building construction market remains stable, while the plastics sector faces challenges due to broader macroeconomic softness [12] - Demand in the semiconductor space is anticipated to improve sequentially into Q4 and 2026 [12] Company Strategy and Development Direction - The company is focused on optimizing operational performance and cash management, with a CapEx reduction of $30 million for 2025 [6][15] - Strategic initiatives include enhancing production output and sales volume mix while driving productivity to support through-cycle profitability [6][16] - The company is well-positioned to navigate cycles and capitalize on emerging opportunities due to its integrated business model and competitive advantages [16][17] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenging industry dynamics and the need to moderate production rates to manage inventory levels [4] - The company expects strong free cash flow in Q4, supported by working capital tailwinds [14] - Management remains optimistic about long-term positioning despite current market pressures [16] Other Important Information - A site-wide electrical outage at the Chesterfield nylon plant is expected to impact Q4 EBITDA by $7 million-$9 million [5] - The company successfully upgraded its enterprise resource planning system to enhance management tools and data analytics [7] - Two new board members were added to strengthen corporate governance and support strategic growth priorities [7] Q&A Session Summary Question: Insights on the chemical intermediates market and pricing environment - Management indicated that acetone represents roughly 50% of sales in chemical intermediates, with Q3 results aligning with expectations amid subdued phenol demand [21][22] Question: Update on ammonium sulfate results - The company reported record third-quarter revenue for ammonium sulfate, driven by increased granular volume and favorable pricing [27][29] Question: Raw material cost trends and purchasing strategy - Management noted that they typically do not execute hedges on raw materials, with natural gas prices increasing significantly year-over-year [30][31] Question: Update on Section 45Q carbon capture credits - The timing for receiving credits has shifted to 2026 due to the government shutdown, but the company expects a cumulative benefit of $100 million-$120 million across the program's life [33][34] Question: Impact of bonus depreciation on financial results - Bonus depreciation primarily affects the cash tax rate, with significant benefits expected for projects qualifying after January 19, 2024 [36][38] Question: Cost reduction initiatives for 2026 - Management is focusing on productivity improvements and targeting non-manpower fixed costs as part of their cost reduction strategy [41][42] Question: Nature of the intellectual property settlement - The settlement included a monetary component and an agreement on patent use, which is expected to enhance future sales [46]

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $374 million, a decrease of approximately 6% compared to the prior year, primarily due to softer demand in chemical intermediates and nylon end markets [8][9] - Adjusted EBITDA was $25 million, down $28 million from last year, with an adjusted EBITDA margin of 6.6% [8][9] - Free cash flow for the trailing 12 months through Q3 2025 is approximately break-even, with a target for positive free cash flow for the full year of 2025 [14][15] Business Line Data and Key Metrics Changes - Plant nutrients showed strong performance, with a year-over-year pricing increase in the fall fill program, while nylon solutions faced pressure with moderated production rates [10][11] - Granular ammonium sulfate volume was up 20% year-over-year, contributing to record revenue for the segment in Q3 [28] - Acetone pricing moderated from multi-year highs, impacting overall chemical intermediates performance [10][12] Market Data and Key Metrics Changes - The agricultural and fertilizer market continues to grow, with sulfur nutrition demand expected to increase by 3-4% per year [11] - The building construction market remains stable, while the plastics sector faces broader macro softness [12] - Demand in the semiconductor space is anticipated to improve sequentially into Q4 and 2026 [12] Company Strategy and Development Direction - The company is focused on optimizing operational performance and cash management, with a disciplined approach to capital investment [6][16] - Strategic initiatives include leveraging a low-cost position in vertically integrated production and enhancing capabilities in ammonium sulfate growth [16][17] - The company is positioned to navigate cycles and capitalize on emerging opportunities, with a focus on long-term value creation [16][52] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging industry dynamics and the need to moderate production rates due to demand softness [4][5] - The company expects strong free cash flow in Q4, supported by working capital tailwinds [14] - There is confidence in capturing significant benefits from the 45Q carbon capture tax credits, although timing may shift to 2026 due to government processes [33][34] Other Important Information - A site-wide electrical outage at the Chesterfield nylon plant had minimal impact on Q3 results but is expected to affect Q4 EBITDA by $7-$9 million [5] - The company successfully completed a planned plant turnaround at the Hopewell facility [5] - Two new members were added to the board of directors, enhancing corporate governance and strategic growth priorities [7] Q&A Session Summary Question: Insights on the chemical intermediates market and pricing environment - Management indicated that acetone represents roughly 50% of sales in chemical intermediates, with subdued phenol demand impacting overall results [21][22] Question: Update on ammonium sulfate results - The company reported the highest third-quarter revenue for ammonium sulfate, driven by increased granular volume and favorable pricing [27][28] Question: Raw material cost trends and purchasing strategies - Management noted that they typically do not execute hedges on raw materials, with natural gas prices increasing significantly year-over-year [30][31] Question: Update on Section 45Q carbon capture credits - The company expects to receive credits in 2026 due to delays from the government shutdown, with a cumulative benefit anticipated across the program's life [33][34] Question: Impact of bonus depreciation on financial results - Bonus depreciation primarily affects the cash tax rate, with significant benefits expected in future years as more projects qualify [35][36] Question: Cost reduction initiatives for 2026 - Management highlighted a focus on productivity and addressing non-manpower fixed costs as part of their cost reduction strategy [41][42] Question: Nature of the settlement regarding intellectual property - The settlement included a monetary component and established a customer base that respects the company's intellectual property rights [45][46]