Financial Performance - 2Q25 sales were $410 million, a 10% decrease compared to $453 million in 2Q24[6, 9] - Adjusted EBITDA for 2Q25 was $56 million, down from $78 million in 2Q24, with an Adjusted EBITDA Margin of 13.6% compared to 17.2%[6, 9] - Adjusted EPS decreased to $1.24 in 2Q25 from $1.55 in 2Q24[6, 9] - Net income for 2Q25 was $31.4 million, compared to $38.9 million in 2Q24[9] Key Drivers and Factors - Sales volume decreased by 8%, and price decreased by 2%, which includes a 5% raw materials pass-through and a 3% market-based increase[11] - The decrease in Adjusted EBITDA was primarily driven by a decline in Chemical Intermediates pricing, net of raw material costs, and lower Nylon Solutions sales volume[11] - The company's effective tax rate in 2Q25 was 0.9% compared to 25.2% in 2Q24, primarily due to approximately $8 million of 45Q carbon capture tax credits and other discrete tax adjustments[11] Business Segment Updates - Plant Nutrients saw strong domestic application season for ammonium sulfate, supported by favorable supply and demand conditions, with a 7% increase in AdvanSix AS Domestic Granular Sales Volume from 0.91M ST to 0.98M ST[7, 21] - Chemical Intermediates experienced lower acetone spread over refinery grade propylene costs year-over-year, but expected to remain near cycle averages[7] - Nylon Solutions is focused on controllable levers to optimize performance amid demand softness in key end markets, including engineering plastics applications serving the auto sector[7] Strategic Initiatives - The company is continuing progress on 45Q carbon capture tax credits, with a total opportunity in the range of $100 million to $120 million through 2029[7, 15] - The SUSTAIN program aims to achieve approximately 72% granular conversion for AdvanSix by the end of 2025[23]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [2Q 2025 Highlights](index=1&type=section&id=2Q%202025%20Highlights) AdvanSix reported 2Q25 sales of $410 million (down 10% YoY), EPS of $1.15, Adjusted EPS of $1.24, and $21 million in cash flow from operations, including $8 million in 45Q tax credits 2Q 2025 Highlights | Metric | Value | | :-------------------------------- | :------------------- | | **Sales** | $410 million (down 10% YoY) | | **Earnings Per Share (EPS)** | $1.15 | | **Adjusted Earnings Per Share** | $1.24 | | **Cash Flow from Operations** | $21 million | | **45Q Carbon Capture Tax Credits** | $8 million claimed | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Erin Kane noted resilient 2Q results driven by Plant Nutrients, despite softer demand and margin pressure from raw material costs, while advancing 45Q tax credits and growth initiatives - Resilient second quarter results with strong sequential improvement from the first quarter, primarily driven by strong performance from the Plant Nutrients business[3](index=3&type=chunk) - End market demand across the rest of the portfolio remains softer overall, with margin impact from higher raw material prices, namely natural gas and sulfur[3](index=3&type=chunk) - Continued progress on 45Q carbon capture tax credits with an additional **$8 million claimed in 2Q25**, supported by a healthy balance sheet for growth and enterprise initiatives[3](index=3&type=chunk) [Second Quarter 2025 Financial Results](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) [Consolidated Financial Overview](index=2&type=section&id=Consolidated%20Financial%20Overview) AdvanSix's 2Q25 sales decreased 10% to $410 million due to 8% lower volume and 5% raw material pass-through pricing, partially offset by 3% favorable market-based pricing Summary Second Quarter 2025 Financial Results | Metric ($ in Thousands, Except EPS) | 2Q 2025 | 2Q 2024 | Variance | | :---------------------------------- | :------ | :------ | :------- | | Sales | $410,022 | $453,479 | ($43,457) | | Net Income | 31,371 | 38,927 | (7,556) | | Diluted Earnings Per Share | 1.15 | 1.43 | (0.28) | | Adjusted Diluted Earnings Per Share | 1.24 | 1.55 | (0.31) | | Adjusted EBITDA | 55,675 | 78,141 | (22,466) | | Adjusted EBITDA Margin % | 13.6% | 17.2% | (360) bps | | Cash Flow from Operations | 21,110 | 50,200 | (29,090) | | Capital Expenditures | 28,265 | 33,495 | (5,230) | | Free Cash Flow | (7,155) | 16,705 | (23,860) | - Sales volume decreased approximately **8%** primarily driven by softer demand in key nylon end markets, including engineering plastics applications serving the auto sector[4](index=4&type=chunk) - Raw material pass-through pricing was down **5%** following a net cost decrease in benzene and propylene, while market-based pricing was favorable by **3%** due to continued strength in Plant Nutrients[4](index=4&type=chunk) [Sales by Product Line](index=2&type=section&id=Sales%20by%20Product%20Line) Plant Nutrients sales grew to $156.8 million (38% of total) in 2Q25, while Nylon, Caprolactam, and Chemical Intermediates sales declined Sales by Product Line (2Q 2025 vs 2Q 2024) | Product Line ($ in Thousands) | 2Q 2025 Sales | % of Total (2Q25) | 2Q 2024 Sales | % of Total (2Q24) | | :---------------------------- | :-------------- | :---------------- | :-------------- | :---------------- | | Nylon | $79,503 | 20% | $103,217 | 23% | | Caprolactam | 66,424 | 16% | 81,303 | 18% | | Plant Nutrients | 156,770 | 38% | 147,339 | 32% | | Chemical Intermediates | 107,325 | 26% | 121,620 | 27% | | **Total** | **$410,022** | **100%** | **$453,479** | **100%** | [Profitability and Earnings](index=2&type=section&id=Profitability%20and%20Earnings) 2Q25 Adjusted EBITDA decreased $22.5 million to $55.7 million due to lower Chemical Intermediates pricing and Nylon volume, with Adjusted EPS down $0.31, partially offset by 45Q tax credits - Adjusted EBITDA of **$55.7 million** decreased **$22.5 million** versus the prior year, primarily driven by a decline in Chemical Intermediates pricing, net of raw material costs, and lower Nylon Solutions sales volume[6](index=6&type=chunk) - Adjusted earnings per share of **$1.24** decreased **$0.31** versus the prior year, partially offset by approximately **$8 million**, or **$0.29 per share**, of 45Q carbon capture tax credits[6](index=6&type=chunk)[7](index=7&type=chunk) [Cash Flow and Capital Expenditures](index=3&type=section&id=Cash%20Flow%20and%20Capital%20Expenditures) 2Q25 cash flow from operations decreased $29.1 million to $21.1 million due to lower net income and unwound cash advances, with capital expenditures down $5.2 million to $28.3 million - Cash flow from operations of **$21.1 million** decreased **$29.1 million** versus the prior year, primarily due to lower net income and the unwinding of prior year ammonium sulfate pre-buy cash advances[7](index=7&type=chunk) - Capital expenditures of **$28.3 million** in the quarter decreased **$5.2 million** versus the prior year[7](index=7&type=chunk) [Outlook](index=3&type=section&id=Outlook) [Market Conditions and Strategic Focus](index=3&type=section&id=Market%20Conditions%20and%20Strategic%20Focus) AdvanSix anticipates mixed market conditions with strong Plant Nutrients and weak Nylon Solutions, focusing on cost management, capital prioritization, and optimizing product mix for profitability - The current market backdrop is mixed, with favorable underlying fundamentals in Plant Nutrients contrasted against an extended downturn in Nylon Solutions[9](index=9&type=chunk) - Focus on controllable levers, including a measured and disciplined approach to cost and cash management, tensioned prioritization of base capital investments, and optimizing mix and production output for the most profitable parts of the business[9](index=9&type=chunk) [Key Financial and Operational Expectations](index=3&type=section&id=Key%20Financial%20and%20Operational%20Expectations) AdvanSix expects higher 3Q25 ammonium sulfate pricing YoY, lower acetone spreads YoY, 2025 capital expenditures of $135-145 million, and a $25-30 million pre-tax impact from plant turnarounds - Anticipate higher ammonium sulfate pricing in 3Q25 year-over-year reflecting strong fall fill program; however, typical North American ammonium sulfate seasonality expected to drive 3Q25 sequential domestic pricing decline[12](index=12&type=chunk) - Acetone spread over refinery grade propylene costs anticipated to be lower year-over-year, but expected to remain near cycle averages[12](index=12&type=chunk) - Expect Capital Expenditures of **$135 to $145 million** in 2025, reflecting the planned progression of the SUSTAIN growth program, and refined execution timing to address critical enterprise risk mitigation[12](index=12&type=chunk) - Continue to expect pre-tax income impact of plant turnarounds to be **$25 to $30 million** in 2025 versus approximately **$58 million** in 2024[12](index=12&type=chunk) [Other Corporate Information](index=3&type=section&id=Other%20Corporate%20Information) [Sustainability Initiatives](index=3&type=section&id=Sustainability%20Initiatives) AdvanSix released its 2024 Sustainability Report and received a 2025 EcoVadis Gold rating for corporate social responsibility - Released its 2024 Sustainability Report[10](index=10&type=chunk) - Awarded a 2025 Gold rating for corporate social responsibility from EcoVadis, placing the company in the top three percent of all companies assessed[10](index=10&type=chunk) [Dividend Declaration](index=4&type=section&id=Dividend%20Declaration) The Board of Directors declared a quarterly cash dividend of $0.16 per share, payable August 26, 2025, to stockholders of record on August 12, 2025 - The Board of Directors declared a quarterly cash dividend of **$0.16 per share** on the Company's common stock[13](index=13&type=chunk) - The dividend is payable on August 26, 2025, to stockholders of record as of the close of business on August 12, 2025[13](index=13&type=chunk) [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) AdvanSix hosted an investor conference call on August 1, 2025, at 9:30 a.m. ET to discuss results, with webcast and replay details provided - AdvanSix discussed its results during an investor conference call on August 1, 2025, starting at 9:30 a.m. ET[14](index=14&type=chunk) - The live webcast and related presentation materials are accessible at http://investors.advansix.com, with a replay available until August 8, 2025[14](index=14&type=chunk) [About AdvanSix](index=4&type=section&id=About%20AdvanSix) AdvanSix is a diversified chemistry company with five U.S. manufacturing facilities, producing essential materials for various end markets including nylon solutions, plant nutrients, and chemical intermediates - AdvanSix is a diversified chemistry company that produces essential materials for customers in a wide variety of end markets and applications[15](index=15&type=chunk) - Operates an integrated value chain of five U.S.-based manufacturing facilities, playing a critical role in global supply chains[15](index=15&type=chunk) - Delivers products in the industries of nylon solutions, plant nutrients, and chemical intermediates, serving markets such as building and construction, fertilizers, agrochemicals, plastics, and electronics[15](index=15&type=chunk) [Contacts](index=5&type=section&id=Contacts) Contact information for media and investors is provided, including names, phone numbers, and email addresses Contacts | Contacts | Media | Investors | | :------- | :---- | :-------- | | Name | Janeen Lawlor | Adam Kressel | | Phone | (973) 526-1615 | (973) 526-1700 | | Email | janeen.lawlor@advansix.com | adam.kressel@advansix.com | [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $1,646.4 million, total liabilities $822.7 million, and total stockholders' equity $823.7 million Condensed Consolidated Balance Sheets (Dollars in thousands) | Metric | June 30, 2025 ($ in Thousands) | December 31, 2024 ($ in Thousands) | | :-------------------------------- | :------------ | :---------------- | | **ASSETS** | | | | Total current assets | $434,176 | $387,116 | | Property, plant and equipment – net | 936,309 | 917,858 | | Total assets | $1,646,402 | $1,594,920 | | **LIABILITIES** | | | | Total current liabilities | $321,067 | $357,103 | | Line of credit – long-term | 240,000 | 195,000 | | Total liabilities | 822,670 | 820,270 | | **STOCKHOLDERS' EQUITY** | | | | Total stockholders' equity | 823,732 | 774,650 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For 2Q25, sales were $410 million, net income $31.4 million, and diluted EPS $1.15; for the six months, net income was $54.7 million and diluted EPS $2.01 Condensed Consolidated Statements of Operations (Dollars in thousands, except per share) | Metric | Three Months Ended June 30, 2025 ($ in Thousands, Except EPS) | Three Months Ended June 30, 2024 ($ in Thousands, Except EPS) | Six Months Ended June 30, 2025 ($ in Thousands, Except EPS) | Six Months Ended June 30, 2024 ($ in Thousands, Except EPS) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sales | $410,022 | $453,479 | $787,813 | $790,308 | | Net income | $31,371 | $38,927 | $54,715 | $21,531 | | Diluted Earnings per common share | $1.15 | $1.43 | $2.01 | $0.79 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For 2Q25, operating cash flow was $21.1 million, investing cash flow $(31.4) million, and financing cash flow $20.4 million; six-month operating cash flow was $32.6 million Condensed Consolidated Statements of Cash Flows (Dollars in thousands) | Metric | Three Months Ended June 30, 2025 ($ in Thousands) | Three Months Ended June 30, 2024 ($ in Thousands) | Six Months Ended June 30, 2025 ($ in Thousands) | Six Months Ended June 30, 2024 ($ in Thousands) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $21,110 | $50,200 | $32,553 | $13,998 | | Net cash used for investing activities | $(31,424) | $(35,812) | $(68,218) | $(72,619) | | Net cash provided by (used for) financing activities | $20,416 | $(22,916) | $34,547 | $40,958 | | Net change in cash and cash equivalents | $10,102 | $(8,528) | $(1,118) | $(17,663) | [Non-GAAP Financial Measures Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliations) [Reconciliation of Free Cash Flow](index=9&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) 2Q25 free cash flow was $(7.2) million, a decrease from $16.7 million YoY, while the six-month free cash flow improved to $(29.8) million Free Cash Flow Reconciliation (Dollars in thousands) | Metric | Three Months Ended June 30, 2025 ($ in Thousands) | Three Months Ended June 30, 2024 ($ in Thousands) | Six Months Ended June 30, 2025 ($ in Thousands) | Six Months Ended June 30, 2024 ($ in Thousands) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $21,110 | $50,200 | $32,553 | $13,998 | | Expenditures for property, plant and equipment | (28,265) | (33,495) | (62,327) | (68,883) | | **Free cash flow** | **$(7,155)** | **$16,705** | **$(29,774)** | **$(54,885)** | - Free cash flow is defined as Net cash provided by operating activities less Expenditures for property, plant and equipment, and is considered useful for evaluating the ability to generate cash flow from business operations and its impact on liquidity[30](index=30&type=chunk) [Reconciliation of Adjusted EBITDA and Adjusted EPS](index=9&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20and%20Adjusted%20EPS) 2Q25 Adjusted EBITDA decreased to $55.7 million (13.6% margin) and Adjusted Diluted EPS to $1.24; six-month Adjusted EBITDA increased to $107.3 million (13.6% margin) and Adjusted Diluted EPS to $2.17 Adjusted EBITDA and Adjusted EPS Reconciliation (Dollars in thousands, except per share) | Metric | Three Months Ended June 30, 2025 ($ in Thousands, Except EPS) | Three Months Ended June 30, 2024 ($ in Thousands, Except EPS) | Six Months Ended June 30, 2025 ($ in Thousands, Except EPS) | Six Months Ended June 30, 2024 ($ in Thousands, Except EPS) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $31,371 | $38,927 | $54,715 | $21,531 | | Adjusted Net income (non-GAAP) | 33,732 | 42,090 | 59,156 | 26,972 | | **Adjusted EBITDA (non-GAAP)** | **$55,675** | **$78,141** | **$107,301** | **$78,736** | | Sales | $410,022 | $453,479 | $787,813 | $790,308 | | **Adjusted EBITDA Margin (non-GAAP)** | **13.6%** | **17.2%** | **13.6%** | **10.0%** | | **Adjusted EPS - Diluted (non-GAAP)** | **$1.24** | **$1.55** | **$2.17** | **$0.99** | - Non-GAAP financial measures are presented to provide meaningful supplemental information for evaluating operating performance, enhancing understanding of financial performance, and facilitating comparison among fiscal periods and competitors, as they exclude items not considered core to the Company's operations[32](index=32&type=chunk) [Appendix](index=11&type=section&id=Appendix) [Planned Plant Turnaround Schedule](index=11&type=section&id=Planned%20Plant%20Turnaround%20Schedule) The appendix outlines the pre-tax income impact of planned plant turnarounds, with an estimated $25-30 million impact for 2025, primarily from Sulfuric Acid operations Planned Plant Turnaround Schedule (Pre-tax income impact, Dollars in millions) | Year | 1Q | 2Q | 3Q | 4Q | FY | Primary Unit Operation | | :--- | :-- | :-- | :-- | :-- | :-- | :--------------------- | | 2024 | ~$5 | ~$3 | ~$3 | ~$47 | ~$58 | Ammonia | | 2025E | ~$5 | ~$6 | — | $14-$19 | $25-$30 | Sulfuric Acid | - The pre-tax income impact primarily reflects fixed cost absorption, maintenance expense, and the purchase of feedstocks normally manufactured by the Company[37](index=37&type=chunk) - The 2024 impact included an incremental approximately **$17 million** unfavorable impact due to additional required maintenance at the Hopewell plant, leading to reduced production and delayed ramp-up to full operating rates[37](index=37&type=chunk) [Legal Disclaimers](index=4&type=section&id=Legal%20Disclaimers) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to various risks and uncertainties, including economic conditions, geopolitical concerns, and supply chain issues, with no obligation to update - The release contains forward-looking statements that involve known and unknown risks, uncertainties, and other factors, many beyond the company's control, which may cause actual results to differ materially[16](index=16&type=chunk) - Risks and uncertainties include general economic and financial conditions, inflationary pressures, geopolitical concerns (e.g., Russia-Ukraine, Israel-Gaza-Iran conflicts), labor market shortages, supply chain issues, raw material price fluctuations, and operational disruptions[16](index=16&type=chunk) - Investors are cautioned not to place undue reliance on these statements, which speak only as of the release date, and the company does not undertake to update or revise any forward-looking statements[17](index=17&type=chunk) [Non-GAAP Measures Explanation](index=5&type=section&id=Non-GAAP%20Measures%20Explanation) Non-GAAP financial measures are provided as supplemental information, not replacements for GAAP, with reconciliations included and a caution on comparability with other companies - Non-GAAP financial measures are intended to supplement, not act as substitutes for, comparable GAAP measures[18](index=18&type=chunk) - Reconciliations of non-GAAP financial measures to GAAP financial measures are provided, and investors are urged to consider carefully the comparable GAAP measures and the reconciliations[18](index=18&type=chunk) - Non-GAAP measures in this press release may be calculated in a way that is not comparable to similarly-titled measures reported by other companies[18](index=18&type=chunk)

Group 1 - AdvanSix Inc. (NYSE: ASIX) is trading at low multiples due to the cyclical nature of its revenue and the industry it operates in, which is considered one of the worst in US markets [1] - The market is believed to be mispricing AdvanSix, indicating potential undervaluation [1] Group 2 - The analysis is grounded in a mix of financial education, including CFA studies and valuation books, focusing on fundamental analysis while considering other relevant perspectives [1] - The investment research approach is primarily bottom-up, covering sectors such as utilities, consumer discretionary, consumer staples, REITs, and materials across the Americas [1] - The focus is on stocks with a mid-term return perspective, specifically within a 1 to 3-year timeframe [1]

Sales and Revenue - Sales for the three months ended March 31, 2025, increased by $41.0 million (approximately 12.2%) compared to the prior year period, driven by a 7.4% increase in volume and a 4.8% increase in price [82]. - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion for Q1 2025 [141]. - The company provided a forward guidance of 10% revenue growth for the next quarter, projecting $1.32 billion in revenue [141]. - New product launches contributed to 25% of total revenue, with significant demand for the latest software solutions [141]. - Market expansion efforts resulted in a 30% increase in sales in the Asia-Pacific region [141]. Costs and Expenses - Costs of goods sold decreased by $9.5 million (approximately 2.9%) for the same period, primarily due to insurance proceeds from the PES supplier shutdown and improved operational performance [83]. - Selling, general and administrative expenses decreased slightly to $23.4 million in Q1 2025, representing 6.2% of sales compared to 7.0% in Q1 2024 [85]. - Cash used for investing activities remained approximately flat at $36.8 million for the three months ended March 31, 2025, compared to the prior year period [115]. Profitability - The gross margin percentage for the three months ended March 31, 2025, was 14.2%, reflecting a 0.9% increase compared to the prior year [83]. - Gross margin percentage increased by approximately 13% for the three months ended March 31, 2025, driven by insurance proceeds (7%), decreased plant costs (5%), and increased sales volume (3%) [84]. - The gross margin improved to 45%, up from 40% in the previous quarter, reflecting better cost management [141]. - Net income for the three months ended March 31, 2025, was $23.3 million, a significant improvement from a net loss of $17.4 million in the prior year period [89]. - Adjusted EBITDA for Q1 2025 was $51.6 million, with an Adjusted EBITDA Margin of 13.7%, compared to only $595,000 and 0.2% in Q1 2024 [93]. Cash Flow and Financing - Cash provided by operating activities increased by $47.6 million for the three months ended March 31, 2025, primarily due to a $40.7 million increase in net income [114]. - Cash provided by financing activities decreased by $49.7 million for the three months ended March 31, 2025, due to net borrowings of $20 million compared to $75 million in the prior year [116]. - The Company had a net change in cash and cash equivalents of $(11.2 million) for the three months ended March 31, 2025 [114]. - The Company had a borrowed balance of $215 million under the Revolving Credit Facility as of March 31, 2025, with available credit of approximately $284 million [113]. - The Company is required to maintain a Consolidated Interest Coverage Ratio of not less than 3.00 to 1.00 and a Consolidated Leverage Ratio of 3.75 to 1.00 or less [112]. Investments and Capital Expenditures - Capital expenditures are expected to be between $145 million and $155 million in 2025, up from $134 million in 2024, reflecting ongoing investments in the SUSTAIN growth program [97]. - The Company has the option to increase the Revolving Credit Facility by up to $175 million, subject to certain conditions [108]. - The company invested $50 million in R&D for new technologies aimed at enhancing user experience [141]. Market and Strategic Initiatives - The company is the world's largest single-site producer of ammonium sulfate fertilizer as of March 31, 2025, leveraging its integrated operations at the Hopewell manufacturing facility [74]. - The company’s SUSTAIN program has supported higher ammonium sulfate sales, reflecting favorable North American supply and demand conditions [82]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of $100 million allocated for this purpose [141]. - A new strategic partnership was announced, expected to drive a 15% increase in market share over the next year [141]. - The U.S. Department of Commerce initiated a five-year review of anti-dumping orders on acetone imports, which may impact the company's operations [79]. Tax and Compliance - The effective tax rate for Q1 2025 was 19.3%, down from 25.7% in Q1 2024, primarily due to the impact of IRC Section 45Q tax credits [86][87]. - The company continues to monitor potential new tax legislation that could materially impact its financial statements [88]. - The Company was in compliance with all covenants under the Credit Agreement as of March 31, 2025 [112]. Shareholder Returns - The company has repurchased a total of 6,305,561 shares for $193.9 million at an average price of $30.75 per share, with $62.0 million remaining for future repurchases [100]. - Dividends of $0.16 per share were declared for the periods ending May 27, 2025, and March 24, 2025, totaling approximately $4.3 million each [105].

Financial Data and Key Metrics Changes - Sales for the first quarter of 2025 were $378 million, representing a 12% increase year-over-year [11] - Sales volume increased by approximately 7%, driven by improved operational performance and higher granular ammonium sulfate sales [11] - Adjusted EBITDA was $52 million with an adjusted EBITDA margin of 13.7% [12] - Adjusted earnings per share increased to $0.93, up $1.49 compared to the prior year [12] - Free cash flow was negative $23 million, an improvement of $49 million year-over-year [13] Business Line Data and Key Metrics Changes - In the Plant Nutrients segment, ammonium sulfate prices increased by 34% year-over-year, supported by higher energy costs and tighter supply-demand conditions [18] - The nylon business experienced a slow start but saw orders and pricing pick up, with stable domestic demand amid macroeconomic factors [21] - In Chemical Intermediates, acetone prices declined sequentially and year-over-year, but remained above cycle averages [24] Market Data and Key Metrics Changes - The North American corn planting season is expected to reach 95 million acres, supporting strong nutrient demand [19] - Domestic nylon demand remained stable, but global oversupply conditions continued to pressure pricing [22] - Acetone demand is expected to improve in the second quarter following downstream turnarounds and seasonal improvements [25] Company Strategy and Development Direction - The company is focused on operational excellence and maintaining high utilization rates to capture competitive cost advantages [6] - Continued investment in growth and enterprise initiatives is aimed at sustainably improving through-cycle profitability [9] - The company is well-positioned as a U.S.-based manufacturer aligned with domestic supply chains and energy markets [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying industry fundamentals supporting nutrient demand despite higher raw material prices [19] - The company is navigating a dynamic environment while focusing on cash flow management and disciplined investments [30] - Management highlighted the importance of maintaining a healthy balance sheet to enable strategic capital allocation [30] Other Important Information - The company received approximately $39 million in aggregated insurance proceeds related to the 2019 PES cumene supplier shutdown [9] - Capital expenditures for 2025 are forecasted to be between $145 million and $155 million, with a focus on maintaining operational safety and sustainability [16] Q&A Session Summary Question: Tactical moves in response to uncertainty - Management indicated that they are focused on delivering for customers and right-sizing inventory buffers without increasing inventory levels [38][39] Question: Assurance of sulfur supply - Management stated that they have a broad supply mix for sulfur and anticipate that supply will be ample for their needs [42] Question: Outlook for ammonium sulfate post-spring demand - Management confirmed a robust order book and expects record volume for the fertilizer year, with a focus on domestic demand growth [66] Question: Nylon market share and tariffs - Management noted that while tariffs could lead to higher costs, they are monitoring the engineering plastic demand closely and focusing on execution [61][62] Question: CapEx and acquisition opportunities - Management expressed interest in evaluating inorganic opportunities as they expect to bring base CapEx back in line after completing larger projects [69]

Financial Data and Key Metrics Changes - Sales for the first quarter of 2025 were $378 million, representing a 12% increase year-over-year, with sales volume up approximately 7% driven by improved operational performance and higher granular ammonium sulfate sales [9][10] - Adjusted EBITDA was $52 million with an adjusted EBITDA margin of 13.7%, while adjusted earnings per share increased to $0.93, up $1.49 from the prior year [10][11] - Free cash flow was negative $23 million, an improvement of $49 million compared to the prior year, with cash flow from operations increasing by $48 million [11][12] Business Line Data and Key Metrics Changes - In the Plant Nutrients segment, nitrogen fertilizer pricing increased amid higher energy costs, with ammonium sulfate prices up 34% year-over-year [16][17] - The nylon business experienced a slow start but saw orders and pricing pick up, supported by lower benzene costs [20][21] - Chemical Intermediates faced declining acetone prices due to higher input costs, but demand is expected to improve as downstream turnarounds complete [23][24] Market Data and Key Metrics Changes - The North American corn planting season is expected to reach 95 million acres, supporting strong demand for ammonium sulfate [18][19] - Domestic nylon demand remained stable, but global oversupply conditions continue to pressure pricing [22][23] - The chemical intermediates market is mixed, with demand across ag chemicals, electronics, and European paints and coatings remaining varied [24] Company Strategy and Development Direction - The company is focused on operational excellence and maintaining high utilization rates to capture competitive cost advantages [6][7] - Continued investment in growth and enterprise initiatives is aimed at sustainably improving through-cycle profitability [7][14] - The company is well-positioned as a U.S.-based manufacturer aligned with domestic supply chains and energy markets [8][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current dynamic environment and emphasized the importance of cash flow management [28] - The company is monitoring potential impacts on demand across end markets and is focused on delivering on controllable factors [28] - There is optimism regarding the growth prospects in the Plant Nutrients business, particularly with the anticipated increase in corn acreage [19][20] Other Important Information - The company received approximately $39 million in insurance proceeds related to the 2019 PES cumene supplier shutdown, with a final settlement of $26 million in Q1 2025 [7][10] - The company is maintaining a healthy balance sheet and ample liquidity to support reinvestment and growth [13][14] Q&A Session Summary Question: Tactical moves in response to uncertainty - Management indicated that they are focused on delivering for customers and managing inventory levels without significantly increasing them [35][36] Question: Concerns about sulfur supply - Management stated that supply-demand conditions for sulfur are balanced, and they have a broad vendor mix to ensure supply [39] Question: Outlook for ammonium sulfate post-spring demand - Management confirmed that they are focused on maximizing granular sales during the current season and will evaluate fundamentals as the season progresses [41][42] Question: Adjusting marketing emphasis for nylon amid demand weakness - Management clarified that they are focused on serving domestic demand and optimizing their product mix to navigate the current oversupply environment [44][45] Question: Patent infringement proceedings regarding EZ Block additives - Management provided an overview of the patent protection for their EZ Block product and the ongoing legal proceedings [49][50] Question: Market share opportunities due to tariffs on nylon - Management noted that while tariffs could impact costs, they are monitoring the situation closely and focusing on execution for the remainder of the year [58][60] Question: Ammonium sulfate volume expectations - Management anticipates a record volume for the fertilizer year, driven by robust planting and application rates [63][64] Question: CapEx and acquisition opportunities - Management indicated that they are looking to align CapEx with organic opportunities while evaluating potential inorganic opportunities as well [66]

Core Viewpoint - AdvanSix reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, and showing a significant improvement from a loss of $0.56 per share a year ago [1][2] Financial Performance - The company achieved revenues of $377.79 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 8.80% and increasing from $336.83 million year-over-year [2] - Over the last four quarters, AdvanSix has consistently surpassed consensus EPS estimates [2] Stock Performance - AdvanSix shares have declined approximately 25.2% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.37 on revenues of $431.3 million, and for the current fiscal year, it is $3.61 on revenues of $1.57 billion [7] - The trend of estimate revisions for AdvanSix has been unfavorable leading up to the earnings release [6] Industry Context - The Chemical - Specialty industry, to which AdvanSix belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8]

Financial Performance - 1Q25 Sales reached $378 million, a 12% increase compared to $337 million in 1Q24[6, 9] - Adjusted EBITDA for 1Q25 was $52 million, significantly up from $1 million in 1Q24[6, 9] - Adjusted EBITDA Margin improved to 13.7% in 1Q25, compared to 0.2% in 1Q24[6, 9] - Adjusted EPS for 1Q25 was $0.93, a substantial increase from $(0.56) in 1Q24[6, 9] - Net Income for 1Q25 was $23.3 million, compared to a loss of $17.4 million in 1Q24[7, 9] Key Drivers and Factors - Operational performance and insurance proceeds supported higher 1Q25 results[7] - The company received an omnibus insurance settlement of approximately $26 million in 1Q25 related to a 2019 PES supplier shutdown[7, 13] - Volume increased by 7% and price increased by 5%, with market-based pricing contributing 4% and raw materials pass-through contributing 1% to the sales increase[11] Market Outlook - Strong sulfur nutrition demand and tight North American ammonium sulfate supply are expected to support sulfur premiums[7, 20] - The company anticipates higher raw material prices impacting fertilizer margins[7, 20] - Global oversupply conditions are impacting industry pricing dynamics in the nylon market[7, 26]

Financial Performance - 1Q25 sales reached $378 million, a 12% increase compared to the prior year, driven by a 7% increase in volume and 4% favorable market-based pricing [2][5][8]. - Net income for 1Q25 was $23.3 million, an increase of $40.7 million year-over-year, with adjusted earnings per share of $0.93, up $1.49 from the previous year [5][11]. - Adjusted EBITDA for the quarter was $51.6 million, a significant increase of $51.0 million compared to the prior year, with an adjusted EBITDA margin of 13.7%, up 1,350 basis points [5][10]. - Total sales for Q1 2025 reached $377.791 million, a 12.1% increase from $336.829 million in Q1 2024 [25]. - Net income for Q1 2025 was $23.344 million, compared to a net loss of $17.396 million in Q1 2024, marking a significant turnaround [25]. - Adjusted EBITDA for Q1 2025 was $51.626 million, with an adjusted EBITDA margin of 13.7%, up from 0.2% in Q1 2024 [30]. - Basic earnings per share (EPS) for Q1 2025 was $0.87, compared to a loss per share of $(0.65) in Q1 2024 [31]. Cash Flow and Capital Expenditures - Cash flow from operations improved to $11.4 million, an increase of $47.6 million year-over-year, while free cash flow was ($22.6) million, an improvement of $49.0 million [5][11]. - Capital expenditures for 1Q25 were $34.1 million, a decrease of $1.3 million compared to the prior year, with expectations for total capital expenditures of $145 to $155 million in 2025 [5][15]. - The company reported a free cash flow of $(22.619) million for Q1 2025, an improvement from $(71.590) million in Q1 2024 [28]. - Cash and cash equivalents decreased to $8.344 million at the end of Q1 2025, down from $19.564 million at the end of Q4 2024 [27]. Assets and Liabilities - Total current assets increased to $418.182 million as of March 31, 2025, compared to $387.116 million at December 31, 2024 [24]. - Total liabilities rose to $831.606 million as of March 31, 2025, up from $820.270 million at December 31, 2024 [24]. Strategic Focus and Market Conditions - The company anticipates a pre-tax income impact of plant turnarounds to be $25 to $30 million in 2025, down from approximately $58 million in 2024 [15]. - Strong demand for sulfur nutrition and tight North American ammonium sulfate supply are expected to support sulfur premiums at or near the high end of historical ranges [15]. - The company is focused on disciplined cost and cash management while maintaining investments for sustainable long-term performance [13]. - The company continues to leverage its competitive position in nylon to navigate a protracted downturn in the cycle due to global oversupply conditions [15]. Dividends and Investments - A quarterly cash dividend of $0.16 per share was declared, payable on May 27, 2025 [14]. - The company plans to invest approximately $25-$30 million in sulfuric acid operations for FY 2025 [34]. - The company experienced an unfavorable impact of approximately $17 million to pre-tax income due to maintenance during a planned plant turnaround [36].

Core Viewpoint - AdvanSix Inc. reported a fourth-quarter earnings of $0.01 per share, a significant improvement from a loss of $0.19 in the same quarter last year, and adjusted earnings of $0.09 per share exceeded the Zacks Consensus Estimate of a loss of $0.37 [1][2] Financial Performance - Revenues for the fourth quarter were $329.1 million, down approximately 14% year over year, missing the Zacks Consensus Estimate of $377.2 million [2] - Sales volumes decreased around 16% primarily due to delayed ramp-up to full operating rates following a planned plant turnaround [2] - For the full year 2024, earnings were reported at $1.62 per share, down from $1.95 the previous year, with total sales falling about 1% year over year to approximately $1,517.6 million [4] Product Line Sales - Nylon sales were approximately $67.2 million, down around 14% year over year, below the consensus estimate of $81 million [3] - Caprolactam sales were around $57.2 million, down about 31% year over year, also below the consensus estimate of $77 million [3] - Chemical Intermediates sales remained flat year over year at $102.1 million, below the consensus estimate of $103 million [3] - Plant Nutrients sales fell roughly 14% year over year to around $102.6 million [3] Financial Position - AdvanSix ended the quarter with cash and cash equivalents of approximately $19.6 million, a decrease of about 34% year over year [5] - Long-term debt increased around 15% year over year to $195 million [5] - Cash flow from operations was $64 million for the quarter and $135.4 million for the full year 2024 [5] Market Outlook - The company anticipates strong demand for sulfur nutrition and tight ammonium sulfate supply in North America, which is expected to support sulfur premiums at or near historical highs [6] - Balanced global acetone supply and demand conditions are projected to maintain industry spreads above cycle averages [6] - A slower recovery is expected for the North American nylon industry due to stable end-market demand and increased domestic competition [6] Capital Expenditures - AdvanSix plans capital expenditures of $140-$160 million in 2025 [7] - The pre-tax income impact of plant turnarounds is expected to be $25-$30 million in 2025, compared to approximately $58 million in 2024 [7] Stock Performance - ASIX stock has gained 5.8% over the past year, contrasting with a 20.6% decline in the Zacks Chemicals Specialty industry [9]