Financial Data and Key Metrics Changes - Sales for Q2 2025 were $410 million, a decrease of approximately 10% compared to the prior year, with sales volume contributing approximately 8% to this change [10] - Adjusted EBITDA was $56 million, with an adjusted EBITDA margin of 13.6% [11] - Adjusted earnings per share were $1.24, and the effective tax rate was 0.9%, significantly lower than 25.2% in Q2 2024, primarily due to $8 million in 45Q tax credits claimed [11] - Cash flow from operations decreased by $29 million year-over-year to $21 million, mainly due to lower net income and timing of tax credits [12] Business Line Data and Key Metrics Changes - The Plant Nutrients business saw a 7% increase in domestic granular sales volume, supported by favorable ammonium sulfate supply and demand conditions [18] - Nylon sales volumes decreased by approximately 10%, while ammonium sulfate volumes increased by 7% [44] - In the chemical intermediates segment, acetone prices declined year-over-year, but margins remained healthy and in line with cycle averages [23] Market Data and Key Metrics Changes - Demand across the portfolio remained softer overall, with higher raw material prices impacting margins, particularly in natural gas and sulfur [6] - The North American fertilizer year runs from July to June, and the company anticipates a strong fall fill program supported by a robust order book [18] - Global operating rates in China have moderated, impacting trade flows and pricing improvement [22] Company Strategy and Development Direction - The company is focused on making necessary investments to support long-term performance, including upgrading its enterprise resource planning system [6] - The company aims to leverage its position as a U.S.-based manufacturer aligned with domestic supply chains and energy markets [7] - The strategic focus includes optimizing fixed cost structures and enhancing production output in profitable areas [28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the diversified nature of the portfolio and the strength of being a U.S.-based manufacturer [39] - The company is navigating a dynamic environment with structural tariffs in place, which provides insulation from first-order impacts [28] - Management remains confident in the growth prospects and long-term value delivery to shareholders [62] Other Important Information - The company claimed an additional $8 million in 45Q carbon capture tax credits in Q2, bringing the total to nearly $20 million for the 2018-2020 tax periods [7] - The company has reduced its capital expenditure forecast for the year to a range of $135 million to $145 million [6] Q&A Session Summary Question: Insights on the ammonium sulfate business and pricing relationships - Management noted a strong fertilizer year with a 7% increase in sales volume and a robust order book supporting the fall fill program, expecting similar pricing relationships to previous years [33][36] Question: Chemical industry environment and profitability outlook - Management acknowledged a dynamic operating environment but remains cautiously optimistic due to the diversified portfolio and integrated business model, which supports pricing stability [39][42] Question: Strategies for maintaining high utilization rates in nylon production - Management emphasized the importance of an integrated value chain and selective export strategies to maintain utilization rates and navigate current market dynamics [46][48] Question: Cash flow improvement expectations and timing of carbon tax credit cash flows - Management expects sequential improvement in cash flow in the second half of the year, driven by 45Q tax credits and the ammonium sulfate pre-buy program [52][56]

August 1, 2025 2Q 2025 Earnings Presentation Forward Looking Statements This presentation contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or developments that our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking st ...