What changed in this filing

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Item 1. Financial Statements

2025-05-02 compared with 2024-11-01 · 97 added, 159 removed, 280 unchanged (48% of the section changed)

4 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Sales $ 377,791 $ 336,829

19 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Net income (loss) $ 23,344 $ ( 17,396 )

7 unchanged sentences

(Dollars in thousands, except share and per share amounts)

September 30,

2025 December 31,

22 unchanged sentences

Line of credit – long-term 215,000 195,000

Postretirement benefit obligations 7,048 3,660

Other liabilities 10,877 11,468

4 unchanged sentences

200,000,000 shares authorized;

32,982,868 shares issued and 26,730,739 outstanding at September 30, 2024;

33,113,379 shares issued and 26,807,818 outstanding at March 31, 2025;

32,989,165 shares issued and 26,737,036 outstanding at December 31, 2024

Preferred stock, par value $ 0.01 ;

50,000,000 shares authorized and 0 shares issued and outstanding at September 30, 2024 and December 31, 2023

Treasury stock at par ( 6,252,129 shares at September 30, 2024;

50,000,000 shares authorized and 0 shares issued and outstanding at March 31, 2025 and December 31, 2024

Treasury stock at par ( 6,305,561 shares at March 31, 2025;

6,252,129 shares at December 31, 2024)

2 unchanged sentences

Retained earnings 650,435 631,541

Accumulated other comprehensive loss ( 4,203 ) ( 4,144 )

Accumulated other comprehensive income 5,988 5,970

Total stockholders' equity 794,368 774,650

4 unchanged sentences

(Dollars in thousands)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from operating activities:

Net income $ 43,797 $ 59,705

Adjustments to reconcile net income to net cash provided by operating activities:

Net income (loss) $ 23,344 $ ( 17,396 )

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

Depreciation and amortization 19,178 19,102

Loss on disposal of assets 415 939

(Gain) loss on disposal of assets ( 210 ) 89

Deferred income taxes 4,054 1,108

1 unchanged sentence

Amortization of deferred financing fees 155 155

Operational asset adjustments 1,200 ( 4,472 )

Changes in assets and liabilities, net of business acquisitions:

7 unchanged sentences

Other assets and liabilities 1,619 4,346

Net cash provided by operating activities 71,248 57,381

Net cash provided by (used for) operating activities 11,443 ( 36,202 )

Cash flows from investing activities:

4 unchanged sentences

Borrowings from line of credit 118,500 184,500

Payments of line of credit ( 266,500 ) ( 316,000 )

Repayments of line of credit ( 98,500 ) ( 109,500 )

Principal payments of finance leases ( 247 ) ( 239 )

18 unchanged sentences

Balance at December 31, 2024 32,989,165 $ 330 $ 136,872 $ 631,541 $ ( 63 ) $ 5,970 $ 774,650

Net loss — — — ( 17,396 ) — — ( 17,396 )

Net income — — — 23,344 — — 23,344

Comprehensive income

1 unchanged sentence

Cash-flow hedges — — — — — 7 7

Other comprehensive loss, net of tax — — — — — ( 8 ) ( 8 )

Other comprehensive income, net of tax — — — — — 18 18

Issuance of common stock 124,214 1 153 — — — 154

4 unchanged sentences

Balance at March 31, 2025 33,113,379 $ 331 $ 137,677 $ 650,435 $ ( 63 ) $ 5,988 $ 794,368

Net income — — — 38,927 — — 38,927

Comprehensive income

Foreign exchange translation adjustments — — — — — ( 27 ) ( 27 )

Other comprehensive loss, net of tax — — — — — ( 27 ) ( 27 )

Issuance of common stock 36,653 1 — — — — 1

Purchase of treasury stock ( 141,242 shares)

— — ( 3,360 ) — ( 2 ) — ( 3,362 )

Stock-based compensation — — 2,193 — — — 2,193

Dividends — — 130 ( 4,422 ) — — ( 4,292 )

Balance at June 30, 2024 32,959,588 330 132,786 617,723 ( 63 ) ( 4,179 ) 746,597

Net income — — — 22,266 — — 22,266

Comprehensive income

Foreign exchange translation adjustments — — — — — ( 24 ) ( 24 )

Other comprehensive loss, net of tax — — — — — ( 24 ) ( 24 )

Issuance of common stock 23,280 — 328 — — — 328

Purchase of treasury stock ( 1,948 shares)

— — ( 42 ) — — — ( 42 )

Stock-based compensation — — 1,559 — — — 1,559

Dividends — — 104 ( 4,380 ) — — ( 4,276 )

Balance at September 30, 2024 32,982,868 $ 330 $ 134,735 $ 635,609 $ ( 63 ) $ ( 4,203 ) $ 766,408

ADVANSIX INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Dollars in thousands)

Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Total Equity

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Balance at December 31, 2023 32,598,946 $ 326 $ 138,046 $ 605,067 $ ( 58 ) $ ( 4,144 ) $ 739,237

Net income — — — 34,954 — — 34,954

Net loss — — — ( 17,396 ) — — ( 17,396 )

Comprehensive income

8 unchanged sentences

Balance at March 31, 2024 32,922,935 $ 329 $ 133,823 $ 583,218 $ ( 61 ) $ ( 4,152 ) $ 713,157

Net income — — — 32,728 — — 32,728

Comprehensive income

Foreign exchange translation adjustments — — — — — ( 125 ) ( 125 )

Other comprehensive loss, net of tax — — — — — ( 125 ) ( 125 )

Issuance of common stock 45,020 1 122 — — — 123

Purchase of treasury stock ( 410,862 shares)

— — ( 14,881 ) — ( 5 ) — ( 14,886 )

Stock-based compensation — — 2,436 — — — 2,436

Dividends — — 198 ( 4,182 ) — — ( 3,984 )

Balance at June 30, 2023 32,577,862 326 151,706 626,885 ( 53 ) ( 4,505 ) 774,359

Net income loss — — — ( 7,977 ) — — ( 7,977 )

Comprehensive income —

Foreign exchange translation adjustments — — — — — 197 197

Other comprehensive income, net of tax — — — — — 197 197

Issuance of common stock 19,153 — 131 — — — 131

Purchase of treasury stock ( 266,959 shares)

— — ( 9,264 ) — ( 2 ) — ( 9,266 )

Stock-based compensation — — 1,391 — — — 1,391

Dividends — — 1 ( 4,351 ) — — ( 4,350 )

Balance at September 30, 2023 32,597,015 $ 326 $ 143,965 $ 614,557 $ ( 55 ) $ ( 4,308 ) $ 754,485

See accompanying notes to Condensed Consolidated Financial Statements.

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GAAP for complete financial statements.

In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of September 30, 2024, and its results of operations for the three and nine months ended September 30, 2024 and 2023 and cash flows for the nine months ended September 30, 2024 and 2023.

In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of March 31, 2025, and its results of operations for the three months ended March 31, 2025 and 2024 and cash flows for the three months ended March 31, 2025 and 2024.

The year-end Condensed Consolidated Balance Sheet data was derived from audited financial statements but does not include all disclosures required by U.S.

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In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we will provide the appropriate disclosures.

Our actual closing dates for the three and nine months ended September 30, 2024 and 2023 were September 28, 2024 and September 30, 2023, respectively.

Liabilities to creditors to whom we have issued checks that remained outstanding at September 30, 2024 and December 31, 2023 aggregated to $ 2.4 million and $ 2.9 million, respectively, and were included in Cash and cash equivalents and Accounts payable in the Condensed Consolidated Balance Sheets.

The Company's Board of Directors (the "Board") has authorized share repurchase programs to repurchase shares of the Company's common stock as follows:

Date of Authorization Authorized Amount

Authorized Amount Remaining as of September 30, 2024

May 4, 2018 $ 75.0 $ —

February 22, 2019 75.0 —

February 17, 2023 75.0 62.0

Totals $ 225.0 $ 62.0

Repurchases may be made from time to time on the open market in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including through the use of trading plans intended to qualify under Rule

Our actual closing dates for the three months ended March 31, 2025 and 2024 were March 29, 2025 and March 30, 2024, respectively.

Liabilities to creditors to whom we have issued checks that remained outstanding at March 31, 2025 and December 31, 2024 aggregated to $ 4.5 million and $ 7.3 million, respectively, and were included in Cash and cash equivalents and Accounts payable in the Condensed Consolidated Balance Sheets.

The Company previously reported a business impact associated with the June 2019 fire that shut down the Philadelphia Energy Solutions (“PES”) refinery in Philadelphia, Pennsylvania.

The Company actively pursued a business interruption claim and reached a final omnibus settlement in January 2025 which resulted in insurance settlement proceeds of approximately $ 26 million in the first quarter of 2025.

The total aggregate insurance proceeds since the original claim submission are approximately $ 39 million.

The business interruption insurance proceeds received were primarily related to the recovery of increased raw material and logistics costs.

The proceeds have been recognized as a reduction to Cost of Goods Sold on the Condensed Consolidated Statements of Operations in the periods in which they were received.

On February 17, 2023, the Company's Board of Directors (the "Board") authorized a share repurchase program to repurchase shares of the Company's common stock.

As of March 31, 2025, the Company has repurchased a total of 6,305,561 shares of common stock, including 1,060,105 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $ 193.9 million at a weighted average market price of $ 30.75 per share.

As of March 31, 2025, approximately $ 62.0 million remained available for share repurchases under the current authorization.

During the period April 1, 2025 through April 25, 2025, 2,538 additional shares were repurchased for tax withholding obligations in connection with the vesting of equity awards at a weighted average market price of $ 20.05 and no additional shares were repurchased under the currently authorized repurchase program.

ADVANSIX INC.

1 unchanged sentence

(Dollars in thousands, except share and per share amounts and as otherwise noted)

10b5-1 of the Exchange Act.

The size and timing of these repurchases will depend on pricing, market and economic conditions, legal and contractual requirements and other factors.

1 unchanged sentence

The par value of the shares repurchased is applied to Treasury stock and the excess of the purchase price over par value is applied to Additional paid-in capital.

As of September 30, 2024, the Company has repurchased a total of 6,252,129 shares of common stock, including 1,006,673 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $ 192.4 million at a weighted average market price of $ 30.78 per share.

As of September 30, 2024, $ 62.0 million remained available for share repurchases under the current authorization.

During the period October 1, 2024 through October 25, 2024, no additional shares were repurchased for tax withholding obligations or under the currently authorized repurchase program.

Recent Accounting Pronouncements

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ASUs not discussed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations.

On December 13, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses.

The amendments in this ASU require disclosure, in the notes to the financial statements, of specified information about certain costs and expenses.

The amendments require that at each interim and annual reporting period an entity will:

(1) disclose the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil-and gas-producing activities (or other amounts of depletion expense) included in each relevant expense caption.

A relevant expense caption is an expense caption presented on the face of the income statement within continuing operations that contains any of the expense categories listed in (a)-(e);

(2) include certain amounts that are already required to be disclosed under current generally accepted accounting principles (GAAP) in the same disclosure as other disaggregation requirements;

(3) disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively;

and (4) disclose the total amount of selling expense and, in annual reporting periods, an entity's definition of selling expense.

The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.

Early adoption is permitted.

The amendments in this ASU should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to any or all prior periods presented in the financial statements.

The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

3 unchanged sentences

Additionally, the amendments in this update eliminate the requirement for all entities to disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months or to make a statement that an estimate of the range cannot be made, and remove the requirement to disclose the cumulative amount of each type of temporary difference when a deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures.

The guidance is effective for public business entities for annual periods beginning after December 15, 2024.

Early adoption of the amendments in this update are permitted for annual financial statements that have not yet been issued.

The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280).

The amendments in this ASU require incremental disclosures about the Company's reportable segments, but do not change the definition of a segment or the guidance for determining reportable segments.

The incremental disclosures should include (1) significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, (2) an amount for other segment items by reportable segment and a description of its composition, (3) profit or loss and assets currently required by Topic 280 in interim periods, (4) clarification if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources and (5) the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources.

The guidance is effective for public entities with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

Additionally, public entities should apply the amendments retrospectively to all prior periods presented in the financial statements, unless impractical.

The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations.

This pronouncement is effective for annual periods beginning after December 31, 2024 and the required disclosures will be adopted in the Company's annual report on Form 10-K for the year ended December 31, 2025.

Revenue Recognition

AdvanSix serves around 400 customers annually, primarily in the United States, spanning a wide variety of industries worldwide.

For each of the three months ended September 30, 2024 and 2023, the Company's ten largest customers accounted for approximately 41 % of total sales.

For the nine months ended September 30, 2024 and 2023, the Company's ten largest customers accounted for approximately 38 % and 39 % of total sales, respectively.

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

For the three months ended March 31, 2025 and 2024, the Company's ten largest customers accounted for approximately 38 % and 37 % of total sales, respectively.

We typically sell to customers under master service agreements, with primarily one-year terms, or by purchase orders.

2 unchanged sentences

(“Shaw”), a significant consumer of caprolactam and Nylon 6 resin, to whom we sell under a long-term agreement.

For the three months ended September 30, 2024 and 2023 the Company's sales to Shaw were 10 % and 12 % of our total sales, respectively.

For the nine months ended September 30, 2024 and 2023, the Company's sales to Shaw were 9 % and 11 % of our total sales, respectively.

The Company's revenue by product line, and related approximate percentage of total sales, for the three and nine months ended September 30, 2024 and 2023 were as follows:

For the three months ended March 31, 2025 and 2024, the Company's sales to Shaw were 10 % and 9 % of our total sales, respectively.

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except share and per share amounts and as otherwise noted)

The Company's revenue by product line, and related approximate percentage of total sales, for the three months ended March 31, 2025 and 2024 were as follows:

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Nylon $ 88,369 23 % $ 84,389 25 %

Caprolactam 67,432 18 % 61,476 18 %

Ammonium Sulfate * 107,668 27 % 79,067 24 % 332,604 28 % 332,224 29 %

Plant Nutrients 128,240 34 % 94,696 28 %

Chemical Intermediates 93,750 25 % 96,268 29 %

Total $ 377,791 100 % $ 336,829 100 %

* The previously reported amounts have been corrected for a misclassification which overstated Ammonium Sulfate and understated Chemical Intermediates by $ 5.5 million ( 2 %) and $ 26.6 million ( 2 %) for the three and nine months ended September 30, 2023, respectively.

* The Company transferred certain products between its Chemical Intermediates product line and its Plant Nutrients product line to align more closely with its current sales structure.

Historical information has been reclassified to reflect these changes for all periods presented in the Consolidated Financial Statements.

Total revenue amounts were not impacted for either period.

The Company's revenues by geographic area, and related approximate percentage of total sales, for the three and nine months ended September 30, 2024 and 2023 were as follows:

The Company's revenues by geographic area, and related approximate percentage of total sales, for the three months ended March 31, 2025 and 2024 were as follows:

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

United States $ 320,447 85 % $ 284,587 84 %

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The Company defers revenues when cash payments are received in advance of our performance.

Below is a roll-forward of Deferred income and customer advances for the nine months ended September 30, 2024:

Below is a roll-forward of Deferred income and customer advances for the three months ended March 31, 2025:

Opening balance January 1, 2025 $ 37,538

1 unchanged sentence

Less amounts recognized in revenues ( 10,956 )

Ending balance September 30, 2024 $ 1,517

The Company expects to recognize as revenue the September 30, 2024 ending balance of Deferred income and customer advances within one year or less.

Ending balance March 31, 2025 $ 26,582

The Company expects to recognize as revenue the March 31, 2025 ending balance of Deferred income and customer advances within one year or less.

Earnings Per Share

The computation of basic and diluted earnings per share ("EPS") is based on Net income (loss) divided by the basic weighted average number of common shares outstanding and diluted weighted average number of common shares outstanding, respectively.

The details of the basic and diluted EPS calculations for the three and nine months ended September 30, 2024 and 2023 were as follows:

The details of the basic and diluted EPS calculations for the three months ended March 31, 2025 and 2024 were as follows:

ADVANSIX INC.

2 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Net income (loss) $ 23,344 $ ( 17,396 )

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The diluted EPS calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period.

The anti-dilutive common stock equivalents outstanding at the three and nine months ended September 30, 2024 and 2023 were as follows:

The anti-dilutive common stock equivalents outstanding at the three months ended March 31, 2025 and 2024 were as follows:

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Options and stock equivalents 684,374 909,231

Dividend activity for the three and nine months ended September 30, 2024 and 2023 was as follows:

Dividend activity for the three months ended March 31, 2025 and 2024 was as follows:

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Cash dividends declared per share $ 0.16 $ 0.16

1 unchanged sentence

Accounts and Other Receivables – Net

September 30,

2025 December 31,

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(Dollars in thousands, except share and per share amounts and as otherwise noted)

September 30,

2025 December 31,

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Total inventories $ 222,857 $ 212,386

Substantially all of the Company’s inventories at September 30, 2024 and December 31, 2023 are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method.

However, approximately 8 % was valued at average cost using the first-in, first-out (“FIFO”) method at September 30, 2024.

The excess of replacement cost over the carrying value of total inventories subject to LIFO was $ 65.1 million and $ 65.3 million at September 30, 2024 and December 31, 2023, respectively.

Substantially all of the Company’s inventories at March 31, 2025 and December 31, 2024 are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method.

However, approximately 6 % was valued at average cost using the first-in, first-out (“FIFO”) method at March 31, 2025.

The excess of replacement cost over the carrying value of total inventories subject to LIFO was $ 82.3 million and $ 57.5 million at March 31, 2025 and December 31, 2024, respectively.

We determine if an arrangement is a lease at inception.

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Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Finance lease cost:

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Total lease cost $ 14,169 $ 13,726

As of September 30, 2024, we have additional operating leases that have not yet commenced for approximately $ 93.1 million.

These leases are expected to commence during the second half of 2024 and in 2025 with lease terms of up to 6 years.

As of March 31, 2025, we have no additional operating or finance leases that have not yet commenced.

Goodwill and Intangible Assets

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Customer relationships and trade-names are amortized on a straight-line basis over their expected useful lives of 15 to 20 years and 5 years, respectively.

There was no change in the carrying amount of goodwill for the nine months ended September 30, 2024.

There was no change in the carrying amount of goodwill for the three months ended March 31, 2025.

Finite-Lived Intangible Assets

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(Dollars in thousands, except share and per share amounts and as otherwise noted)

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value

3 unchanged sentences

Total $ 56,371 $ ( 13,989 ) $ 42,382 $ 56,371 $ ( 13,227 ) $ 43,144

For each of the three months ended September 30, 2024 and September 30, 2023, the Company recorded amortization expense on intangible assets of $ 0.8 million.

For each of the nine months ended September 30, 2024 and September 30, 2023, the Company recorded amortization expense on intangible assets of $ 2.3 million.

For each of the three months ended March 31, 2025 and March 31, 2024, the Company recorded amortization expense on intangible assets of $ 0.8 million.

Commitments and Contingencies

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We assumed from Honeywell International Inc.

("Honeywell") all health, safety and environmental (“HSE”) liabilities and compliance obligations related to the past and future operations of our current business as of the spin-off, as well as all HSE liabilities associated with the three manufacturing locations assumed from Honeywell that are used in our current operations, including any cleanup or other liabilities related to any contamination that may have occurred at such locations in the past.

("Honeywell") all health, safety and environmental (“HSE”) liabilities and compliance obligations related to the past and future operations of our current business, as well as all HSE liabilities associated with our three manufacturing locations and the other locations used in our current operations, including any cleanup or other liabilities related to any contamination that may have occurred at such locations in the past.

Honeywell retained all HSE liabilities related to former business locations or the operation of our former businesses.

Although we have ongoing environmental remedial obligations at certain of our facilities, in the past three years, the associated remediation costs have not been material, and we do not expect our known remediation costs to have a material adverse effect on the Company's consolidated financial position or results of operations.

The provision (benefit) for income taxes was $ 7.5 million and ($ 2.1 million) for the three months ended September 30, 2024 and 2023, respectively, resulting in an effective tax rate of 25.1 % and 20.7 %, respectively.

The provision for income taxes was $ 14.6 million and $ 17.8 million for the nine months ended September 30, 2024 and 2023, respectively, resulting in an effective tax rate of 25.0 % and 22.9 %, respectively.

The provision (benefit) for income taxes was $ 5.6 million and ($ 6.0 million) for the three months ended March 31, 2025 and 2024, respectively, resulting in an effective tax rate of 19.3 % and 25.7 %, respectively.

The Company’s provision (benefit) for income taxes in interim periods is computed by applying an estimated annual effective tax rate against Income before taxes for the period in addition to recording any tax effects of discrete items for the quarter.

The Company’s effective tax rate for the three and nine months ended September 30, 2024 and 2023 differed from the U.S.

federal statutory rate, due primarily to the impacts of state taxes and executive compensation deduction limitations, offset by tax credits and the foreign-derived intangible income deduction.

In 2024, the Company recorded discrete tax adjustments related to the vesting of equity compensation, changes to state tax legislation, and return to provision adjustments related to the filing of the Company's 2023 U.S.

federal income tax return which resulted in a net 3.3 % increase to the quarterly effective tax rate and a net 1.5 % increase to the year-to-date effective tax rate.

Additionally for 2023, discrete tax adjustments relating to the vesting of equity compensation, changes in state tax legislation, and return to provision adjustments related to the filing of the Company's

The Company’s effective tax rate for the three months ended March 31, 2025 differed from the U.S.

federal statutory rate due to state taxes and executive compensation deduction limitations which generally increase the rate, offset by research tax credits that generally decrease the rate.

Additionally, discrete tax adjustments recorded in the quarter related to Internal Revenue Code (IRC) Section 45Q tax credits of $ 1.8 million, offset slightly by state tax legislation changes had a net 5.8 % decrease on the rate.

The Company’s effective tax rate for the three months ended March 31, 2024 was higher than the U.S.

federal statutory rate, due to the impacts of state taxes and executive compensation deduction limitations, partially offset by tax credits.

ADVANSIX INC.

1 unchanged sentence

(Dollars in thousands, except share and per share amounts and as otherwise noted)

federal income tax return resulted in a net 4.4 % increase to the quarterly effective tax rate and a net 1.6 % decrease to the year-to-date effective tax rate.

Fair Value Measurements

Financial and non-financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The pension plan assets are invested in collective investment trust funds.

These investments are measured at fair value using the net asset value per share as a practical expedient.

Investments valued using the net asset value method (NAV) (or its equivalent) practical expedient are excluded from the fair value hierarchy disclosure.

The Company’s Condensed Consolidated Balance Sheets also include Cash and cash equivalents, Accounts receivable and Accounts payable all of which are recorded at amounts which approximate fair value.

The Company also has assets that are required to be recorded at fair value on a non-recurring basis.

These assets are evaluated when certain triggering events occur (including a decrease in estimated future cash flows) that indicate the asset should be evaluated for impairment which could result in such assets being measured at fair value.

Goodwill must be evaluated at least annually.

Our annual evaluation occurred on October 28, 2023 and we concluded that an impairment for goodwill did no t occur.

Supplier Finance Programs

3 unchanged sentences

All related agreements are terminable by either party upon at least 30 days’ notice.

The total amount due to the financial intermediaries to settle supplier invoices under the supplier finance programs was approximately $ 15 million as of September 30, 2024 and approximately $ 17 million as of December 31, 2023.

The total amount due to the financial intermediaries to settle supplier invoices under all of its supplier finance programs was approximately $ 13 million as of March 31, 2025 and approximately $ 19 million as of December 31, 2024.

These amounts outstanding are included in Accounts payable .

Segment Related Information

The Company has concluded that it is a single operating segment and a single reportable segment:

chemical manufacturing.

Its larger manufacturing sites are vertically integrated and leverage cross-plant resources, including centralized supply chain and procurement functions.

This production process uses one key raw material, cumene, as the input to products produced for sale through the sales channels and end markets the Company serves.

Production rates and output volumes are managed across locations to align with the Company’s overall operating plan.

Additionally, the Company’s operating results, which are evaluated regularly to make decisions about resource allocation and performance assessment by the chief operating decision maker ("CODM"), our CEO and President, are on a consolidated basis.

The chemical manufacturing segment derives its revenues by innovating and delivering essential products in the industries of nylon solutions, plant nutrients, and chemical intermediates to its customers in a wide variety of end markets and applications, such as building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives and electronics.

The CODM’s performance assessment and resource allocation for the chemical manufacturing segment is based on net income which is also reported on the income statement as net income, the measure of segment assets which is also reported on the balance sheet as total assets, and capital expenditures which is also reported in management’s discussion and analysis.

The CODM uses net income generated from segment assets in deciding whether to reinvest profits into the segment or into other parts of the entity, such as for acquisitions or to pay dividends.

The CODM also uses net income to monitor budget versus actual results.

Monitoring budgeted versus actual results is used in assessing performance of the segment and in establishing management’s compensation.

Lastly, the CODM uses capital expenditures to estimate the cash-generating potential and cash requirements of the segment.

Significant expense information reviewed by the CODM was as follows (in thousands):

Three Months Ended March 31,

Revenue $ 377,791 $ 336,829

Variable cost of goods sold * 152,903 171,440

Plant costs 121,853 116,431

Freight and distribution costs 47,403 43,299

Selling, general, and administrative expense 23,409 23,593

Other segment items ** 8,879 ( 539 )

Segment net income $ 23,344 $ ( 17,395 )

*Variable costs of goods sold includes the raw material costs associated with volumes sold during the period as well as insurance settlement proceeds.

**Other segment items include research and development expense, interest income and expense, capitalized interest, other non-operating expense, and income tax expense.

Subsequent Events

As announced on November 1, 2024, the Board declared a quarterly cash dividend of $ 0.16 per share on the Company's common stock, payable on November 26, 2024 to stockholders of record as of the close of business on November 12, 2024.

As announced on May 2, 2025, the Board declared a quarterly cash dividend of $ 0.16 per share on the Company's common stock, payable on May 27, 2025 to stockholders of record as of the close of business on May 13, 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements