What changed in this filing

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Item 1. Financial Statements

2025-08-01 compared with 2025-05-02 · 105 added, 57 removed, 320 unchanged (34% of the section changed)

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Sales $ 410,022 $ 453,479 $ 787,813 $ 790,308

5 unchanged sentences

Total costs, expenses and other 378,372 401,407 727,234 761,653

Income (loss) before taxes 28,929 ( 23,417 )

Income tax expense (benefit) 5,585 ( 6,021 )

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

Income before taxes 31,650 52,072 60,579 28,655

Income tax expense 279 13,145 5,864 7,124

Net income $ 31,371 $ 38,927 $ 54,715 $ 21,531

Earnings per common share

6 unchanged sentences

ADVANSIX INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

Three Months Ended

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

June 30, Six Months Ended

2025 2024 2025 2024

Net income $ 31,371 $ 38,927 $ 54,715 $ 21,531

Foreign exchange translation adjustment 24 ( 27 ) 35 ( 42 )

1 unchanged sentence

Other comprehensive income (loss), net of tax 24 ( 27 ) 42 ( 35 )

Comprehensive income (loss) $ 23,362 $ ( 17,404 )

Comprehensive income $ 31,395 $ 38,900 $ 54,757 $ 21,496

See accompanying notes to Condensed Consolidated Financial Statements.

32 unchanged sentences

200,000,000 shares authorized;

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

33,152,286 shares issued and 26,844,187 outstanding at June 30, 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 March 31, 2025 and December 31, 2024

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

50,000,000 shares authorized and 0 shares issued and outstanding at June 30, 2025 and December 31, 2024

Treasury stock at par ( 6,308,099 shares at June 30, 2025;

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

9 unchanged sentences

(Dollars in thousands)

Three Months Ended

Six Months Ended

Cash flows from operating activities:

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

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

Net income $ 54,715 $ 21,531

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

Depreciation and amortization 38,639 38,264

3 unchanged sentences

Amortization of deferred financing fees 309 309

Operational asset adjustments — 1,200

Changes in assets and liabilities, net of business acquisitions:

7 unchanged sentences

Other assets and liabilities ( 10,395 ) ( 6,889 )

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

Net cash provided by operating activities 32,553 13,998

Cash flows from investing activities:

36 unchanged sentences

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

Net income — — — 31,371 — — 31,371

Comprehensive income

Foreign exchange translation adjustments — — — — — 24 24

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

Issuance of common stock 38,907 1 — — — — 1

Purchase of treasury stock ( 2,538 shares)

— — ( 51 ) — — — ( 51 )

Stock-based compensation — — 2,309 — — — 2,309

Dividends — — 162 ( 4,452 ) — — ( 4,290 )

Balance at June 30, 2025 33,152,286 $ 332 $ 140,097 $ 677,354 $ ( 63 ) $ 6,012 $ 823,732

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

12 unchanged sentences

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

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

See accompanying notes to Condensed Consolidated Financial Statements.

5 unchanged sentences

AdvanSix Inc.

("AdvanSix," the "Company," "we" or "our") is a diversified chemistry company playing a critical role in global supply chains, innovating and delivering essential products for our customers in a wide variety of end markets and applications that touch people’s lives, such as building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives and electronics.

Our reliable and sustainable supply of quality products emerges from the integrated value chain of our five U.S.-based manufacturing facilities.

AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, plant nutrients and chemical intermediates, guided by our core values of Safety, Integrity, Accountability and Respect.

("AdvanSix," the "Company," "we" or "our") is a diversified chemistry company that produces essential materials for our customers in a wide variety of end markets and applications that touch people’s lives.

Our integrated value chain of our five U.S.-based manufacturing facilities plays a critical role in global supply chains and enables us to innovate and deliver essential products for our customers across building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives, electronics and other end markets.

Guided by our core values of Safety, Integrity, Accountability and Respect, AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, plant nutrients, and chemical intermediates.

Basis of Presentation

3 unchanged sentences

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 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.

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 June 30, 2025, and its results of operations for the three and six months ended June 30, 2025 and 2024 and cash flows for the six months ended June 30, 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.

The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year.

These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Form 10-K").

These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

All intercompany transactions have been eliminated.

3 unchanged sentences

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 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.

Our actual closing dates for the three and six months ended June 30, 2025 and 2024 were June 28, 2025 and June 29, 2024, respectively.

Liabilities to creditors to whom we have issued checks that remained outstanding at June 30, 2025 and December 31, 2024 aggregated to $ 6.0 million and $ 7.3 million, respectively.

These 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 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.

The proceeds have been recognized as a reduction to Costs 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.

As of June 30, 2025, the Company has repurchased a total of 6,308,099 shares of common stock, including 1,062,643 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $ 194.0 million at a weighted average market price of $ 30.75 per share.

As of June 30, 2025, approximately $ 62.0 million remained available for share repurchases under the current authorization.

During the period July 1, 2025 through July 25, 2025, no additional shares were repurchased for tax withholding obligations or under the currently authorized repurchase program.

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

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.

26 unchanged sentences

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

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.

For the six months ended June 30, 2025 and 2024, the Company's ten largest customers accounted for approximately 39 % and 38 % 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 March 31, 2025 and 2024, the Company's sales to Shaw were 10 % and 9 % of our total sales, respectively.

For each of the three months ended June 30, 2025 and 2024, the Company's sales to Shaw were 9 % of our total sales.

ADVANSIX INC.

1 unchanged sentence

(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:

The Company's revenue by product line, and related approximate percentage of total sales, for the three and six months ended June 30, 2025 and 2024 were as follows:

Three Months Ended

June 30, Six Months Ended

2025 2024* 2025 2024*

Nylon $ 79,503 20 % $ 103,217 23 % $ 167,871 21 % $ 187,606 24 %

6 unchanged sentences

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 months ended March 31, 2025 and 2024 were as follows:

The Company's revenues by geographic area, and related approximate percentage of total sales, for the three and six months ended June 30, 2025 and 2024 were as follows:

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

United States $ 358,671 87 % $ 401,859 89 % $ 679,118 86 % $ 686,447 87 %

1 unchanged sentence

Total $ 410,022 100 % $ 453,479 100 % $ 787,813 100 % $ 790,308 100 %

* Predominantly Latin America and Canada

Deferred Income and Customer Advances

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 three months ended March 31, 2025:

Below is a roll-forward of Deferred income and customer advances for the six months ended June 30, 2025:

Opening balance January 1, 2025 $ 37,538

1 unchanged sentence

Less amounts recognized in revenues ( 35,680 )

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.

Ending balance June 30, 2025 $ 1,858

The Company expects to recognize as revenue the June 30, 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 months ended March 31, 2025 and 2024 were as follows:

The details of the basic and diluted EPS calculations for the three and six months ended June 30, 2025 and 2024 were as follows:

ADVANSIX INC.

2 unchanged sentences

Three Months Ended

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

June 30, Six Months Ended

2025 2024 2025 2024

Net income $ 31,371 $ 38,927 $ 54,715 $ 21,531

Weighted average common shares outstanding 26,896,037 26,839,429 26,867,252 26,859,044

5 unchanged sentences

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 months ended March 31, 2025 and 2024 were as follows:

The anti-dilutive common stock equivalents outstanding at the three and six months ended June 30, 2025 and 2024 were as follows:

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Options and stock equivalents 1,005,749 1,057,349 948,963 1,127,661

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

Dividend activity for the three and six months ended June 30, 2025 and 2024 was as follows:

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Cash dividends declared per share $ 0.16 $ 0.16 $ 0.32 $ 0.32

5 unchanged sentences

Total accounts and other receivables 160,044 146,255

Less – allowance for doubtful accounts ( 181 ) ( 582 )

Less – allowance for credit losses ( 342 ) ( 582 )

Total accounts and other receivables – net $ 159,702 $ 145,673

10 unchanged sentences

Total inventories $ 221,764 $ 212,386

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.

Substantially all of the Company’s inventories at June 30, 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 June 30, 2025.

The excess of replacement cost over the carrying value of total inventories subject to LIFO was $ 75.9 million and $ 57.5 million at June 30, 2025 and December 31, 2024, respectively.

We determine if an arrangement is a lease at inception.

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Finance lease cost:

5 unchanged sentences

Total lease cost $ 15,106 $ 12,241 $ 29,275 $ 25,402

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

As of June 30, 2025, we have no additional operating or finance leases that have not yet commenced.

Goodwill and Intangible Assets

1 unchanged sentence

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 three months ended March 31, 2025.

There was no change in the carrying amount of goodwill for the six months ended June 30, 2025.

Finite-Lived Intangible Assets

3 unchanged sentences

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

March 31, 2025 December 31, 2024

June 30, 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 $ ( 14,752 ) $ 41,619 $ 56,371 $ ( 13,227 ) $ 43,144

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.

For each of the three months ended June 30, 2025 and June 30, 2024, the Company recorded amortization expense on intangible assets of $ 0.8 million.

For each of the six months ended June 30, 2025 and June 30, 2024, the Company recorded amortization expense on intangible assets of $ 1.5 million.

Commitments and Contingencies

9 unchanged sentences

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 $ 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 months ended March 31, 2025 differed from the U.S.

The provision for income taxes was $ 0.3 million and $ 13.1 million for the three months ended June 30, 2025 and 2024, respectively, resulting in an effective tax rate of 0.9 % and 25.2 %, respectively.

The provision for income taxes was $ 5.9 million and $ 7.1 million for the six months ended June 30, 2025 and 2024, respectively, resulting in an effective tax rate of 9.7 % and 24.9 %, respectively.

The Company’s provision 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 six months ended June 30, 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.

Additionally, discrete tax adjustments recorded in the first and second quarter of 2025 related to Internal Revenue Code (IRC) Section 45Q tax credits of $ 1.8 million and $ 7.9 million, respectively, offset slightly by state tax legislation changes, resulted in a net 24.7 % and 15.7 % decrease in the rate for the three and six months ended June 30, 2025, respectively.

The Company’s effective tax rate for the three and six months ended June 30, 2024 was higher than the U.S.

ADVANSIX INC.

1 unchanged sentence

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

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

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 all of its supplier finance programs was approximately $ 13 million as of March 31, 2025 and approximately $ 19 million as of December 31, 2024.

The total amount due to the financial intermediary to settle supplier invoices under its supply chain finance program was approximately $ 19.8 million as of June 30, 2025 and approximately $ 19.2 million as of December 31, 2024.

These amounts outstanding are included in Accounts payable .

13 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Revenue $ 410,022 $ 453,479 $ 787,813 $ 790,308

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

Variable costs of goods sold * 175,178 204,090 328,082 375,530

Plant costs 127,376 118,968 249,229 235,399

3 unchanged sentences

Segment net income $ 31,371 $ 38,927 $ 54,715 $ 21,531

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

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

**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 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.

ADVANSIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

As announced on August 1, 2025, the Board declared a quarterly cash dividend of $ 0.16 per share on the Company's common stock, payable on August 26, 2025 to stockholders of record as of the close of business on August 12, 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