AdvanSix Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS ADVANSIX INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except share and per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Sales $ 374,473 $ 398,187 $ 1,162,286 $ 1,188,495 Costs, expenses and other: Costs of goods sold 349,088 340,885 1,024,716 1,046,860 Selling, general and administrative expenses 27,425 24,265 76,250 72,290 Interest expense, net 2,322 2,924 6,119 9,137 Other non-operating (income) expense, net ( 815 ) 368 ( 1,831 ) 1,808 Total costs, expenses and other 378,020 368,442 1,105,254 1,130,095 Income (loss) before taxes ( 3,547 ) 29,745 57,032 58,400 Income tax expense (benefit) ( 909 ) 7,479 4,955 14,603 Net income (loss) $ ( 2,638 ) $ 22,266 $ 52,077 $ 43,797 Earnings per common share Basic $ ( 0.10 ) $ 0.83 $ 1.94 $ 1.63 Diluted $ ( 0.10 ) $ 0.82 $ 1.91 $ 1.61 Weighted average common shares outstanding Basic 26,927,305 26,790,752 26,887,489 26,836,114 Diluted 26,927,305 27,204,714 27,248,759 27,209,680 See accompanying notes to Condensed Consolidated Financial Statements. 3 ADVANSIX INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income (loss) $ ( 2,638 ) $ 22,266 $ 52,077 $ 43,797 Foreign exchange translation adjustment ( 189 ) ( 24 ) ( 154 ) ( 66 ) Cash-flow hedges — — 7 7 Other comprehensive loss, net of tax ( 189 ) ( 24 ) ( 147 ) ( 59 ) Comprehensive income (loss) $ ( 2,827 ) $ 22,242 $ 51,930 $ 43,738 See accompanying notes to Condensed Consolidated Financial Statements. 4 ADVANSIX INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands, except share and per share amounts) September 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 23,696 $ 19,564 Accounts and other receivables – net 184,490 145,673 Inventories – net 209,120 212,386 Taxes receivable 23,758 503 Other current assets 13,931 8,990 Total current assets 454,995 387,116 Property, plant and equipment – net 943,332 917,858 Operating lease right-of-use assets 155,652 153,438 Goodwill 56,192 56,192 Intangible assets 40,857 43,144 Other assets 37,319 37,172 Total assets $ 1,688,347 $ 1,594,920 LIABILITIES Current liabilities: Accounts payable $ 236,053 $ 228,761 Accrued liabilities 55,850 47,264 Income taxes payable 49 1,047 Operating lease liabilities – short-term 41,695 42,493 Deferred income and customer advances 681 37,538 Total current liabilities 334,328 357,103 Deferred income taxes 159,758 145,299 Operating lease liabilities – long-term 114,924 111,400 Line of credit – long-term 250,000 195,000 Postretirement benefit obligations 257 — Other liabilities 10,848 11,468 Total liabilities 870,115 820,270 COMMITMENTS AND CONTINGENCIES (Note 9) STOCKHOLDERS' EQUITY Common stock, par value $ 0.01 ; 200,000,000 shares authorized; 33,177,824 shares issued and 26,864,035 outstanding at September 30, 2025; 32,989,165 shares issued and 26,737,036 outstanding at December 31, 2024 332 330 Preferred stock, par value $ 0.01 ; 50,000,000 shares authorized and 0 shares issued and outstanding at September 30, 2025 and December 31, 2024 — — Treasury stock at par ( 6,313,789 shares at September 30, 2025; 6,252,129 shares at December 31, 2024) ( 63 ) ( 63 ) Additional paid-in capital 141,876 136,872 Retained earnings 670,264 631,541 Accumulated other comprehensive income 5,823 5,970 Total stockholders' equity 818,232 774,650 Total liabilities and stockholders' equity $ 1,688,347 $ 1,594,920 See accompanying notes to Condensed Consolidated Financial Statements. 5 ADVANSIX INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) Nine Months Ended September 30, 2025 2024 Cash flows from operating activities: Net income $ 52,077 $ 43,797 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 58,966 57,197 (Gain) loss on disposal of assets ( 177 ) 415 Deferred income taxes 14,466 3,638 Stock-based compensation 5,919 5,963 Amortization of deferred financing fees 464 464 Operational asset adjustments — 1,200 Changes in assets and liabilities, net of business acquisitions: Accounts and other receivables ( 38,971 ) 15,069 Inventories 3,266 ( 1,603 ) Taxes receivable ( 23,255 ) 1,059 Accounts payable 16,546 ( 43,687 ) Income taxes payable ( 998 ) ( 7,598 ) Accrued liabilities 8,913 10,988 Deferred income and customer advances ( 36,857 ) ( 14,161 ) Other assets and liabilities ( 1,218 ) ( 1,493 ) Net cash provided by operating activities 59,141 71,248 Cash flows from investing activities: Expenditures for property, plant and equipment ( 88,849 ) ( 99,373 ) Other investing activities ( 6,153 ) ( 6,053 ) Net cash used for investing activities ( 95,002 ) ( 105,426 ) Cash flows from financing activities: Borrowings from line of credit 316,500 311,500 Repayments of line of credit ( 261,500 ) ( 266,500 ) Principal payments of finance leases ( 740 ) ( 762 ) Dividend payments ( 12,876 ) ( 12,858 ) Purchase of treasury stock ( 1,658 ) ( 10,427 ) Issuance of common stock 267 755 Net cash provided by financing activities 39,993 21,708 Net change in cash and cash equivalents 4,132 ( 12,470 ) Cash and cash equivalents at beginning of period 19,564 29,768 Cash and cash equivalents at the end of period $ 23,696 $ 17,298 Supplemental non-cash investing activities: Capital expenditures included in accounts payable $ 14,894 $ 15,018 Supplemental cash activities: Cash paid for interest $ 4,268 $ 7,711 Cash paid for income taxes $ 15,201 $ 19,019 See accompanying notes to Condensed Consolidated Financial Statements. 6 ADVANSIX INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Dollars in thousands) Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Total Equity Shares Amount Balance at December 31, 2024 32,989,165 $ 330 $ 136,872 $ 631,541 $ ( 63 ) $ 5,970 $ 774,650 Net income — — — 23,344 — — 23,344 Comprehensive income Foreign exchange translation adjustments — — — — — 11 11 Cash-flow hedges — — — — — 7 7 Other comprehensive income, net of tax — — — — — 18 18 Issuance of common stock 124,214 1 153 — — — 154 Purchase of treasury stock ( 53,432 shares) — — ( 1,486 ) — — — ( 1,486 ) Stock-based compensation — — 1,978 — — — 1,978 Dividends — — 160 ( 4,450 ) — — ( 4,290 ) 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 Net income — — — ( 2,638 ) — — ( 2,638 ) Comprehensive income Foreign exchange translation adjustments — — — — — ( 189 ) ( 189 ) Other comprehensive loss, net of tax — — — — — ( 189 ) ( 189 ) Issuance of common stock 25,538 — 112 — — — 112 Purchase of treasury stock ( 5,690 shares) — — ( 121 ) — — — ( 121 ) Stock-based compensation — — 1,632 — — — 1,632 Dividends — — 156 ( 4,452 ) — — ( 4,296 ) Balance at September 30, 2025 33,177,824 $ 332 $ 141,876 $ 670,264 $ ( 63 ) $ 5,823 $ 818,232 7 ADVANSIX INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Dollars in thousands) Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Total Equity Shares Amount Balance at December 31, 2023 32,598,946 $ 326 $ 138,046 $ 605,067 $ ( 58 ) $ ( 4,144 ) $ 739,237 Net loss — — — ( 17,396 ) — — ( 17,396 ) Comprehensive income Foreign exchange translation adjustments — — — — — ( 15 ) ( 15 ) Cash-flow hedges — — — — — 7 7 Other comprehensive loss, net of tax — — — — — ( 8 ) ( 8 ) Issuance of common stock 323,989 3 423 — — — 426 Purchase of treasury stock ( 260,464 shares) — — ( 7,020 ) — ( 3 ) — ( 7,023 ) Stock-based compensation — — 2,211 — — — 2,211 Dividends — — 163 ( 4,453 ) — — ( 4,290 ) 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 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 See accompanying notes to Condensed Consolidated Financial Statements. 8 ADVANSIX INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except share and per share amounts and as otherwise noted) 1. Organization, Operations and Basis of Presentation Description of Business AdvanSix Inc. ("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 The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. 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, 2025, and its results of operations for the three and nine months ended September 30, 2025 and 2024 and cash flows for the nine months ended September 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. GAAP. 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. All intercompany transactions have been eliminated. Certain prior period amounts have been reclassified for consistency with the current period presentation. It is our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. Historically, the effects of this practice have generally not been significant to reported results for any quarter and only existed within a reporting year. 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, 2025 and 2024 were September 27, 2025 and September 28, 2024, respectively. Liabilities to creditors to whom we have issued checks that remained outstanding at September 30, 2025 and December 31, 2024 aggregated to $ 6.4 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 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. As of September 30, 2025, the Company has repurchased a total of 6,313,789 shares of common stock, including 1,068,333 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $ 194.1 million at a weighted average market price of $ 30.74 per share. As of September 30, 2025, approximately $ 62.0 million remained available for share repurchases under the current authorization approved by the Company's Board of Directors (the "Board") on February 17, 2023. During the period October 1, 2025 through October 31, 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 10b5-1 of the Exchange Act. The size and timing of these repurchases will depend on pricing, market and economic conditions, 9 ADVANSIX INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except share and per share amounts and as otherwise noted) legal and contractual requirements and other factors. The share repurchase program has no expiration date and may be modified, suspended or discontinued at any time. 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. 2. Recent Accounting Pronouncements Recent Accounting Pronouncements – The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). 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. In August 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Practical Expedient for Measuring Expected Credit Losses on Certain Financial Assets. The amendments in this ASU provide a simplified approach for estimating credit losses on certain financial assets, including current accounts receivable, by permitting entities to elect a practical expedient when measuring expected credit losses. Under current guidance, when estimating expected credit losses, an entity must (1) consider not only historical loss experience but also adjust that information to reflect current conditions and reasonable and supportable forecasts and (2) include a measure of expected credit loss even if that risk is remote. The amendments in this ASU allow an entity, as a practical expedient, to: (1) Assume that current conditions as of the balance sheet date will remain unchanged over the remaining life of the financial asset; and (2) continue to adjust historical loss information to reflect current conditions to the extent that historical information does not already do so. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual periods. Early adoption is permitted in any interim or annual period for which financial statements have not yet been issued or made available for issuance. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures. 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. The amendments in this ASU require that public business entities, on an annual basis, disclose specific categories in the rate reconciliation and provide additional information for reconciling items that are equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate. The amendments also require that the Company disclose the following (net of refunds received): (1) the amount of income taxes paid disaggregated by federal (national), state, and foreign taxes and (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid. 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. 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. 3. Revenues 10 ADVANSIX INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except share and per share amounts and as otherwise noted) Revenue Recognition AdvanSix serves around 390 customers annually, primarily in the United States, spanning a wide variety of industries worldwide. For the nine months ended September 30, 2025 and 2024, the Company's ten largest customers accounted for approximately 41 % and 38 % of total sales, respectively. We typically sell to customers under master service agreements, with primarily one-year terms, or by purchase orders. We have historically experienced low customer turnover and have long-standing customer relationships, which span decades. Our largest customer is Shaw Industries Group, Inc. (“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, 2025 and 2024, the Company's sales to Shaw were 12 % and 10 % of our total sales, respectively. For the nine months ended September 30, 2025 and 2024, the Company's sales to Shaw were 10 % and 9 % 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, 2025 and 2024 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024* 2025 2024* Nylon $ 79,029 21 % $ 93,693 24 % $ 246,900 21 % $ 281,299 24 % Caprolactam 73,137 20 % 76,338 19 % 206,993 18 % 219,117 18 % Plant Nutrients 138,661 37 % 113,552 29 % 423,672 36 % 355,587 30 % Chemical Intermediates 83,646 22 % 114,604 28 % 284,721 25 % 332,492 28 % Total $ 374,473 100 % $ 398,187 100 % $ 1,162,286 100 % $ 1,188,495 100 % * 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, 2025 and 2024 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 United States $ 323,746 86 % $ 339,895 85 % $ 1,002,864 86 % $ 1,026,342 86 % International* 50,727 14 % 58,292 15 % 159,422 14 % 162,153 14 % Total $ 374,473 100 % $ 398,187 100 % $ 1,162,286 100 % $ 1,188,495 100 % * 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 nine months ended September 30, 2025: Opening balance January 1, 2025 $ 37,538 Additional cash advances 101 Less amounts recognized in revenues ( 36,958 ) Ending balance September 30, 2025 $ 681 The Company expects to recognize as revenue the September 30, 2025 ending balance of Deferred income and customer advances within one year or less. 4. Earnings Per Share 11 ADVANSIX INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except share and per share amounts and as otherwise noted) 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 an d, where appropriate, dilu ted 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, 2025 and 2024 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Basic Net income (loss) $ ( 2,638 ) $ 22,266 $ 52,077 $ 43,797 Weighted average common shares outstanding 26,927,305 26,790,752 26,887,489 26,836,114 EPS – Basic $ ( 0.10 ) $ 0.83 $ 1.94 $ 1.63 Diluted Dilutive effect of equity awards and other stock-based holdings — 413,962 361,270 373,566 Weighted average common shares outstanding 26,927,305 27,204,714 27,248,759 27,209,680 EPS – Diluted $ ( 0.10 ) $ 0.82 $ 1.91 $ 1.61 Where appropriate, diluted EPS is computed based upon the weighted average number of common shares outstanding for the period plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the period. Where appropriate, 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, 2025 and 2024 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Options and stock equivalents 934,424 573,586 973,713 976,699 Dividend activity for the three and nine months ended September 30, 2025 and 2024 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Cash dividends declared per share $ 0.16 $ 0.16 $ 0.48 $ 0.48 Aggregate dividends paid to shareholders $ 4,296 $ 4,276 $ 12,876 $ 12,858 5. Accounts and Other Receivables – Net September 30, 2025 December 31, 2024 Accounts receivables $ 183,940 $ 141,273 Other 911 4,982 Total accounts and other receivables 184,851 146,255 Less – allowance for credit losses ( 361 ) ( 582 ) Total accounts and other receivables – net $ 184,490 $ 145,673 6. Inventories 12 ADVANSIX INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except share and per share amounts and as otherwise noted) September 30, 2025 December 31, 2024 Raw materials $ 91,366 $ 99,320 Semi-finished and finished goods 164,373 145,169 Spares and other 33,509 31,948 289,248 276,437 Reduction to LIFO cost basis ( 80,128 ) ( 64,051 ) Total inventories $ 209,120 $ 212,386 Substantially all of the Company’s inventories at September 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 September 30, 2025. The excess of replacement cost over the carrying value of total inventories subject to LIFO was $ 78.2 million and $ 57.5 million at September 30, 2025 and December 31, 2024, respectively. 7. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets ("ROU"), Operating lease liabilities – short-term, and Operating lease liabilities – long-term in our Condensed Consolidated Balance Sheets. Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our Condensed Consolidated Balance Sheets. The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Finance lease cost: Amortization of right-of-use asset $ 245 $ 269 $ 748 $ 776 Interest on lease liabilities 34 43 113 120 Total finance lease cost 279 312 861 896 Operating lease cost 14,111 10,305 40,721 32,789 Short-term lease cost 963 1,177 2,579 3,511 Total lease cost $ 15,353 $ 11,794 $ 44,161 $ 37,196 As of September 30, 2025, we have no additional operating or finance leases that have not yet commenced. 8. Goodwill and Intangible Assets Intangible assets with finite lives acquired through a business combination are recorded at fair value, less accumulated amortization. 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. Goodwill There was no change in the carrying amount of goodwill for the nine months ended September 30, 2025. Finite-Lived Intangible Assets Intangible assets subject to amortization were as follows: 13 ADVANSIX INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except share and per share amounts and as otherwise noted) September 30, 2025 December 31, 2024 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer relationships $ 36,820 $ ( 7,096 ) $ 29,724 $ 36,820 $ ( 5,666 ) $ 31,154 Licenses 18,451 ( 7,611 ) 10,840 18,451 ( 6,919 ) 11,532 Trade names 1,100 ( 807 ) 293 1,100 ( 642 ) 458 Total $ 56,371 $ ( 15,514 ) $ 40,857 $ 56,371 $ ( 13,227 ) $ 43,144 For each of the three months ended September 30, 2025 and September 30, 2024, the Company recorded amortization expense on intangible assets of $ 0.8 million. For each of the nine months ended September 30, 2025 and September 30, 2024, the Company recorded amortization expense on intangible assets of $ 2.3 million. 9. Commitments and Contingencies The Company is subject to a number of lawsuits, investigations and disputes, some of which may involve substantial amounts claimed, arising out of the conduct of the Company or other third-parties in the normal and ordinary course of business. A liability is recognized for any contingency that is probable of occurrence and reasonably estimable. The Company continually assesses the likelihood of adverse judgments or outcomes in these matters, as well as potential ranges of possible losses, based on an analysis of each matter with the assistance of legal counsel and, if applicable, other experts. Given the uncertainty inherent in such lawsuits, investigations and disputes, the Company does not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters. Considering the Company’s past experience and existing accruals, the Company does not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on the Company’s consolidated financial position or results of operations. Potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause the Company to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on the Company’s consolidated results of operations, balance sheet and/or operating cash flows in the periods recognized or paid. 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 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 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. 10. Income Taxes The provision (benefit) for income taxes was ($ 0.9 million) and $ 7.5 million for the three months ended September 30, 2025 and 2024, respectively, resulting in an effective tax rate of 25.6 % and 25.1 %, respectively. The provision for income taxes was $ 5.0 million and $ 14.6 million for the nine months ended September 30, 2025 and 2024, respectively, resulting in an effective tax rate of 8.7 % and 25 %, respectively. The Company’s provision (benefit) for income taxes in interim periods is computed by applying an estimated annual effective tax rate against Income (loss) 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, 2025 and 2024 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 and the foreign-derived intangible income deduction that generally decrease the rate. During the nine months ended September 30, 2025, discrete tax adjustments recorded relating to Internal Revenue Code (IRC) Section 45Q tax credits of $ 9.7 million and return to provision adjustments related to the filing of the Company's 2024 U.S. federal income tax return of $ 0.2 million, offset slightly by state tax legislation changes and the vesting of equity compensation, resulted in a net 5 % increase and 17 % decrease to the estimated annual effective tax rate for the three and nine months ended 14 ADVANSIX INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except share and per share amounts and as otherwise noted) September 30, 2025, respectively. 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 % and 1.5 % increase to the estimated annual effective tax rate for the three and nine months ended September 30, 2024, respectively. On July 4, 2025, President Trump signed into law legislation commonly referred to as the One Big Beautiful Bill Act (the "Act"), which includes numerous tax provisions affecting businesses, including the reinstatement of full expensing of domestic research and experimental expenditures, modification of the limitation on business interest and making permanent full expensing for certain business property. These provisions resulted in an approximate $ 10 million reduction in cash taxes in our financial results for the three and nine months ended September 30, 2025, however due to the elective applicability of these provisions, we continue to evaluate the full impact and timing that these provisions will have on our financial results. 11. Supplier Finance Programs The Company has entered into a supply chain finance program with a financial intermediary providing participating suppliers the option to be paid by the intermediary earlier than the original invoice due date. AdvanSix’s responsibility is limited to making payments to the intermediary based upon payment terms negotiated with the suppliers, regardless of whether the intermediary pays the supplier in advance of the original due date. The Company’s payment terms with suppliers are consistent, regardless of whether a vendor participates in the supply chain finance program or not. All related agreements are terminable by either party upon at least 30 days’ notice. The total amount due to the financial intermediary to settle supplier invoices under the Company's supply chain finance program was approximately $ 5.8 million as of September 30, 2025 and approximately $ 19.2 million as of December 31, 2024. These amounts outstanding are included in Accounts payable . 12. 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): 15 ADVANSIX INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except share and per share amounts and as otherwise noted) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue $ 374,473 $ 398,187 $ 1,162,286 $ 1,188,495 Less: Variable costs of goods sold * 181,899 177,679 509,980 553,199 Plant costs 121,861 115,059 371,090 350,458 Freight and distribution costs 42,769 45,871 136,385 136,041 Selling, general, and administrative expense 27,425 24,265 76,250 72,290 Other segment items ** 3,157 13,047 16,504 32,710 Segment net income (loss) $ ( 2,638 ) $ 22,266 $ 52,077 $ 43,797 *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. 13. Subsequent Events Dividends As announced on November 7, 2025, the Board declared a quarterly cash dividend of $ 0.16 per share on the Company's common stock, payable on December 2, 2025 to stockholders of record as of the close of business on November 18, 2025. Amendment to Credit Agreement On October 23, 2025, the Company entered into Amendment No. 2 (the “Amendment”) to the Credit Agreement, dated as of October 27, 2021 (as amended by Amendment No. 1, dated June 27, 2023, the “Credit Agreement” and as further amended by the Amendment, the “Amended Credit Agreement”), among the Company, the guarantors, the lenders party thereto and Truist Bank, as administrative agent. The Credit Agreement includes a senior secured revolving credit facility with aggregate commitments of $ 500 million (the “Revolving Credit Commitments”). Pursuant to the Amendment, the Credit Agreement was amended to, among other things: (i) extend the maturity date of revolving credit commitments of participating Revolving Credit Lenders in an aggregate principal amount of $ 452 million to the earlier of (x) October 27, 2027 and (y) the date of the termination in whole of the Revolving Credit Commitments, pursuant to the terms of the Amended Credit Agreement, and (ii) effect certain other conforming changes and modifications consistent with the foregoing. The remaining $ 48 million of revolving credit commitments under the Credit Agreement that were not extended will continue to mature on the earlier of (x) October 27, 2026 and (y) the date of the termination in whole of the Revolving Credit Commitments, pursuant to the terms of the Amended Credit Agreement. 16