What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-20 compared with 2025-02-21 · 182 added, 182 removed, 934 unchanged (28% of the section changed)

32 unchanged sentences

Revenue Recognition – Transfer of Control

As described in Notes 2 and 3 to the consolidated financial statements, the Company recorded $1,518 million in sales for the year ended December 31, 2024 of which a significant portion has transfer of control to the customer through commercially acceptable shipping or destination point terms.

As described in Notes 2 and 3 to the consolidated financial statements, the Company recorded $1,522 million in sales for the year ended December 31, 2025, of which a significant portion has transfer of control to the customer through commercially acceptable shipping terms.

Sales of the Company’s products to customers are made under a purchase order, and in certain cases in accordance with the terms of a master services agreement.

Management considers the performance obligation satisfied at the point in time when control of the product is transferred to the customer, which is indicated by shipment of the product and transfer of title and risk of loss to the customer.

Transfer of control to the customer occurs through various modes of shipment, including trucks, railcars, and vessels, and follows a variety of commercially acceptable shipping or destination point terms pursuant to the arrangement with the customer.

Transfer of control to the customer occurs through various modes of shipment, including trucks, railcars, and vessels, and follows a variety of commercially acceptable shipping point terms pursuant to the arrangement with the customer.

The principal considerations for our determination that performing procedures relating to revenue recognition – transfer of control is a critical audit matter are a high degree of auditor subjectivity and effort in performing procedures and evaluating audit evidence relating to the determination of the point in time when control of the product was transferred to the customer and thus revenue was recognized.

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Costs, expenses and other:

Costs of goods sold 1,364,621 1,368,511 1,631,161

Cost of goods sold 1,357,293 1,364,621 1,368,511

Selling, general and administrative expenses 104,750 94,023 95,538

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

Postretirement benefit obligations — 3,660

Other liabilities 10,719 11,468

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Retained earnings 663,019 631,541

Accumulated other comprehensive income (loss) 5,970 ( 4,144 )

Accumulated other comprehensive income 8,996 5,970

Total stockholders' equity 815,216 774,650

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Depreciation and amortization 79,740 76,176 73,010

Loss on disposal of assets 773 1,281 1,521

(Gain) loss on disposal of assets ( 81 ) 773 1,281

Deferred income taxes 7,821 ( 8,991 ) ( 9,347 )

14 unchanged sentences

Expenditures for property, plant and equipment ( 116,445 ) ( 133,722 ) ( 107,377 )

Acquisition of businesses — — ( 97,456 )

Other investing activities ( 6,169 ) ( 9,180 ) ( 3,520 )

2 unchanged sentences

Borrowings from line of credit 370,500 406,000 437,000

Payments of line of credit ( 381,000 ) ( 382,000 ) ( 454,500 )

Repayments of line of credit ( 350,500 ) ( 381,000 ) ( 382,000 )

Payment of line of credit facility fees ( 478 ) — —

Principal payments of finance leases ( 1,002 ) ( 1,011 ) ( 938 )

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Cash paid for interest $ 6,760 $ 10,828 $ 7,086

Cash paid for income taxes $ 18,953 $ 7,790 $ 56,170

Cash paid for income taxes, net of refund $ 15,129 $ 16,591 $ 7,594

The accompanying Notes to Consolidated Financial Statements are an integral part of this statement.

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Pension obligation adjustments — — — — — 140 140

Other comprehensive income (loss), net of tax — — — — — 2,342 2,342

Other comprehensive income, net of tax — — — — — 53 53

Issuance of common stock 621,353 6 870 — — — 876

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Pension obligation adjustments — — — — — 10,223 10,223

Other comprehensive income (loss), net of tax — — — — — 53 53

Other comprehensive income, net of tax — — — — — 10,114 10,114

Issuance of common stock 390,219 4 855 — — — 859

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Foreign exchange translation adjustments — — — — — 34 34

Cash-flow hedges — — — — — 7 7

Pension obligation adjustments — — — — — 2,985 2,985

Other comprehensive income (loss), net of tax — — — — — 10,114 10,114

Other comprehensive income, net of tax — — — — — 3,026 3,026

Issuance of common stock 188,659 2 265 — — — 267

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AdvanSix Inc.

(“AdvanSix,” the “Company,” “we,” "us" 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,” "us" or “our”) is an integrated chemistry company that produces essential materials for diverse end markets.

Our 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.

We evaluated segment reporting in accordance with Accounting Standards Codification Topic (“ASC”) 280.

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Our consolidation policy requires equity investments that we exercise significant influence over but do not control the investee and are not the primary beneficiary of the investee’s activities to be accounted for using the equity method.

Investments through which we are not able to exercise significant influence over the investee and which we do not have readily determinable fair values are accounted for under the cost method.

All intercompany transactions and balances are eliminated in consolidation.

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Fair Value Measurement – ASC 820, Fair Value Measurement defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price).

The Financial Accounting Standards Board's ("FASB") guidance classifies the inputs used to measure fair value into the following hierarchy:

The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows:

Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities

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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 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 pension plan assets are invested in collective investment trust funds, mutual funds and pooled separate accounts.

The collective investment trust funds and pooled separate accounts are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy.

The alternative equity investments are classified as Level 1 in the fair value hierarchy disclosure.

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

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Accordingly, changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception of the hedge and over the life of the hedge contract.

All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value.

For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings.

For derivatives designated as cash flow hedges, the changes in fair value of the derivatives are recorded in Accumulated other comprehensive income (loss) and subsequently recognized in earnings when the hedged items impact earnings.

Cash flows of such derivative financial instruments are classified consistent with the underlying hedged item.

For derivative instruments that are designated and qualify as a net investment hedge, the derivative’s gain or loss is reported as a component of Other comprehensive income (loss) and recorded in Accumulated other comprehensive income (loss).

The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated.

The Company currently has no derivative financial instruments.

Commodity Price Risk Management – The Company's exposure to market risk for commodity prices can result in changes in our cost of production.

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We may also enter into forward commodity contracts with third parties designated as hedges of anticipated purchases of several commodities.

Forward commodity contracts are marked-to-market, with the resulting gains and losses recognized in earnings, in the same category as the items being hedged, when the hedged transaction is recognized.

At December 31, 2024 and 2023, we had no contracts with notional amounts related to forward commodity agreements.

The Company currently has no forward commodity contracts.

Credit and Market Risk Management – The Company manages its exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk.

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Property, Plant, Equipment – Property, plant, equipment asset values are recorded at cost, including any asset retirement obligations, less accumulated depreciation.

For financial reporting, the straight-line method of depreciation is used over the estimated useful lives of 10 to 40 years for buildings and improvements and 3 to 35 years for machinery and equipment.

For financial reporting, the straight-line method of depreciation is used over the estimated

useful lives of 10 to 40 years for buildings and improvements and 3 to 35 years for machinery and equipment.

Our machinery and equipment includes (1) assets used in short production cycles or subject to high corrosion, such as instrumentation, controls and insulation systems with useful lives of 3 to 30 years, (2) standard plant assets, such as boilers and railcars, with useful lives ranging from 3 to 30 years and (3) major process equipment that can be used for long durations with effective preventative maintenance and repair, such as cooling towers, compressors, tanks and turbines with useful lives ranging from 3 to 35 years.

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The Company evaluates events or changes in circumstances based on several factors including operating results, business plans and forecasts, general and industry trends, and economic projections and anticipated cash flows.

An impairment is assessed when the undiscounted expected future cash flows derived from an asset are less than its carrying amount.

Impairment losses are measured as the amount by which the carrying value of an asset exceeds its fair value and are recognized in the Consolidated Statements of Operations.

An impairment is assessed when the undiscounted expected future cash flows derived from the asset group are less than its carrying amount.

Impairment losses are measured as the amount by which the carrying value of an asset group exceeds its fair value and are recognized in the Consolidated Statements of Operations.

The Company also evaluates the estimated useful lives of long-lived assets if circumstances warrant and revises such estimates based on current events.

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Goodwill is subject to impairment testing annually on the last day of our October close, or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable.

Management first assesses qualitative factors as described in ASC 350 to determine whether it is necessary to perform the quantitative goodwill impairment test.

Potential impairment is identified by comparing the fair value of a reporting unit to the carrying value, including goodwill.

The Company completed its annual goodwill impairment test as of October 26, 2024 and, based on the results of the Company's assessment of qualitative factors, it was determined that it was not necessary to perform the quantitative goodwill impairment test.

To determine if goodwill is potentially impaired, we have the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value is less than the carrying value.

The Company’s practice is to perform a quantitative impairment assessment at least every three years.

Under the qualitative assessment, the Company considers several factors, including the enterprise value from the previous quantitative test and the excess of fair value over carrying value from such test, macroeconomic conditions (including changes in interest rates and discount rates), industry and market considerations, recent and projected financial performance of the Company, as well as other factors.

The Company has concluded that, as of the fourth quarter of 2025, it is not more likely than not that an impairment of the goodwill balances exists.

Our qualitative analysis reflects our best estimates of the impacts of the cyclical nature of the industries in which we operate, as well as the cycles of fluctuating supply and demand for each of our products resulting in changes in selling prices and margins.

It is possible that in the future there may be changes in industry trends, estimates and assumptions, including the timing and amount of future cash flows, margins, growth rates, market participant assumptions, comparable benchmark companies and related multiples and discount rates, which could impact estimates of fair value.

Significant and adverse changes to any one or more of the above-noted estimates and assumptions could result in an impairment.

Finite-Lived Intangible Assets – Other intangible assets with determinable lives consist of customer relationships, trademarks, patents and other intangibles and are amortized over their estimated useful lives, ranging from 5 to 20 years.

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AdvanSix primarily recognizes revenues when title and control of the product transfers from the Company to the customer.

Outbound shipping costs incurred by the Company are not included in revenues but are reflected as freight expense in Costs of goods sold in the Consolidated Statements of Operations.

Outbound shipping costs incurred by the Company are not included in revenues but are reflected as freight expense in Cost of goods sold in the Consolidated Statements of Operations.

Sales of our products to customers are made under a purchase order, and in certain cases in accordance with the terms of a master services agreement.

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Management considers the performance obligation with respect to such purchase order satisfied at the point in time when control of the product is transferred to the customer, which is indicated by shipment of the product and transfer of title and risk of loss to the customer.

Variable consideration is estimated for future volume rebates and early pay discounts on certain products and product

Transfer of control to the customer occurs through various modes of shipment, including trucks, railcars, and vessels, and generally follows commercially acceptable shipping point terms pursuant to the arrangement with the customer.

In more limited circumstances, the Company recognizes revenue from sales of products that are subject to inventory consignment agreements, and transfer of control generally occurs when the customer pulls product from the consignment inventory location.

consideration is estimated for future volume rebates and early pay discounts on certain products and product returns.

The Company records variable consideration as an adjustment to the sale transaction price.

2 unchanged sentences

The Company also utilizes the practical expedient in Topic 606 and does not include an adjustment for the effects of a significant financing component given the expected period duration of one year or less.

Environmental – The Company accrues costs related to environmental matters when it is probable that we have incurred a liability related to a contaminated site and the amount can be reasonably estimated.

Environmental – The Company accrues costs related to environmental matters when it is probable that we have incurred a liability related to an event or site and the amount can be reasonably estimated.

Deferred Income and Customer Advances – AdvanSix typically has an annual pre-buy program for ammonium sulfate that is classified as deferred income and customer advances in the Consolidated Balance Sheets.

Customers pay cash in advance to reserve capacity for ammonium sulfate to guarantee product availability during peak planting season.

The Company recognizes a customer advance when cash is received for the advanced buy.

The Company recognizes a customer advance liability when cash is received for the advanced buy.

Revenue is then recognized and the customer advance is relieved upon title transfer of ammonium sulfate.

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The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible.

We adopted the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s consolidated financial statements.

We apply the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s consolidated financial statements.

ASC 740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns.

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Finance leases are included as a component of Property, plant and equipment – net, Accounts payable and Other liabilities in our Consolidated Balance Sheets.

Upon adoption of ASU 2016-02, Leases (Topic 842), the Company elected the following practical expedients available in Topic 842:

The Company elected the following practical expedients available in Topic 842:

• the package of three expedients which allows the Company to not re-assess (i) whether any expired or existing contracts are, or contain, leases, (ii) lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases;

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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 4, 2025, the FASB issued ASU No.

Accounting for Government Grants Received by Business Entities.

The amendments in this ASU establish the accounting for a government grant received.

The amendments require that a grant received should not be recognized until (1) it is probable that (a) an entity will comply with conditions attached to the grant and (b) the grant will be received and (2) an entity meets the recognition guidance for a grant related to an asset or to income.

The amendments require that a grant related to an asset be recognized on the balance sheet as the entity incurs the related costs for which the grant is intended to compensate, either as (1) deferred income (the deferred income approach) or (2) an adjustment to the cost basis in determining the carrying amount of the asset (the cost accumulation approach).

A grant related to income and a grant related to an asset for which the deferred income approach is elected should be recognized in earnings on a systematic and rational basis over the periods in which an entity recognizes as expenses the costs for which the grant is intended to compensate.

The amendments require that an entity present a grant related to income and a grant related to an asset for which the deferred income is elected as part of earnings either (1) separately under a general heading such as other income or (2) deducted from the related expense.

In addition, the amendments require that an entity provide disclosures, including the nature of the government grant received, the accounting policies used to account for the grant, and significant terms and conditions of the grant.

For public business entities, this update is effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods.

Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance.

The amendments in this ASU require that a business entity apply the guidance using a modified prospective approach, a modified retrospective approach or a retrospective approach to all government grants through a cumulative effect adjustment to the opening balance of retained earnings as of the beginning of the earliest period presented.

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

On December 8, 2025, the FASB issued ASU No.

Interim Reporting (Topic 270), Narrow Scope Improvements.

The amendments in this ASU provide a comprehensive list of interim disclosures that are required by GAAP.

The amendments also clarify the applicability of Topic 270, the types of interim reporting, and the form and content of interim financial statements in accordance with GAAP to enhance consistency in interim reporting for all entities.

The update is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027 for public business entities.

Early adoption is permitted.

The amendments in this update can be applied either prospectively or 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 its 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):

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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 and entity will:

(1) disclose the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization and 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 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.

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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.

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

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

Improvements to Income Tax Disclosures.

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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 is 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.

This pronouncement is effective for annual periods beginning after December 31, 2024.

The Company adopted ASU 2023-09 retrospectively in its Annual Report on Form 10-K effective December 31, 2025.

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

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The Company adopted ASU 2023-07 effective December 31, 2024, which did not have any impact on the Company's consolidated financial position or results of operations upon adoption.

In September 2022, the FASB issued ASU No.

2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50):

Disclosure of Supplier Finance Program Obligations.

The amendments in this ASU require that a buyer in a supplier finance program disclose sufficient quantitative and qualitative information about its supplier finance programs to allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude.

On a retrospective

basis, for each annual reporting period, an entity should disclose the key terms of the program, including a description of the payment terms, assets pledged as security or other forms of guarantees, the confirmed amount outstanding that remains unpaid, a description of where the obligations are presented in the balance sheet and a roll-forward of those obligations confirmed as well as the amount of obligations subsequently paid.

In each interim reporting period, an entity should disclose the amount of confirmed obligations outstanding.

The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll-forward information, which is effective for fiscal years beginning after December 15, 2023.

Early adoption of the amendments in this update is permitted.

The Company adopted ASU 2022-04, effective January 1, 2023, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption.

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

AdvanSix serves approximately 375 customers annually, primarily in the United States, spanning a wide variety of industries worldwide.

For 2025, 2024 and 2023, the Company's ten largest customers accounted for approximately 40 %, 38 % and 39 % of total sales, respectively.

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We sell caprolactam and Nylon 6 resin to Shaw under a long-term agreement.

Sales to Shaw were 10 % of our total sales for the year ended December 31, 2024, 11 % for the year ended December 31, 2023 and 12 % for the year ended December 31, 2022.

Sales to Shaw were 10 % of our total sales for the years ended December 31, 2025 and 2024, and 11 % for the year ended December 31, 2023.

The Company’s revenue by product line, and related approximate percentage of total sales for 2025, 2024 and 2023 were as follows:

Twelve Months Ended December 31, 2024 and 2023

Years Ended December 31,

2025 2024 2023

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$ 1,522,233 100 % $ 1,517,557 100 % $ 1,533,599 100 %

* 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.

* In 2024, 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 was 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 2025, 2024 and 2023 were as follows:

Twelve Months Ended December 31, 2024 and 2023

Years Ended December 31,

2025 2024 2023

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Total $ 1,522,233 100 % $ 1,517,557 100 % $ 1,533,599 100 %

* Predominantly Latin America and Canada.

Deferred Income and Customer Advances

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Total deferred provision (benefit) 7,814 ( 8,987 ) ( 9,313 )

Total income tax expense (benefit) $ 1,426 $ 14,600 $ 53,905

Total income tax expense

$ 5,145 $ 1,426 $ 14,600

Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 2, Recent Accounting Pronouncements, the U.S.

federal statutory income tax rate is reconciled to the effective income tax rate as follows.

ASU 2023-09 has been retrospectively adopted and the table below has been updated for all periods presented:

Years Ended December 31,

2025 2024 2023

Amount Percentage Amount Percentage Amount Percentage

federal statutory income tax rate $ 11,431 21.0 % $ 9,570 21.0 % $ 14,536 21.0 %

21.0 % 21.0 % 21.0 %

state income taxes

3.4 % 2.9 % 3.1 %

state income tax rate change 0.2 % 0.2 % — %

Excess tax benefits of equity compensation

state income taxes, net of federal income tax effect (a)

2,798 5.1 % 1,635 3.6 % 2,157 3.1 %

Executive compensation limitations 1.8 % 1.0 % 0.7 %

Research and other tax credits ( 2.7 ) % ( 1.3 ) % ( 0.3 ) %

Energy credits ( 21.4 ) % — % — %

Prior year return to provision adjustments 2.1 % ( 0.4 ) % — %

Foreign tax effects 6 — % 6 — % 14 — %

Effect of cross-border tax laws:

Foreign derived intangible income deduction — — % ( 384 ) ( 0.8 ) % ( 842 ) ( 1.2 ) %

— % 0.1 % 0.1 %

Other 2 — % 4 — % ( 21 ) — %

Energy credits ( 9,702 ) ( 17.8 ) % ( 9,748 ) ( 21.4 ) % — — %

Research and development tax credits ( 624 ) ( 1.2 ) % ( 433 ) ( 1.0 ) % ( 935 ) ( 1.4 ) %

Other ( 28 ) — % ( 29 ) ( 0.1 ) % ( 30 ) ( 0.1 ) %

Nontaxable or nondeductible items:

Executive compensation limitations 1,455 2.7 % 1,774 3.9 % 697 1.0 %

Excess tax benefits of equity compensation ( 399 ) ( 0.7 ) % ( 959 ) ( 2.1 ) % ( 1,003 ) ( 1.3 ) %

Other 206 0.4 % ( 10 ) — % 27 — %

Effective income tax rate $ 5,145 9.5 % $ 1,426 3.1 % $ 14,600 21.1 %

Generally, the Company's effective income tax rate is increased relative to the U.S.

statutory rate of 21% due to state taxes and executive compensation limitations, which are generally offset by research tax credits, excess tax benefits of equity compensation and the foreign derived intangible income deduction.

The Company's effective income tax rate for 2024 was significantly less than the U.S.

Federal statutory rate of 21% due to approximately $ 9.7 million in income tax benefits associated with prior year refund claims, specifically related to Internal Revenue Code (IRC) Section 45Q tax credits generated in the 2018 and 2019 tax periods.

IRC Section 45Q allows taxpayers to receive a tax credit for carbon capture and utilization at its facilities.

(a) During the year ended December 31, 2023, states taxes in South Carolina and West Virginia made up the majority (greater than 50%) of the tax effect in this category.

During the year ended December 31, 2024, states taxes in Alabama, Georgia, Kentucky and Michigan made up the majority (greater than 50%) of the tax effect in this category.

During the year ended December 31, 2025, states taxes in Delaware, Iowa, Minnesota and Pennsylvania made up the majority (greater than 50%) of the tax effect in this category.

Upon adoption of ASU 2023-09, cash paid for income taxes, net of refunds, during the years ended December 31, 2025, 2024, and 2023 were as follows:

Income Taxes Paid and Refunds:

Years Ended December 31,

2025 2024 2023

Federal taxes paid, net of refunds $ 12,900 $ 15,383 $ 6,006

State and local taxes paid, net of refunds 2,220 1,189 1,548

Foreign taxes paid, net of refunds 9 19 40

Income taxes paid, net of refunds $ 15,129 $ 16,591 $ 7,594

The Company's effective income tax rate differs from the U.S.

statutory rate of 21% due to state taxes and executive compensation limitations which generally increase the effective income tax rate.

Research tax credits, excess tax benefits of equity compensation and the foreign derived intangible income deduction recorded in a period generally decrease the effective income tax rate.

Additionally, the Company's effective income tax rate for 2024 and 2025 was less than the U.S.

Federal statutory rate of 21% due to Internal Revenue Code (IRC) Section 45Q tax credits of approximately $ 9.7 million claimed in each of those years for credits generated in tax periods 2018, 2019 and 2020.

IRC Section 45Q allows a taxpayer to receive a tax credit for carbon capture and utilization at its facilities.

For certain utilization projects, the 45Q tax credit requires approval by the Internal Revenue Service (IRS) of a life-cycle assessment ("LCA") prior to claiming the tax credits.

The Company received approval

for its 2018 LCA in November 2024 which enables the Company to claim credits for the 2018 and 2019 years.

The Company continues to pursue credits for the periods subsequent to 2019.

The 45Q tax credits for 2018 and 2019 have been recorded as a reduction in the Company's Income taxes payable account.

Additionally, in 2024 the Company recorded 2023 return to provision adjustments which resulted in a 2.1 % increase in its current year effective income tax rate.

These adjustments primarily relate to a reduction in the income tax benefits associated with the research tax credit and the foreign derived intangible income deduction as reported on the Company's 2023 income tax return as compared to amounts recorded in its 2023 Income tax expense.

The Company received approval for its 2018 LCA in November 2024, which the Company was able to rely on for 2018 through 2020.

Approximately $ 18.1 million of the 45Q tax credits claimed for these periods are reflected in Taxes receivable as of December 31, 2025.

The Company continues to pursue IRC section 45Q tax credits for the periods after 2020.

The Company's effective income tax rate for 2023 approximated the U.S.

1 unchanged sentence

Increases to the effective income tax rate due primarily to state taxes and executive compensation limitations, were materially offset by research tax credits, excess tax benefits of equity compensation and the foreign-derived intangible income deduction.

The Company's effective income tax rate for 2022 was higher compared to the U.S.

Federal statutory rate of 21% due primarily to state taxes and executive compensation deduction limitations partially offset by research tax credits and the foreign-derived intangible income deduction.

On August 16, 2022, the Inflation Reduction Act of 2022 (the "IRA") was signed into law.

This legislation includes significant changes relating to tax, climate change, energy and health care.

Among other provisions, the IRA introduces a corporate alternative minimum tax ("CAMT") on adjusted financial statement income of certain large corporations and a 1% excise tax on share repurchases.

The Company is not currently subject to the CAMT which became effective for tax years beginning after December 31, 2022.

The 1% excise tax is generally applicable to publicly traded corporations for the net value of certain stock that the corporation repurchases during the year and is also effective for tax years beginning after December 31, 2022.

The impact of any excise tax imposed on the Company for share repurchases is generally accounted for as an equity transaction with no consequences to the Company's results of operations, and this provision of the law has an immaterial impact on the Company's financial condition.

The IRA also includes significant extensions, expansions and enhancements related to climate and energy tax credits designed to encourage investment in the adoption and expansion of renewable and alternative energy sources.

The Company continues to evaluate these energy credit provisions of the law in relation to our sustainability and environmental, social and governance initiatives.

The Company also continues to monitor any new tax legislation that would result in a material impact on its financial statements, in particular as a result of the new U.S.

presidential administration and U.S.

The Pillar Two Global Anti-Base Erosion rules issued by the Organization for Economic Co-operation and Development ("OECD"), a global policy forum, introduced a global minimum tax of 15% which would apply to multinational groups with consolidated financial statement revenue in excess of EUR 750 million.

Nearly all OECD member jurisdictions have agreed in principle to adopt these provisions and numerous jurisdictions, including jurisdictions where the Company operates, have enacted these rules effective January 1, 2024.

The Company has evaluated the impact of these rules and currently believes they will not have any material impact on financial results through 2026 due to certain transitional safe harbors.

We will continue to monitor and refine our assessment as further guidance is made available.

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted into law, 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 approximately $ 9 million reduction in cash taxes in our financial results for the period ended December 31, 2025.

As of December 31, 2025 and 2024, there were no unrecognized tax benefits recorded by the Company.

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The Company is subject to taxation in the United States and various states and foreign jurisdictions.

The Company has been notified that a federal tax examination for periods 2018 and 2019 will commence, and tax periods 2021 through 2024 remain open under the statute of limitations and are subject to examination by the tax authorities.

The Company is currently under audit for U.S.

federal tax purposes for periods 2018 through 2021.

Tax periods 2022 through 2025 remain open under the statute of limitations and are subject to examination by the tax authorities.

There are no current state or foreign tax examinations;

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Inventory 22,545 17,346

Pension obligation — 1,726

Operating lease liability 39,921 36,931

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The net deferred taxes are primarily related to U.S.

The Company has no material state net operating losses (NOL) carryforwards and no federal or state tax credit carryforwards remaining as of December 31, 2024.

We believe that the state NOL carryforward and other deferred tax assets are more likely than not to be realized and we have no t recorded a valuation allowance against the deferred tax assets.

The Company has no material state net operating losses (NOL) carryforwards and no material federal or state tax credit carryforwards remaining as of December 31, 2025.

We believe that the state NOL and tax credit carryforwards and other deferred tax assets are more likely than not to be realized and we have no t recorded a valuation allowance against the deferred tax assets.

The Company's accounting policy is to record the tax impacts of Global intangible low-taxed income as a period cost.

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Raw materials $ 116,248 $ 99,320

$ 99,320 $ 159,240

Work in progress

71,175 54,936

Finished goods

73,994 61,891

Semi-finished and finished goods 167,498 145,169

Spares and other 32,877 31,948

316,623 276,437

276,437 306,998

Reduction to LIFO cost basis ( 80,128 ) ( 64,051 )

( 64,051 ) ( 95,167 )

Total inventories $ 236,495 $ 212,386

$ 212,386 $ 211,831

Substantially all of the Company’s inventories at December 31, 2024 and December 31, 2023 are valued at the lower of cost or market using the LIFO method.

Substantially all of the Company’s inventories at December 31, 2025 and 2024 are valued at the lower of cost or market using the LIFO method.

However, approximately 5 % was valued at average cost using the first-in, first-out (“FIFO”) method at December 31, 2025.

The excess of replacement cost over the carrying value of total inventories subject to LIFO was $ 57.5 million and $ 65.3 million at December 31, 2024 and December 31, 2023, respectively.

The excess of replacement cost over the carrying value of total inventories subject to LIFO was $ 61.3 million and $ 57.5 million at December 31, 2025 and 2024, respectively.

Property, Plant, Equipment – Net

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We determine if an arrangement is a lease at inception.

Operating leases, which are reported as Operating lease right-of-use assets ("ROU"), Operating lease liabilities – short-term, and Operating lease liabilities – long-term are included in our Consolidated Balance Sheets.

Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our Consolidated Balance Sheets.

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The Company has entered into agreements to lease transportation equipment, storage facilities, office space, dock access and other equipment.

The operating leases have initial terms of up to 20 years with some containing renewal options subject to customary

The operating leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions.

The term and length of the various agreements, as well as the timing of any renewals, will impact the ROU asset calculation and related liability.

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Long-term Debt and Credit Agreement

The Company’s debt at December 31, 2024 consisted of the following:

The Company’s debt consisted of the following at December 31,:

Total term loan outstanding

Amounts outstanding under the Revolving Credit Facility

215,000 195,000

Total outstanding indebtedness

215,000 195,000

amounts expected to be repaid within one year

Total long-term debt due after one year

$ 215,000 $ 195,000

At December 31, 2025, the Company assessed the Revolving Credit Facility (defined below) and determined that such amounts approximated fair value.

1 unchanged sentence

Credit Agreement

On September 30, 2016, the Company as the borrower, entered into a Credit Agreement with Bank of America, as administrative agent (the "Original Credit Agreement"), which was amended on February 21, 2018 (the "First Amended and Restated Credit Agreement"), and further amended on February 19, 2020 (the “Second Amended and Restated Credit Agreement”).

The Second Amended and Restated Credit Agreement had a five-year term with a scheduled maturity date of February 21, 2023.

On October 27, 2021, the Company completed a refinancing of the Second Amended and Restated Credit Agreement by entering into a new Credit Agreement (the “Credit Agreement”), among the Company, the lenders party thereto, the swing line lenders party thereto, the letter of credit issuers party thereto and Truist Bank, as administrative agent, which provides for a new senior secured revolving credit facility in an aggregate principal amount of $ 500 million (the “Revolving Credit Facility”).

Borrowings under the Revolving Credit Facility are subject to customary borrowing conditions.

The Revolving Credit Facility has a scheduled maturity date of October 27, 2026.

The Revolving Credit Facility had a scheduled maturity date of October 27, 2026 (which was extended pursuant to an October 2025 amendment, as described in more detail below.

The Credit Agreement permits the Company to utilize up to $ 40 million of the Revolving Credit Facility for the issuance of letters of credit and up to $ 40 million for swing line loans.

The Company has the option to establish a new class of term loans and/or increase the amount of the Revolving Credit Facility in an aggregate principal amount for all such incremental term loans and increases of the Revolving Credit Facility of up to the sum of (x) $ 175 million plus (y) an amount such that the Company’s Consolidated First Lien Secured Leverage Ratio (as defined in the Credit Agreement) would not be greater than 2.75 to 1.00, in each case, to the extent that any one or more lenders, whether or not currently party to the Credit Agreement, commits to be a lender for such amount or any portion thereof.

With the cessation of LIBOR on June 30, 2023 and subject to the First Amendment to the Credit Agreement, dated as of June 27, 2023, the Eurodollar Rate was replaced with the Adjusted Term SOFR as an alternative benchmark rate for purposes of the Credit Agreement.

The transition was effective July 1, 2023.

Borrowings under the Credit Agreement bear interest at a rate equal to either the sum of a base rate plus a margin ranging from 0.25 % to 1.25 % or the sum of an Adjusted Term SOFR rate plus a margin ranging from 1.25 % to 2.25 %, with either such margin varying according to the Company’s Consolidated Leverage Ratio (as defined in the Credit Agreement).

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We were in compliance with all of our covenants at December 31, 2025.

On October 23, 2025, the Company entered into Amendment No.

2 (the “Amendment”) to the Credit Agreement (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.

Pursuant to the Amendment, the Credit Agreement was amended to, among other things:

(i) extend the maturity date of the Revolving Credit Facility for participating Revolving Credit Lenders, as defined in the Amended Credit Agreement, 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 Facility, 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 under the Revolving Credit Facility that was 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 Facility, pursuant to the terms of the Amended Credit Agreement.

Postretirement Benefit Obligations

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On January 1, 2017, the Company established a defined contribution plan which covers all eligible U.S.

Our plan allows eligible employees to contribute a portion of their cash compensation to the plan on a tax-deferred basis to save for their future retirement needs.

Our plan allows eligible employees to contribute a portion of their cash compensation to the plan to save for their future retirement needs.

The Company matches 50 % or 75 % of the first 8 % of contributions for employees covered by a collective bargaining agreement, dependent upon the terms of the respective collective bargaining agreement and matches 75 % of the first 8 % of the employee’s contribution election for all other employees.

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Benefits paid ( 3,510 ) ( 3,098 ) ( 2,494 )

Company Contributions

Fair value of plan assets at December 31,

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Prior service cost — — —

Net actuarial (gain) loss

( 14,725 ) ( 1,271 ) ( 1,087 )

Pension amounts recognized in other comprehensive loss (income)

Net actuarial gain ( 18,658 ) ( 14,725 ) ( 1,271 )

Pension amount recognized in other comprehensive income:

$ ( 18,658 ) $ ( 14,725 ) $ ( 1,271 )

3 unchanged sentences

Net periodic pension cost (benefit)

$ 4,877 $ 4,906 $ 6,860

Service cost $ 3,961 $ 4,877 $ 4,906

Interest cost 4,684 4,524 4,048

4,524 4,048 2,436

Expected return on plan assets ( 5,038 ) ( 4,884 ) ( 4,396 )

( 4,884 ) ( 4,396 ) ( 4,463 )

Recognition of actuarial losses

Recognition of actuarial gain ( 930 ) — —

Net periodic Pension Cost

1 unchanged sentence

Other changes in benefits obligations recognized in other comprehensive loss (income)

Actuarial losses (gains)

Actuarial gain

( 3,933 ) ( 13,455 ) ( 184 )

3 unchanged sentences

$ ( 1,256 ) $ ( 8,938 ) $ 4,374

The estimated actuarial loss (gain) that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2024 and 2023 was nil .

The estimated actuarial gain that was amortized from accumulated other comprehensive income (loss) into net periodic benefit cost was $ 0.9 million in 2025 and nil in 2024 and 2023.

Significant actuarial assumptions used in determining the benefit obligations and net periodic benefit cost for our pension plan were as follows:

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Our general funding policy for our pension plan is to contribute amounts at least sufficient to satisfy regulatory funding standards.

The Company made pension plan contributions sufficient to satisfy pension funding requirements under the AdvanSix Retirement Earnings Plan as follows:

Years Ended December 31,

2024 2023 2022

1st Quarter $ — $ — $ —

2nd Quarter — — 10,000

3rd Quarter — — 5,000

4th Quarter — — 5,000

Total $ — $ — $ 20,000

The Company expects to make pension plan contributions during 2025 sufficient to satisfy pension funding requirements of up to $ 1.0 million, if any, as well as evaluate contributions in future years sufficient to satisfy pension funding requirements in those periods.

The Company was no t required to make pension plan contributions during the years ended December 31, 2025, 2024 and 2023.

from our investments were sufficient to satisfy pension funding requirements under the AdvanSix Retirement Earnings Plan during these periods.

The Company expects to make pension plan contributions during 2026 sufficient to satisfy pension funding requirements estimated to be approximately $ 3 million, as well as evaluate contributions in future years sufficient to satisfy pension funding requirements in those periods.

The pension plan assets are invested through a master trust fund.

The strategic asset allocation for the trust fund is selected by the Company's Investment Committee reflecting the results of comprehensive asset and liability modeling.

The Investment Committee

establishes strategic asset allocation percentage targets and appropriate benchmarks for significant asset classes with the aim of achieving a prudent balance between return and risk.

The Investment Committee establishes strategic asset allocation percentage targets and appropriate benchmarks for significant asset classes with the aim of achieving a prudent balance between return and risk.

The target asset allocation percent for the Company's pension plan assets is summarized as follows:

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Fair Value Measurements 2025 2024 2023

Level 1 Investments

$ 31,582 $ — $ —

Investments valued using NAV per share

6 unchanged sentences

Total Pension Plan Assets at Fair Value $ 101,212 $ 89,039 $ 86,084

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

These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy.

The pension plan assets are invested in collective investment trust funds, mutual funds and pooled separate accounts, as shown above.

The collective investment trust funds and pooled separate accounts are measured at fair value using the net asset value ("NAV") per share practical expedient and have not been classified in the fair value hierarchy.

The mutual funds are classified as Level 1 in the fair value hierarchy.

Commitments and Contingencies

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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 Balance Sheets, results of operations or cash flows.

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 Balance Sheets, results of operations or cash flows.

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.

3 unchanged sentences

Unconditional Purchase Obligations

In the normal course of business, the Company makes commitments to purchase goods with various vendors in the normal course of business which are consistent with our expected requirements and primarily relate to cumene, sulfur and natural gas as well as a long-term agreement for loading, unloading and the handling of a portion of our ammonium sulfate export volumes.

In the normal course of business, the Company makes commitments to purchase goods with various vendors which are consistent with our expected requirements and generally relate to cumene, sulfur and natural gas as well as a long-term agreement for loading, unloading and the handling of a portion of our ammonium sulfate export volumes.

Future minimum payments for these unconditional purchase obligations as of December 31, 2025 are as follows (dollars in thousands):

12 unchanged sentences

comprehensive income (loss)

— — ( 671 ) ( 671 )

Income tax expense (benefit)

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Other comprehensive income (loss) 34 3,933 — 3,967

( 109 ) 13,454 — 13,345

Amounts reclassified from accumulated other

1 unchanged sentence

Income tax expense (benefit) — ( 948 ) 7 ( 941 )

— ( 3,231 ) — ( 3,231 )

Current period change 34 2,985 7 3,026

( 109 ) 10,223 — 10,114

Balance at December 31, 2025 $ ( 5,110 ) $ 14,106 $ — $ 8,996

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On February 22, 2019, the Company announced that the Board authorized a share repurchase program of up to an additional $ 75 million of the Company's common stock, which was in addition to the remaining capacity available under the May 2018 share repurchase program.

Repurchases may be made, from time to time, on the open market, including through the use of trading plans intended to qualify under Rule 10b5-1 of the Exchange Act of 1934, as amended (the "Exchange Act").

Repurchases may be made, from time to time, on the open market, including through the use of trading plans intended to qualify under Rule 10b5-1 of the Exchange Act of 1934, as amended.

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.

During 2024, the Company had repurchased 403,654 shares of common stock, including 152,333 shares withheld to cover the tax withholding obligations in connection with the vesting awards, for an aggregate of $ 10.4 million at a weighted average market price of $ 25.80 per share.

During 2025, the Company had repurchased 61,660 shares of common stock, all of which were withheld to cover the tax withholding obligations in connection with the vesting awards, for an aggregate of $ 1.7 million at a weighted average market price of $ 26.90 per share.

The purchase of shares reduces the weighted average number of shares outstanding in the basic and diluted earnings per share calculations.

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As a result, no further grants will be made under the Original Plan.

The Equity Plan provides for the

grant of stock options, stock appreciation rights, performance awards, restricted stock units, restricted stock, other stock-based awards and non-share-based awards.

The Equity Plan provides for the grant of stock options, stock appreciation rights, performance awards, restricted stock units, restricted stock, other stock-based awards and non-share-based awards.

The maximum aggregate number of shares of our common stock that may be issued under all stock-based awards granted under the Equity Plan is 2,594,395 , subject to adjustment in accordance with the terms of the Equity Plan.

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Volatility is determined based on the average volatility of peer companies with similar option terms.

The expected term is determined using a simplified approach, calculated as the mid-point between the vesting period and the contractual term of the award.

The expected term is determined using a

simplified approach, calculated as the mid-point between the vesting period and the contractual term of the award.

The risk-free interest rate is determined based upon the yield of an outstanding U.S.

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Exercisable at December 31, 2023 728 $ 26.47 5.46 $ 4,412

Granted 86 41.15

Exercised ( 24 ) 17.96

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Exercisable at December 31, 2025 805 $ 28.86 4.08 $ 654

The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the year and the exercise price, multiplied by the number of in-the-money options) that

would have been received had all option holders exercised their in-the-money options at year-end.

The amount changes based on the fair market value of the Company’s stock.

As of December 31, 2024, there was $ 0.3 million of unrecognized stock-based compensation expense related to stock options that is expected to be recognized over a weighted average period of approximately 0.5 years.

As of December 31, 2025, there was no unrecognized stock-based compensation expense related to stock options that is expected to be recognized over a weighted average period of approximately 0.2 years.

Performance Stock Units – The Company may issue PSUs to key senior management employees which, upon vesting, convert one -for-one to AdvanSix common stock.

18 unchanged sentences

Non-vested at December 31, 2024 297 35.95

Performance adjustment ( 83 ) 41.67

Granted 143 29.85

Vested ( 108 ) 30.37

Forfeited ( 41 ) 32.60

27 unchanged sentences

Total $ 56,371 $ ( 16,276 ) $ 40,095 $ 56,371 $ ( 13,227 ) $ 43,144

For the years ended December 31, 2024 and 2023, the Company recorded amortization expense on intangible assets of $ 3.0 million and $ 3.0 million, respectively.

For each of the years ended December 31, 2025 and 2024, the Company recorded amortization expense on intangible assets of $ 3.0 million.

The estimated aggregate amortization expense for each of the next five years is as follows:

In February 2022, the Company acquired the stock of U.S.

Amines, a leading North American producer of alkyl and specialty amines serving high-value end markets such as agrochemicals and pharmaceuticals for a purchase price of approximately $ 97.5 million, net of cash acquired.

In accordance with ASC 805, this transaction was accounted for as a business combination.

The transaction resulted in the Company acquiring tangible assets and finite-lived intangible assets, comprised of customer relationships (approximately $ 33 million) and trademarks (approximately $ 1 million) which reflect the value of the benefit derived from incremental revenue and related cash flows as a direct result of the customer relationships and name brand.

These intangible assets are being amortized on a straight-line basis over their estimated useful lives of 20 years and 5 years, respectively.

The residual amount of the purchase price in excess of the value of the tangible and definite-lived intangible assets was allocated to goodwill.

Supplier Finance Programs

4 unchanged sentences

The total amount due to the financial intermediaries to settle supplier invoices under all of its supplier finance programs at December 31, 2025 and 2024, are as follows (in thousands):

Confirmed obligations outstanding at the beginning of the year $ 17,076 $ 17,434

Invoices confirmed during the year 62,933 63,136

Confirmed invoices paid during the year ( 60,854 ) ( 63,494 )

Confirmed obligations outstanding at the end of the year $ 19,155 $ 17,076

Confirmed obligations outstanding at the beginning of the period $ 19,155 $ 17,076

Invoices confirmed during the period 51,992 62,933

Confirmed invoices paid during the period ( 62,154 ) ( 60,854 )

Confirmed obligations outstanding at the end of the period $ 8,993 $ 19,155

These amounts outstanding are included in Accounts payable .

7 unchanged sentences

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.

1 unchanged sentence

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 estimate the cash-generating potential and cash requirements of the segment.

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):

2 unchanged sentences

Revenue $ 1,522,233 $ 1,517,557 $ 1,533,599

Variable cost of goods sold * 691,300 711,169 973,605

Variable costs of goods sold * 663,871 691,300 711,169

Plant costs 500,596 487,671 470,457

3 unchanged sentences

Segment net income $ 49,286 $ 44,149 $ 54,623

*Variable costs of goods sold includes raw materials and various utility expenses

*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.

Other Non-operating (Income) Expense, Net

For the year ended December 31, 2024, Other non-operating (income) expense, net primarily includes a pre-tax loss of approximately $ 1.2 million related to a reduction of the Company's anticipated receivable related to the gain on the termination fee recorded upon the Company's exit from the Oben Holding Group S.A.

alliance in the prior year.

Subsequent Events

3 unchanged sentences

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-K

Item 8. Financial Statements and Supplementary Data