What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-08 compared with 2025-11-07 · 67 added, 113 removed, 217 unchanged (45% of the section changed)

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the potential effects of inflationary pressures, tariffs or the imposition of new tariffs, trade wars, barriers or restrictions, or threats of such actions, changes in interest rates, labor market shortages and supply chain issues;

government shutdown, the conflict between Russia and Ukraine, the conflicts in Israel, Gaza and Iran, and related instability in the surrounding region, and the uncertain outcomes of such conflicts;

instability or volatility in financial markets or other unfavorable economic or business conditions caused by geopolitical concerns, including as a result of new or proposed legislation or regulatory, trade or other policies in or impacting the U.S., the conflict between Russia and Ukraine, the conflicts in Israel, Gaza and Iran, as well as any related uncertainty in the surrounding region, and the possible expansion of such conflicts;

the effect of any of the foregoing on our customers’ demand for our products and our suppliers’ ability to manufacture and deliver our raw materials, including implications of reduced refinery utilization in the U.S.;

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risks associated with increased phishing, compromised business emails and other cybersecurity attacks, data privacy incidents and disruptions to our technology infrastructure;

risks associated with potential use of artificial intelligence in our operations or those of third party service providers;

risks associated with operating with a reduced workforce;

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Business Overview

AdvanSix 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.

AdvanSix is a vertically 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.

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◦ Caprolactam – Caprolactam is the key monomer used in the production of Nylon 6 resin.

We internally polymerize caprolactam into Aegis® Nylon 6 Resins, and we also market and sell the caprolactam that is not consumed internally to customers who use it to manufacture polymer resins to produce fibers, compounds and other nylon products.

Our Hopewell, VA manufacturing facility is one of the world’s largest single-site producers of caprolactam as of September 30, 2025.

We internally polymerize caprolactam into Aegis® Nylon 6 Resin, and we also market and sell the caprolactam that is not consumed internally to customers who use it to manufacture polymer resins to produce fibers, compounds and other nylon products.

Our Hopewell, VA manufacturing facility is one of the world’s largest single-site producers of caprolactam as of March 31, 2026.

• Plant Nutrients – Our ammonium sulfate is used by customers as a fertilizer containing nitrogen and sulfur, two key plant nutrients.

Ammonium sulfate fertilizer is derived from the integrated operations at the Hopewell manufacturing facility.

Because of our Hopewell facility’s size, scale and technology design, we are the world’s largest single-site producer of ammonium sulfate fertilizer as of September 30, 2025.

Because of our Hopewell facility’s size, scale and technology design, we are the world’s largest single-site producer of ammonium sulfate fertilizer as of March 31, 2026.

We market and sell ammonium sulfate primarily to North American and South American distributors, farm cooperatives and retailers to fertilize crops.

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Most significant is acetone which is used by our customers in the production of solvents, paints, coatings, adhesives, resins and herbicides.

Other intermediate chemicals that we manufacture, market and sell include phenol, alpha-methylstyrene, cyclohexanone, oximes, cyclohexanol, and alkyl and specialty amines.

Other intermediate chemicals that we manufacture, market and sell include phenol, alpha-methylstyrene, cyclohexanone, oximes, cyclohexanol, and alkyl-amines and specialty amines.

Additional end-products for intermediates include automotive components, and water treatment and pharmaceutical intermediates.

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Further, although we believe that our sources of supply for our raw materials, including cumene, natural gas and sulfur, are generally robust, it is difficult to predict the impact that shortages, increased costs and related supply chain logistics considerations may have in the future.

In order to mitigate the risk of unplanned interruptions, we schedule planned plant turnarounds each year to conduct routine and major maintenance across our facilities.

In order to mitigate the risk of unplanned interruptions, we schedule several planned plant turnarounds each year to conduct routine and major maintenance across our facilities.

We also utilize maintenance excellence and mechanical integrity programs, targeted buffer inventory of intermediate chemicals necessary for our manufacturing process, and co-producer swap arrangements, which are intended to mitigate the extent of any production losses as a result of planned and unplanned downtime;

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Recent Developments

Amendment to Credit Agreement

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

2 (the “Amendment”) to the Credit Agreement (as defined below).

See “Liquidity and Capital Resources - Credit Agreement” for a discussion regarding the Amendment.

Appointment of Senior Vice President and Chief Financial Officer

On April 13, 2026, the Company announced that its Board of Directors (the "Board") appointed Patrick C.

Day as Senior Vice President and Chief Financial Officer, effective as of April 27, 2026, to succeed Christopher Gramm who had been serving as Interim Chief Financial Officer.

Effective as of such date, Mr.

Gramm returned to serving in his role as Vice President of Corporate Finance and Strategic Financial Planning and Analysis for the Company.

Anti-Dumping Duty Petition - Acetone

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International Trade Commission ("ITC") issued its notice of initiation of its five-year review of the orders.

The anti-dumping orders and applicable duties will continue for another five-year period if Commerce finds that revocation of the orders is likely to lead to continuation or recurrence of dumping and if the ITC finds that revocation is likely to lead to continuation or recurrence of material injury to the U.S.

The anti-dumping orders and applicable duties were set to continue for another five-year period if Commerce found that revocation of the orders would likely lead to continuation or recurrence of dumping and if the ITC found that revocation would likely lead to continuation or recurrence of material injury to the U.S.

domestic industry.

On December 26, 2024, Commerce notified the ITC that it would conduct an expedited review and issue its results no later than March 4, 2025.

On February 4, 2025, the ITC voted to conduct a full review and is expected to issue its results in the fourth quarter of 2025.

On March 7, 2025, Commerce determined that revocation of the anti-dumping orders would likely lead to continuation of recurrence of dumping.

The anti-dumping duties will continue to apply during the ITC's pending review.

Philadelphia Energy Solutions’ Shut Down

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

PES was one of multiple suppliers to the Company of cumene, a feedstock material used to produce phenol, acetone and other chemical intermediates.

The Company has been actively pursuing the claim over several years, with 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.

In January 2026, the ITC made affirmative determinations that revocation of the orders would likely lead to continuation or recurrence of material injury.

As a result of Commerce and ITC's determinations, the orders were extended for another five years.

Results of Operations

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Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Sales $ 404,183 $ 377,791

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Three Months Ended

September 30, 2025 Nine Months Ended

September 30, 2025

Volume (3.2)% (1.9)%

Price (2.8)% (0.3)%

(6.0)% (2.2)%

Sales decreased in the three months ended September 30, 2025 compared to the prior year period by $23.7 million (approximately 6%) due to (i) lower raw material pass through pricing (approximately 5%) following a net cost decrease in benzene and propylene (inputs to cumene which is a key feedstock to our products) and (ii) decreased volume (approximately 3%) primarily driven by softer demand in chemical intermediate and nylon end markets, partially offset by favorable market-based pricing (approximately 2%) driven by continued strength in Plant Nutrients reflecting favorable North American ammonium sulfate supply and demand conditions.

Sales decreased in the nine months ended September 30, 2025 compared to the prior year period by $26.2 million (approximately 2%) due to decreased volume (approximately 2%) driven by softer demand in nylon end markets partially offset by higher granular ammonium sulfate sales supported by our SUSTAIN (Sustainable U.S.

Sulfate to Accelerate Increased Nutrition) program.

Pricing was flat, primarily reflecting favorable market-based pricing across our Plant Nutrients and Nylon Solutions product lines offset by lower raw material pass through pricing following a net cost decrease in benzene and propylene.

March 31, 2026

Sales increased in the three months ended March 31, 2026 compared to the prior year period by $26.4 million (approximately 7%) due primarily to (i) higher volume driven primarily by Chemical Intermediates sales (approximately 6%) and (ii) favorable market-based pricing (approximately 3%) primarily driven by an increase in Plant Nutrients reflecting higher nitrogen pricing amid increased sulfur input costs, partially offset by lower raw material pass through pricing following a net cost decrease in benzene and propylene (inputs to cumene which is a key feedstock to our products) (approximately 2%).

Organization, Operations and Basis of Presentation of Notes to the Condensed Consolidated Financial Statements for discussion of the additional reporting days in the current year period resulting from our normal quarterly closing procedures.

Costs of Goods Sold

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Costs of goods sold $ 349,088 $ 340,885 $ 1,024,716 $ 1,046,860

Cost of goods sold $ 400,381 $ 324,320

% change compared with prior year period 23.5%

Gross Margin percentage 0.9% 14.2%

Costs of goods sold increased in the three months ended September 30, 2025 compared to the prior year period by $8.2 million (approximately 2%) due to (i) increased plant costs (approximately 2%) driven primarily by utility costs and (ii) increased raw material costs (approximately 1%) driven by sulfur and natural gas.

Costs of goods sold decreased in the nine months ended September 30, 2025 compared to the prior year period by $22.1 million (approximately 2%) due to (i) insurance proceeds collected as a result of the PES supplier shutdown (approximately 3%),and (ii) decreased sales volume (approximately 3%), partially offset by (i) increased raw material costs (approximately 2%) driven by sulfur and natural gas and (ii) increased plant costs driven primarily by utility costs (approximately 1%).

Gross margin percentage decreased in the three months ended September 30, 2025 compared to the prior year period (approximately 8%) due primarily to (i) the impact of pricing, net of raw material costs (approximately 3%), (ii) increased plant costs driven primarily by utility costs (approximately 2%), and (iii) lower sales volumes as discussed above (approximately 2%).

Gross margin percentage was approximately flat in the nine months ended September 30, 2025 compared to the prior year period due to insurance proceeds collected as a result of the PES supplier shutdown (approximately 2%), offset by the impact of pricing, net of raw material costs (approximately 2%).

Costs of goods sold increased in the three months ended March 31, 2026 compared to the prior year period by $76.1 million (approximately 23%) due primarily to (i) increased raw material costs (approximately 8%) driven by sulfur, (ii) $26 million of insurance proceeds (approximately 8% in the prior year period which did not recur in the current year period), (iii) increased sales volume (approximately 4%) and (iv) increased plant costs (approximately 4%) driven primarily by utility costs and winter storm related expenses.

Gross margin percentage decreased in the three months ended March 31, 2026 compared to the prior year period (approximately 13%) due primarily to (i) absence of insurance proceeds (approximately 6%), (ii) the impact of pricing, net of raw material costs (approximately 5%) and (iii) increased plant costs driven primarily by utility costs and winter storm related expenses (approximately 3%).

Selling, General and Administrative Expenses

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Selling, general and administrative expenses $ 22,518 $ 23,409

Percentage of Sales 5.6% 6.2%

Selling, general and administrative expenses increased by $3.2 million in the three months ended September 30, 2025 compared to the prior year period due primarily to legal and professional fees associated with strategic regulatory matters and potential inorganic growth options, and the planned investment to upgrade our enterprise resource planning system.

Selling, general and administrative expenses increased by $4.0 million in the nine months ended September 30, 2025 compared to the prior period due primarily to legal and professional fees associated with strategic regulatory matters and potential inorganic growth options, and the planned investment to upgrade our enterprise resource planning system.

Selling, general and administrative expenses decreased by $0.9 million in the three months ended March 31, 2026 compared to the prior year period due primarily to the completion of the investment to upgrade our enterprise resource planning system in 2025.

Income Tax Expense (Benefit)

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Income tax expense (benefit) $ (5,131) $ 5,585

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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 in the estimated annual effective tax rate for the three and nine months ended 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.

The Company’s effective tax rate for the three months ended September 30, 2025 was marginally higher than the prior year period.

The increase was mainly attributed to the effect of return-to-provision adjustments on the tax rate during the three months ended September 30, 2025, relative to the prior year period, partially offset by a reduction in state taxes during the three months ended September 30, 2025 relative to the prior year period.

The Company’s effective tax rate for the nine months ended September 30, 2025 was lower than the prior year period due primarily to the impact of the IRC Section 45Q tax credits recorded in the current year-to-date period compared to the prior year-to-date period.

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 and we anticipate that it will also reduce our cash taxes in future periods.

However, due to the elective applicability of these provisions, we are still evaluating the full impact and timing that these provisions will have on our financial results.

We do not currently anticipate that the Act will have a material impact on our effective tax rate.

The Company’s effective tax rate for the three months ended March 31, 2026 and 2025 differed from the U.S.

federal statutory rate due to state taxes and executive compensation deduction limitations which generally increase the rate, offset by research tax credits and the foreign-derived deduction eligible income (FDDEI) deduction (formerly known as the foreign-derived intangible income (FDII) deduction) that generally decrease the rate.

During the three months ended March 31, 2025, discrete tax adjustments recorded in the quarter related to Internal Revenue Code (IRC) Section 45Q tax credits of $1.8 million, offset slightly by state tax legislation changes, resulted in a net 5.8% decrease in the Effective tax rate.

The Company’s effective tax rate for the three months ended March 31, 2026 was higher than the prior year period due primarily to the discrete tax adjustments related to IRC Section 45Q tax credits and state tax legislative changes in the prior year quarter described above.

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.

Several of the major business provisions in the Act became effective in 2025 while other business tax changes are effective for the 2026 tax year.

The major business provisions in the Act reduced our cash taxes in 2025 and are expected to reduce our cash taxes in 2026 and future periods.

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Net income (loss) $ (15,546) $ 23,344

As a result of the factors described above, Net income (loss) was ($2.6) million and $52.1 million for the three and nine months ended September 30, 2025, respectively, as compared to $22.3 million and $43.8 million in the corresponding prior year period.

As a result of the factors described above, Net income (loss) was ($15.5) million for the three months ended March 31, 2026 as compared to $23.3 million in the corresponding prior year period.

Non-GAAP Measures

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The following tables set forth the non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net income and Adjusted EPS.

Adjusted EBITDA is defined as Net income before Interest, Income taxes, Depreciation and amortization, Non-cash stock-based compensation, Non-recurring, unusual or extraordinary expenses, Non-cash amortization from acquisitions and One-time merger and acquisition costs.

Adjusted EBITDA Margin is equal to Adjusted EBITDA divided by Sales.

The Company believes these non-GAAP financial measures provide meaningful supplemental information as they are used by the Company’s management to evaluate the Company’s operating performance, enhance a reader’s understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and performance relative to its competitors, as the non-GAAP measures exclude items that management believes do not reflect the Company’s ongoing operations.

The following tables may also present each of these measures as further adjusted.

The Company believes these non-GAAP financial measures provide meaningful supplemental information as they are used by the Company’s management to evaluate the Company’s operating performance, enhance a reader’s understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and performance relative to the Company's competitors, as the non-GAAP measures exclude items that management believes do not reflect the Company’s ongoing operations.

These non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for the financial information presented in accordance with U.S.

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Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Net income (loss) $ (15,546) $ 23,344

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Income tax benefit relating to reconciling items (440) (430)

Adjusted Net income (non-GAAP) 2,148 23,989 61,304 50,961

Adjusted Net income (loss) (non-GAAP) (13,409) 25,424

Interest expense, net 2,430 1,541

Income tax expense - Adjusted 469 7,846 7,242 16,197

Income tax expense (benefit) - Adjusted (4,691) 6,015

Depreciation and amortization - Adjusted 20,426 18,646

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Adjusted EBITDA Margin* (non-GAAP) 1.2% 13.7%

* 2024 includes a pre-tax loss of approximately $1.2 million from the reduction of the Company's anticipated receivable related to the gain on the termination fee recorded upon the exit from the Oben Holding Group S.A.

alliance during the third quarter of 2023.

** Legal and professional fees associated with strategic regulatory matters and potential inorganic growth options.

* Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Sales.

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Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Net income (loss) $ (15,546) $ 23,344

Adjusted Net income (non-GAAP) 2,148 23,989 61,304 50,961

Adjusted Net income (loss) (non-GAAP) (13,409) 25,424

Weighted-average number of common shares outstanding - basic 26,980,742 26,838,146

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(Dollars in thousands, unless otherwise noted)

We believe that cash balances and operating cash flows, together with available capacity under our credit agreement, as utilized in the third quarter of 2025, will provide adequate funds to support our current short-term operating objectives as well as our longer-term strategic plans, subject to the risks and uncertainties outlined below, in our "Note Regarding Forward-Looking Statements" above, and in the risk factors previously disclosed in Item 1A of Part I of our 2024 Form 10-K.

Our principal source of liquidity is our cash flow generated from operating activities, which is expected to provide us with the ability to meet the majority of our short-term funding requirements for the next twelve months and beyond.

We believe that cash balances and operating cash flows, together with available capacity under our credit agreement, as utilized in the first quarter of 2026, will provide adequate funds to support our current short-term operating objectives as well as our longer-term strategic plans, subject to the risks and uncertainties outlined below, in our "Note Regarding Forward-Looking Statements" above, and in the risk factors previously disclosed in Item 1A of Part I of our 2025 Form 10-K.

Our principal

source of liquidity is our cash flow generated from operating activities, which is expected to provide us with the ability to meet the majority of our short-term funding requirements for the next twelve months and beyond.

Our cash flows are affected by capital requirements and production volume, which may be materially impacted by unanticipated events such as unplanned downtime, material disruptions at our production facilities, the prices of our raw materials, general economic and industry trends and customer demand.

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Our ability to fund our capital needs, however, will depend on our ongoing ability to generate cash from operations and access to credit and capital markets, both of which are subject to the risk factors previously disclosed in Item 1A of Part I of our 2025 Form 10-K, as well as general economic, financial, competitive, regulatory and other factors that are beyond our control.

As of the end of the third quarter of 2025, the Company had approximately $23.7 million of cash on hand with approximately $249 million of additional capacity available under the revolving credit facility.

As of the end of the first quarter of 2026, the Company had approximately $17.6 million of cash on hand with approximately $229 million of additional capacity available under the revolving credit facility.

The Company’s Consolidated Leverage Ratio financial covenant of its credit facility allows it to net up to $75 million of cash with debt.

Capital expenditures are expected to

be approximately $120 million to $125 million in 2025 compared to $134 million in 2024, reflecting the planned progression of our SUSTAIN growth program, and refined execution timing to address critical enterprise risk mitigation.

Capital expenditures are expected to be approximately $75 million to $95 million in 2026 compared to $116 million in 2025, reflecting a risk-based prioritization of base investments and enterprise programs with continued progression of growth programs including our SUSTAIN program.

We assumed from Honeywell International Inc.

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We expect that our primary cash requirements for 2026 will be to fund costs associated with ongoing operations, capital expenditures, and amounts related to other contractual obligations.

The Company made no cash contributions to the defined benefit pension plan during the nine months ended September 30, 2025 as there were no funding requirements for the period.

The Company made no cash contributions to the defined benefit pension plan during the three months ended March 31, 2026 as there were no funding requirements for the period.

Additional contributions may be made in future periods sufficient to satisfy pension funding requirements in those periods or on a discretionary basis.

As of September 30, 2025, the Company has repurchased a total of 6,313,789 shares of common stock life-to-date, 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 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.

As of March 31, 2026, the Company has repurchased a total of 6,386,289 shares of common stock life-to-date, including 1,140,833 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $195.4 million at a weighted average market price of $30.59 per share.

As of March 31, 2026, approximately $62.0 million remained available for share repurchases under the current authorization approved by the Board on February 17, 2023.

During the period April 1, 2026 through May 1, 2026, 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 Exchange Act, including through the use of trading plans intended to qualify under Rule 10b5-1 of the Exchange Act.

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

As of September 30, 2025, the Company did not have any off-balance sheet arrangements as described in Instruction 8 to Item 303(b) of Regulation S-K and did not have any material changes in the commitments or contractual obligations detailed in the 2024 Form 10-K (see Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" under "Liquidity and Capital Resources - Liquidity").

As of March 31, 2026, the Company did not have any off-balance sheet arrangements as described in Instruction 8 to Item 303(b) of Regulation S-K and did not have any material changes in the commitments or contractual obligations detailed in the 2025 Form 10-K (see Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" under "Liquidity and Capital Resources - Liquidity").

The Company has not guaranteed any debt or commitments of other entities or entered into any options on non-financial assets.

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Dividends paid during 2026 and the dividend announced on the date of this filing are as follows:

Date of Announcement Date of Record Date Payable Dividend per Share Total Approximate Dividend Amount ($M)

11/7/2025 11/18/2025 12/2/2025 $0.16 $4.3

8/1/2025 8/12/2025 8/26/2025 $0.16 $4.3

Date of Announcement Date of Record Date Payable Dividend per Share Total Approximate Dividend Amount

5/8/2026 5/19/2026 6/2/2026 $0.16 $4.3

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

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

The Revolving Credit Facility provided for a scheduled maturity date of October 27, 2026 (which was extended to such date 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.

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If the Company does not comply with the covenants in the Credit Agreement, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under the Revolving Credit Facility.

We were in compliance with all of our covenants at September 30, 2025 and through the date of the filing of this Form 10-Q.

We had a borrowed balance of $195 million under the Revolving Credit Facility at December 31, 2024.

We borrowed an incremental net amount of $55 million during the nine months ended September 30, 2025, bringing the balance under the Revolving Credit Facility to $250 million, and available credit for use of approximately $249 million as of September 30, 2025.

We expect that Cash provided by operating activities will fund future interest payments on the Company's outstanding indebtedness.

We were in compliance with all of our covenants at March 31, 2026 and through the date of the filing of this Form 10-Q.

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.

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, 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 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.

(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.

The Company expects to refinance the Revolving Credit Facility before such maturity date.

We had a borrowed balance of $215 million under the Revolving Credit Facility at December 31, 2025.

We borrowed an incremental net amount of $55 million during the three months ended March 31, 2026, bringing the balance under the Revolving Credit Facility to $270 million, and available credit for use of approximately $229 million as of March 31, 2026.

We expect that Cash provided by operating activities will fund future interest payments on the Company's outstanding indebtedness.

Cash Flow Summary

Nine Months Ended

September 30,

Three Months Ended

Cash provided by (used for):

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Net change in cash and cash equivalents $ (2,192) $ (11,220)

Cash provided by operating activities decreased by $12.1 million for the nine months ended September 30, 2025 versus the prior year period due primarily to (i) the unfavorable cash impact of $17.7 million from Taxes receivable and Income taxes payable combined, driven by the timing of tax receipts and (ii) a $11.6 million unfavorable cash impact from working capital (comprised of Accounts and other receivables, Inventories, Accounts payable and Deferred income and customer advances) with $56.0 million unfavorable cash impact from working capital for the nine months ended September 30, 2025 compared to a $44.4 million unfavorable cash impact in the prior year period.

These net unfavorable impacts were partially offset by (i) a favorable impact of $10.8 million from Deferred income taxes and (ii) an $8.3 million increase in Net income.

Cash used for investing activities decreased by $10.4 million for the nine months ended September 30, 2025 versus the prior year period due primarily to the timing of cash payments for capital expenditures and other enterprise programs.

Cash provided by financing activities increased by $18.3 million for the nine months ended September 30, 2025 versus the prior year period due primarily to (i) net borrowings of $55.0 million during the nine months ended September 30, 2025 compared to net borrowings of $45.0 million during the prior year period and (ii) payments for share repurchases of $1.7 million during the nine months ended September 30, 2025 compared to $10.4 million during the prior year period.

Cash provided by operating activities decreased by $26.8 million for the three months ended March 31, 2026 versus the prior year period due primarily to (i) a $38.9 million decrease in Net income, (ii) a $10.2 million unfavorable impact from Accrued liabilities and (iii) an unfavorable impact of $7.5 million from Deferred income taxes.

These net unfavorable impacts were partially offset by a $30.3 million favorable cash impact from working capital (comprised of Accounts and other receivables, Inventories, Accounts payable and Deferred income and customer advances).

Cash used for investing activities decreased by $0.6 million for the three months ended March 31, 2026 versus the prior year period due primarily to the timing of cash payments on capital expenditures following prior quarter outages and disciplined spending on replacement maintenance while maintaining progress on growth and other enterprise programs.

Cash provided by financing activities increased by $35.2 million for the three months ended March 31, 2026 versus the prior year period due primarily to net borrowings of $55.0 million during the three months ended March 31, 2026 compared to net borrowings of $20.0 million during the prior year period.

Capital Expenditures

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The following table summarizes ongoing and expansion capital expenditures:

Nine Months Ended

September 30, 2025

Three Months Ended

March 31, 2026

Capital expenditures in Accounts payable at December 31, 2025

Purchases of property, plant and equipment 20,272

Capital expenditures in Accounts payable at September 30, 2025

Capital expenditures in Accounts payable at March 31, 2026

Cash paid for capital expenditures $ 35,936

For 2025, we expect our total capital expenditures to be approximately $120 million to $125 million as discussed above.

For 2026, we expect our total capital expenditures to be approximately $75 million to $95 million as discussed in the Liquidity section above.

Critical Accounting Policies and Estimates

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis