ASIX 10-K & 10-Q changes, risk factors and insider trading

YouOur shouldbusiness carefullycould considerbe allaffected informationby invarious thisrisks, Form 10-K and eachmany of the risks described below, which weare beyond our control. We believe arethe following identifies the principal risks we face. Any of the following risksthat could materially and adversely affect our business, financial condition and results of operations and the actual outcome of matters as to which forward-looking statements are made in this Form 10-K.

Our historical operating results reflect the cyclical nature of the industries in which we operate including with respect to our Nylon 6 resin, caprolactam, ammonium sulfate fertilizer, phenol and acetone products. We experience cycles of fluctuating supply and demand for each of our products resulting in changes in selling prices and margins. Periods of high demand, tight supply and increasing operating margins tend to result in increases in capacity and production until supply exceeds demand, generally followed by periods of oversupply and declining prices. While we strive to maintain or increase our profitability by reducing costs through improving production efficiency, by emphasizing higher margin products and by seeking to control transportation, selling and administration expense, wethere cannotcan assurebe youno assurance that these efforts will be sufficient to offset, in whole or in part, the effect of possible decreases in pricing on our operating results. AsAdditionally, as a result of potential cyclicality, wethere cannotcan assurebe youno assurance that pricing or profitability in the future will be comparable to any historical period, including the most recent period shown in our operating results. Changes in industry and customer trends for our products could adversely affect our business, financial condition and results of operations.

Our business, financial condition and results of operations could be adversely affected by domestic and global economic conditions and significant volatility in the capital, credit and commodities markets and in the overall economy. Adverse economic events, including inflation and potential recessionary pressures, interest rate volatility, supply chain issues, labor market shortages, trade conflicts including export and import restrictions, tariffs and other trade barriers, any economic volatility or uncertainty resulting from new or proposed regulatory, trade or other policiesgovernmental of the new U.S. presidential administration,policies, pandemics and any resurgences thereof, the threat of war and geopolitical concerns,concerns and uncertainties, including as a result of the conflict between Russia and Ukraine, theconflicts conflictand hostilities in IsraelIsrael, Gaza, Iran and Gaza,Venezuela, as well as any related instability in the surrounding regionregions and the possible expansion of such conflicts, sovereign debt and economic crises, domestic or international terrorism, and protectionism could have a negative impact on the health of the global economy. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions or on the stability of global financial markets which may affect us and our customers. For example:

•Market conditions, including those arising from any newcurrent or proposed regulatory, tariff, trade or other policy changespolicies of the new U.S. presidential administrationgovernment could result in our key customers experiencing financial difficulties and/or electing to limit spending, which in turn could cause decreases in demand for our products, decreased product prices and lower volumes and margins, potentially resulting in decreased sales and earnings;

•Under difficult market conditions, there can be no assurance that access to credit or the capital markets would be available to us or sufficient, and as such, we may not be able to successfully refinance our existing credit facility or obtain additional financing on reasonable terms, or at all; and

We seek to run our complex production facilities on a nearly continuous basis for maximum efficiency and we rely on the integrity of our logistics operations for the uninterrupted operations of our business. While we have made significant annual capital improvements at our manufacturing plants and utilize maintenance excellence and mechanical integrity programs, operational issues have occurred for us in the past and may occur in the future, which could cause damage to our manufacturing and production equipment and ancillary facilities.facilities Unplannedas interruptionswell inas ourunplanned production capabilities may adversely affect our production costs, product lead times, our ability to supply our customers on a timely basis, potential loss of customers, and our earnings during the affected period.downtime.

UnplannedAs interruptionsa result of the scale and quantity and range of our product offerings, as well as the significant level of integration across our manufacturing facilities, we are exposed to increased risk associated with unplanned downtime or material disruptions at any one of our production facilitiesfacilities, which have occurred in the past and which may occur in the future, and which adversely impact our supply chain and our manufacturing process. At the time of any unplanned interruption at our production facilities, we may not have enough intermediate chemical inventory at any given time to offset production losses. Our business interruption insurance coverage may not cover all costs or losses associated with unplanned downtime, or such insurance may not continue to be available in amounts or on terms acceptable to us, or at all. Moreover, taking our production facilities offline for regularly scheduled repairs can be an expensive and time-consuming operation and carry the risk that discoverable items and delays during the repair process may cause additional unplanned downtime. Any such unplanned downtime or interruptions in our production capabilities at any of our production facilities may adversely affect our production costs, product lead times, our ability to supply our customers on a timely basis, potential loss of customers, and our earnings during the affected period, which in turn would adversely impact our business, financial condition and results of operations.

We face risks arising from various unasserted and asserted litigation matters, including, but not limited to, product liability and claims for third-party property damage or personal injury stemming from alleged environmental or other torts or otherwise. We have noted a nationwide trend inin, and could be the subject of, purported class actions against chemical manufacturers generally seeking relief such as medical monitoring, property damages, off-site remediation and punitive damages arising from alleged environmental or other torts without claiming present personal injuries. We also have noted a trend inin, and could be the subject of, public and private nuisance suits being filed on behalf of states, counties, cities and utilities alleging harm to the general public.

Due to concerns related to terrorism, we are subject to various security laws including Maritime Transportation Security Act of 2002 (“MTSA”) regulations. Our Frankford and Hopewell facilities are regulated facilities under MTSA regulations due to the nature of our operations and the proximity of the facilities to adjacent waterways. Federal, state, local and foreign governments could implement new, or impose more stringent regulations affecting the security of our plants, terminals and warehouses or the transportation and use of fertilizers or other chemicals. These regulations could result in higher operating costs or limitations on the sale of our products and could result in significant unanticipated costs, lower sales and reduced profit margins. It is possible that federal, state, local and foreign governments could impose additional limitations on the use, sale or distribution of chemicals we produce and sell, thereby limiting our ability to manufacture or sell those products, or that illicit use of our products could result in potential exposure for us. The occurrence of extraordinary events, including future terrorist attacks and the outbreak or escalation of hostilities, cannot be predicted, and their occurrence can be expected to continue to negatively affect the economy in general, and the markets for our products in particular. The resulting damage from anany attack on our assets could include loss of life and significant property damage. In addition, available insurance coverage may not be sufficient to cover all of the damage incurred or, if available, may be prohibitively expensive.

Recent technological advances in AI come with significant risks related to its use across many industries and end markets, as well as an evolving regulatory landscape. We may be exposed to such risks in cases where we utilize AI in connection with certain business activities now or in the future, in cases where, whether or not known to us,where Company personnel use AI for our business or at Company locations, or in cases where our third-party partners, whether or not known to us,partners use AI in their business activities, which we may not be in a position to control. The use of AI by us, our employees or any of our third-party partnersproviders may result in unauthorized disclosure of personal data, proprietary information and trade secrets, commercially sensitive or confidential information of the Company, our employees or our partners. Such unauthorized disclosures or uses of information can result, among other things, in reputational harm, loss of confidence by our customers or employees, penalties, litigation costs, or legal liability. If we are unable to successfully manage these risks, it may have a material adverse effect on our business, results of operations and financial condition.

Public focus on climate change, sustainability, and environmental issues has also led to increased government regulation and may cause certain of our key stakeholders to require that we meet certain standards, including customers or suppliers who may impose environmental standards on us as a part of doing business with them, all of which could increase the costs incurred by our customers to use our products and otherwise limit the use of these products, which could lead to decreased demand for these products. We may also incur additional expense as a result of domestic and international regulations requiring disclosures regarding GHG emissions and/or broader ESGenvironmental, social and governance matters, related performance indicators and other factors. We have expanded our reporting and investments associated with environmental, social and governance matters and have announced goals regarding our sustainability and corporate social responsibility performance. Our statements and goals for such matters represent our current plans but are not guarantees that we will be able to achieve such goals which may be adversely impacted by available technology, evolving regulatory requirements, availability of suppliers, and capital requirements.

There can be no assurance that, in the future, any governmental or international trade body will not institute trade policies or remedies that are adverse to exports from the United States, and givenwe thehave recentfaced change in U.S. presidential administration, weand may continue to face additional uncertainty with regard to U.S. government trade policy. In recent years,2025, the U.S. imposed tariffs on certain U.S. imports, and China and other countries responded with retaliatory tariffs on certain U.S. exports. Any significantfurther changes in international trade policies, practices or trade remedies, especially those instituted in our target markets or markets where our major customers are located, such as the United States-Mexico-Canada Agreement which became effective in July 2020, could potentially increase the price of our products relative to our competitors or decrease our customers’ demand for our products, which in turn may adversely affect our business, financial condition and results of operations. The ultimate impact of changing trade policies on our business will depend on various factors, including the magnitude, duration and nature of tariffs. While we actively monitor these developments, we may not be able to fully mitigate the adverse impact of potential tariff initiatives or other trade-related disruptions.

•Our level of indebtedness, our ability to make payments on or service our indebtedness and our ability to obtain financing or refinance our existing credit facility, as needed;

AdvanSix Inc. is aan diversifiedintegrated chemistry company playingthat produces essential materials for our customers across diverse end markets. Our value chain of our five U.S.-based manufacturing facilities plays a critical role in global supply chains, innovatingchains and deliveringenables us to innovate and deliver essential products for our customers in a wide variety of end markets and applications that touch people’s lives, such asacross building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesivesadhesives, electronics and electronics.other Ourend reliable and sustainable supply of quality products emerges from the integrated value chain of our five U.S.-based manufacturing facilities.markets. 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. Our four key product lines are Nylon, Caprolactam, Ammonium Sulfate and Chemical Intermediates.

We produceOur ammonium sulfate fertilizer continuously throughout the year as part of our manufacturing process, butexperiences quarterly sales fluctuateseasonality reflecting both geographical and product sales mix considerations based on the timing and length of the growing seasons in North and South America. The North American fertilizer season typically runs from July, when the value chain begins restocking fertilizer, through June of the following year, when most application for the year’s planting is completed. The new season fill begins in the third quarter and proceeds sequentially into the following spring, which is the peak period for crop fertilizer application. As a result of this pattern, North American ammonium sulfate demand and pricing, particularly for our higher-value granular product, are typically strongest duringin secondthe quarterfirst fertilizerhalf of the year through application for the spring crop and then typically decline seasonally with new season fill in the thirdsecond quarter.half of the year. Ammonium sulfate industry prices in the corn belt have declined approximately 10%12% from the second quarter to the third quarter, on average, since 2016. Due to the ammonium sulfate fertilizer sales cycle, we occasionally build up higher inventory balances because our production is continuous throughout the year and not tied to seasonal demand for fertilizers. Sales of most of our other products have generally been subject to minimal, or no, seasonality.

Chesterfield,Frankford, VAPA Collective Bargaining Agreement

On MayNovember 9,12, 2024,2025, the Company’s ChesterfieldFrankford bargaining unit, represented by the TeamstersUnited Steelworkers Local 592,No. 10-667, ratified a new five-yearfour-year labor agreement in advance of the prior agreement’s expiration date of May 14, 2024.agreement. The ratified labor agreement affected approximately 160100 workers at the Company’s manufacturing facility in Chesterfield,Frankford, Virginia.Pennsylvania.

Succession of Senior Vice President and Chief Financial Officer

On November 4, 2024, the U.S. Department of Commerce ("Commerce") initiated the first five-year review of the anti-dumping orders on imports of acetone from Belgium, Singapore, South Africa, South Korea, and Spain. On November 1, 2024, the U.S. International Trade Commission ("ITC") initiatedissued 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. 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. TheOn March 7, 2025, Commerce determined that revocation of the anti-dumping dutiesorders would likely lead to continuation of recurrence of dumping. In January 2026, the ITC made affirmative determinations that revocation of the orders would likely lead to continuation or recurrence of material inquiry. As a result of the Commerce and ITC's determinations, the orders will continuebe toextended applyfor duringanother thefive pending review.years.

The Company previously reported a business impact associated with the June 2019 fire that shut down the Philadelphia Energy Solutions’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 beenwas actively pursuing thea business interruption claim over several years, with $5.3 million in insurance settlement proceeds during the fourth quarter of 2024 and a final omnibus settlement in January 2025 which will resultresulted in insurance settlement proceeds of approximately $26 million in the first quarter of 2025. Inclusive of the proceeds received in the first quarter of 2025,The total aggregate insurance proceeds since the original claim submission are approximately $39 million.

CostsCost of goods sold remained flatdecreased in 20242025 by $7.3 million compared to 20232024 due primarily to (i)insurance increasedproceeds pricescollected as a result of rawthe materialsPES supplier shutdown (approximately 2%) andpartially (ii)offset by increased plantraw material costs (approximately 1%2%) primarily driven by the operational disruptions at the Frankford, Pennsylvaniasulfur and Hopewell,natural Virginia manufacturing sites, mitigated by decreased sales volume (approximately 2%).gas.

Selling, general and administrative expenses decreasedincreased in 20242025 compared to 20232024 by $1.5$10.7 million,million or (approximately 2%,11%), due primarily to moderatedlegal functionaland supportprofessional fees associated with strategic regulatory matters and potential inorganic growth options, including costs associated with a transaction that the Company is no longer pursuing, and legalthe spend,planned partiallyinvestment offsetto byupgrade increasedour enterprise resource planning system expense.which was completed in 2025.

Interest expense, net, increaseddecreased in 20242025 compared to 20232024 by $3.8$2.8 million, or approximately 51%,25%, primarily due primarily to higherlower debtinterest balances.rates.

Other non-operating income, net, decreasedincreased in 20242025 compared to 20232024 by $9.2$4.7 million, or approximately (128)%,million due primarily to (i)lower pension and other employee compensation expense and the absence of the prior year events, such as the exit from the Oben Holding Group S.A. alliance, a licensee of certain legacy ammonium sulfate fertilizer technology assets closing its facility, and the exit of production from certain low-margin oximes products (approximately $4.5 million) and (ii) the reduction of the Company's anticipated receivable related to the gain on the last installment of the termination fee recorded upon the exit from the Oben Holding Group S.A. alliance (approximately $1.2 million).

Generally, theThe Company's effective income tax rate isdiffers increased relative tofrom the U.S. statutory rate of 21% due to state taxes and executive compensation limitations,limitations which are generally offsetincrease bythe researcheffective income tax rate. Research tax credits, excess tax benefits of equity compensation and the foreign derived intangible income deduction.deduction recorded in a period generally decrease the effective income tax rate.

TheAdditionally, the Company's effective income tax rate for 2024 and 2025 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 of approximately $9.7 million claimed in each of those years for credits generated in thetax 2018periods 2018, 2019 and 2019 tax periods.2020. IRC Section 45Q allows taxpayersa 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 20242024, which enables the Company was able to claimrely on for 2018 through 2020. Approximately $18 million of the 45Q tax credits claimed for thethese 2018periods andare 2019reflected years.in Taxes receivable as of December 31, 2025. The Company continues to pursue creditsIRC for the periods subsequent to 2019. Thesection 45Q tax credits for 2018 and 2019 have been recorded as a reduction in the Company'speriods Incomeafter taxes payable account.2020.

The Company's effective income tax rate for 2023 approximated the U.S. Federal statutory rate of 21%. Increases to the effective income tax rate,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 following tables set forth the non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share. 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 mergerstrategic advisory and acquisitionprofessional costsfees that are not reflective of ongoing operations. Adjusted EBITDA Margin is equal to Adjusted EBITDA divided by Sales. 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.

* 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. During 2023, there were several transactions including the Company's exit from the Oben Holding Group S.A. alliance, a licensee exit of legacy technology and the Company's exit of certain low-margin oximes products that resulted in a $4.5 million net pre-tax loss.

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

We believe that cash balances and operating cash flows, together with available capacity under our credit agreement, as utilized during 2024, 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 and in the risk factors previously disclosed in in Item 1A, Risk Factors. 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. The Company applies a proactive and disciplined approach to working capital management to optimize cash flow and to enable capital allocation options in support of the Company’s strategy. We utilize supply chain financing and trade receivables discount arrangements with third-party financial institutions which optimize terms and conditions related to accounts receivable and accounts payable in order to enhance liquidity and enable us to efficiently manage our working capital needs. Although we continue to optimize supply chain financing and trade receivable programs in the ordinary course, our utilization of these arrangements has not had a material impact on our liquidity. In addition, we monitor the third-party depository institutions that hold our cash and cash equivalents. Our emphasis is primarily on the safety of principal and secondarily on maximizing yield on those funds. We diversify our cash and cash equivalents among counterparties to minimize exposure to any one of these entities.

At December 31, 2024,2025, the Company had approximately $20 million of cash on hand with approximately $304$284 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 were approximately $116 million in 2025 compared to $134 million in 20242024, comparedreflecting the planned progression of our SUSTAIN growth program, and refined execution timing to $107address million in 2023, reflecting planned increased spend on replacement maintenance andcritical enterprise programs.risk mitigation.

We assumed from Honeywell International Inc. ("Honeywell") all HSE liabilities and compliance obligations related to the past and future operations of our current business as of the spin-off, as well as all HSE liabilities associated with the three manufacturing locations assumed from Honeywell that are used in our current operations, including any cleanup or other liabilities related to any contamination that may have occurred at such locations in the past. Honeywell retained all HSE liabilities related to former business locations or the operation of our former businesses. Although we have ongoing environmental remedial obligations at certain of our facilities, in the past three years, the associated remediation costs have not been material, and we do not expect our known remediation costs to have a material adverse effect on the Company's consolidated financial position and results of operations.

The Company made no cash contributions to the defined benefit pension plan during the year ended December 31, 2024.2025. AdditionalThe Company expects to make pension plan contributions mayduring 2026 sufficient to satisfy pension funding requirements estimated to be madeapproximately $3 million, as well as evaluate contributions in future years sufficient to satisfy pension funding requirements in those periods.

As of December 31, 2024,2025, the Company had repurchased 6,252,1296,313,789 shares of common stock, including 1,006,6731,068,333 shares withheld to cover tax withholding obligations in connection with the vesting of equity awards, for an aggregate of $192.4$194.1 million at a weighted average market price of $30.78$30.74 per share. As of December 31, 2024,2025, $62.0 million remained available for repurchase under the currently authorized repurchase program. During the period from January 1, 20252026 through January 31,30, 2025,2026, 6,269no additional shares were repurchased for tax withholding obligations in connection with the vesting of equity awards at a weighted average market price of $28.35 and no additional shares were repurchasedor under the currently authorized repurchase program.

The Company increased its quarterly dividend by 10% ($0.145 to $0.160) and 16% ($0.125 to $0.145) during the third quarter of 2023 and 2022, respectively.2023.

On October 27, 2021, the Company completed a refinancing of the Second Amended and Restated Credit Agreement by enteringentered into a new Credit AgreementAgreement, as amended on June 27, 2023 (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”).

The Revolving Credit Facility hasprovided for a scheduled maturity date of October 27, 2026.2026 (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). The Company is also required to pay a commitment fee in respect of unused commitments under the Revolving Credit Facility, if any, at a rate ranging from 0.15% to 0.35% per annum depending on the Company’s Consolidated Leverage Ratio.

Net cash provided by operating activities increaseddecreased by $17.9$12.5 million for the year ended December 31, 20242025 versus the prior year due primarily to (i) a $23.8$11.7 million favorableunfavorable impact from the timing and fluctuation of working capital (comprised of Accounts and other receivables, Inventories, Accounts payable and Deferred income and customer advances) year-over-year,year-over-year withand a $9.1 million favorable cash impact for the year ended December 31, 2024 compared to a $14.7$5.0 million unfavorable cash impact in the prior year period due primarily to the timing of payments and the favorable impact of customer advances, (ii) a $10.7 million favorable cash impact from Other assets and liabilities driven primarily by a change fromin net aour pension liability to a net pension asset and an increase in prepaid expenses versus the prior year and (iii) an $8.0 million favorable cash impact from Accrued liabilities due to timing of payments.year. These net favorableunfavorable impacts were partially offset by (i)a the unfavorable cash impact of $15.0$5.1 million and $7.4 million from Taxes payable and Taxes receivable, respectively, driven by the timing of income tax payments and (ii) a $10.5 million decreaseincrease in net income.

Cash used for investing activities increaseddecreased by $32.0$20.3 million for the year ended December 31, 20242025 versus the prior year period due primarily to higherlower cash payments for capital expenditures of approximately $26.3$17.3 million during the current year period primarily reflecting planned increaseddisciplined spend on replacement maintenance while maintaining progress on growth and other enterprise programs.

Cash used for financing activities decreased by $5.2$2.7 million for the year ended December 31, 20242025 versus the prior year due to payments for share repurchases of $1.7 million during the year ended December 31, 2025 compared to $10.4 million during the prior year period partially offset by net borrowings on the credit facility of $25.0$20.0 million for the year ended December 31, 20242025 compared to net paymentsborrowings of $55.0 million during the prior year. These net borrowings were partially offset by payments for share repurchases of $10.4 million and cash paid for dividends of approximately $17.1 million during the year ended December 31, 2024 compared to $46.2 million and $16.7$25.0 million during the prior year periods, respectively.period.

Capital expenditures increaseddecreased $26.3$17.3 million from 20232024 to 20242025 reflecting planned increaseddisciplined spend on replacementcapital maintenanceexpenditures and enterprise programs. Capital expenditures are deployed for various ongoing investments and initiatives to improve reliability, yield and quality, expand production capacity and comply with HSE regulations.

For 2025,2026, we expect our total capital expenditures to be approximately $140$75 million to $160$95 million reflecting thea plannedrisk-based prioritization of base investments and enterprise programs with continued progression of growth projectsprograms including our SUSTAIN (Sustainable U.S. Sulfate To Accelerate Increased Nutrition) program, and refined execution timing to address critical enterprise risk mitigation.program.

The preparation of our Consolidated Financial Statements in conformity with U.S. GAAP is based on the selection and application of accounting policies that require management to make significant estimates and assumptions about the effects of matters that are inherently uncertain and that affect the reported amounts, including, but not limited to, inventory valuations, impairment of goodwill, stock-based compensation, long-term employee benefit obligations, income taxes and environmental matters. Management’s estimates are based on historical experience, facts and circumstances available at the time and various other assumptions that are believed to be reasonable. The Company reviews these matters and reflects changes in estimates as appropriate. Management believes that the following represent some of the more critical judgment areas in the applications of the Company’s accounting policies which could have a material effect on the Company’s financial position, results of operations or cash flows.

Goodwill – The Company had goodwill of $56.2 million at December 31, 20242025 and 2023.2024. 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. ManagementTo firstdetermine assessesif goodwill is potentially impaired, we have the option to perform a qualitative factors as described in ASC 350assessment to determine whether it is necessarymore tolikely performthan thenot quantitative goodwill impairment test. Potential impairment is identified by comparingthat the fair value ofis aless reporting unit tothan the carrying value, including goodwill.value. The CompanyCompany’s completedpractice 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 necessaryis to perform thea quantitative goodwill impairment test.assessment at least every three years.

Revenue Recognition – The Company recognizes revenue upon the transfer of control of goods or services to customers at amounts that reflect the consideration expected to be received. 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 CostsCost 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. These agreements typically contain formula-based pass-through pricing tied to key feedstock materials and volume ranges, but often do not specify the goods, including the quantities thereof, to be transferred. Certain master services agreements (including with respect to our largest customer) may contain minimum purchase volumes which can be satisfied by the customer on a periodic basis by choosing from various products offered by the Company. In these cases, a performance obligation is created when a customer submits a purchase order for a specific product at a specified price, typically providing for delivery within the next 60 days. 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. Transfer of control to the customer occurs through various modes of shipment, including trucks, railcars, and vessels, and generally follows a variety of commercially acceptable shipping or destination 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. Variable 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. Since variable consideration is generally settled within one year, the time value of money is not significant.

All statements other than statements of historical fact included in this Form 10-Q including, without limitation, statements in this MD&A regarding our financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act.Act of 1934, as amended (the "Exchange Act"). When used in this Form 10-Q, words such as "expect," “anticipate,” "estimate," "outlook," "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should," and “believe,” and other variations or similar terminology and expressions identify forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and difficult to predict, which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: general economic and financial conditions in the U.S. and globally; 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; 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,the GazaMiddle and Iran,East, 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.; our ability to sell and provide our goods and services; the ability of our customers to pay for our products; any closures of our and our customers’ offices and facilities; 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; risks associated with our indebtedness including compliance with financial and restrictive covenants, and our ability to access capital on reasonable terms, at a reasonable cost, or at all, due to economic conditions or otherwise; the impact of scheduled turnarounds and significant unplanned downtime and interruptions of production or logistics operations as a result of mechanical issues or other unanticipated events such as fires, severe weather conditions, natural disasters, pandemics, geopolitical conflicts and related events; price fluctuations, cost increases and supply of raw materials; our operations and growth projects requiring substantial capital; growth rates and cyclicality of the industries we serve including global changes in supply and demand; failure to develop and commercialize new products or technologies; loss of significant customer relationships; adverse trade and tax policies; extensive environmental, health and safety laws that apply to our operations; hazards associated with chemical manufacturing, storage and transportation; litigation associated with chemical manufacturing and our business operations generally; inability to acquire and integrate businesses, assets, products or technologies; protection of our intellectual property and proprietary information; prolonged work stoppages as a result of labor difficulties or otherwise; failure to maintain effective internal controls; our ability to declare and pay quarterly cash dividends and the amounts and timing of any future dividends; our ability to repurchase our common stock and the amount and timing of any future repurchases; disruptions in supply chain, transportation and logistics; potential for uncertainty regarding qualification for tax treatment of our spin-off; fluctuations in our stock price; and changes in laws or regulations applicable to our business. Forward-looking statements are not guarantees of future performance and actual results could differ materially from those contemplated by the forward-looking statements as a result of a number of risks, uncertainties and other factors including those noted above and those detailed in Item 1A of Part I and elsewhere in our 2025 Form 10-K, and subsequent reports filed with the SEC. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph. We do not undertake to update or revise any of our forward-looking statements.

◦Caprolactam – Caprolactam is the key monomer used in the production of Nylon 6 resin. 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 MarchJune 31,30, 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 MarchJune 31,30, 2026. We market and sell ammonium sulfate primarily to North American and South American distributors, farm cooperatives and retailers to fertilize crops. We also manufacture sulfuric acid, ammonia and carbon dioxide as part of our integrated operations at Hopewell and occasionally sell any excess material not consumed internally to customers externally.

Global demand for Nylon 6 resin spans a variety of end-uses such as textiles, engineered plastics, industrial filament, food and industrial films, and carpet. The market growth typically tracks global GDP growth over the long-term but varies by end-use. We produce and sell caprolactam as a commodity product and produce and sell our Nylon 6 resin as both a commoditized and differentiated resin product. Our results of operations are primarily driven by production volume and the spread between the sales prices of our products and the costs of the underlying raw materials built into market-based and value-based pricing models. The global prices for nylon resin typically track as a spread over the price of caprolactam, which in turn tracks as a spread over benzene because the key feedstock materials for caprolactam, phenol or cyclohexane, are derived from benzene. This price spread has historically experienced cyclicality as a result of global changes in supply and demand. Generally, Nylon 6 resin prices track the cyclicality of caprolactam prices, although prices set above the spread are achievable when nylon resin manufacturers, like AdvanSix, formulate and produce differentiated nylon resin products for current and new customer applications, such as our wire and cable and co-polymer offerings.

Our ammonium sulfate fertilizer experiences quarterly sales seasonality reflecting both geographical and product sales mix considerations based on the timing and length of the growing seasons in North and South America. The North American fertilizer seasonyear typically runs from July, when the value chain begins restocking fertilizer, through June of the following year, when most application for the year’s planting is completed. The new season fill begins in the third quarter and proceeds sequentially into the following spring, which is the peak period for crop fertilizer application. As a result of this pattern, North American ammonium sulfate demand and pricing, particularly for our higher-value granular product, are typically strongest in the first half of the year through application for the spring crop and then decline in the second half of the year. Ammonium sulfate industry prices in the corn belt have declined approximately 12% from the second quarter to the third quarter, on average, since 2016. Due to the ammonium sulfate fertilizer sales cycle, we occasionally build up higher inventory balances because our production is continuous throughout the year and not tied to seasonal demand for fertilizers. Sales of most of our other products have generally been subject to minimal, or no, seasonality.

Sales increased in the three months ended MarchJune 31,30, 2026 compared to the prior year period by $26.4$11.3 million (approximately 7%3%) due primarily to (i) higherfavorable volumeraw drivenmaterial primarilypass bythrough Chemicalpricing Intermediatesfollowing salesa net cost increase in benzene and propylene (inputs to cumene which is a key feedstock to our products) (approximately 6%13%) and (ii) favorable market-based pricing (approximately 3%5%) 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)volume (approximately 2%15%). driven primarily by lower in-season Plant Nutrients sales as a result of reduced grower application of nutrients.

Costs of goods sold increased in the three months ended MarchJune 31,30, 2026 compared to the prior year period by $76.1$38.9 million (approximately 23%11%) due primarily to (i) increased raw material costs (approximately 8%20%) driven by sulfur,an increase in the prices of benzene (11%), sulfur (8%), and propylene (3%) and (ii) $26lower millionproduction rates and timing of insuranceplant proceedsturnaround spend (approximately 8% in the prior year period which did not recur in the current year period3%), (iii)partially increasedoffset by decreased sales volume (approximately 4%12%) and (iv) increased plant costs (approximately 4%) driven primarily by utility costs and winter storm related expenses..

GrossCosts marginof percentagegoods decreasedsold increased in the threesix months ended MarchJune 31,30, 2026 compared to the prior year period by $114.9 million (approximately 13%17%) due primarily to (i) absence of insurance proceeds (approximately 6%), (ii) the impact of pricing, net ofincreased raw material costs (approximately 14%) driven by an increase in the prices of sulfur (8%), benzene (5%), and propylene (iii1%), (ii) increased plant costs (approximately 3%) driven primarily by utility costs and winter storm related expenses and (iii) $26 million of insurance proceeds (approximately 3%4% in the prior year period which did not recur in the current year period), partially offset by decreased sales volume (approximately 4%).

Selling, general and administrative expenses decreased by $0.9$3.4 million and $4.3 million in the three and six months ended MarchJune 31,30, 2026 respectively, compared to the prior year periodperiods due primarily to the completion of the investment to upgrade our enterprise resource planning system in 2025.2025 and the execution of enterprise cost savings initiatives.

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 six months ended MarchJune 31,30, 2026 and 2025 differed from the U.S. federal statutory rate primarily 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. DuringThese adjustments have the inverse impact on the effective tax rate in periods with a loss before taxes. Changes in our forecasted earnings and taxable income between the first and second quarter have impacted our effective tax rate for the three and six months ended MarchJune 31,30, 2025,2026. Additionally, discrete tax adjustments recorded in the first and second quarter of 2025 related to Internal Revenue Code (IRC) Section 45Q tax credits of $1.8 million and $7.9 million, respectively, offset slightly by state tax legislation changes, resulted in a net 5.8%24.7% and 15.7% decrease in the Effectiverate taxfor rate.the three and six months ended June 30, 2025, respectively.

The Company’s effective tax rate for the three and six months ended MarchJune 31,30, 2026 was higher than the prior year periodperiods due primarily to the discrete tax adjustments related to IRC Section 45Q tax credits and state tax legislative changesrecorded in the prior year quarterperiods that decreased the effective tax rate and also from the impact of changes to the Company's forecasted earnings and taxable income in the current year periods as 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.

Net Income (Loss)

As a result of the factors described above, Net income (loss) was $3.2 million and ($15.5$12.3) million for the three and six months ended MarchJune 31,30, 20262026, respectively, as compared to $23.3$31.4 million and $54.7 million in the corresponding prior year period.

We believe that cash balances and operating cash flows, together with available capacity under our credit agreement, as utilized in the firstsecond 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. The Company applies a proactive and disciplined approach to working capital management to optimize cash flow and to enable capital allocation options in support of the Company’s strategy. We utilize supply chain financing and trade receivables discount arrangements with third-party financial institutions which optimize terms and conditions related to accounts receivable and accounts payable in order to enhance liquidity and enable us to efficiently manage our working capital needs. Although we continue to optimize supply chain financing and trade receivable programs in the ordinary course, our utilization of these arrangements has not had a material impact on our liquidity. In addition, we monitor the third-party depository institutions that hold our cash and cash equivalents. Our emphasis is primarily on the safety of principal and secondarily on maximizing yield on those funds. We diversify our cash and cash equivalents among counterparties to minimize exposure to any one of these entities.

As of the end of the firstsecond quarter of 2026, the Company had approximately $17.6$7.2 million of cash on hand with approximately $229$224 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 $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 expect that our primary cash requirements for 2026 will be to fund costs associated with ongoing operations, capital expenditures, dividends, and amounts related to other contractual obligations.

The Company made no cash contributions to the defined benefit pension plan during the threesix months ended MarchJune 31,30, 2026 as there were no funding requirements for the period. Subsequent to June 30, 2026, the Company made a $1.1 million cash contribution to the defined benefit pension plan. Additional contributions may be made in future periods sufficient to satisfy pension funding requirements in those periods or on a discretionary basis.

As of MarchJune 31,30, 2026, the Company has repurchased a total of 6,386,2896,391,880 shares of common stock life-to-date, including 1,140,8331,146,424 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $195.4$195.5 million at a weighted average market price of $30.59$30.58 per share. As of MarchJune 31,30, 2026, approximately $62.0 million remained available for share repurchases under the current authorization approved by the Board on February 17, 2023. The Company has not repurchased any shares under the currently authorized repurchase program since June 2024. During the period AprilJuly 1, 2026 through MayJuly 1,31, 2026, no additional shares were repurchased for tax withholding obligations or under the currently authorized repurchase program.

As of MarchJune 31,30, 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.

The Credit Agreement contains customary covenants limiting the ability of the Company and its subsidiaries to, among other things, pay cash dividends, incur debt or liens, redeem or repurchase stock of the Company, enter into transactions with affiliates, make investments, make capital expenditures, merge or consolidate with others or dispose of assets. The Credit Agreement also contains financial covenants that require the Company to maintain a Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of not less than 3.00 to 1.00 and to maintain a Consolidated Leverage Ratio of (ii) 3.75 to 1.00 or less (subject to the Company’s option to elect a consolidated leverage ratio increase in connection with certain acquisitions). 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 June 30, 2026 and through the date of the filing of this Form 10-Q.

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$60 million during the threesix months ended MarchJune 31,30, 2026, bringing the balance under the Revolving Credit Facility to $270$275 million, and available credit for use of approximately $229$224 million as of MarchJune 31,30, 2026. We expect that Cash provided by operating activities will fund future interest payments on the Company's outstanding indebtedness.

Cash provided by operating activities decreased by $26.8$37.8 million for the threesix months ended MarchJune 31,30, 2026 versus the prior year period due primarily to (i) a $38.9$67.0 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$20.1 million favorable cash impact from disciplined working capital performance (comprised of Accounts and other receivables, Inventories, Accounts payable and Deferred income and customer advances). and the favorable cash impact of $15.8 million from Taxes receivable and Income taxes payable combined, driven by the timing of tax payments.

Cash used for investing activities decreased by $0.6$11.3 million for the threesix months ended MarchJune 31,30, 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$15.1 million for the threesix months ended MarchJune 31,30, 2026 versus the prior year period due primarily to net borrowings of $55.0$60.0 million during the threesix months ended MarchJune 31,30, 2026 compared to net borrowings of $20.0$45.0 million during the prior year period.