AdvanSix Inc. Q3 FY2025 earnings call

• Navigated challenging industry dynamics in Q3, focusing on optimizing operational and commercial performance. • Experienced a site-wide electrical outage at the Chesterfield nylon plant in mid-September, with an isolated fire on restart impacting polymerization line, expected to impact 4Q EBITDA by $7M to $9M. • Successful completion of the fourth quarter planned plant turnaround at Hopewell's sulfuric acid and OEM plant within target range. • 2025 CapEx expected to be $120M to $125M, reflecting $30M cash conservation. • Sustained growth program for granular ammonium sulfate is ~15% below capital budget with final 2 projects to complete in next year. • Enterprise resource planning system upgrade went live in Q3 to streamline processes and enhance analytics. • Added 2 new members to the Board of Directors with deep industry expertise.

Plant Nutrients showed strong performance in Q3 2025, with revenue driven by higher year-over-year pricing of the fall fill program and favorable sales mix from the sustained growth program. Nylon Solutions and Chemical Intermediates faced challenges due to demand softness. Sales for the quarter were $374 million, down ~6% year-over-year. Adjusted EBITDA was $25 million, down $28 million from the prior year. Plant Nutrients contributed significantly, while Nylon Solutions and Chemical Intermediates were impacted by lower sales volume and higher utility costs.

• Trailing 12-month free cash flow through Q3 2025 is approximately breakeven, targeting positive free cash flow for full year 2025. • 2026 CapEx expected to be in the range of $125M to $135M. • Anticipates cash tax rate below 10% over next few years supported by 45Q carbon capture tax credits and 100% bonus depreciation. • Expect strong free cash flow in Q4 supported by working capital tailwinds including ammonium sulfate pre-buy cash advances.

• Protracted downturn in nylon solutions and demand softness in chemical intermediates leading to moderation of production rates. • Site-wide electrical outage at Chesterfield nylon plant in mid-September with impact on 4Q EBITDA. • Fluctuations in raw material costs, such as sulfur and natural gas, affecting results. • Industry dynamics including European capacity rationalization in phenol, acetone, caprolactam, and ammonium sulfate.

Q: Provide additional color on the chemical intermediates market and pricing environment.

A: Acetone represents ~50% of Chemical Intermediates sales. Q3 was in line with expectations, with phenol demand subdued, acetone moderating from 2024 highs. Other end markets show softness, but semiconductor Nadone demand anticipated to improve in Q4 and 2026.

Q: Color on ammonium sulfate results in Q3.

A: Revenue was highest third quarter ever for the segment. Granular volume up 20% year-over-year, driven by the SUSTAIN program and good fall pickup.

Q: Raw material cost trends, specifically sulfur and natural gas.

A: Generally don't hedge sulfur, natural gas hedging not typically done. Natural gas price up year-over-year, with formula pricing in nylon business providing some coverage.

Q: Update on Section 45Q carbon capture credits.

A: Amended returns trigger audit process, timing of credits shifting to 2026 due to government shutdown. Filed 2021 life cycle assessment, expecting approval in short order once normalcy resumes.

Q: Impact of bonus depreciation.

A: 100% bonus depreciation affects cash tax rate, with $2M benefit in 2025 and growing benefits in 2026 and 2027.

Q: Cost reduction initiatives for 2026.

A: Focus on non-manpower fixed costs, with details to be clarified and quantified in February 2026.

Q: Nature of intellectual property settlement over EZ-BLOX.

A: Settlement includes monetary component and upholding of IP, allowing for increased sales by setting up right customer and distribution base adhering to IP rights.