AdvanSix Inc. Q4 FY2025 earnings call

• Executed planned turnarounds at low end of target spend range. - Delivered record annual production for ammonia and sulfuric acid unit operations. - Invested $116,000,000 in CapEx. - Progressed tax strategies, claimed 45Q carbon tax credits, received settlement proceeds. - Preserved competitive dividend, maintained conservative debt leverage and ample liquidity. - Welcomed Jeffrey Bird to Board. - Navigated winter storm, safely ran operations but had earnings impact. - Focused on controllable levers for through-cycle profitability and cash conversion, including optimizing production, driving fixed cost reductions, disciplined cash management, risk-based capital investment and turnaround scoping. - Strategic initiatives and assets provide competitive advantage.

For Nylon Solutions, volumes declined sequentially as production rates were moderated in a softer demand environment; domestic market-based pricing held steady while raw material pass-through pricing declined on lower benzene input prices. Plant nutrients performed exceptionally well with strength in volume, pricing, and mix; granular ammonium sulfate volumes increased year-over-year supported by sulfur nutrition demand and the Sustained Growth Program. Chemical intermediates pricing was stable sequentially but lower year-over-year as acetone pricing moderated. Full year sales were roughly flat, adjusted EBITDA was $157,000,000 with a margin of 10.3%. Hopewell operating rates were roughly flat, Frankford plant utilization rate was up, and Chesterfield operating rates were down.

• Anticipate continued strength in plant nutrient supply-demand fundamentals, acetone margins near cycle averages, nylon plateaued in trough. - Expect raw material input costs to be a headwind in first half of 2026 due to higher sulfur and natural gas prices. - Plan to spend $75,000,000 to $95,000,000 in 2026 on CapEx, similar range in 2027. - Anticipate pretax income impact of plant turnarounds in range of $20,000,000 to $25,000,000, majority in second quarter. - Non-manpower fixed cost takeout initiative targets $30,000,000 annual run-rate cost savings. - Expect meaningful improvement in free cash flow, first half use of cash, second half source of cash.

• Macro environment challenges including cyclical trough for Nylon Solutions, mixed chemical intermediates industry conditions. - Raw material input cost increases, particularly sulfur and natural gas prices. - Winter storm impact with earnings impact, natural gas restrictions, additional maintenance costs. - Uncertainty around crop prices, farmer profitability affecting fertilizer margins. - Potential impact of EPA endangerment finding on 45Q carbon credits process (though no direct impact seen yet).

Q: Recap industry announcements on nylon capacity closure and where production cutbacks would show up?

A: Fibrant in Europe to shut down, Domo in insolvency, China operating rates down. Impact in building and construction, automotive, packaging.

Q: Outlook on sulfur market dynamics?

A: Supply and demand both contribute to high prices, expect moderation in 2026.

Q: Section 45Q carbon credits size, timing, impact of endangerment ruling?

A: Expect $18,000,000 impact in 2026 for 2021 life cycle assessment approval, endangerment ruling has no impact on 45Q.

Q: Status of 2025 Section 45Q carbon credits claimed?

A: Audits started, working through process.

Q: Record ammonia and sulfuric acid production at Hopewell?

A: Due to repair maintenance, preventative maintenance, and incremental debottlenecking.

Q: Input cost pressure impact on first vs fourth quarter earnings?

A: First quarter expected $8,000,000 to $10,000,000 unfavorable impact, implementing price increases.

Q: Turnaround activity guidance for 2026?

A: Aligned with natural gas pipeline maintenance, risk-prioritized, focusing on compliance and preventative maintenance, no forgoing critical maintenance.