AdvanSix Inc. Q1 FY2026 earnings call

• Navigated headwinds like winter storm and geopolitical challenges to achieve 7% sales growth. • Saved $3 million of planned turnaround expense from winter storm. • Anticipate sequential earnings/cash flow improvement in Q2. • Announced new opportunity to expand integrated ammonia platform for DEF market. • Welcome Patrick Day as new SVP and CFO.

Sales for the quarter were $404 million, up ~7% year over year, with 6% volume growth and 1% favorable price. Adjusted EBITDA was $5 million, down $47 million from last year. By product line: Nylon solutions had resin volume improvement but caprolactam volume moderated; Plant nutrients had flat to down volumes but continued pricing strength; Chemical intermediates saw sales improvement on volume growth. Agriculture/fertilizer is largest end market, domestic granular sales near record but flat vs last year; Nylon end markets saw global pricing increase due to various factors; Chemical intermediates had soft phenol demand but tightening acetone supply/demand.

• Anticipate sequential earnings and cash flow improvement into Q2. • Full year CapEx expected $75 - $95 million, ~20% towards high return growth investments. • Expect debt leverage near low end of 1 - 2.5x target by end of year. • Projected multi-year capital investment for DEF expansion with operational startup in 2029.

• Impact of inflationary raw material costs, including sulfur and natural gas. • Geopolitical challenges affecting market demand. • Volatility in sulfur and nitrogen pricing.

Q: Pete Osterland asked about DEF ammonia project capital intensity and return hurdles.

A: CapEx expected larger than Sustain program, IRR targets 20+%.

Q: Asked about sulfur pricing outlook.

A: Prices likely stay higher for longer even with Middle East resolution.

Q: Question on ammonium sulfate flexibility.

A: Moderate lever to adjust ammonium sulfate production.

Q: Follow-up on sulfur supply arrangements.

A: Purchase entirely on contract market.

Q: Question on DEF project ammonia de-bottlenecking.

A: Project doesn't require ammonia expansion.

Q: Question on Section 45Q credits.

A: Audit for 2018 - 2020 years ongoing, expect proceeds in second half, working on lifecycle assessment for 21+ years.