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What changed in AdvanSix Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of AdvanSix Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+280 added−277 removedSource: 10-K (2026-02-20) vs 10-K (2025-02-21)

Top changes in AdvanSix Inc.'s 2025 10-K

280 paragraphs added · 277 removed · 231 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

91 edited+10 added−12 removed76 unchanged
Biggest changeIn 2024, 2023 and 2022, Plant Nutrient sales were 30%, 31% and 34% of our total sales, respectively. Chemical Intermediates We manufacture, market and sell chemical intermediates to a range of customers for use in many different types of end-products.
Biggest changeChemical Intermediates We manufacture, market and sell chemical intermediates to a range of customers for use in many different types of end-products. In 2025, chemical intermediates generated $377 million of sales, of which $281 million, or 75%, came from sales of acetone, phenol and cyclohexanone, and $96 million, or 25%, came from sales of our other chemical intermediates.
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 ("AMS"), cyclohexanone, oximes, cyclohexanol, and alkyl and specialty amines. Additional end-products for intermediates include automotive components, and water treatment and pharmaceutical intermediates.
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 ("AMS"), cyclohexanone, oximes, cyclohexanol, and alkyl-amines and specialty amines. Additional end-products for intermediates include automotive components, and water treatment and pharmaceutical intermediates.
The majority of cyclohexanone we produce is used in our caprolactam manufacturing process with the remainder sold to customers. Through our U.S. Amines sites, we also produce and sell alkyl and specialty amines which are used in agrochemical intermediates, water treatment and pharmaceutical applications.
The majority of cyclohexanone we produce is used in our caprolactam manufacturing process with the remainder sold to customers. Through our U.S. Amines sites, we also produce and sell alkyl-amines and specialty amines which are used in agrochemical intermediates, water treatment and pharmaceutical applications.
As noted in their respective charters: • Our Health, Safety, and Environmental Committee oversees policies and programs relating to HSE matters, including process safety, HSE management systems and compliance with HSE regulations and compliance. • Our Nominating and Governance Committee annually evaluates the effectiveness of our corporate governance framework and corporate social responsibility policies, goals and programs, including oversight of sustainability matters, community engagement and government affairs, as well as such other matters regarding the Company's role as a responsible corporate citizen. 9 • Our Audit Committee exercises oversight of enterprise risk assessments and risk management including with respect to current and emerging labor and human capital management risks and seeks to mitigate exposure to those risks. • Our Compensation and Leadership Development Committee is responsible for oversight of the performance, development and retention of senior and executive management necessary to support the growth and success of the Company.
As noted in their respective charters: • Our Health, Safety, and Environmental Committee oversees policies and programs relating to HSE matters, including process safety, HSE management systems and compliance with HSE regulations and compliance. • Our Nominating and Governance Committee annually evaluates the effectiveness of our corporate governance framework and corporate social responsibility policies, goals and programs, including oversight of sustainability matters, community engagement and government affairs, as well as such other matters regarding the Company's role as a responsible corporate citizen. • Our Audit Committee exercises oversight of enterprise risk assessments and risk management including with respect to current and emerging labor and human capital management risks and seeks to mitigate exposure to those risks. • Our Compensation and Leadership Development Committee is responsible for oversight of the performance, development and retention of senior and executive management necessary to support the growth and success of the Company.
Our focus on operational excellence and ongoing productivity improvements concentrate on the following: • Increasing production volume through asset reliability, flexibility and capacity; 4 • Investing in digital transformation and process automation to optimize and improve operational efficiency; • Executing planned plant turnarounds and prioritizing replacement maintenance capital investments to mitigate risk and support safe, stable and sustainable operations; • Investing in intermediate chemical buffer storage capacity to mitigate the unfavorable impact of routine maintenance and unplanned interruptions; • Energy and direct material initiatives aimed at increasing plant productivity and lowering costs; and • Procurement processes, competitive bidding and supplier diversification to reduce raw material and indirect costs.
Our focus on operational excellence and ongoing productivity improvements concentrate on the following: • Increasing production volume through asset reliability, flexibility and capacity; • Investing in digital transformation and process automation to optimize and improve operational efficiency; • Executing planned plant turnarounds and prioritizing replacement maintenance capital investments to mitigate risk and support safe, stable and sustainable operations; • Investing in intermediate chemical buffer storage capacity to mitigate the unfavorable impact of routine maintenance and unplanned interruptions; • Energy and direct material initiatives aimed at increasing plant productivity and lowering costs; and • Procurement processes, competitive bidding and supplier diversification to reduce raw material and indirect costs.
Among other environmental laws and regulations, we are subject to the Comprehensive Environmental Response, Compensation and Liability Act; the Resource Conservation and Recovery Act and similar state, foreign and global laws for management and remediation of hazardous materials; the Clean Air Act and the Clean Water Act, for protection of air and water resources; the Toxic Substance Control Act (“TSCA”), for regulation of chemicals in commerce and reporting of potential known adverse effects.
Among other environmental laws and regulations, we are subject to the Comprehensive Environmental Response, Compensation and Liability Act; the Resource Conservation and Recovery Act and similar state, foreign and global laws for management and remediation of hazardous materials; the Clean Air Act and the Clean Water Act, for protection of air and water resources; the Toxic Substance Control Act, for regulation of chemicals in commerce and reporting of potential known adverse effects.
We have emphasized investing in our talent and focusing on developing our people to incorporate opportunities for advancement based on experiential learning and development. We acknowledge that development is a career-long endeavor and place the greatest emphasis on learning by doing, supported by feedback, training, and self-reflection. 10 AdvanSix promotes development through training that broadens work-related skills.
We have emphasized investing in our talent and focusing on developing our people to incorporate opportunities for advancement based on experiential learning and development. We acknowledge that development is a career-long endeavor and place the greatest emphasis on learning by doing, supported by feedback, training, and self-reflection. AdvanSix promotes development through training that broadens work-related skills.
At a national level, AdvanSix continues its participation as a patron level supporter of the American Institute of Chemical Engineers’ ("AIChE") “Doing a World of Good” initiative that actively supports five high priority pillars within the chemical engineering field that align closely with sustainability and environmental, social and governance ("ESG") focus including engagement and inclusion.
At a national level, AdvanSix continues its participation as a patron level supporter of the American Institute of Chemical Engineers’ ("AIChE") “Doing a World of Good” initiative that actively supports five high priority pillars within the chemical engineering field that align closely with sustainability and environmental, social and governance focus including engagement and inclusion.
Some risk of environmental impact is, however, inherent in some of our operations and products, as it is with other companies engaged in similar businesses. 8 We are and have been engaged in the handling, manufacture, use and disposal of many substances classified as hazardous by one or more regulatory agencies.
Some risk of environmental impact is, however, inherent in some of our operations and products, as it is with other companies engaged in similar businesses. We are and have been engaged in the handling, manufacture, use and disposal of many substances classified as hazardous by one or more regulatory agencies.
Any remaining phenol is sold to customers for use in their product applications such as phenolic resins, alkyl phenols and Bisphenol A used for epoxy resins and polycarbonate. All our acetone is sold to customers for use in products such as methyl methacrylate, polycarbonate, epoxy resins, ketones and solvents used widely in automotive and construction, as well as agrochemicals.
Any remaining 6 phenol is sold to customers for use in their product applications such as phenolic resins, alkyl phenols and Bisphenol A used for epoxy resins and polycarbonate. All our acetone is sold to customers for use in products such as methyl methacrylate, polycarbonate, epoxy resins, ketones and solvents used widely in automotive and construction, as well as agrochemicals.
Carpet is the largest end-use for Nylon 6 in North America and has seen stable to declining demand growth for a number of 5 years reflecting shifts in consumer preferences to hard flooring versus soft and the previous substitution to lower-cost polyester.
Carpet is the largest end-use for Nylon 6 in North America and has seen stable to declining demand growth for a number of years reflecting shifts in consumer preferences to hard flooring versus soft and the previous substitution to lower-cost polyester.
Our Code of Conduct outlines our commitment to provide employees a workplace that is free from discrimination or harassment (specifically related to gender, race, disability, ethnicity, nationality, religion and sexual orientation) or personal behavior not conducive to a productive and inclusive work climate.
Our Code of Conduct outlines our commitment to provide employees a workplace that is free from discrimination or harassment (specifically related to gender, race, 9 disability, ethnicity, nationality, religion and sexual orientation) or personal behavior not conducive to a productive and inclusive work climate.
We mitigate our exposure to commodity price risk primarily through the use of medium- and 7 long-term, formula-based price contracts with our suppliers and formula-based price agreements with customers which structurally pass through increases or decreases in raw material costs.
We mitigate our exposure to commodity price risk primarily through the use of medium- and long-term, formula-based price contracts with our suppliers and formula-based price agreements with customers which structurally pass through increases or decreases in raw material costs.
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.
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.
With all of our manufacturing located in the U.S., 86% of our sales in the U.S., and primarily procuring our key raw materials domestically, our integrated value chain provides consistency and reliability for our predominantly domestic customer base.
Value Chain Providing Consistency and Reliability for Domestic Customer Base. With all of our manufacturing located in the U.S., 86% of our sales in the U.S., and primarily procuring our key raw materials domestically, our integrated value chain provides consistency and reliability for our predominantly domestic customer base.
Intimate knowledge of our customers and end market applications, combined with our technical know-how, enables us to develop differentiated, higher quality products that are often valued higher by customers compared to commodity products.
Intimate knowledge of our customers and end market applications, combined with our technical know-how, enables us to develop differentiated, higher quality products that are 3 often valued higher by customers compared to commodity products.
Our filings with the SEC are also available on the SEC website at www.sec.gov. 12 We are a Delaware corporation that was incorporated on May 4, 2016. Our principal executive offices are located at 300 Kimball Drive, Suite 101, Parsippany, NJ 07054. Our telephone number is (973) 526-1800. Our website address is www.AdvanSix.com. 13
Our filings with the SEC are also available on the SEC website at www.sec.gov. 11 We are a Delaware corporation that was incorporated on May 4, 2016. Our principal executive offices are located at 300 Kimball Drive, Suite 101, Parsippany, NJ 07054. Our telephone number is (973) 526-1800. Our website address is www.AdvanSix.com. 12
Our Frankford and Hopewell facilities are regulated facilities under the Maritime Transportation Security Act of 2002 (“MTSA”) due to the nature of our operations and the proximity of the facilities to adjacent waterways.
Our Frankford and Hopewell facilities are regulated facilities under the Maritime Transportation Security Act of 2002 due to the nature of our operations and the proximity of the facilities to adjacent waterways.
In addition, in this Form 10-K, the Company incorporates by reference certain information from parts of its Proxy Statement for the 2025 Annual Meeting of Stockholders, which will also be available free of charge on our website. Information contained on, or that may be accessed through, our website does not and will not constitute part of this Form 10-K.
In addition, in this Form 10-K, the Company incorporates by reference certain information from parts of its Proxy Statement for the 2026 Annual Meeting of Stockholders, which will also be available free of charge on our website. Information contained on, or that may be accessed through, our website does not and will not constitute part of this Form 10-K.
Our Hopewell manufacturing facility is one of the world’s largest single-site producers of caprolactam as of December 31, 2024. • 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.
Our Hopewell manufacturing facility is one of the world’s largest single-site producers of caprolactam as of December 31, 2025. • 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 December 31, 2024. We market and sell ammonium sulfate primarily to North American and South American distributors, farm cooperatives and retailers to fertilize crops.
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 December 31, 2025. We market and sell ammonium sulfate primarily to North American and South American distributors, farm cooperatives and retailers to fertilize crops.
As of December 31, 2024, ammonium sulfate fertilizer accounts for approximately 6% of the global market for nitrogen fertilizer and over 40% of the global market for sulfur fertilizer. Global prices for ammonium sulfate are influenced by several factors including the price of urea, which is the most widely used source of nitrogen-based fertilizer in the world.
As of December 31, 2025, ammonium sulfate fertilizer accounts for approximately 6% of the global market for nitrogen fertilizer and over 40% of the global market for sulfur fertilizer. Global prices for ammonium sulfate are influenced by several factors including the price of urea, which is the most widely used source of nitrogen-based fertilizer in the world.
Nylon 6 is a polymer resin which is a synthetic material used by our customers to produce fibers, filaments, engineered plastics and films that, in turn, are used in such end-products as carpets, automotive and electric components, sports apparel, food packaging and other industrial applications. ◦ Caprolactam – Caprolactam is the key monomer or building block used in the production of Nylon 6 resin.
Nylon 6 is a polymer resin which is a synthetic material used by our customers to produce fibers, filaments, engineered plastics and films that, in turn, are used in such end-products as carpets, automotive and electric components, sports apparel, food packaging and other industrial applications. ◦ Caprolactam – Caprolactam is the key monomer used in the production of Nylon 6 resin.
The following charts illustrate the distribution of our sales by product line and by region, measured by the destination of each sale, for the year ended December 31, 2024: For information concerning revenues and assets by geographic region, see “Note 3.
The following charts illustrate the distribution of our sales by product line and by region, measured by the destination of each sale, for the year ended December 31, 2025: For information concerning revenues and assets by geographic region, see “Note 3.
Our agronomists provide the latest scientific information on the importance of sulfur nutrition for crops and how to optimize the benefits of ammonium sulfate fertilizer to our global customers through a variety of channels including webinars, technical training sessions for retailers and direct grower meetings. We also have a strategic focus around placing our various chemistry platforms into high-value applications.
Our agronomist provides the latest scientific information on the importance of sulfur nutrition for crops and how to optimize the benefits of ammonium sulfate fertilizer to our global customers through a variety of channels including webinars, technical training sessions for retailers and direct grower meetings. We also have a strategic focus around placing our various chemistry platforms into high-value applications.
Industry Overview Nylon Solutions. Nylon is sold globally as a polymer resin that is drawn into fiber for textiles and carpet and into filament for industrial applications: compounded for engineering plastics, including for automotive end-use; and extruded into film for food and industrial packaging applications.
Nylon is sold globally as a polymer resin that is drawn into fiber for textiles and carpet and into filament for industrial applications; compounded for engineering plastics, including for automotive end-use; and extruded into film for food and industrial packaging applications.
Approximately 760 employees are covered under collective bargaining agreements that expire between 2025 and 2029. The Company strives to maintain positive and productive relationships with all of its employees, including the unions representing those employees. Oversight and Management Our Board and Board committees provide oversight on various human capital management matters.
Approximately 720 employees are covered under collective bargaining agreements that expire between 2028 and 2029. The Company strives to maintain positive and productive relationships with all of its employees, including the unions representing those employees. Oversight and Management Our Board and Board committees provide oversight on various human capital management matters.
Sales, Marketing and Distribution We have a sales force with global reach, long-standing customer relationships and deep expertise with our products, product applications and end markets. We predominantly sell directly to our customers, primarily under contracts but also through spot transactions under purchase orders and through distributors.
Sales, Marketing and Distribution We have a sales force with global reach, long-standing customer relationships and deep expertise with our products, product applications and end markets. In Nylon and Chemical Intermediates we predominantly sell directly to our customers, primarily under contracts but also through spot transactions under purchase orders and through distributors.
The housing sector had seen an improving trend in recent years, however, residential construction markets have slowed through 2024 reflecting higher interest rates. While Nylon 6 has a stronger presence in commercial carpet applications, including hospitality and office, where the material is preferred for its durability and performance characteristics, growth in both residential and commercial markets has been subdued.
The housing sector had seen an improving trend in recent years, however, residential construction markets have slowed through 2025 reflecting higher interest rates. While Nylon 6 has a stronger presence in commercial carpet applications, including hospitality, institutional and offices, where the material is preferred for its durability and performance characteristics, growth in both residential and commercial markets has been subdued.
Chemical intermediates are used as key inputs for a variety of end market products including construction materials, paints and coatings, packaging agrochemical, water treatment, pharmaceutical and consumer applications. The primary products are acetone, phenol, AMS, cyclohexanone and a range of alkyl and specialty amines. Acetone and phenol represent approximately 58% and 10%, respectively, of our chemical intermediates sales.
Chemical intermediates are used as key inputs for a variety of end market products including construction materials, paints and coatings, packaging agrochemical, water treatment, pharmaceutical and consumer applications. The primary products are acetone, phenol, AMS, cyclohexanone and a range of alkyl and specialty amines. Acetone and phenol represent 5 approximately 59% and 8%, respectively, of our chemical intermediates sales.
Each of these product lines represented the following approximate percentage of total sales: 1 Years Ended December 31, 2024 2023 2022 Nylon 23% 23% 25% Caprolactam 18% 20% 16% Plant Nutrients* 30% 31% 34% Chemical Intermediates* 29% 26% 25% 100% 100% 100% * The Company transferred certain products between its Chemical Intermediates product line and its Plant Nutrients product line to align more closely with its current sales structure.
Each of these product lines represented the following approximate percentage of total sales: Years Ended December 31, 2025 2024 2023 Nylon 20% 23% 23% Caprolactam 18% 18% 20% Plant Nutrients* 37% 30% 31% Chemical Intermediates* 25% 29% 26% 100% 100% 100% 1 * In 2024, the Company transferred certain products between its Chemical Intermediates product line and its Plant Nutrients product line to align more closely with its current sales structure.
Historical information has been reclassified to reflect these changes for all periods presented in the Consolidated Financial Statements. Total revenue amounts were not impacted for either period.
Historical information was reclassified to reflect these changes for all periods presented in the Consolidated Financial Statements. Total revenue amounts were not impacted for either period.
Acetone global demand totals approximately eight million metric tons with the U.S. representing approximately 18% of the global market. Major end-uses for acetone are methyl methacrylate, polycarbonate, epoxy resins, ketones and solvents used widely in automotive and construction, as well as agrochemicals.
Acetone global demand totals approximately 7.6 million metric tons with the U.S. representing approximately 13% of the global market. Major end-uses for acetone are methyl methacrylate, polycarbonate, epoxy resins, ketones and solvents used widely in automotive and construction, as well as agrochemicals.
We are among the most significant suppliers of acetone to a variety of end markets in North America. Sales of acetone in 2024 were approximately $254 million and represented 17% of our total sales. For AdvanSix, acetone is a key product line with a perform and optimize strategy to meet customer needs while driving favorable sales and profitability mix.
We are among the most significant suppliers of acetone to a variety of end markets in North America. Sales of acetone in 2025 were approximately $222 million and represented 15% of our total sales. For AdvanSix, acetone is a key product line with a perform and optimize strategy to meet customer needs while driving favorable sales and profitability mix.
Industry-realized acetone prices over refinery grade propylene costs generally remain healthy and continued balanced to tight global supply and demand as lower global phenol operating rates continue to persist. Looking forward, a lower interest rate environment in 2025 would likely support phenol demand in building and construction applications for both renovation and new builds.
Industry-realized acetone prices over refinery grade propylene costs generally remain healthy and continued balanced to tight global supply and demand as lower global phenol operating rates continue to persist. Looking forward, further reductions in interest rates would likely support phenol demand in building and construction applications for both renovation and new builds.
Our Board, along with management and cross-functional teams, work closely to evaluate and proactively address human capital management topics such as safety, employee development, employee benefits and employee engagement and inclusion. Employees As of December 31, 2024, the Company employed approximately 1,450 people. Of this total, approximately 560 are salaried employees and approximately 890 are hourly employees.
Our Board, along with management and cross-functional teams, work closely to evaluate and proactively address human capital management topics such as safety, employee development, employee benefits and employee engagement and inclusion. Employees As of December 31, 2025, the Company employed approximately 1,410 people. Of this total, approximately 560 are salaried employees and approximately 850 are hourly employees.
We use the industry standard Total Case Incident Rate ("TCIR") to measure our ongoing safety performance and compare with benchmarks. TCIR is defined as the number of occupational injuries and illnesses per 100 employees. Our TCIR was 1.09 in 2024, 0.97 in 2023 and 1.15 in 2022.
We use the industry standard Total Case Incident Rate ("TCIR") to measure our ongoing safety performance and compare with benchmarks. TCIR is defined as the number of occupational injuries and illnesses per 100 employees. Our TCIR was 1.48 in 2025, 1.16 in 2024 and 0.97 in 2023.
In 2024, approximately 59% of the caprolactam we produced at our facility in Hopewell, Virginia was shipped to our facility in Chesterfield, Virginia where it was polymerized into Aegis® Nylon 6 resins. Manufacturing for our U.S. Amines portfolio occurs at our two facilities located in Bucks, Alabama and Portsmouth, Virginia.
In 2025, approximately 53% of the caprolactam we produced at our facility in Hopewell, Virginia was shipped to our facility in Chesterfield, Virginia where it was polymerized into Aegis® Nylon 6 resin. Manufacturing for our U.S. Amines portfolio occurs at our two facilities located in Bucks, Alabama and Portsmouth, Virginia.
Product Overview Nylon and Caprolactam We manufacture our Nylon 6 resin in our Chesterfield plant. We sell our Nylon 6 resin globally, primarily under the Aegis® brand name. In 2024, our Nylon products generated $349 million of sales. In 2024, 2023 and 2022, Nylon sales were 23%, 23% and 25% of our total sales, respectively.
Product Overview Nylon and Caprolactam We manufacture our Nylon 6 resin in our Chesterfield plant. We sell our Nylon 6 resin globally, primarily under the Aegis® brand name. In 2025, our Nylon products generated $310 million of sales. In 2025, 2024 and 2023, Nylon sales were 20%, 23% and 23% of our total sales, respectively.
For Plant Nutrients, we compete with manufacturers such as Pasadena Commodities International 6 and Nutrien Ltd. For Chemical Intermediates, we compete with stand-alone phenol and acetone producers, such as INEOS Phenol and Altivia, and, with respect to our amines product line, our key alkyl amines U.S.-based competitor is Eastman Chemical Company.
For Plant Nutrients, like Nylon, we compete with caprolactam/ammonium sulfate co-product manufacturers and direct ammonium sulfate producers such as Pasadena Commodities International and Nutrien Ltd. For Chemical Intermediates, we compete with stand-alone phenol and acetone producers, such as INEOS Phenol and Altivia, and, with respect to our amines product line, our key alkyl amines U.S.-based competitor is Eastman Chemical Company.
We have also diversified and optimized our ammonium sulfate-based offerings to include a spray-grade adjuvant to support crop protection, as well as other specialty fertilizers and products for industrial use. Sales of ammonium sulfate in 2024 were $458 million and represented 30% of our total sales.
We have also diversified and optimized our ammonium sulfate-based offerings to include a spray-grade adjuvant to support crop protection, as well as other specialty fertilizers and products for industrial use. Sales of plant nutrients' products in 2025 were $564 million and represented 37% of our total sales.
Pricing and spreads strengthened in 2024, which we believe is reflective of an increasingly recognized sulfur value proposition and observed growth in demand. Our ammonium sulfate product is positioned with the added value proposition of sulfur nutrition to increase yields of key crops.
Pricing and spreads strengthened in 2024 and margins remained favorable in 2025 despite rising raw material inputs, which we believe is reflective of an increasingly recognized sulfur value proposition and observed growth in demand. Our ammonium sulfate product is positioned with the added value proposition of sulfur nutrition to increase yields of key crops.
She joined Honeywell in 2002 as a Six Sigma Blackbelt of Honeywell’s Specialty Materials business. In 2004, she was named product marketing manager of Honeywell’s Specialty Additives business. From 2006 until 2008, Ms. Kane served as global marketing manager of Honeywell’s Authentication Technologies business, and in 2008 she was named global marketing manager of Honeywell’s Resins and Chemicals business.
Kane served as vice president and general manager of Honeywell Resins and Chemicals since October 2014. She joined Honeywell in 2002 as a Six Sigma Blackbelt of Honeywell’s Specialty Materials business. In 2004, she was named product marketing manager of Honeywell’s Specialty Additives business. From 2006 until 2008, Ms.
Kintiroglou, 46 Senior Vice President, General Counsel and Corporate Secretary Prior to being named to his current role, Mr. Kintiroglou was the deputy general counsel of AdvanSix since the spin-off in 2016.
Kintiroglou, 47 Senior Vice President, General Counsel and Corporate Secretary Mr. Kintiroglou has served as our Senior Vice President, General Counsel and Corporate Secretary since 2020. Prior to being named to his current role, Mr. Kintiroglou served as the deputy general counsel of AdvanSix since the spin-off in 2016.
Our compensation and benefit programs are designed to support our business strategy through four key objectives: • Attract and retain best-in-class talent; • Drive and pay for performance that creates superior results and sustainable stockholder value; • Manage risk through oversight and sound management; and • Nurture a culture of employee health and wellness.
Our compensation and benefit programs are designed to support our business strategy through four key objectives: • Attract and retain best-in-class talent; • Drive and pay for performance that creates superior results and sustainable stockholder value; • Manage risk through oversight and sound management; and • Nurture a culture of employee health and wellness. 10 Information about our Executive Officers The executive officers of AdvanSix, listed as follows, are appointed annually by the Board.
In addition, AdvanSix supports the Future of STEM Scholars Initiative ("FOSSI"), a national, industry-wide program which provides scholarships to students pursuing STEM degrees at Historically Black Colleges and Universities ("HBCUs") and connections to internships, leadership development and mentoring opportunities.
In addition, AdvanSix supports the Future of STEM Scholars Initiative ("FOSSI"), a national, industry-wide program which provides scholarships to students pursuing STEM degrees at Historically Black Colleges and Universities ("HBCUs") and connections to internships, leadership development and mentoring opportunities. In 2025, we offered summer internships to our FOSSI scholars and two of our FOSSI graduates joined AdvanSix as full-time employees.
We produce caprolactam, the key monomer or building block used in the production of Nylon 6 resin, at our Hopewell plant using phenol produced at our Frankford plant and sulfur and natural gas obtained from third-party suppliers. In 2024, caprolactam generated $276 million of sales.
We produce caprolactam, the key monomer used in the production of Nylon 6 resin, at our Hopewell plant using phenol produced at our Frankford plant and sulfur and natural gas obtained from third-party suppliers. In 2025, caprolactam generated $271 million of sales. In 2025, 2024 and 2023, caprolactam sales were 18%, 18% and 20% of our total sales, respectively.
Before joining AdvanSix, he was a corporate and securities partner at Day Pitney LLP and a corporate and finance associate at Pillsbury Winthrop Shaw Pittman LLP and Pitney Hardin LLP. Kelly J. Slieter, 50 Senior Vice President and Chief Human Resources Officer Prior to joining the Company, Ms.
Before joining AdvanSix, he was a corporate and securities partner at Day Pitney LLP and a corporate and finance associate at Pillsbury Winthrop Shaw Pittman LLP and Pitney Hardin LLP. Kelly J. Slieter, 51 Senior Vice President and Chief Human Resources Officer Ms. Slieter has served as our Senior Vice President and Chief Human Resources Officer since 2020.
Slieter served as vice president of human resources of Honeywell International Inc. since 2018. She joined Honeywell in 1997 as an intern and subsequently served in various human resources roles through 2003, including as M&A integration leader and as HR manager for multiple business units. From 2003 to 2004, she served as human resources manager at Bristol-Myers Squibb Company.
Prior to being named to her current role, Ms. Slieter served as vice president of human resources of Honeywell International Inc. since 2018. She joined Honeywell in 1997 as an intern and subsequently served in various human resources roles through 2003, including as M&A integration leader and as HR manager for multiple business units.
See “Risk Factors – Extensive environmental, health and safety laws and regulations applicable to our operations, including initiatives related to discharges into the air and water, hazardous waste, sustainability, global warming and climate change, may result in substantial costs and unanticipated loss or liability, which could adversely affect our business, financial condition and results of operations” in Item 1A.
Such classifications subject us to further compliance audits by the relevant federal and state agencies and place ongoing restrictions on our sales activities. 8 See “Risk Factors – Extensive environmental, health and safety laws and regulations applicable to our operations, including initiatives related to discharges into the air and water, hazardous waste, sustainability, global warming and climate change, may result in substantial costs and unanticipated loss or liability, which could adversely affect our business, financial condition and results of operations” in Item 1A.
The phenol we produce at our Frankford plant is a key chemical intermediate used in our caprolactam manufacturing process. The majority of the phenol we produce is used in production of caprolactam and other chemical intermediates at Hopewell.
In 2025, 2024 and 2023, sales of chemical intermediates were 25%, 29% and 26% of our total sales, respectively. The phenol we produce at our Frankford plant is a key chemical intermediate used in our caprolactam manufacturing process. The majority of the phenol we produce is used in production of caprolactam and other chemical intermediates at Hopewell.
We believe that, as a general matter, our policies, practices and procedures are properly designed to prevent unreasonable risk of environmental impact, and any resulting financial liability.
Compliance with these laws and regulations results in higher capital expenditures and costs. We believe that, as a general matter, our policies, practices and procedures are properly designed to prevent unreasonable risk of environmental impact, and any resulting financial liability.
We believe that our dividend, which has grown since its initiation in 2021, serves as a dependable return of cash to our shareholders and fits very well within this framework supported by annual operating cash flow.
We believe that our dividend, which has grown since its initiation in 2021, serves as a dependable return of cash to our shareholders and fits very well within this framework supported by annual operating cash flow. The timing, declaration, amount and payment of dividends to stockholders, if any, will be within the sole discretion of our Board of Directors ("Board").
Sales to Shaw were 10% of our total sales for the year ended December 31, 2024, and 11% for the years ended December 31, 2023 and 2022. We typically sell to our other customers under master services agreements, with primarily one-year terms, or by purchase orders. We have historically experienced low customer turnover.
We sell caprolactam and Nylon 6 resin to Shaw under a long-term agreement. Sales to Shaw were 10% of our total sales for the years ended December 31, 2025 and 2024, and 11% for the year ended December 31, 2023. We typically sell to our other customers under master services agreements, with primarily one-year terms, or by purchase orders.
Most fundamentally, it enables us 3 to spread fixed and overhead costs across more pounds of production, thereby enabling us to produce caprolactam at a lower per pound cost than our competitors.
Our scale provides operating and purchasing leverage and the opportunity to achieve stronger business performance than our competitors in several ways. Most fundamentally, it enables us to spread fixed and overhead costs across more pounds of production, thereby enabling us to produce caprolactam at a lower per pound cost than our competitors.
Research & Development and Intellectual Property We believe success in our industry is driven not only by operational excellence and cost position but also through technological strength and innovation.
Sales of most of our other products have generally been subject to minimal, or no, seasonality. Research & Development and Intellectual Property We believe success in our industry is driven not only by operational excellence and cost position but also through technological strength and innovation.
We continue to pursue a highly-selective acquisition and alliance strategy to supplement our organic sales by broadening our customer base, developing our technology and product portfolios, and enhancing our cash flow profile and margin stability. On an ongoing basis we evaluate options to return cash to shareholders and maintain sufficient capacity under our current share repurchase authorization.
We continue to pursue a highly-selective acquisition and alliance strategy to supplement our organic sales by broadening our customer base, developing our technology and product portfolios, and enhancing our cash flow profile and margin stability.
From 2004 to 2005, she served as organization development manager for Tyco International. Ms.
From 2003 to 2004, she served as human resources manager at Bristol-Myers Squibb Company. From 2004 to 2005, she served as organization development manager for Tyco International. Ms.
In addition, we strive to understand the product applications and end markets into which our products are sold, which helps us upgrade the quality, chemical properties and packaging of our products in ways which enable us to attract price premiums and greater demand.
In addition, we strive to understand the product applications and end markets into which our products are sold, which helps us upgrade the quality, chemical properties and packaging of our products to enable us to attract price premiums and greater demand. 2 AdvanSix serves approximately 375 customers annually, primarily in the United States, with global capabilities, spanning a wide variety of industries.
In 2024, 2023 and 2022, caprolactam sales were 18%, 20% and 16% of our total sales, respectively. Plant Nutrients Ammonium sulfate fertilizer is produced simultaneously with caprolactam as part of our integrated manufacturing process at our Hopewell plant. We manufacture this product in a ratio of approximately four pounds of ammonium sulfate to one pound of caprolactam.
Plant Nutrients Ammonium sulfate fertilizer is produced simultaneously with caprolactam as part of our integrated manufacturing process at our Hopewell plant. We manufacture this product in a ratio of approximately four pounds of ammonium sulfate to one pound of caprolactam. Our co-product competitors typically produce approximately two pounds or less of ammonium sulfate for each pound of caprolactam.
Currently, we not only have leading positions across these diverse product lines but are also aligned to several favorable macro trends that are supporting growth across the portfolio including urbanization and aging infrastructure, digital transformation, global food production and resource scarcity, and a shift to green and performance chemicals. In addition, our U.S.
We believe we are aligned to several favorable macro trends that are supporting growth across the portfolio including urbanization and aging infrastructure, digital transformation, global food production and resource scarcity, and a shift to green and performance chemicals. In addition, our U.S. Amines portfolio enables further diversification into agrochemical intermediates, water treatment and pharmaceuticals. U.S.
Gramm served as vice president of finance for the integrated supply chain of the aerospace division at Honeywell. Before joining Honeywell, Mr. Gramm was a manager at Corning Life Sciences.
Beginning in March 2011, he was vice president and controller of the aerospace division at Honeywell. Additionally, from August 2014 to November 2015, Mr. Gramm served as vice president of finance for the integrated supply chain of the aerospace division at Honeywell. Before joining Honeywell, Mr. Gramm was a manager at Corning Life Sciences. Achilles B.
Seasonality We produce ammonium sulfate fertilizer continuously throughout the year as part of our manufacturing process, but quarterly sales fluctuate reflecting both geographical and product sales mix considerations based on the timing and length of the growing seasons in North and South America.
We have historically experienced low customer turnover. Seasonality Our ammonium sulfate fertilizer product line 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.
Our high-return growth and cost savings capital project pipeline target improvement in production rate, cost, quality and yield. As an example, we are accelerating profitable growth through our multi-year SUSTAIN (Sustainable U.S. Sulfate To Accelerate Increased Nutrition) program's planned expansion in granular ammonium sulfate production.
All further capital allocation is discretionary where we fund growth and cost saving programs at robust returns, inorganic opportunities and share repurchases. Our high-return growth and cost savings capital project pipeline target improvement in production rate, cost, quality and yield. As an example, we are accelerating profitable growth through our multi-year SUSTAIN program's planned expansion in granular ammonium sulfate production.
We sell our Nylon 6 resin under the Aegis® brand name and our ammonium sulfate fertilizer under the Sulf-N® brand name. Chemical intermediates are sold under the brand names of Nadone®, Naxol® and EZ-Blox®. We also benefit from technology covered by trade secrets, including know-how and other proprietary information relating to many of our products, processes and technologies.
We sell our Nylon 6 resin under the Aegis® brand name and our ammonium sulfate fertilizer under the Sulf-N® brand name. Certain of our chemical intermediates are sold under the brand names of Nadone®, Naxol® and EZ-Blox®.
Supporting Women in Manufacturing (SWiM), an AdvanSix Employee Resource Group, was formed in 2019 with the goal of promoting women in manufacturing, female leadership and growth in STEM-related fields. SWiM seeks to raise awareness on these matters through programs, events and discussions, including networking, professional development, outreach, volunteering and internal programs highlighting leadership and career paths in multiple disciplines.
SWiM seeks to raise awareness on these matters through programs, events and discussions, including networking, professional development, outreach, volunteering and internal programs highlighting leadership and career paths in multiple disciplines.
There are no family relationships among them or our Board members. 11 Name, Age Position Business Experience Erin N. Kane, 47 Chief Executive Officer and Director Prior to joining the Company, Ms. Kane served as vice president and general manager of Honeywell Resins and Chemicals since October 2014.
There are no family relationships among them or our Board members. Name, Age Position Business Experience Erin N. Kane, 48 President and Chief Executive Officer and Director Ms. Kane has served as our President and Chief Executive Officer and as a Director since the spin-off in 2016. Prior to being named to her current role, Ms.
In 2024, the Company's 10 largest customers accounted for approximately 38% of total sales. Our largest customer is Shaw Industries Group Inc. ("Shaw"), one of the world's largest consumers of caprolactam and Nylon 6 resin. We sell caprolactam and Nylon 6 resin to Shaw under a long-term agreement.
Customers AdvanSix serves approximately 375 customers annually, primarily in the United States, with global capabilities, spanning a wide variety of industries. In 2025, the Company's 10 largest customers accounted for approximately 40% of total sales. Our largest customer is Shaw Industries Group Inc. ("Shaw"), one of the world's largest consumers of caprolactam and Nylon 6 resin.
Over the course of the period from 1997 to March 2011, Mr. Gramm held several positions at Honeywell, including controller and chief financial officer of various divisions focused on areas including specialty materials and resins and chemicals. Beginning in March 2011, he was vice president and controller of the aerospace division at Honeywell. From August 2014 to November 2015, Mr.
Before joining AdvanSix, Mr. Gramm served in various roles of increasing responsibility at Honeywell. He joined Honeywell in 1997 as a senior staff accountant. From 1997 to March 2011, Mr. Gramm held several positions at Honeywell, including controller and chief financial officer of various divisions focused on areas including specialty materials and resins and chemicals.
A lower interest rate environment, in time, is expected to favorably impact building and construction, and we anticipate seeing a more meaningful impact translate across the fiber and filament chain in 2025. Applications such as engineered plastics and packaging have potential to grow at faster rates given certain macrotrends.
A lower interest rate environment, in time, is expected to favorably impact building and construction, however, we expect continued weak demand through 2026. Applications such as engineered plastics and packaging have potential to grow at faster rates given certain macrotrends. Varying regional dynamics, including competitive intensity and trade flows continue to impact regional pricing.
We intend to continue taking steps as necessary to protect our intellectual property, including when appropriate, filing patent applications for inventions that are deemed important to our business. We conduct R&D at technology centers with researchers at our manufacturing sites in Frankford, Pennsylvania and Chesterfield, Virginia.
In our judgment, our intellectual property rights are adequate for the conduct of our business and for sustained competitive advantages. We intend to continue taking steps as necessary to protect our intellectual property, including when appropriate, filing patent applications for inventions that are deemed important to our business, defending our patent rights, and enforcing our exclusivity positions worldwide.
First, we are vertically integrated into several key feedstock materials necessary to produce caprolactam, particularly phenol, ammonia and oleum/sulfuric acid, which we believe is a unique advantage in our industry. Our integration allows us to remain flexible, while optimizing sales from our diverse portfolio of products.
Our vertically integrated manufacturing facilities, scale, access to lower cost raw materials, and high plant utilization rates help us maintain our position as the world's lowest cost producer of caprolactam. First, we are vertically integrated into several key feedstock materials necessary to produce caprolactam, particularly phenol, ammonia and oleum/sulfuric acid, which we believe is a unique advantage in our industry.
The below chart shows the end-markets for the Company's products: 2 Our integrated manufacturing process, our scale and the quantity and range of our products make us one of the most reliable and efficient manufacturers in our industry.
The below chart shows the Company's integrated value chain: Our integrated manufacturing process, our scale and the quantity and range of our products make us one of the most reliable and efficient manufacturers in our industry. We consistently focus on and invest in improving production yields from our various manufacturing processes to build on our leading global cost advantage.
Our third inclusive leadership cohort kicked off a full year of experiential learning in 2024. AdvanSix also seeks to improve gender equality in the manufacturing industry, starting with supporting science, technology, engineering and math (STEM) education and work in related fields.
AdvanSix also seeks to improve gender equality in the manufacturing industry, starting with supporting science, technology, engineering and math (STEM) education and work in related fields. Supporting Women in Manufacturing (SWiM), an AdvanSix Employee Resource Group, was formed in 2019 with the goal of promoting women in manufacturing, female leadership and growth in STEM-related fields.
Second, we operate one of the world’s largest single-site caprolactam and ammonium sulfate production facilities, which is a competitive advantage in our globally, fragmented industry. Our scale provides operating and purchasing leverage and the opportunity to achieve stronger business performance than our competitors in several ways.
Our integration allows us to remain flexible, while optimizing sales from our diverse portfolio of products. Second, we operate one of the world’s largest single-site caprolactam and ammonium sulfate production facilities, which is a competitive advantage in our globally fragmented industry.
Our reliable and sustainable supply of quality products emerges from the integrated value chain of our five U.S.-based manufacturing facilities. 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.
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. Our key product lines are as follows: • Nylon Solutions ◦ Nylon – We sell our Nylon 6 resin globally, primarily under the Aegis® brand name.
Our products are supported by our global logistics capability that we employ to ensure reliable and timely delivery to our customers while maximizing distribution resources and efficiency. Customers AdvanSix serves around 400 customers annually, primarily in the United States, with global capabilities, spanning a wide variety of industries.
In Plant Nutrients, the majority of sales, while to long standing customers, are freely-negotiated transactions under purchase orders. Our products are supported by our global logistics capability that we employ to ensure reliable and timely delivery to our customers while maximizing distribution resources and efficiency.
For the years ended December 31, 2024, 2023 and 2022, our international sales were $213 million, $284 million and $323 million, respectively. AdvanSix is a single operating segment and a single reportable segment, operating through five U.S.-based manufacturing sites located in Frankford, Pennsylvania, Hopewell, Chesterfield and Portsmouth, Virginia and Bucks, Alabama. The Company's headquarters is located in Parsippany, New Jersey.
AdvanSix is a single operating segment and a single reportable segment, operating through five U.S.-based manufacturing sites located in Frankford, Pennsylvania, Hopewell, Chesterfield and Portsmouth, Virginia and Bucks, Alabama. The Company's headquarters is located in Parsippany, New Jersey. Competitive Strengths Low-Cost Position Driven by Integrated Manufacturing Footprint, Large Scale, Favorable Geographical Location, and High Utilization Rates .
We do not consider any individual patent, trademark or licensing or distribution rights related to a specific process or product to be of material importance in relation to our overall business. In our judgment, our intellectual property rights are adequate for the conduct of our business.
We also benefit from technology protected by trade secrets, know-hows and other proprietary measures particularly on aspects pertaining to product formulations, processes and technologies. At the present time, we do not consider any individual patent, trademark or licensing or distribution rights related to a specific process or product to be of material importance in relation to our overall business.
We consistently focus on and invest in improving production yields from our various manufacturing processes to build on our leading global cost advantage. Our logistics infrastructure enables a reliable intra-plant supply chain and consistent and timely delivery to our customers.
Our logistics infrastructure enables a reliable intra-plant supply chain and consistent and timely delivery to our customers.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIn the event our creditors accelerate the repayment of our borrowings, we may not have sufficient assets to repay such indebtedness, which could adversely affect our business, financial condition and results of operations. 20 Risks Relating to Legal and Regulatory Matters Extensive environmental, health and safety laws and regulations applicable to our operations, including initiatives related to discharges into the air and water, hazardous waste, sustainability, global warming and climate change, may result in substantial costs and unanticipated loss or liability, which could adversely affect our business, financial condition and results of operations.
Biggest changeRisks Relating to Legal and Regulatory Matters Extensive environmental, health and safety laws and regulations applicable to our operations, including initiatives related to discharges into the air and water, hazardous waste, sustainability, global warming and climate change, may result in substantial costs and unanticipated loss or liability, which could adversely affect our business, financial condition and results of operations.
These restrictive covenants may restrict our ability to take some or all of the following actions: • Incur or guarantee additional indebtedness or sell disqualified or preferred stock; • Pay dividends on, make distributions in respect of, repurchase or redeem capital stock; • Make investments or acquisitions; • Sell, transfer or otherwise dispose of certain assets; • Create liens; • Enter into sale/leaseback transactions; • Enter into agreements restricting the ability to pay dividends or make other intercompany transfers; • Consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; • Enter into transactions with affiliates; • Prepay, repurchase or redeem certain kinds of indebtedness; • Issue or sell stock of our subsidiaries; and/or • Significantly change the nature of our business.
These restrictive covenants may restrict our ability to take some or all of the following actions: • Incur or guarantee additional indebtedness or sell disqualified or preferred stock; • Pay dividends on, make distributions in respect of, repurchase or redeem capital stock; • Make investments or acquisitions; • Sell, transfer or otherwise dispose of certain assets; • Create liens; • Enter into sale/leaseback transactions; • Enter into agreements restricting the ability to pay dividends or make other intercompany transfers; 19 • Consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; • Enter into transactions with affiliates; • Prepay, repurchase or redeem certain kinds of indebtedness; • Issue or sell stock of our subsidiaries; and/or • Significantly change the nature of our business.
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.
Public focus on climate change, sustainability, and environmental issues has also led to 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.
With regard to cash pension contributions, funding requirements for our pension plans are largely dependent upon interest rates, actual investment returns on pension assets and the impact of legislative or regulatory changes related to pension funding obligations. Our pension contributions may be material and could adversely impact our financial condition, cash flow and 19 results of operations.
With regard to cash pension contributions, funding requirements for our pension plans are largely dependent upon interest rates, actual investment returns on pension assets and the impact of legislative or regulatory changes related to pension funding obligations. Our pension contributions may be material and could adversely impact our financial condition, cash flow and results of operations.
If we fail to maintain the effectiveness of our internal controls, including any failure to implement required new or improved controls, or if we 22 experience difficulties in their implementation, our business and operating results could be harmed, we could fail to meet our reporting obligations, and there could be a material adverse effect on our stock price.
If we fail to maintain the effectiveness of our internal controls, including any failure to implement required new or improved controls, or if we experience difficulties in their implementation, our business and operating results could be harmed, we could fail to meet our reporting obligations, and there could be a material adverse effect on our stock price.
Significant physical effects of climate change could also have an indirect effect on our financing and operations by disrupting the supply of raw materials to us and transportation or process-related services provided by companies or suppliers with whom we have a business relationship.
Significant physical effects of climate change could also have an 20 indirect effect on our financing and operations by disrupting the supply of raw materials to us and transportation or process-related services provided by companies or suppliers with whom we have a business relationship.
In addition, actions of activist stockholders may cause significant 23 fluctuations in our stock price based on temporary or speculative market perceptions or other factors that do not necessarily reflect the underlying fundamentals and prospects of our business.
In addition, actions of activist stockholders may cause significant fluctuations in our stock price based on temporary or speculative market perceptions or other factors that do not necessarily reflect the underlying fundamentals and prospects of our business.
The use of AI by us, our employees or any of our third-party partners 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.
The use of AI by us, our employees or any of our third-party providers 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.
Any significant 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.
Any further 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.
Our inability to satisfy our supply needs would jeopardize our ability to fulfill obligations under contracts, which could, in turn, result in reduced sales and profits, contract penalties or terminations and damage to customer relationships. 15 When possible, we have purchased, and we plan to continue to purchase, raw materials, including cumene, natural gas and sulfur, through negotiated medium- or long-term contracts.
Our inability to satisfy our supply needs would jeopardize our ability to fulfill obligations under contracts, which could, in turn, result in reduced sales and profits, contract penalties or terminations and damage to customer relationships. 14 When possible, we have purchased, and we plan to continue to purchase, raw materials, including cumene, natural gas and sulfur, through negotiated medium- or long-term contracts.
The market price of our common stock may fluctuate widely, depending on many factors, some of which may be beyond our control, including: • Actual or anticipated fluctuations in our results of operations due to factors related to our business; • Success or failure of our business strategies; • Competition and industry capacity; • Changes in interest rates and other factors that affect earnings and cash flow; • Our level of indebtedness, our ability to make payments on or service our indebtedness and our ability to obtain financing as needed; • Our ability to pay dividends or repurchase our common stock; • Our ability to retain and recruit qualified personnel; • Our quarterly or annual earnings, or those of other companies in our industry; • Announcements by us or our competitors of significant acquisitions or dispositions; • Changes in accounting standards, policies, guidance, interpretations or principles; • Changes in earnings estimates by securities analysts or our ability to meet those estimates; • The operating and stock price performance of other comparable companies; • Investor perception of our company and our industry; • Overall market fluctuations and volatility unrelated to our operating performance; • Results from any material litigation or government investigation; • Changes in laws and regulations (including tax laws and regulations) affecting our business; • Changes in capital gains taxes and taxes on dividends affecting stockholders; and • General economic conditions and other external factors.
The market price of our common stock may fluctuate widely, depending on many factors, some of which may be beyond our control, including: • Actual or anticipated fluctuations in our results of operations due to factors related to our business; • Success or failure of our business strategies; • Competition and industry capacity; • Changes in interest rates and other factors that affect earnings and cash flow; • 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; • Our ability to pay dividends or repurchase our common stock; • Our ability to retain and recruit qualified personnel; • Our quarterly or annual earnings, or those of other companies in our industry; 22 • Announcements by us or our competitors of significant acquisitions or dispositions; • Changes in accounting standards, policies, guidance, interpretations or principles; • Changes in earnings estimates by securities analysts or our ability to meet those estimates; • The operating and stock price performance of other comparable companies; • Investor perception of our company and our industry; • Overall market fluctuations and volatility unrelated to our operating performance; • Results from any material litigation or government investigation; • Changes in laws and regulations (including tax laws and regulations) affecting our business; • Changes in capital gains taxes and taxes on dividends affecting stockholders; and • General economic conditions and other external factors.
The loss of key employees, our inability to attract new, qualified employees or adequately train employees, or any delay in hiring key personnel, could negatively affect our business, financial condition and results of operations. 18 Cybersecurity threats and incidents continue to increase in frequency and sophistication.
The loss of key employees, our inability to attract new, qualified employees or adequately train employees, or any delay in hiring key personnel, could negatively affect our business, financial condition and results of operations. 17 Cybersecurity threats and incidents continue to increase in frequency and sophistication.
We made no pension contributions during 2024, but may make pension contributions in future periods to satisfy funding requirements. We may be required to record significant charges from impairment to goodwill, intangibles, and other long-lived assets. We are required under U.S.
We made no pension contributions during 2025, but may make pension contributions in future periods to satisfy funding requirements. We may be required to record significant charges from impairment to goodwill, intangibles, and other long-lived assets. We are required under U.S.
In addition to changes 16 in regulations, the impact of health, sustainability, and safety concerns 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.
In addition to changes 15 in regulations, the impact of health, sustainability, and safety concerns 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 also have noted a trend in public and private nuisance suits being filed on behalf of states, counties, cities and utilities alleging harm to the general public. Various factors or developments can lead to changes in current estimates of liabilities such as a final adverse judgment, significant settlements or changes in applicable law.
We also have noted a trend in, 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. Various factors or developments can lead to changes in current estimates of liabilities such as a final adverse judgment, significant settlements or changes in applicable law.
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 an attack on our assets could include loss of life and significant property damage.
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 negatively affect the economy in general, and the markets for our products in particular. The resulting damage from any attack on our assets could include loss of life and significant property damage.
An investment in, or acquisition of, complementary businesses, products or technologies could materially decrease the 17 amount of our available cash or require us to seek additional equity or debt financing.
An investment in, or acquisition of, complementary businesses, products or technologies could materially decrease the 16 amount of our available cash or require us to seek additional equity or debt financing.
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, 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, use AI in their business activities, which we may not be in a position to control.
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 Company personnel use AI for our business or at Company locations, or in cases where our third-party partners use AI in their business activities, which we may not be in a position to control.
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.
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 as well as unplanned downtime.
For example: • Weak economic conditions, especially in our key value chains and end markets, could reduce demand for our products, impacting our sales and margins; • As a result of volatility in commodity prices and inflation, we may encounter difficulty in achieving sustained market acceptance of past or future price increases; • In addition, in the event of continued high inflationary pressure, we may not be able to adjust our pricing or increase our productivity and reduce our costs to a level sufficient to offset increased costs, which could reduce our margins and profitability; • Market conditions, including those arising from any new or proposed regulatory, trade or other policy changes of the new U.S. presidential administration could result in our key customers experiencing financial difficulties and/or electing to limit 14 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 obtain additional financing on reasonable terms, or at all; and • Market conditions and credit availability could adversely affect the financial situation of raw material suppliers and their ability to deliver key materials, thus impacting our ability to run our production facilities at the intended rates.
For example: • Weak economic conditions, especially in our key value chains and end markets, could reduce demand for our products, impacting our sales and margins; • As a result of volatility in commodity prices and inflation, we may encounter difficulty in achieving sustained market acceptance of past or future price increases; • In addition, in the event of continued high inflationary pressure, we may not be able to adjust our pricing or increase our productivity and reduce our costs to a level sufficient to offset increased costs, which could reduce our margins and profitability; • Market conditions, including those arising from any current or proposed regulatory, tariff, trade or other policies of the U.S. government could result in our key customers experiencing financial difficulties and/or electing to limit spending, which in 13 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 • Market conditions and credit availability could adversely affect the financial situation of raw material suppliers and their ability to deliver key materials, thus impacting our ability to run our production facilities at the intended rates.
In 2024, our 10 largest customers accounted for approximately 38% of our total sales across all product lines. Our largest customer is Shaw, one of the world’s largest consumers of Nylon 6 resin and caprolactam. We sell caprolactam and Nylon 6 resin to Shaw under a long-term agreement.
In 2025, our 10 largest customers accounted for approximately 40% of our total sales across all product lines. Our largest customer is Shaw, one of the world’s largest consumers of Nylon 6 resin and caprolactam. We sell caprolactam and Nylon 6 resin to Shaw under a long-term agreement.
We have noted a nationwide trend in 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 have noted a nationwide trend in, 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.
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, we cannot assure you that these efforts will be sufficient to offset, in whole or in part, the effect of possible decreases in pricing on our operating results.
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, there can be no 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.
Approximately 760 of our employees are covered under collective bargaining agreements that expire between 2025 and 2029, which represents approximately 52% of our employee base as of December 31, 2024. From time to time, we engage in negotiations to renew collective bargaining agreements as those contracts are scheduled to expire.
Approximately 720 of our employees are covered under collective bargaining agreements that expire between 2028 and 2029, which represents approximately 51% of our employee base as of December 31, 2025. From time to time, we engage in negotiations to renew collective bargaining agreements as those contracts are scheduled to expire.
In recent years, the U.S. imposed tariffs on certain U.S. imports, and China and other countries responded with retaliatory tariffs on certain U.S. exports.
In 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.
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 policies of the new U.S. presidential administration, pandemics and any resurgences thereof, the threat of war and geopolitical concerns, including as a result of the conflict between Russia and Ukraine, the conflict in Israel and Gaza, the surrounding region 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.
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 governmental policies, pandemics and any resurgences thereof, the threat of war and geopolitical concerns and uncertainties, including as a result of the conflict between Russia and Ukraine, conflicts and hostilities in Israel, Gaza, Iran and Venezuela, as well as any related instability in the surrounding regions and 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.
Any of the following risks 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.
We believe the following identifies the principal risks that 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.
As a result of potential cyclicality, we cannot assure you 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.
Additionally, as a result of potential cyclicality, there can be no 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.
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 given the recent change in U.S. presidential administration, we may face additional uncertainty with regard to U.S. government trade policy.
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 we have faced and may continue to face uncertainty with regard to U.S. government trade policy.
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 at any of our production facilities may adversely affect our business, financial condition and results of operations.
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.
Failure to maintain effective internal controls could adversely impact our ability to meet our reporting requirements. We are required, under the Sarbanes-Oxley Act of 2002, to maintain effective internal control over financial reporting and disclosure controls and procedures.
We are required, under the Sarbanes-Oxley Act of 2002, to maintain effective internal control over financial reporting and disclosure controls and procedures.
Unplanned interruptions at our production facilities have occurred in the past and may occur in the future, and we may not have enough intermediate chemical inventory at any given time to offset production losses.
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.
Unplanned interruptions in our 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.
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 may 21 also incur additional expense as a result of domestic and international regulations requiring disclosures regarding GHG emissions and/or broader ESG matters, related performance indicators and other factors. We are impacted by increasing stakeholder interest in performance relative to sustainability and ESG matters.
We may also incur additional expense as a result of domestic and international regulations requiring disclosures regarding GHG emissions and/or broader environmental, 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.
Noncompliance with these laws can result in reputational damage, fines and penalties, and enforcement proceedings and litigation, any of which may adversely affect our business, reputation, financial condition and results of operations. 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.
Noncompliance with these laws can result in reputational damage, fines and penalties, and enforcement proceedings and litigation, any of which may adversely affect our business, reputation, financial condition and results of operations. We are subject to risks associated with the potential use of AI in our operations and by third-party providers that we may engage with.
These factors may be revised or supplemented in subsequent reports on Forms 10-Q and 8-K. Risk Factors You should carefully consider all information in this Form 10-K and each of the risks described below, which we believe are the principal risks we face.
These factors may be revised or supplemented in subsequent reports on Forms 10-Q and 8-K. Risk Factors Our business could be affected by various risks, many of which are beyond our control.
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.
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. Our industry is increasingly adopting AI technologies to optimize efficiency, enhance the customer experience, manage and mitigate risk, and support decision-making.
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As a result, we have expanded our reporting and investments associated with ESG matters and have announced goals regarding our sustainability and ESG performance.
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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.
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Competitors that deploy AI more quickly or at greater scale may be able to operate more efficiently, more effectively support customer needs, proactively mitigate risk, or offer new products and services.
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If we do not adequately manage the risks described above relating to AI, we could experience reputational harm, ethical challenges, legal liability, regulatory findings or enforcement, losses, fines, and other adverse impacts on our business, operations and financial results.
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Also, if we do not have sufficient rights to use the data or other material or content on which the AI tools we use rely, or to use 18 the outputs of such AI tools, we may incur liability through the violation of applicable privacy laws and regulations, or claims of infringement or breach of contract by third parties.
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In the event our creditors accelerate the repayment of our borrowings, we may not have sufficient assets to repay such indebtedness, which could adversely affect our business, financial condition and results of operations.
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The ultimate impact of changing trade policies on our business will depend on various factors, including the magnitude, duration and nature of tariffs.
Added
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. 21 Failure to maintain effective internal controls could adversely impact our ability to meet our reporting requirements.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeWe have implemented robust controls and procedures to ensure trainings are completed in a timely manner and to track our cybersecurity performance metrics. Our environment is monitored continuously for security events by our security operations center, which detects, alerts, and responds to any potential security incidents on 24/7 basis.
Biggest changeWe consider these risks at the time of supplier onboarding and endeavor to assess changes in risk throughout the lifecycle of our relationship with suppliers. Our environment is monitored continuously for security events by our security operations center, which detects, alerts, and responds to any potential security incidents on 24/7 basis.
As of the date of this Annual Report on Form 10-K, we are not aware of any cybersecurity incidents that have materially affected or are reasonably likely to materially affect the Company. 25 AdvanSix has developed cybersecurity incident response plans and procedures, including the formation of a designated cybersecurity incident response team with representatives from across the organization.
As of the date of this Annual Report on Form 10-K, we are not aware of any cybersecurity incidents that have materially affected or are reasonably likely to materially affect the Company. AdvanSix has developed cybersecurity incident response plans and procedures, including the formation of a designated cybersecurity incident response team with representatives from across the organization.
Our comprehensive security awareness and training program covers 100% of our employees on protective measures regarding information security, data privacy, cyber-attacks and recognizing phishing attempts. This program includes regular communication, interactive trainings, and simulated phishing assessments and is designed to reinforce risk awareness and address the latest and most relevant risks.
Our comprehensive security awareness and training program covers 100% of our employees on protective measures regarding information security, data privacy, cyber-attacks and recognizing phishing attempts. This program includes regular communication, interactive trainings, and simulated phishing assessments and is designed to reinforce risk 24 awareness and address the latest and most relevant risks.
In summary, the Company’s approach to cybersecurity is intended to assess, identify, and manage risks from cybersecurity threats, implement mitigations and controls consistent with the NIST Cybersecurity Framework and support safe, stable and sustainable operations, while protecting our intellectual property, confidential information, privacy data, operations, and infrastructure.
In summary, the Company’s approach to cybersecurity is intended to assess, identify, and manage risks from cybersecurity threats, implement mitigations and controls consistent with the NIST Cybersecurity Framework and zero-trust approach, and support safe, stable and sustainable operations, while protecting our intellectual property, confidential information, privacy data, operations, and infrastructure.
We track the effectiveness of our cybersecurity program using key performance and risk metrics through daily surveillance with dashboard updates provided by the CISO to the General Counsel and the CIO supplemented by regular updates to the senior leadership team, which includes the Chief Executive Officer and the Chief Financial Officer.
We track the effectiveness of our cybersecurity program using key performance and risk metrics through daily surveillance with dashboard updates provided by the CISO to the General Counsel and the CDIO supplemented by regular updates to the senior leadership team, which includes the Chief Executive Officer and the Chief Financial Officer.
Our cybersecurity program is designed to protect information technology networks and assets using the latest technologies that leverage artificial intelligence, machine learning and automation. Our security architecture uses a “defense-in-depth approach,” with controls implemented at user, email, endpoint, cloud, access, and network levels. In addition, training our employees is a critical element of our cybersecurity program.
Our cybersecurity program is designed to protect information technology networks and assets using the zero-trust principles, latest technologies that leverage artificial intelligence, machine learning and automation. Our security architecture uses a “defense-in-depth approach,” with controls implemented at user, email, endpoint, cloud, access, and network levels. In addition, training our employees is a critical element of our cybersecurity program.
A cybersecurity team, led by the General Counsel, the Chief Information Officer (“CIO”) and the Chief Information Security Officer (“CISO”), is responsible for the management, implementation and operation of the cybersecurity program, alongside qualified internal and external security and IT subject matter experts.
A cybersecurity team, led by the General Counsel, the Chief Digital and Information Officer (“CDIO”) and the Chief Information Security Officer (“CISO”), is responsible for the management, implementation and operation of the cybersecurity program, alongside qualified internal and external security and IT subject matter experts.
Escalations of potential incidents or notable risks are escalated by the cybersecurity team and the CISO to the General Counsel and the CIO. If appropriate, the status of such potential incidents or notable risks will be further escalated to the Chief Executive Officer and the Chief Financial Officer.
Escalations of potential incidents or notable risks are escalated by the cybersecurity team and the CISO to the General Counsel and the CDIO. If appropriate, the status of such potential incidents or notable risks will be further escalated to the Chief Executive Officer, the Chief Financial Officer and the Board.
AdvanSix’s cybersecurity program is based on the National Institute of Standards and Technology (NIST) Cybersecurity Framework and consists of technical, administrative and operational controls working together as an integrated solution.
AdvanSix’s cybersecurity program is based on the National Institute of Standards and Technology (NIST) Cybersecurity Framework and zero-trust principles, and consists of technical, administrative and operational controls working together as an integrated solution.
Our CISO leads the Company’s cybersecurity and IT infrastructure organization and brings over 19 years of experience in the areas of technology governance, risk and compliance management, information security and cybersecurity, risk assessments, secure-Software Development Life Cycle (SDLC), security architecting, cloud security design and operations, threat and vulnerability management, Security Information and Event Management (SIEM)/Security Operation Center (SOC), and incident response management.
Our CISO leads the Company’s core enterprise services team, including cybersecurity, and brings over 20 years of experience in the areas of technology governance, risk and compliance management, information security and cybersecurity, risk assessments, secure-Software Development Life Cycle (SDLC), security architecting, cloud security design and operations, threat and vulnerability management, Security Information and Event Management (SIEM)/Security Operation Center (SOC), and incident response management.
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Our CIO leads the Company’s information technology organization and brings over 25 years of experience to the role. She joined AdvanSix as Senior Director, Information Technology in September 2016, and prior to that time, spent 17 years with Honeywell, where she held IT positions of increasing responsibility in the Transportation Systems business and Corporate functions.
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Our CDIO leads the Company’s digital transformation and technology team and brings 20 years of experience to the role. He joined AdvanSix as Vice President and CDIO in August 2025, and prior to that time, he held various leadership positions in the energy and manufacturing sector, including GE, Baker Hughes, TechnipFMC and Civitas Resources.
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Before joining Honeywell, our CIO held several roles at Electronic Data Systems (EDS), including system design and development, configuration management and database administration. She earned a Bachelor’s Degree in Psychology and an MBA, in Supply Chain and Business Information Systems, from Michigan State University.
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He earned a Bachelor’s and Master's degree in Computer Science and Engineering and is a graduate of Texas Tech University.
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Our General Counsel brings over 20 years of experience managing and assessing enterprise risks through both his tenure at the Company since 2016, which has included the assessment of risks arising from cybersecurity threats, and his prior experience as outside counsel to publicly traded companies.
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We have implemented robust controls and procedures to ensure trainings are completed in a timely manner and to track our cybersecurity performance metrics. We seek to identify and address cybersecurity threats and risks that can arise from our use of third parties, including those that comprise our information systems, supply chain operations or who have access to certain data.
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We utilize supplier risk management practices, including enhanced due diligence assessments, that seek to identify cybersecurity risks associated with our use of third-party providers and the scope and nature of their work with us. These risks are assessed and prioritized based on, among other things, supplier assessments, threat intelligence, and industry practices.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeThe EPA and the Company entered into an Administrative Compliance Order on Consent in February 2023 and a second Administrative Compliance Order on Consent in February 2024 in connection with alleged violations involving the Company’s risk management program at its manufacturing facility in Hopewell, Virginia.
Biggest changeAlthough the outcome of the matter cannot be predicted with certainty, we do not believe that it will have a material adverse effect on our consolidated financial position, results of operations or operating cash flows. 25 The EPA and the Company entered into an Administrative Compliance Order on Consent in February 2023 and a second Administrative Compliance Order on Consent in February 2024 in connection with alleged violations involving the Company’s risk management program at its manufacturing facility in Hopewell, Virginia.
Additionally, the Virginia Department of Environmental Quality ("VA DEQ") has initiated discussions regarding certain alleged violations associated with air emissions and water discharges at the Company’s Hopewell facility. The facility is currently assessing and discussing the allegations with the VA DEQ.
Additionally, the Virginia Department of Environmental Quality ("VA DEQ") initiated discussions with the Company regarding certain alleged violations associated with air emissions and water discharges at the Company’s Hopewell facility.
Although the outcome of the matter cannot be predicted with certainty, we do not believe that it will have a material adverse effect on our consolidated financial position, results of operations or operating cash flows. Item 4. Mine Safety Disclosures Not applicable. 26 PART II.
The facility is continuing to assess and discuss the allegations associated with air emissions with the VA DEQ. Although the outcome of the matter cannot be predicted with certainty, we do not believe that it will have a material adverse effect on our consolidated financial position, results of operations or operating cash flows. Item 4.
Removed
The Company has discussed this matter with the EPA and negotiations to resolve it are ongoing. Although the outcome of the matter cannot be predicted with certainty, we do not believe that it will have a material adverse effect on our consolidated financial position, results of operations or operating cash flows.
Added
The Company has discussed this matter with the EPA and negotiations to resolve it are ongoing.
Added
The Company entered into an Order by Consent with the VA DEQ in September 2025 in connection with the alleged water discharge violations of the State Water Control Law at the Company’s facility in Hopewell, Virginia, which provided for a civil charge of $55,841.
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Mine Safety Disclosures Not applicable. 26 PART II.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeDuring the period January 1, 2025 through January 31, 2025, 6,269 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 repurchased under the currently authorized repurchase program.
Biggest changeDuring the period January 1, 2026 through January 30, 2026, no additional shares were repurchased for tax withholding obligations or under the currently authorized repurchase program. Dividends The Company commenced the declaration of dividends on September 28, 2021 and has declared and paid dividends on a quarterly basis.
The repurchase program has no expiration date and may be modified, suspended or discontinued at any time. The below table sets forth the repurchases of Company common stock, by month, for the quarter ended December 31, 2024. During the quarter ended December 31, 2024, no additional shares were repurchased for tax withholding obligations or under the currently authorized repurchase program.
The repurchase program has no expiration date and may be modified, suspended or discontinued at any time. The below table sets forth the repurchases of Company common stock, by month, for the quarter ended December 31, 2025. During the quarter ended December 31, 2025, no additional shares were repurchased for tax withholding obligations or under the currently authorized repurchase program.
The changes for the periods shown in the graph assume that $100 had been invested in AdvanSix stock and each index on December 31, 2019, and that all dividends, if any, were reinvested. The share price performance in the graph is not necessarily indicative of future price performance.
The changes for the periods shown in the graph assume that $100 had been invested in AdvanSix stock and each index on December 31, 2020, and that all dividends, if any, were reinvested. The share price performance in the graph is not necessarily indicative of future price performance.
Dividends paid during 2024 and the dividend announced on the date of this filing are as follows: 27 Date of Announcement Date of Record Date Payable Dividend per Share Total Approximate Dividend Amount ($M) 2/21/2025 3/10/2025 3/24/2025 $0.16 $4.3 11/1/2024 11/12/2024 11/26/2024 $0.16 $4.3 8/2/2024 8/13/2024 8/27/2024 $0.16 $4.3 5/3/2024 5/14/2024 5/28/2024 $0.16 $4.3 2/16/2024 3/4/2024 3/18/2024 $0.16 $4.3 The timing, declaration, amount and payment of future dividends to stockholders, if any, will be within the discretion of our Board.
Dividends paid during 2025 and the dividend announced on the date of this filing are as follows: Date of Announcement Date of Record Date Payable Dividend per Share Total Approximate Dividend Amount ($M) 2/20/2026 3/9/2026 3/23/2026 $0.16 $4.3 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 5/2/2025 5/13/2025 5/27/2025 $0.16 $4.3 2/21/2025 3/10/2025 3/24/2025 $0.16 $4.3 27 The timing, declaration, amount and payment of future dividends to stockholders, if any, will be within the discretion of our Board.
The Company paid dividends of approximately $17.1 million, $16.7 million and $15.1 million for the years ended December 31, 2024, 2023 and 2022, respectively.
The Company paid dividends of approximately $17.2 million, $17.1 million and $16.7 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is traded on the New York Stock Exchange under the symbol “ASIX.” On January 31, 2025, there were 15,738 holders of record of our common stock and the closing price of our common stock on the New York Stock Exchange was $31.28 per share.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is traded on the New York Stock Exchange under the symbol “ASIX.” On January 30, 2026, there were 14,309 holders of record of our common stock and the closing price of our common stock on the New York Stock Exchange was $15.84 per share.
Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plan Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan October 2024 — $ — — $ 61,957,898 November 2024 — — — 61,957,898 December 2024 — — — $ 61,957,898 Total — $ — — As of December 31, 2024, the Company had repurchased a total of 6,252,129 shares of common stock, including 1,006,673 shares withheld to cover tax withholding obligations in connection with the vesting of equity awards, for an aggregate of $192.4 million at a weighted average market price of $30.78 per share.
Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plan Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan October 2025 — $ — — $ 61,957,898 November 2025 — — — 61,957,898 December 2025 — — — $ 61,957,898 Total — $ — — As of December 31, 2025, the Company had repurchased a total of 6,313,789 shares of common stock, including 1,068,333 shares withheld to cover tax withholding obligations in connection with the vesting of equity awards, for an aggregate of $194.1 million at a weighted-average market price of $30.74 per share.
As of January 31, 2025, 26,744,101 shares of our common stock and 0 shares of our preferred stock were outstanding. On May 4, 2018, the Company announced that the Board of Directors (the "Board") authorized a share repurchase program of up to $75 million of the Company’s common stock.
As of January 30, 2026, 26,872,912 shares of our common stock and 0 shares of our preferred stock were outstanding. On May 4, 2018, the Company announced that the Board authorized a share repurchase program of up to $75 million of the Company’s common stock.
COMPARISON OF CUMULATIVE TOTAL RETURN December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 AdvanSix Inc. 100 100 237 193 155 151 S&P Small Cap 600 100 111 141 118 137 149 S&P Small Cap 600 Materials 100 123 145 136 164 165 28 Item 6. [Reserved]
COMPARISON OF CUMULATIVE TOTAL RETURN December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025 AdvanSix Inc. 100 237 193 155 151 95 S&P Small Cap 600 100 127 106 123 134 142 S&P Small Cap 600 Materials 100 118 111 133 135 154 Item 6. [Reserved]
Dividends The Company commenced the declaration of dividends on September 28, 2021 and has declared and paid dividends on a quarterly basis. 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.
The Company increased its quarterly dividend by 10% ($0.145 to $0.160) during the third quarter of 2023.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

79 edited+24 added−30 removed51 unchanged
Biggest changeCash Flow Summary for the Years Ended December 31, 2024, 2023 and 2022 Our cash flows from operating, investing and financing activities for the years ended December 31, 2024, 2023 and 2022, as reflected in the audited Consolidated Financial Statements included in this Form 10-K, are summarized as follows: Years Ended December 31, 2024 2023 2022 (Dollars in thousands) Cash provided by (used for): Operating activities $ 135,413 $ 117,550 $ 273,601 Investing activities (142,902) (110,897) (189,273) Financing activities (2,715) (7,870) (68,443) Net change in cash and cash equivalents $ (10,204) $ (1,217) $ 15,885 37 2024 compared with 2023 Net cash provided by operating activities increased by $17.9 million for the year ended December 31, 2024 versus the prior year due primarily to (i) a $23.8 million favorable impact from working capital (comprised of Accounts and other receivables, Inventories, Accounts payable and Deferred income and customer advances) year-over-year, with a $9.1 million favorable cash impact for the year ended December 31, 2024 compared to a $14.7 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 from net a 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.
Biggest changeCash Flow Summary for the Years Ended December 31, 2025, 2024 and 2023 Our cash flows from operating, investing and financing activities for the years ended December 31, 2025, 2024 and 2023, as reflected in the audited Consolidated Financial Statements included in this Form 10-K, are summarized as follows: Years Ended December 31, 2025 2024 2023 (Dollars in thousands) Cash provided by (used for): Operating activities $ 122,863 $ 135,413 $ 117,550 Investing activities (122,614) (142,902) (110,897) Financing activities (47) (2,715) (7,870) Net change in cash and cash equivalents $ 202 $ (10,204) $ (1,217) 2025 compared with 2024 Net cash provided by operating activities decreased by $12.5 million for the year ended December 31, 2025 versus the prior year due primarily to a $11.7 million unfavorable 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 and a $5.0 million unfavorable cash impact from Other assets and liabilities driven primarily by a change in our pension versus the prior year.
("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 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") 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.
Amines portfolio as well as our oximes-based EZ-Blox™ anti-skinning agent used in paints and Nadone® cyclohexanone, which is a solvent used in various high-value applications. 29 We seek to run our production facilities on a nearly continuous basis for maximum efficiency as several of our intermediate products are key feedstock materials for other products in our integrated manufacturing chain.
Amines portfolio as well as our oximes-based EZ-Blox™ anti-skinning agent used in paints and Nadone® cyclohexanone, which is a solvent used in various high-value applications. We seek to run our production facilities on a nearly continuous basis for maximum efficiency as several of our intermediate products are key feedstock materials for other products in our integrated manufacturing chain.
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; however, the mitigation of all or part of any such production impact cannot be assured.
We also utilize maintenance excellence and mechanical integrity 29 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; however, the mitigation of all or part of any such production impact cannot be assured.
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.
The Company believes these non-GAAP financial measures provide meaningful supplemental information as they are used by the 32 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.
Differences between actual and expected results or changes in the value of defined benefit obligations and fair value of plan assets, if any, are not recognized in earnings as they occur but rather systematically 39 over subsequent periods when net actuarial gains or losses are in excess of 10% of the greater of the fair value of plan assets or the plan’s projected benefit obligation.
Differences between actual and expected results or changes in the value of defined benefit obligations and fair value of plan assets, if any, are not recognized in earnings as they occur but rather systematically over subsequent periods when net actuarial gains or losses are in excess of 10% of the greater of the fair value of plan assets or the plan’s projected benefit obligation.
Our 34 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 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.
At December 31, 2024, 2023 and 2022, the Company did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K or financing activities with special-purpose entities. The Company has not guaranteed any debt or commitments of other entities or entered into any options on non-financial assets.
At December 31, 2025, 2024 and 2023, the Company did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K or financing activities with special-purpose entities. The Company has not guaranteed any debt or commitments of other entities or entered into any options on non-financial assets.
This amount is related to what has been accrued as probable and reasonably estimable as of December 31, 2024. For information regarding material cash requirements from known contractual obligations with respect to lease obligations, long-term debt principal repayments and purchase obligations please refer to "Note 8. Leases", "Note 9. Long-term Debt and Credit Agreement" and "Note 11.
This amount is related to what has been accrued as probable and reasonably estimable as of December 31, 2025. For information regarding material cash requirements from known contractual obligations with respect to lease obligations, long-term debt principal repayments and purchase obligations please refer to "Note 8. Leases", "Note 9. Long-term Debt and Credit Agreement" and "Note 11.
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.
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, long-term employee benefit obligations, income taxes and environmental matters.
The Board has authorized share repurchase programs to repurchase shares of the Company's common stock as follows: 35 Date of Authorization Authorized Amount (millions) Authorized Amount Remaining as of December 31, 2024 (millions) May 4, 2018 $ 75.0 $ — February 22, 2019 75.0 — February 17, 2023 75.0 62.0 Totals $ 225.0 $ 62.0 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.
The Board has authorized share repurchase programs to repurchase shares of the Company's common stock as follows: Date of Authorization Authorized Amount (millions) Authorized Amount Remaining as of December 31, 2025 (millions) May 4, 2018 $ 75.0 $ — February 22, 2019 75.0 — February 17, 2023 75.0 62.0 Totals $ 225.0 $ 62.0 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.
As of December 31, 2024 and 2023, no liability for unrecognized tax benefits was required to be reported. We do not expect any significant changes in our unrecognized tax benefits in the next year. Use of Estimates – The preparation of the Consolidated Financial Statements in conformity with U.S.
As of December 31, 2025 and 2024, no liability for unrecognized tax benefits was required to be reported. We do not expect any significant changes in our unrecognized tax benefits in the next year. Use of Estimates – The preparation of the Consolidated Financial Statements in conformity with U.S.
We expect that our primary cash requirements for 2025 will be to fund costs associated with ongoing operations, capital expenditures and amounts related to other contractual obligations. See below under “Capital Expenditures” for more information regarding our capital expenditures in 2024, 2023 and 2022 and anticipated capital expenditures for 2025.
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. See below under “Capital Expenditures” for more information regarding our capital expenditures in 2025, 2024 and 2023 and anticipated capital expenditures for 2026.
We adopted the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s consolidated financial statements. ASC 740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns.
We apply the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s consolidated financial statements. ASC 740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns.
Honeywell retained all HSE liabilities related to former business locations or the operation of our former businesses.
Honeywell retained all HSE liabilities related to former business 34 locations or the operation of our former businesses.
This section of this Form 10-K generally discusses our financial condition and results of operations as of and for the years ended December 31, 2024 and 2023 and year-to-year comparisons between 2024 and 2023.
This section of this Form 10-K generally discusses our financial condition and results of operations as of and for the years ended December 31, 2025 and 2024 and year-to-year comparisons between 2025 and 2024.
Interest costs and related penalties related to unrecognized tax benefits are required to be calculated, if applicable. Our policy is to classify tax related interest and penalties, if any, as a component of income tax expense. No interest or penalties related to unrecognized income tax benefits were recorded during the years ended December 31, 2024, 2023 and 2022.
Interest costs and related penalties related to unrecognized tax benefits are required to be calculated, if applicable. Our policy is to classify tax related interest and penalties, if any, as a component of income tax expense. No interest or penalties related to unrecognized income tax benefits were recorded during the years 39 ended December 31, 2025, 2024 and 2023.
Discussions of our financial condition and results of operations as of and for the year ended December 31, 2022 and year-to-year comparisons between 2023 and 2022 that are not included in this Form 10-K can be found under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 16, 2024.
Discussions of our financial condition and results of operations as of and for the year ended December 31, 2023 and year-to-year comparisons between 28 2024 and 2023 that are not included in this Form 10-K can be found under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 21, 2025.
Commitments and Contingencies", respectively, to the Consolidated Financial Statements in Item 8 of this Form 10-K. Interest payments are estimated based on the interest rate applicable as of December 31, 2024 and approximate $10.9 million per year, subject to changes in variable interest rates and additional obligations.
Commitments and Contingencies", respectively, to the Consolidated Financial Statements in Item 8 of this Form 10-K. Interest payments are estimated based on the interest rate applicable as of December 31, 2025 and approximate $10.5 million per year, subject to changes in variable interest rates and additional obligations.
At December 31, 2024, the Company had approximately $20 million of cash on hand with approximately $304 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.
At December 31, 2025, the Company had approximately $20 million of cash on hand with approximately $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.
A 25 basis point increase in the discount rate would result in a decrease of approximately $0.4 million to the net periodic benefit cost for 2025, while a 25 basis point decrease in the discount rate would result in an increase of approximately $0.5 million to the net periodic benefit cost for 2025.
A 25 basis point increase in the discount rate would result in a decrease of approximately $0.5 million to the net periodic benefit cost for 2026, while a 25 basis point decrease in the discount rate would result in an increase of approximately $0.5 million to the net periodic benefit cost for 2026.
Dividends paid during 2024 and the dividend announced on the date of this filing are as follows: Date of Announcement Date of Record Date Payable Dividend per Share Total Approximate Dividend Amount ($M) 2/21/2025 3/10/2025 3/24/2025 $0.16 $4.3 11/1/2024 11/12/2024 11/26/2024 $0.160 $4.3 8/2/2024 8/13/2024 8/27/2024 $0.160 $4.3 5/3/2024 5/14/2024 5/28/2024 $0.160 $4.3 2/16/2024 3/4/2024 3/18/2024 $0.160 $4.3 The timing, declaration, amount and payment of future dividends to stockholders, if any, will be within the discretion of our Board.
Dividends paid during 2025 and the dividend announced on the date of this filing are as follows: Date of Announcement Date of Record Date Payable Dividend per Share Total Approximate Dividend Amount ($M) 2/20/2026 3/9/2026 3/23/2026 $0.16 $4.3 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 5/2/2025 5/13/2025 5/27/2025 $0.16 $4.3 2/21/2025 3/10/2025 3/24/2025 $0.16 $4.3 The timing, declaration, amount and payment of future dividends to stockholders, if any, will be within the discretion of our Board.
Amounts related to contractual obligations are related to principal repayments and interest payments on leases, long-term debt, purchase obligations, estimated environmental compliance costs, and postretirement benefit obligations. We anticipate that our estimated environmental compliance costs will be approximately $1.7 million in aggregate for 2025 through 2029.
Amounts related to contractual obligations are related to principal repayments and interest payments on leases, long-term debt, purchase obligations, estimated environmental compliance costs, and postretirement benefit obligations. We anticipate that our estimated environmental compliance costs will be approximately $1.5 million in aggregate for 2026 through 2030.
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 merger and acquisition costs that are not reflective of ongoing operations. Adjusted EBITDA Margin is equal to Adjusted EBITDA divided by Sales.
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 strategic advisory and professional fees that are not reflective of ongoing operations. Adjusted EBITDA Margin is equal to Adjusted EBITDA divided by Sales.
The Company made cash contributions to the defined contribution plan of $6.8 million and $6.0 million for the years ended December 31, 2024 and 2023, respectively.
The Company made cash contributions to the defined contribution plan of $6.7 million and $6.8 million for the years ended December 31, 2025 and 2024, respectively.
The Company paid dividends of approximately $17.1 million, $16.7 million and $15.1 million for the years ended December 31, 2024, 2023 and 2022, respectively.
The Company paid dividends of approximately $17.2 million, $17.1 million and $16.7 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The resulting impact on the pension benefit obligation would be a decrease of $2.5 million and an increase of $2.6 million, respectively.
The resulting impact on the pension benefit obligation would be a decrease of $2.7 million and an increase of $2.8 million, respectively.
On October 27, 2021, the Company completed a refinancing of the Second Amended and Restated Credit Agreement by entering into a new Credit Agreement (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”).
Credit Agreement On October 27, 2021, the Company entered into a Credit Agreement, 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 senior secured revolving credit facility in an aggregate principal amount of $500 million (the “Revolving Credit Facility”).
Dividends The Company commenced the declaration of dividends on September 28, 2021. 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.
Dividends The Company commenced the declaration of dividends on September 28, 2021. 35 The Company increased its quarterly dividend by 10% ($0.145 to $0.160) during the third quarter of 2023.
GAAP financial measure: Twelve Months Ended December 31, 2024 2023 2022 Numerator Net income $ 44,149 $ 54,623 $ 171,886 Adjusted Net income (non-GAAP) 53,318 59,929 182,261 Denominator Weighted-average number of common shares outstanding - basic 26,828,338 27,302,254 27,969,436 Dilutive effect of equity awards and other stock-based holdings 426,875 705,376 1,061,671 Weighted-average number of common shares outstanding - diluted 27,255,213 28,007,630 29,031,107 EPS - Basic $ 1.65 $ 2.00 $ 6.15 EPS - Diluted $ 1.62 $ 1.95 $ 5.92 Adjusted EPS - Basic (non-GAAP) $ 1.99 $ 2.20 $ 6.52 Adjusted EPS - Diluted (non-GAAP) $ 1.96 $ 2.14 $ 6.28 Liquidity and Capital Resources Liquidity 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.
GAAP financial measure: 33 Twelve Months Ended December 31, 2025 2024 2023 Numerator Net income $ 49,286 $ 44,149 $ 54,623 Adjusted Net income (non-GAAP) 62,173 53,318 59,929 Denominator Weighted-average number of common shares outstanding - basic 26,901,046 26,828,338 27,302,254 Dilutive effect of equity awards and other stock-based holdings 426,403 426,875 705,376 Weighted-average number of common shares outstanding - diluted 27,327,449 27,255,213 28,007,630 EPS - Basic $ 1.83 $ 1.65 $ 2.00 EPS - Diluted $ 1.80 $ 1.62 $ 1.95 Adjusted EPS - Basic (non-GAAP) $ 2.31 $ 1.99 $ 2.20 Adjusted EPS - Diluted (non-GAAP) $ 2.28 $ 1.96 $ 2.14 Liquidity and Capital Resources Liquidity We believe that cash balances and operating cash flows, together with available capacity under our credit agreement, 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 four key product lines are Nylon, Caprolactam, Ammonium Sulfate and Chemical Intermediates. 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.
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.
As of December 31, 2024 and 2023, there were no unrecognized tax benefits recorded by the Company. Although there are no unrecognized income tax benefits, when applicable, the Company’s policy is to report interest expense and penalties related to unrecognized income tax benefits in the income tax provision.
We continue to monitor this guidance as details are made available. As of December 31, 2025 and 2024, there were no unrecognized tax benefits recorded by the Company. Although there are no unrecognized income tax benefits, when applicable, the Company’s policy is to report interest expense and penalties related to unrecognized income tax benefits in the income tax provision.
Net Income 2024 2023 2022 Net income $ 44,149 $ 54,623 $ 171,886 2024 compared with 2023 As a result of the factors described above, net income was $44.1 million in 2024 as compared to $54.6 million in 2023.
Net Income 2025 2024 2023 Net income $ 49,286 $ 44,149 $ 54,623 2025 compared with 2024 As a result of the factors described above, net income was $49.3 million in 2025 as compared to $44.1 million in 2024.
The benefits are accrued over the employees’ service periods. We use actuarial methods and assumptions in the valuation of defined benefit obligations and the determination of net periodic pension income or expense.
We use actuarial methods and assumptions in the valuation of defined benefit obligations and the determination of net periodic pension income or expense.
Sulfate To Accelerate Increased Nutrition) program, and refined execution timing to address critical enterprise risk mitigation. Critical Accounting Policies and Estimates (Dollars in thousands, unless otherwise noted) The Company’s significant accounting policies are more fully described in "Note 2. Summary of Significant Accounting Policies" to the Consolidated Financial Statements included in Item 8 of this Form 10-K.
Critical Accounting Policies and Estimates (Dollars in thousands, unless otherwise noted) The Company’s significant accounting policies are more fully described in "Note 2. Summary of Significant Accounting Policies" to the Consolidated Financial Statements included in Item 8 of this Form 10-K.
Goodwill – The Company had goodwill of $56.2 million at December 31, 2024 and 2023. 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.
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.
Federal statutory rate of 21%. Increases to the effective income tax 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 Company's effective income tax rate for 2022 was higher compared to the U.S.
Increases to the effective income tax 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.
As of December 31, 2024, the Company had repurchased 6,252,129 shares of common stock, including 1,006,673 shares withheld to cover tax withholding obligations in connection with the vesting of equity awards, for an aggregate of $192.4 million at a weighted average market price of $30.78 per share.
As of December 31, 2025, the Company had repurchased 6,313,789 shares of common stock, including 1,068,333 shares withheld to cover tax withholding obligations in connection with the vesting of equity awards, for an aggregate of $194.1 million at a weighted average market price of $30.74 per share.
The following table summarizes ongoing and expansion capital expenditures for the periods indicated. Years Ended December 31, 2024 2023 2022 (Dollars in thousands) Purchases of property, plant and equipment $ 133,722 $ 107,377 $ 89,449 Capital expenditures increased $26.3 million from 2023 to 2024 reflecting planned increased spend on replacement maintenance and enterprise programs.
The following table summarizes ongoing and expansion capital expenditures for the periods indicated. 37 Years Ended December 31, 2025 2024 2023 (Dollars in thousands) Purchases of property, plant and equipment $ 116,445 $ 133,722 $ 107,377 Capital expenditures decreased $17.3 million from 2024 to 2025 reflecting disciplined spend on capital expenditures and enterprise programs.
Had such LIFO inventories been valued at current costs, their carrying values would have been approximately $64.1 million and $95.2 million higher at December 31, 2024 and 2023. Inventories valued at FIFO amounted to $15.9 million and $16.2 million at December 31, 2024 and 2023, respectively.
Inventories valued at LIFO amounted to $225.3 million and $196.5 million at December 31, 2025 and 2024, respectively. Had such LIFO inventories been valued at current costs, their carrying values would have been approximately $80.1 million and $64.1 million higher at December 31, 2025 and 2024.
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. 38 Inventories – Substantially all of the Company's inventories are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method.
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.
We produce ammonium sulfate fertilizer continuously throughout the year as part of our manufacturing process, but quarterly sales fluctuate reflecting both geographical and product sales mix considerations based on the timing and length of the growing seasons in North and South America.
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.
Cash used for investing activities increased by $32.0 million for the year ended December 31, 2024 versus the prior year period due primarily to higher cash payments for capital expenditures of approximately $26.3 million during the current year period primarily reflecting planned increased spend on replacement maintenance and enterprise programs.
Cash used for investing activities decreased by $20.3 million for the year ended December 31, 2025 versus the prior year period due primarily to lower cash payments for capital expenditures of approximately $17.3 million during the current year period primarily reflecting disciplined spend on replacement maintenance while maintaining progress on growth and other enterprise programs.
The Company made no cash contributions to the defined benefit pension plan during the year ended December 31, 2024. Additional contributions may be made in future years sufficient to satisfy pension funding requirements in those periods.
The Company made no cash contributions to the defined benefit pension plan during the year ended December 31, 2025. The Company expects to make pension plan contributions during 2026 sufficient to satisfy pension funding requirements estimated to be approximately $3 million, as well as evaluate contributions in future years sufficient to satisfy pension funding requirements in those periods.
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, we expect our total capital expenditures to be approximately $140 million to $160 million reflecting the planned progression of growth projects including our SUSTAIN (Sustainable U.S.
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 2026, we expect our total capital expenditures to be approximately $75 million to $95 million reflecting a risk-based prioritization of base investments and enterprise programs with continued progression of growth programs including our SUSTAIN program.
Inclusive of 30 the proceeds received in the first quarter of 2025, total aggregate insurance proceeds since the original claim submission are approximately $39 million.
The total aggregate insurance proceeds since the original claim submission are approximately $39 million.
Cash used for financing activities decreased by $5.2 million for the year ended December 31, 2024 versus the prior year due to net borrowings on the credit facility of $25.0 million for the year ended December 31, 2024 compared to net payments of $55.0 million during the prior year.
Cash used for financing activities decreased by $2.7 million for the year ended December 31, 2025 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 of $20.0 million for the year ended December 31, 2025 compared to net borrowings of $25.0 million during the prior year period.
GAAP financial measure: 33 Twelve Months Ended December 31, 2024 2023 2022 Net income $ 44,149 $ 54,623 $ 171,886 Non-cash stock-based compensation 7,854 8,313 10,279 Non-recurring, unusual or extraordinary (income) expense* 1,200 (4,472) — Non-cash amortization from acquisitions 2,126 2,126 1,815 Non-recurring M&A costs — — 277 Income tax benefit relating to reconciling items (2,011) (661) (1,996) Adjusted Net income (loss) (non-GAAP) 53,318 59,929 182,261 Interest expense, net 11,311 7,485 2,781 Income tax expense - Adjusted 3,437 15,261 55,901 Depreciation and amortization - Adjusted 74,050 70,884 67,538 Adjusted EBITDA (non-GAAP) $ 142,116 $ 153,559 $ 308,481 Sales $ 1,517,557 $ 1,533,599 $ 1,945,640 Adjusted EBITDA Margin** (non-GAAP) 9.4% 10.0% 15.9% * 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.
GAAP financial measure: Twelve Months Ended December 31, 2025 2024 2023 Net income $ 49,286 $ 44,149 $ 54,623 Non-cash stock-based compensation 6,821 7,854 8,313 Non-recurring, unusual or extraordinary expense* — 1,200 (4,472) Non-cash amortization from acquisitions 2,127 2,126 2,126 Strategic advisory and professional fees** 7,325 — — Income tax benefit relating to reconciling items (3,386) (2,011) (661) Adjusted Net income (non-GAAP) 62,173 53,318 59,929 Interest expense, net 8,481 11,311 7,485 Income tax expense - Adjusted 8,531 3,437 15,261 Depreciation and amortization - Adjusted 77,613 74,050 70,884 Adjusted EBITDA (non-GAAP) $ 156,798 $ 142,116 $ 153,559 Sales $ 1,522,233 $ 1,517,557 $ 1,533,599 Adjusted EBITDA Margin*** (non-GAAP) 10.3% 9.4% 10.0% * 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, including costs associated with a transaction that the Company is no longer pursuing *** Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Sales The following is a reconciliation between the non-GAAP financial measures of Adjusted Earnings Per Share to its most directly comparable U.S.
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.
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.
The Company had approximately $1 million of letter of credit agreements outstanding under the Revolving Credit Facility at December 31, 2024. There was no amount associated with bilateral letters of credit outside the Revolving Credit Facility.
We expect that Cash provided by operating activities will fund future interest payments on the Company's outstanding indebtedness. The Company had approximately $1 million of letter of credit agreements outstanding under the Revolving Credit Facility at December 31, 2025. There was no amount associated with bilateral letters of credit outside the Revolving Credit Facility.
Interest Expense, Net 2024 2023 2022 Interest Expense, net $ 11,311 $ 7,485 $ 2,781 2024 compared with 2023 31 Interest expense, net, increased in 2024 compared to 2023 by $3.8 million, or approximately 51%, due primarily to higher debt balances.
Interest Expense, Net 2025 2024 2023 Interest Expense, net $ 8,481 $ 11,311 $ 7,485 2025 compared with 2024 Interest expense, net, decreased in 2025 compared to 2024 by $2.8 million, or approximately 25%, primarily due to lower interest rates.
Borrowings under the Revolving Credit Facility are subject to customary borrowing conditions. The Revolving Credit Facility has a scheduled maturity date of October 27, 2026. 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 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.
Our reliable and sustainable supply of quality products emerges from the integrated value chain of our five U.S.-based manufacturing facilities. 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.
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.
Other Non-operating (Income) Expense, Net 2024 2023 2022 Other non-operating (income) expense, net $ 2,027 $ (7,158) $ (1,841) 2024 compared with 2023 Other non-operating income, net, decreased in 2024 compared to 2023 by $9.2 million, or approximately (128)%, due primarily to (i) the absence of 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 termination fee recorded upon the exit from the Oben Holding Group S.A. alliance (approximately $1.2 million).
Other Non-operating (Income) Expense, Net 2025 2024 2023 Other non-operating (income) expense, net $ (2,722) $ 2,027 $ (7,158) 2025 compared with 2024 Other non-operating income, net, increased in 2025 compared to 2024 by $4.7 million due primarily to lower pension and other employee compensation expense and the absence of the prior year 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).
Effective as of October 1, 2024, the Board appointed Siddharth Manjeshwar as Senior Vice President and Chief Financial Officer to succeed Mr. Preston. Anti-Dumping Duty Petition - Acetone 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.
Anti-Dumping Duty Petition - Acetone 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") issued its notice of initiation of its five-year review of the orders.
Transfer of control to the customer occurs through various modes of shipment, including trucks, railcars, and vessels, and follows a variety of commercially acceptable shipping or destination point terms pursuant to the arrangement with the customer. Variable consideration is estimated for future volume rebates and early pay discounts on certain products and product returns.
Transfer of control to the customer occurs through various modes of shipment, including trucks, railcars, and vessels, and generally follows commercially acceptable shipping point terms pursuant to the arrangement with the customer.
Income Tax Expense 2024 2023 2022 Income tax expense $ 1,426 $ 14,600 $ 53,905 Effective income tax rate 3.1 % 21.1 % 23.9 % Generally, the Company's effective income tax rate is increased relative to the U.S. statutory rate of 21% due to state taxes and executive compensation limitations, which are generally offset by research tax credits, excess tax benefits of equity compensation and the foreign derived intangible income deduction.
Income Tax Expense 31 2025 2024 2023 Income tax expense $ 5,145 $ 1,426 $ 14,600 Effective income tax rate 9.5 % 3.1 % 21.1 % The Company's effective income tax rate differs from the U.S. statutory rate of 21% due to state taxes and executive compensation limitations which generally increase the effective income tax rate.
IRC Section 45Q allows taxpayers 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.
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 2024, which the Company was able to rely on for 2018 through 2020.
The Company includes spare and other parts in inventory which are used in support of production or production facilities operations and are valued based on weighted average cost. Inventories valued at LIFO amounted to $196.5 million and $195.6 million at December 31, 2024 and 2023, respectively.
Inventories – Substantially all of the Company's inventories are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method. The Company includes spare and other parts in inventory which are used in support of production or production facilities operations and are valued based on weighted average cost.
We borrowed an incremental net amount of $25 million during 2024 bringing the balance under the Revolving Credit Facility to $195 million, and available credit for use of $304 million as of December 31, 2024. We expect that Cash provided by operating activities will fund future interest payments on the Company's outstanding indebtedness.
We had a borrowed balance of $195 million under the Revolving Credit Facility at December 31, 2024. We borrowed an incremental net amount of $20 million during 2025, bringing the balance under the Revolving Credit Facility to $215 million, and available credit for use of $284 million as of December 31, 2025.
The Company also utilizes the practical expedient in Topic 606 and does not include an adjustment for the effects of a significant financing component given the expected period duration of one year or less. Stock-Based Compensation Plans – The principal awards issued under our stock-based compensation plans, which are described in "Note 14.
The Company also utilizes the practical expedient in Topic 606 and does not include an adjustment for the effects of a significant financing component given the expected period duration of one year or less. Pension Benefits – We have a defined benefit plan covering certain employees primarily in the U.S. The benefits are accrued over the employees’ service periods.
Consolidated Results of Operations for the Years Ended December 31, 2024, 2023 and 2022 (Dollars in thousands ) Sales 2024 2023 2022 Sales $ 1,517,557 $ 1,533,599 $ 1,945,640 % change compared with prior period (1.0) % (21.2) % 15.5 % The change in sales is attributable to the following: 2024 versus 2023 2023 versus 2022 Volume (1.9) % 0.2 % Price 0.9 % (22.0) % Acquisition — % 0.6 % (1.0) % (21.2) % 2024 compared with 2023 Sales decreased in 2024 compared to 2023 by $16.0 million (approximately 1%) due to (i) decreased volume (approximately 2%) primarily driven by lost sales resulting from the operational disruptions at the Frankford and Hopewell manufacturing sites partially offset by net pricing (approximately 1%).
Consolidated Results of Operations for the Years Ended December 31, 2025, 2024 and 2023 (Dollars in thousands ) Sales 2025 2024 2023 Sales $ 1,522,233 $ 1,517,557 $ 1,533,599 % change compared with prior period 0.3 % (1.0) % (21.2) % The change in sales is attributable to the following: 2025 versus 2024 2024 versus 2023 Volume 0.8 % (1.9) % Price (0.5) % 0.9 % 0.3 % (1.0) % 30 2025 compared with 2024 Sales were essentially flat in 2025 compared to 2024 due to increased volume (approximately 1%) primarily driven by higher granular ammonium sulfate sales supported by our SUSTAIN (Sustainable U.S.
Due to the ammonium sulfate fertilizer sales cycle, we occasionally build up higher inventory balances because our production is continuous and not tied to seasonal demand for fertilizers. Sales of most of our other products have generally been subject to minimal, or no, seasonality.
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.
The anti-dumping duties will continue to apply during the pending review. Philadelphia Energy Solutions’ Shut Down The Company previously reported a business impact associated with the June 2019 fire that shut down Philadelphia Energy Solutions’ (“PES”) refinery in Philadelphia, Pennsylvania.
As a result of the Commerce and ITC's determinations, the orders will be extended for another five years. 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.
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.
Significant and adverse changes to any one or more of the above-noted estimates and assumptions could result in an impairment. 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.
The Company has been actively pursuing the 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 result in insurance settlement proceeds of approximately $26 million in the first quarter of 2025.
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 was actively pursuing a business interruption 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.
We also manufacture, market and sell a number of chemical intermediate products that are derived from the manufacturing processes within our integrated supply chain. Most significant is acetone, the price of which is influenced by its own supply and demand dynamics but can also be influenced by the underlying move in propylene input costs.
Most significant is acetone, the price of which is influenced by its own supply and demand dynamics but can also be influenced by the underlying move in propylene input costs. Our differentiated product offerings include high-purity applications and high-value intermediates including our U.S.
During the period from January 1, 2025 through January 31, 2025, 6,269 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 repurchased under the currently authorized repurchase program.
As of December 31, 2025, $62.0 million remained available for repurchase under the currently authorized repurchase program. During the period from January 1, 2026 through January 30, 2026, no additional shares were repurchased for tax withholding obligations or under the currently authorized repurchase program.
Outbound shipping costs incurred by the Company are not included in revenues but are reflected as freight expense in Costs 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.
AdvanSix primarily recognizes revenues when title and control of the product 38 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 Cost of goods sold in the Consolidated Statements of Operations.
Capital expenditures were approximately $134 million in 2024 compared to $107 million in 2023, reflecting planned increased spend on replacement maintenance and enterprise programs. We assumed from Honeywell International Inc.
Capital expenditures were approximately $116 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. We assumed from Honeywell International Inc.
Cost of Goods Sold 2024 2023 2022 Cost of goods sold $ 1,364,621 $ 1,368,511 $ 1,631,161 % change compared with prior period (0.3) % (16.1) % 15.6 % Gross margin % 10.1 % 10.8 % 16.2 % 2024 compared with 2023 Costs of goods sold remained flat in 2024 compared to 2023 due primarily to (i) increased prices of raw materials (approximately 2%) and (ii) increased plant costs (approximately 1%) primarily driven by the operational disruptions at the Frankford, Pennsylvania and Hopewell, Virginia manufacturing sites, mitigated by decreased sales volume (approximately 2%).
Cost of Goods Sold 2025 2024 2023 Cost of goods sold $ 1,357,293 $ 1,364,621 $ 1,368,511 % change compared with prior period (0.5) % (0.3) % (16.1) % Gross margin % 10.8 % 10.1 % 10.8 % 2025 compared with 2024 Cost of goods sold decreased in 2025 by $7.3 million compared to 2024 due primarily to insurance proceeds collected as a result of the PES supplier shutdown (approximately 2%) partially offset by increased raw material costs (approximately 2%) driven by sulfur and natural gas.
Business Overview AdvanSix Inc. is a diversified chemistry company playing a critical role in global supply chains, innovating and delivering essential products for our customers in a wide variety of end markets and applications that touch people’s lives, such as building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives and electronics.
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.
Gross margin percentage decreased by approximately 1% in 2024 compared to 2023 due primarily to the impact of market-based pricing, net of raw material costs and increased plant costs, primarily driven by the operational disruptions at the Frankford, Pennsylvania and Hopewell, Virginia manufacturing sites.
Gross margin percentage increased by approximately 1% in 2025 compared to 2024 due primarily to (i) insurance proceeds collected as a result of the PES supplier shutdown (approximately 2%) and (ii) increased sales volumes as discussed above (approximately 2%), partially offset by the impact of market-based pricing, net of raw material costs (approximately 2%).
The Company's effective income tax rate for 2024 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 generated in the 2018 and 2019 tax periods.
Federal statutory rate of 21% due to Internal Revenue Code (IRC) Section 45Q tax credits of approximately $9.7 million claimed in each of those years for credits generated in tax periods 2018, 2019 and 2020. IRC Section 45Q allows a taxpayer to receive a tax credit for carbon capture and utilization at its facilities.
Selling, General and Administrative Expenses 2024 2023 2022 Selling, general and administrative expense $ 94,023 $ 95,538 $ 87,748 % of sales 6.2 % 6.2 % 4.5 % 2024 compared with 2023 Selling, general and administrative expenses decreased in 2024 compared to 2023 by $1.5 million, or approximately 2%, due primarily to moderated functional support costs and legal spend, partially offset by increased enterprise resource planning system expense.
Selling, General and Administrative Expenses 2025 2024 2023 Selling, general and administrative expense $ 104,750 $ 94,023 $ 95,538 % of sales 6.9 % 6.2 % 6.2 % 2025 compared with 2024 Selling, general and administrative expenses increased in 2025 compared to 2024 by $10.7 million (approximately 11%), due primarily to legal and professional 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 the planned investment to upgrade our enterprise resource planning system which was completed in 2025.
North American ammonium sulfate demand and pricing, particularly for our higher-value granular product, are typically strongest during second quarter fertilizer application and then typically decline seasonally with new season fill in the third quarter. Ammonium sulfate industry prices in the corn belt have declined approximately 10% from the second quarter to the third quarter, on average, since 2016.
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.
We were in compliance with all of our covenants at December 31, 2024 and through the date of the filing of this Annual Report on Form 10-K. We had a borrowed balance of $170 million under the Revolving Credit Facility at December 31, 2023.
We were in compliance with all of our covenants at December 31, 2025 and through the date of the filing of this Annual Report on Form 10-K. 36 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.
These adjustments primarily relate to a reduction in the income tax benefits associated with the research tax credit and the foreign derived intangible income deduction as reported on the Company's 2023 income tax return as compared to amounts recorded in its 2023 Income tax expense. The Company's effective income tax rate for 2023 approximated the U.S.
Research tax credits, excess tax benefits of equity compensation and the foreign derived intangible income deduction recorded in a period generally decrease the effective income tax rate. Additionally, the Company's effective income tax rate for 2024 and 2025 was less than the U.S.
Chesterfield, VA Collective Bargaining Agreement On May 9, 2024, the Company’s Chesterfield bargaining unit, represented by the Teamsters Local 592, ratified a new five-year labor agreement in advance of the prior agreement’s expiration date of May 14, 2024. The ratified labor agreement affected approximately 160 workers at the Company’s manufacturing facility in Chesterfield, Virginia.
For a description of our principal risks, see “Risk Factors" in Item 1A. Recent Developments Frankford, PA Collective Bargaining Agreement On November 12, 2025, the Company’s Frankford bargaining unit, represented by the United Steelworkers Local No. 10-667, ratified a new four-year labor agreement. The ratified labor agreement affected approximately 100 workers at the Company’s manufacturing facility in Frankford, Pennsylvania.
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Our differentiated product offerings include high-purity applications and high-value intermediates including our U.S.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeBased on current borrowing levels at December 31, 2024, a 25-basis point fluctuation in interest rates for the year ended December 31, 2024 would have resulted in an increase or decrease to our interest expense of approximately $0.5 million. See “Note 2.
Biggest changeBased on current borrowing levels at December 31, 2025, a 25-basis point fluctuation in interest rates for the year ended December 31, 2025 would have resulted in an increase or decrease to our interest expense of approximately $0.5 million. See “Note 2.

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