AdvanSix Inc.

Previous wording

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”).

Current wording

On August 14, 2026, the Company completed a refinancing of its existing senior secured revolving credit facility under that certain Credit Agreement, dated as of October 27, 2021 (as amended by Amendment No. 1, dated June 27, 2023, and Amendment No. 2, dated October 23, 2025 (the "Original Credit Agreement"), among the Company, the lenders party thereto and Truist Bank, as administrative agent, by entering into a new Credit Agreement (the "Credit Agreement"), among the Company, the lenders from time to time party thereto and Citizens Bank, N.A., as administrative agent, which provides for a new senior secured revolving credit facility in an aggregate principal amount of $275 million (the "Revolving Credit Facility") and a new senior secured term loan facility in an aggregate principal amount of $150 million (the "Term Facility" and, together with the Revolving Credit Facility, the "Facilities"). See "Note 8. Long-Term Debt and Credit Agreement" to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q for additional information relating to the Credit Agreement.

Previous wording

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. The anti-dumping orders and applicable duties were set to continue for another five-year period if Commerce found that revocation of the orders would likely lead to continuation or recurrence of dumping and if the ITC found that revocation would likely lead to continuation or recurrence of material injury to the U.S. domestic industry. On March 7, 2025, Commerce determined that revocation of the anti-dumping orders would likely lead to continuation of recurrence of dumping. In January 2026, the ITC made affirmative determinations that revocation of the orders would likely lead to continuation or recurrence of material injury. As a result of Commerce and ITC's determinations, the orders were extended for another five years.

Current wording

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. The anti-dumping orders and applicable duties were set to continue for another five-year period if Commerce found that revocation of the orders would likely lead to continuation or recurrence of dumping and if the ITC found that revocation would likely lead to continuation or recurrence of material injury to the U.S. domestic industry. On March 7, 2025, Commerce determined that revocation of the anti-dumping orders would likely lead to continuation or recurrence of dumping. In January 2026, the ITC made affirmative determinations that revocation of the orders would likely lead to continuation or recurrence of material injury. As a result of Commerce and ITC's determinations, the orders were extended for another five years.

Previous wording

Sales increased in the three months ended June 30, 2026 compared to the prior year period by $11.3 million (approximately 3%) due primarily to (i) favorable raw material pass through pricing following a net cost increase in benzene and propylene (inputs to cumene which is a key feedstock to our products) (approximately 13%) and (ii) favorable market-based pricing (approximately 5%) primarily driven by an increase in Plant Nutrients reflecting higher nitrogen pricing amid increased sulfur input costs, partially offset by lower volume (approximately 15%) driven primarily by lower in-season Plant Nutrients sales as a result of reduced grower application of nutrients.

Current wording

Sales increased in the three months ended September 30, 2026 compared to the prior year period by $56.3 million (approximately 15%) due primarily to (i) favorable raw material pass through pricing following a net cost increase in benzene and propylene (inputs to cumene which is a key feedstock to our products) (approximately 10%) and (ii) favorable market-based pricing (approximately 7%) primarily driven by an increase across all product lines and strong commercial execution amid a higher input cost environment, partially offset by lower volume (approximately 2%) driven primarily by lower caprolactam sales.

Previous wording

Sales increased in the six months ended June 30, 2026 compared to the prior year period by $37.7 million (approximately 5%) due primarily to (i) favorable raw material pass through pricing following a net cost increase in benzene and propylene (inputs to cumene which is a key feedstock to our products) (approximately 6%) and (ii) favorable market-based pricing (approximately 4%) primarily driven by an increase in Plant Nutrients reflecting higher nitrogen pricing amid increased sulfur input costs, partially offset by lower volume (approximately 5%) driven primarily by lower in-season Plant Nutrients sales as a result of reduced grower application of nutrients.

Current wording

Sales increased in the nine months ended September 30, 2026 compared to the prior year period by $94.0 million (approximately 8%) due primarily to (i) favorable raw material pass through pricing following a net cost increase in benzene and propylene (inputs to cumene which is a key feedstock to our products) (approximately 7%) and (ii) favorable market-based pricing (approximately 5%) primarily driven by an increase in Plant Nutrients reflecting higher nitrogen pricing amid increased sulfur input costs, partially offset by lower volume (approximately 4%) driven primarily by lower in-season Plant Nutrients sales as a result of reduced grower application of nutrients.

Previous wording

Costs of goods sold increased in the three months ended June 30, 2026 compared to the prior year period by $38.9 million (approximately 11%) due primarily to (i) increased raw material costs (approximately 20%) driven by an increase in the prices of benzene (11%), sulfur (8%), and propylene (3%) and (ii) lower production rates and timing of plant turnaround spend (approximately 3%), partially offset by decreased sales volume (approximately 12%).

Current wording

Costs of goods sold increased in the three months ended September 30, 2026 compared to the prior year period by $70.5 million (approximately 20%) due primarily to (i) increased raw material costs (approximately 18%) driven by an increase in the prices of benzene (9%) and sulfur (9%) and (ii) lower production operating rates and higher plant costs (approximately 4%) partially offset by decreased sales volume (approximately 1%).

Previous wording

Costs of goods sold increased in the six months ended June 30, 2026 compared to the prior year period by $114.9 million (approximately 17%) due to (i) increased raw material costs (approximately 14%) driven by an increase in the prices of sulfur (8%), benzene (5%), and propylene (1%), (ii) increased plant costs (approximately 3%) driven primarily by utility costs and winter storm related expenses and (iii) $26 million of insurance proceeds (approximately 4% in the prior year period which did not recur in the current year period), partially offset by decreased sales volume (approximately 4%).

Current wording

Costs of goods sold increased in the nine months ended September 30, 2026 compared to the prior year period by $185.5 million (approximately 18%) due to (i) increased raw material costs (approximately 16%) driven by an increase in the prices of sulfur (8%), benzene (6%), and propylene (2%) (ii) lower production operating rates and higher plant costs (approximately 4%) driven primarily by utility costs and winter storm related expenses, and (iii) $26 million of insurance proceeds (approximately 2% in the prior year period which did not recur in the current year period) partially offset by decreased sales volume (approximately 3%).

Previous wording

Gross margin percentage decreased in the three months ended June 30, 2026 compared to the prior year period (approximately 7%) due primarily to (i) lower production rates and timing of plant turnaround spend (approximately 3%) and (ii) the impact of pricing, which largely offset raw material cost increases (approximately 2%).

Current wording

Gross margin percentage decreased in the three months ended September 30, 2026 compared to the prior year period (approximately 4%) due primarily to (i) lower production operating rates (approximately 3%) and (ii) the impact of pricing, which largely offset raw material cost increases (approximately 1%).

Previous wording

Gross margin percentage decreased in the six months ended June 30, 2026 compared to the prior year (approximately 10.0%) period due to (i) the impact of pricing, net of raw material costs (approximately 4%), (ii) increased plant costs (approximately 3%) and (iii) absence of insurance proceeds (approximately 3%).

Current wording

Gross margin percentage decreased in the nine months ended September 30, 2026 compared to the prior year (approximately 8%) period due to (i) the impact of pricing, net of raw material costs (approximately 3%), (ii) lower production operating rates (approximately 3%) and (iii) absence of insurance proceeds (approximately 2%).

Previous wording

Selling, general and administrative expenses decreased by $3.4 million and $4.3 million in the three and six months ended June 30, 2026 respectively, compared to the prior year periods due primarily to the completion of the investment to upgrade our enterprise resource planning system in 2025 and the execution of enterprise cost savings initiatives.

Current wording

Selling, general and administrative expenses decreased by $8.2 million and $12.5 million in the three and nine months ended September 30, 2026, respectively, compared to the prior year periods due primarily to the absence of legal and professional fees associated with strategic regulatory matters, the completion of the investment to upgrade our enterprise resource planning system in 2025, lower incentive compensation, and the execution of enterprise cost savings initiatives.

Previous wording

The Company’s provision (benefit) for income taxes in interim periods is computed by applying an estimated annual effective tax rate against Income (loss) before taxes for the period in addition to recording any tax effects of discrete items for the quarter. The Company’s effective tax rate for the three and six months ended June 30, 2026 and 2025 differed from the U.S. federal statutory rate primarily due to state taxes and executive compensation deduction limitations which generally increase the rate, offset by research tax credits that generally decrease the rate. These adjustments have the inverse impact on the effective tax rate in periods with a loss before taxes. Changes in our forecasted earnings and taxable income between the first and second quarter have impacted our effective tax rate for the three and six months ended June 30, 2026. Additionally, discrete tax adjustments recorded in the first and second quarter of 2025 related to Internal Revenue Code (IRC) Section 45Q tax credits of $1.8 million and $7.9 million, respectively, offset slightly by state tax legislation changes, resulted in a net 24.7% and 15.7% decrease in the rate for the three and six months ended June 30, 2025, respectively.

Current wording

The Company’s provision (benefit) for income taxes in interim periods is computed by applying an estimated annual effective tax rate against Income (loss) before taxes for the period in addition to recording any tax effects of discrete items for the quarter. The Company’s effective tax rates for the three and nine months ended September 30, 2026 and 2025 differed from the U.S. federal statutory rate primarily due to state taxes and executive compensation deduction limitations which generally increase the rate, offset by research tax credits that generally decrease the rate. These adjustments have the inverse impact on the effective tax rate in periods with a loss before taxes. Changes in our forecasted earnings and taxable income between the second and third quarter have impacted our effective tax rate for the three and nine months ended September 30, 2026. During the nine months ended September 30, 2025, discrete tax adjustments recorded relating to Internal Revenue Code (IRC) Section 45Q tax credits of $9.7 million and return to provision adjustments related to the filing of the Company's 2024 U.S. federal income tax return of $0.2 million, offset slightly by state tax legislation changes and the vesting of equity compensation, resulted in a net 5% increase and 17% decrease to the effective tax rate for the three and nine months ended September 30, 2025, respectively.

Previous wording

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

Current wording

The Company’s effective tax rate for the nine months ended September 30, 2026 was higher than the prior year period due primarily to discrete tax adjustments related to IRC Section 45Q tax credits recorded in the prior year period that decreased the effective tax rate.

Previous wording

As a result of the factors described above, Net income (loss) was $3.2 million and ($12.3) million for the three and six months ended June 30, 2026, respectively, as compared to $31.4 million and $54.7 million in the corresponding prior year period.

Current wording

As a result of the factors described above, Net income (loss) was ($7.6) million and ($19.9) million for the three and nine months ended September 30, 2026, respectively, as compared to $(2.6) million and $52.1 million in the corresponding prior year periods.

Previous wording

The following tables set forth the non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net income and Adjusted EPS. 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 following tables may also present each of these measures as further adjusted. The Company believes these non-GAAP financial measures provide meaningful supplemental information as they are used by the Company’s management to evaluate the Company’s operating performance, enhance a reader’s understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and performance relative to the Company's competitors, as the non-GAAP measures exclude items that management believes do not reflect the Company’s ongoing operations.

Current wording

The following tables set forth the non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net income and Adjusted EPS. Adjusted EBITDA is defined as Net income before Interest, Income taxes, Depreciation and amortization, Non-cash stock-based compensation, 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 following tables may also present each of these measures as further adjusted. The Company believes these non-GAAP financial measures provide meaningful supplemental information as they are used by the Company’s management to evaluate the Company’s operating performance, enhance a reader’s understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and performance relative to the Company's competitors, as the non-GAAP measures exclude items that management believes do not reflect the Company’s ongoing operations.

Previous wording

We believe that cash balances and operating cash flows, together with available capacity under our credit agreement, as utilized in the second quarter of 2026, will provide adequate funds to support our current short-term operating objectives as well as our longer-term strategic plans, subject to the risks and uncertainties outlined below, in our "Note Regarding Forward-Looking Statements" above, and in the risk factors previously disclosed in Item 1A of Part I of our 2025 Form 10-K. Our principal source of liquidity is our cash flow generated from operating activities, which is expected to provide us with the ability to meet the majority of our short-term funding requirements for the next twelve months and beyond. Our cash flows are affected by capital requirements and production volume, which may be materially impacted by unanticipated events such as material disruptions at our production facilities, the prices of our raw materials, general economic and industry trends and customer demand. The Company applies a proactive and disciplined approach to working capital management to optimize cash flow and to enable capital allocation options in support of the Company’s strategy. We utilize supply chain financing and trade receivables discount arrangements with third-party financial institutions which optimize terms and conditions related to accounts receivable and accounts payable in order to enhance liquidity and enable us to efficiently manage our working capital needs. Although we continue to optimize supply chain financing and trade receivable programs in the ordinary course, our utilization of these arrangements has not had a material impact on our liquidity. In addition, we monitor the third-party depository institutions that hold our cash and cash equivalents. Our emphasis is primarily on the safety of principal and secondarily on maximizing yield on those funds. We diversify our cash and cash equivalents among counterparties to minimize exposure to any one of these entities.

Current wording

Statements" above, and in the risk factors previously disclosed in Item 1A of Part I of our 2025 Form 10-K. Our principal source of liquidity is our cash flow generated from operating activities, which is expected to provide us with the ability to meet the majority of our short-term funding requirements for the next twelve months and beyond. Our cash flows are affected by capital requirements and production volume, which may be materially impacted by unanticipated events such as material disruptions at our production facilities, the prices of our raw materials, general economic and industry trends and customer demand. The Company applies a proactive and disciplined approach to working capital management to optimize cash flow and to enable capital allocation options in support of the Company’s strategy. We utilize supply chain financing and trade receivables discount arrangements with third-party financial institutions in the ordinary course, which optimize terms and conditions related to accounts receivable and accounts payable in order to enhance liquidity and enable us to efficiently manage our working capital needs. In addition, we monitor the third-party depository institutions that hold our cash and cash equivalents. Our emphasis is primarily on the safety of principal and secondarily on maximizing yield on those funds. We diversify our cash and cash equivalents among counterparties to minimize exposure to any one of these entities.

Previous wording

As of the end of the second quarter of 2026, the Company had approximately $7.2 million of cash on hand with approximately $224 million of additional capacity available under the revolving credit facility. The Company’s Consolidated Leverage Ratio financial covenant of its credit facility allows it to net up to $75 million of cash with debt. Capital expenditures are expected to be approximately $75 million to $95 million in 2026 compared to $116 million in 2025, reflecting a risk-based prioritization of base investments and enterprise programs with continued progression of growth programs including our SUSTAIN program.

Current wording

As of the end of the third quarter of 2026, the Company had approximately $22.6 million of cash on hand with approximately $154 million of additional capacity available under the Revolving Credit Facility. Capital expenditures are expected to be approximately $90 million in 2026 compared to $116 million in 2025, reflecting a risk-based prioritization of base investments and enterprise programs with continued progression of growth programs including our SUSTAIN program.

Previous wording

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

Current wording

The Company made cash contributions to the defined benefit pension plan of $1.6 million during the nine months ended September 30, 2026 with no contributions made in the first half of 2026. Additional contributions may be made in future periods sufficient to satisfy pension funding requirements in those periods or on a discretionary basis.

Previous wording

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

Current wording

As of September 30, 2026, the Company has repurchased a total of 6,394,371 shares of common stock life-to-date, including 1,148,915 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $195.5 million at a weighted average market price of $30.58 per share. As of September 30, 2026, approximately $62.0 million remained available for share repurchases under the current authorization approved by the Board on February 17, 2023. The Company has not repurchased any shares under the currently authorized repurchase program since June 2024. During the period October 1, 2026 through October 23, 2026, no additional shares were repurchased under the currently authorized repurchase program and 1,262 were withheld to cover tax withholding obligations in connection with the vesting of equity awards.

Previous wording

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

Current wording

We were in compliance with all of our covenants under the Credit Agreement at September 30, 2026 and are in compliance with all of such covenants through the date of the filing of this Form 10-Q.

Previous wording

We had a borrowed balance of $215 million under the Revolving Credit Facility at December 31, 2025. We borrowed an incremental net amount of $60 million during the six months ended June 30, 2026, bringing the balance under the Revolving Credit Facility to $275 million, and available credit for use of approximately $224 million as of June 30, 2026. We expect that Cash provided by operating activities will fund future interest payments on the Company's outstanding indebtedness.

Current wording

We had a borrowed balance of $215 million under the Original Credit Agreement at December 31, 2025. We borrowed an incremental net amount of $55 million under the Original Credit Agreement and Credit Agreement during the nine months ended September 30, 2026, bringing the balance under the Credit Agreement to $270 million and available credit for use of approximately $154 million as of September 30, 2026. We expect that Cash provided by operating activities will fund future interest payments on the Company's outstanding indebtedness.

Previous wording

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

Current wording

Cash provided by operating activities decreased by $16.5 million for the nine months ended September 30, 2026 versus the prior year period due primarily to (i) a $71.9 million decrease in Net income, (ii) a $23.0 million unfavorable impact from Accrued liabilities, and (iii) an unfavorable impact of $17.6 million from Deferred income taxes. These net unfavorable impacts were partially offset by an $80.0 million favorable cash impact from disciplined working capital performance (comprised of

Previous wording

Cash used for investing activities decreased by $11.3 million for the six months ended June 30, 2026 versus the prior year period due primarily to disciplined spending on replacement maintenance while maintaining progress on growth and other enterprise programs.

Current wording

Cash used for investing activities decreased by $19.5 million for the nine months ended September 30, 2026 versus the prior year period due primarily to disciplined spending on replacement maintenance while maintaining progress on growth and other enterprise programs.

Previous wording

For 2026, we expect our total capital expenditures to be approximately $75 million to $95 million as discussed in the Liquidity section above.

Current wording

For 2026, we expect our total capital expenditures to be approximately $90 million as discussed in the Liquidity section above.