AdvanSix Inc. Q3 FY2024 earnings call

• Completed a responsible care recertification audit meeting American Chemistry Council criteria. - Awarded approximately $12 million grant from USDA for fertilizer production expansion. - Sidd Manjeshwar joined as Senior Vice President and CFO. - Disciplined capital execution continued, with adjusted EBITDA of $53 million and adjusted EBITDA margin of 13.4% in Q3 2024. - SUSTAIN program on track with 70% granular conversion expected by end of 2024, ahead of original target.

Plant Nutrients: In Q3 2024, plant nutrients showed strong performance with higher year-over-year pricing in the fall fill program. Industry Corn Belt Ammonium Sulfate prices were up 16% YOY. Order book sold out through end of 2024. Nylon: Global pricing and spreads recovered sequentially in 2024. North American nylon industry conditions modestly improving. Packaging demand stable, while Engineering Plastics monitored fourth quarter inventory drawdown. Chemical Intermediates: Acetone prices over propylene costs were healthy due to tight global supply, but paints and coatings end market was seasonally weaker in Q4.

• CapEx in 2024 expected in the range of $135 million to $140 million, down from previous guidance of $140 million to $150 million. - 2025 CapEx modestly higher due to refined execution timing, including carryover from 2024 and progression of growth programs. - New pending water permit for Hopewell facility requires multiyear investment for sustainable water stewardship.

• Unfavorable impact of extended outage at Hopewell facility, resulting in approximately $17 million unfavorable impact to pre-tax income, including fixed cost absorption and lost sales. - Need to refresh enterprise-wide actions to capture $10-plus million opportunity through consistent turnaround timing and improved execution.

Q: Could you get more color on fertilizer business performance over summer and Southern Hemisphere demand?

A: Erin Kane stated AS pricing had seasonal decline but higher YOY, strong demand as growers seek to maximize yields; Southern Hemisphere sales of standard grade product expected to be strong in back half.

Q: What strategies will you use to drive accelerated profitable growth?

A: Sidd Manjeshwar mentioned focusing on improving productivity, margins, expanding commercial earnings growth through targeted products and high-return investments like SUSTAIN.

Q: On Caprolactam supply, acetone margins, and Chinese ammonium sulfate in Latin America?

A: Erin Kane said targeting full rates at Hopewell, acetone spreads constructive with tight market due to lower global phenol rates, and Chinese product influences Latin American pricing but strong relationships serve well.