AdvanSix Inc (ASIX) 2025 Q2 法說會逐字稿

Good morning, and welcome to the AdvanSix second-quarter 2025 earnings conference call. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加 AdvanSix 2025 年第二季財報電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Adam Kressel, Vice President of Investor Relations and Treasurer. Please go ahead.

現在，我想將會議交給投資者關係副總裁兼財務主管 Adam Kressel。請繼續。

Thank you, Wyatt. Good morning, and welcome to AdvanSix's second-quarter 2025 earnings conference call. With me here today are President and CEO, Erin Kane; and Interim CFO, Chris Gramm. This call and webcast, including any non-GAAP reconciliations, are available on our website at investors.advansix.com.

謝謝你，懷亞特。早安，歡迎參加 AdvanSix 2025 年第二季財報電話會議。今天和我一起在場的還有總裁兼執行長 Erin Kane 和臨時財務長 Chris Gramm。本次電話會議和網路廣播（包括任何非 GAAP 對帳內容）可在我們的網站 investors.advansix.com 上查閱。

Note that elements of this presentation contain forward-looking statements that are based on our best view of the world and of our business as we see it today. Those elements can change, and the actual results could differ materially from those projected and we ask that you consider them in that light. We refer you to the forward-looking statements included in our press release and earnings presentation. In addition, we identify the principal risks and uncertainties that affect our performance in our SEC filings, including our annual report on Form 10-K, as further updated in subsequent filings with the SEC.

請注意，本簡報中的元素包含前瞻性陳述，這些陳述基於我們今天對世界和業務的最佳看法。這些因素可能會發生變化，實際結果可能與預測結果有重大差異，我們希望您從這個角度考慮這些問題。請您參閱我們的新聞稿和收益報告中的前瞻性陳述。此外，我們在向美國證券交易委員會提交的文件中確定了影響我們業績的主要風險和不確定性，包括我們 10-K 表格年度報告，並在隨後向美國證券交易委員會提交的文件中進一步更新。

This morning, we will review our financial results for the second-quarter 2025 and share our outlook for our key product lines and end markets. Finally, we'll leave time for your questions at the end.

今天上午，我們將回顧 2025 年第二季的財務業績，並分享我們對主要產品線和終端市場的展望。最後，我們會在最後留出時間回答大家的提問。

So with that, I'll turn the call over to AdvanSix' President and CEO, Erin Kane.

因此，我將把電話轉給 AdvanSix 總裁兼執行長 Erin Kane。

Thanks, Adam, and good morning, everyone. We appreciate you joining us here today for our quarterly call. As you saw in our press release, AdvanSix delivered resilient earnings with strong sequential improvement in the second quarter while continuing to execute key growth in enterprise initiatives in support of long-term sustainable performance. Our second-quarter results reflect our collective organization's execution and the advantages of our business model and diverse product portfolio amid an evolving macro environment.

謝謝，亞當，大家早安。感謝您今天參加我們的季度電話會議。正如您在我們的新聞稿中看到的，AdvanSix 在第二季度實現了強勁的連續增長，盈利強勁，同時繼續執行企業計劃的關鍵增長，以支持長期可持續的業績。我們第二季的業績反映了我們組織的集體執行力以及在不斷變化的宏觀環境下我們的商業模式和多樣化產品組合的優勢。

While we faced an earlier end to the spring domestic application season, earnings and cash flow improved sequentially from the first quarter, driven by strong volume and pricing performance from our plant nutrients business.

雖然春季國內應用季提前結束，但受植物營養業務強勁的銷售和定價表現的推動，獲利和現金流較第一季較上季有所改善。

End market demand across the rest of our portfolio remains softer overall, and we continue to navigate margin impact driven by higher raw material prices, mainly natural gas and sulfur. Supported by our healthy balance sheet, we have supplemented our commercial and operational performance with investment in growth in enterprise initiatives to sustainably improve through-cycle profitability. We continue to focus on making the necessary investments at the right time to support our long-term performance.

我們投資組合中其餘產品的終端市場需求總體上仍然疲軟，我們繼續應對原材料價格上漲（主要是天然氣和硫磺）對利潤率的影響。在穩健的資產負債表支撐下，我們透過投資企業成長計畫來補充商業和營運業績，從而持續提升全週期獲利能力。我們將繼續專注於在適當的時機進行必要的投資，以支持我們的長期表現。

Our planned investment to upgrade our enterprise resource planning system is nearing completion, which will help streamline key processes across the organization while enhancing management tools and data analytics. We've also reduced our CapEx forecast for this year to a range of $135 million to $145 million, reflecting the planned progression of our sustained growth program, refined execution timing to address critical enterprise risk mitigation, intention prioritization in our base CapEx.

我們計劃升級企業資源規劃系統的投資即將完成，這將有助於簡化整個組織的關鍵流程，同時增強管理工具和資料分析能力。我們也將今年的資本支出預測下調至 1.35 億美元至 1.45 億美元之間，這反映了我們持續成長計畫的計畫進展、優化的執行時間以解決關鍵的企業風險緩解問題以及我們基礎資本支出中意圖的優先事項。

As you may have seen, we released our 2024 sustainability report, which highlights the terrific work happening around the organization, integrated with our overall strategic priorities. More recently, we were awarded a 2025 gold rating for corporate social responsibility from EcoVadis, with our score placing us in the top 3% of all companies assessed. We also continue to progress on 45Q carbon capture tax credits with another $8 million claimed in the second quarter, bringing our total to nearly $20 million for the 2018 through 2020 tax periods. This continues to represent a significant value driver for our company and stakeholders.

正如您可能已經看到的，我們發布了 2024 年永續發展報告，其中重點介紹了組織內部進行的出色工作，並與我們的整體策略重點相結合。最近，我們獲得了 EcoVadis 頒發的 2025 年度企業社會責任金獎，得分在所有接受評估的公司中排名前 3%。我們也繼續推進 45Q 碳捕獲稅收抵免，第二季又申請了 800 萬美元，使我們 2018 年至 2020 年納稅期的總額達到近 2000 萬美元。這繼續成為我們公司和利害關係人的重要價值驅動力。

As we move through the remainder of 2025 and navigate a dynamic environment, we are well positioned to support our strategic growth priorities as a US-based manufacturer aligned to domestic supply chains in energy markets as well as a diverse set of end market applications.

隨著我們進入 2025 年剩餘時間並應對動態環境，作為美國製造商，我們已做好準備，支持我們的戰略成長重點，與能源市場的國內供應鏈以及多樣化的終端市場應用保持一致。

Lastly, we're happy to have Chris Gramm on the call with us here today. Effective July 9, Chris stepped in to serve as our interim CFO until a permanent successor is named. He has tremendous leadership and financial experience serving as our controller since 2016 and more recently as the Vice President of Strategic Financial Planning and Analysis. Prior to joining AdvanSix, Chris at nearly 20 years of Honeywell in various finance leadership positions including as Controller of the Aerospace division and earlier in his tenure as CFO of the Resins & Chemicals business that ultimately became AdvanSix.

最後，我們很高興今天能邀請到克里斯·格拉姆 (Chris Gramm) 來參加我們的電話會議。自 7 月 9 日起，Chris 接任我們的臨時財務官，直到確定正式繼任者為止。他擁有豐富的領導能力和財務經驗，自 2016 年起擔任我們的財務總監，最近又擔任策略財務規劃和分析副總裁。在加入 AdvanSix 之前，Chris 在霍尼韋爾工作了近 20 年，擔任過各種財務領導職務，包括航空航天部門的財務總監，以及早期擔任樹脂和化學品業務（最終成為 AdvanSix）的首席財務官。

Let me now turn the call over to Chris to walk through the financials.

現在，讓我將電話轉給克里斯，讓他介紹一下財務狀況。

Thanks, Erin, and good morning, everyone. I'm excited to be joining my first earnings call and look forward to engaging with the investor community. Let's take a look at slide 4, where I'll highlight the key items of the second-quarter 2025 financials. Sales of $410 million in the quarter decreased approximately 10% versus the prior year. Sales volume was approximately 8% of that change primarily driven by softer demand in key nylon end markets, including engineered plastics applications serving the auto sector.

謝謝，艾琳，大家早安。我很高興參加我的第一次財報電話會議，並期待與投資者社群互動。讓我們看一下投影片 4，我將在其中重點介紹 2025 年第二季財務的關鍵項目。本季銷售額為 4.1 億美元，較上年下降約 10%。銷售量約佔該變化的 8%，主要原因是主要尼龍終端市場（包括服務汽車行業的工程塑膠應用）的需求疲軟。

Raw material pass-through pricing was down 5% following a cost decrease in benzene, which is a major input to cumene, our largest raw material and key feedstock to our products. Market-based pricing was favorable by 3% driven by continued strength in plant nutrients, reflecting favorable North American ammonium sulfate supply and demand conditions. Adjusted EBITDA was $56 million, and adjusted EBITDA margin was 13.6%.

由於苯成本下降，原料轉嫁價格下降了 5%，苯是異丙苯的主要原料，而異丙苯是我們最大的原料和產品的關鍵原料。受植物營養持續走強的推動，市場定價上漲了 3%，反映出北美硫酸銨供需狀況良好。調整後的 EBITDA 為 5,600 萬美元，調整後的 EBITDA 利潤率為 13.6%。

I'll walk through the year-over-year variations on the next slide. Adjusted earnings per share was $1.24 and our effective tax rate was 0.9% compared to 25.2% in the second quarter of 2024, primarily driven by $8 million of 45Q tax credits claimed for the 2020 period. Cash flow from operations of $21 million decreased $29 million versus the prior year, primarily due to lower net income, 45Q tax credit cash timing and the unwinding of prior year ammonium sulfate prebuy cash advances.

我將在下一張投影片中介紹逐年的變化。調整後每股收益為 1.24 美元，有效稅率為 0.9%，而 2024 年第二季為 25.2%，主要得益於 2020 年期間申請的 800 萬美元 45Q 稅收抵免。經營活動現金流為 2,100 萬美元，較上年減少 2,900 萬美元，主要原因是淨收入減少、45Q 稅收抵免現金時機以及上年硫酸銨預購現金墊款的解除。

Capital expenditures of $28 million in the quarter decreased $5 million versus the prior year. This yielded a negative $7 million of free cash flow in the quarter. We expect free cash flow generation to strengthen in the second half and are targeting a positive full-year free cash flow.

本季資本支出為 2,800 萬美元，較上年同期減少 500 萬美元。這導致本季自由現金流為負 700 萬美元。我們預計下半年自由現金流產生將會增強，並計劃實現全年自由現金流為正。

Now let's turn to slide 5. Here, we highlight the key drivers of our second-quarter adjusted EBITDA performance compared with the prior period. Pricing over raw materials was unfavorable by $10 million. Tracking our key variable margin drivers, we saw a year-over-year contraction in acetone margins over rising propylene costs in the second quarter as we anticipated. In plant nutrients, while it was a strong domestic planting season supported by higher ammonium sulfate pricing and revenue year over year, margins were impacted by higher raw material costs, both in sulfur and natural gas.

現在我們翻到投影片 5。在此，我們重點介紹與上一季相比，第二季調整後 EBITDA 表現的關鍵驅動因素。原物料定價不利 1000 萬美元。追蹤我們的主要可變利潤驅動因素，我們發現第二季度丙酮利潤率因丙烯成本上升而同比下降，正如我們預期的那樣。在植物營養方面，雖然受硫酸銨價格和收入較去年同期上漲的支撐，國內種植業今年表現強勁，但利潤率受到硫磺和天然氣等原料成本上漲的影響。

Lastly, we saw a modest margin increase in our nylon and caprolactam portfolio over declining benzene costs. Sales volume was unfavorable about $5 million year over year, primarily reflecting a reduction in caprolactam and nylon volume. Plant costs and other items were a $7 million headwind, with increased utility costs in part due to higher natural gas prices and the timing of planned turnarounds year over year.

最後，隨著苯成本的下降，我們的尼龍和己內醯胺產品組合的利潤率略有增加。銷售額較去年同期下降約 500 萬美元，主要反映己內醯胺和尼龍銷量的減少。工廠成本和其他項目造成了 700 萬美元的不利影響，公用事業成本的增加部分是由於天然氣價格上漲以及計劃週轉時間逐年增加。

Let's turn to slide 6. Through the enactment of the One Big Beautiful Bill Act, we anticipate taking advantage of notable tax benefits, including a meaningful reduction in our cash tax rate, driven by 100% bonus depreciation and changes to research and development expensing. We also note that the Act continues to include 45Q tax credits that we discussed during our February call, which will enhance both earnings and cash flow for our business. As a reminder, 45Q credit for carbon capture and utilization became eligible as of February 2018 when the tax code changed and applies over a 12-year period.

讓我們翻到第 6 張投影片。透過頒布《一項偉大的美麗法案》，我們預計將享受到顯著的稅收優惠，包括現金稅率的大幅降低，這得益於 100% 的獎金折舊和研發費用的變化。我們還注意到，該法案繼續包括我們在二月電話會議上討論過的 45Q 稅收抵免，這將提高我們業務的收益和現金流。提醒一下，碳捕獲和利用的 45Q 信用額度自 2018 年 2 月稅法變更後開始生效，有效期為 12 年。

Our approved 2018 life cycle assessment, or LCA, of greenhouse gas admissions allow a federal tax credit based on the amount of CO2 captured and utilized that would otherwise be emitted into the atmosphere. Approved assessments are valid for three years of claim deductions, and we plan to file our 2021 LCA soon. These credits reduce our effective tax rate and are calculated based on the amount of CO2 captured and utilized each year.

我們批准的 2018 年溫室氣體排放生命週期評估 (LCA) 允許根據捕獲和利用的二氧化碳量（否則這些二氧化碳將排放到大氣中）獲得聯邦稅收抵免。批准的評估有效期為三年的索賠扣除，我們計劃很快提交 2021 年 LCA。這些抵免額降低了我們的有效稅率，並且是根據每年捕獲和利用的二氧化碳量計算的。

To date, based upon our approved 2018 LCA, we've claimed approximately $20 million in credits for the 2018 through 2020 tax years and continue to pursue these credits for subsequent periods. The 45Q credits represent a significant value driver for our business through an EPS benefit and lower tax obligations, improving our free cash flow. We anticipate an estimated incremental $80 million to $100 million of potential opportunity remaining ahead of us for future periods.

到目前為止，根據我們批准的 2018 年 LCA，我們已為 2018 年至 2020 年的納稅年度申請了約 2000 萬美元的抵免，並將繼續在後續期間申請這些抵免。45Q 積分透過每股收益和較低的稅務義務為我們的業務提供了重要的價值驅動力，改善了我們的自由現金流。我們預計未來一段時間內我們仍將擁有約 8,000 萬至 1 億美元的潛在機會。

Now let me turn the call back to Erin.

現在讓我把電話轉回艾琳。

Thanks, Chris. I'm now on slide 7 to discuss each of our key product lines, starting with our plant nutrient business. While we did have an earlier end to the season, favorable ammonium sulfate supply and demand conditions in North America supported higher pricing and increased sales volume for the total fertilizer year.

謝謝，克里斯。我現在在第 7 張幻燈片上討論我們的每個主要產品線，從我們的植物營養業務開始。雖然本季確實提前結束，但北美有利的硫酸銨供需條件支持了整個肥料年度價格上漲和銷售增加。

As a reminder, the North American fertilizer year typically runs from July when the value chain begins restocking through June of the following year when application is largely complete. As a result, it's important to view performance through this lens versus a calendar year.

提醒一下，北美肥料年通常從價值鏈開始補充庫存的 7 月開始，到施用基本完成的隔年 6 月結束。因此，透過這個角度而不是日曆年來查看績效非常重要。

In the past fertilizer year, we delivered a 7% increase in domestic granular sales volume which was enhanced by the progression of our sustained growth program. We continue to anticipate production capability by the end of 2025 to reach a milestone of 72% granular conversion up from roughly 70% at the end of 2024.

在過去的肥料年度，我們的國內顆粒銷售量增加了 7%，這得益於我們持續成長計畫的推進。我們繼續預計，到 2025 年底，生產能力將達到 72% 的顆粒轉化率，高於 2024 年底的約 70%。

Moving into the new season fill, prices reset each year. We have entered the third quarter of 2025 at higher ammonium sulfate pricing levels compared to last year. There continues to be a robust acceptance of the sulfur value proposition amid underlying increases in global nitrogen pricing, primarily driven by supply side impacts. While market-oriented prices must contend with rising raw material prices, we've seen strong uptake in our field program.

進入新一季灌裝期，價格每年都會重新調整。進入2025年第三季度，硫酸銨價格已高於去年同期。在全球氮價上漲的背景下，硫磺價值主張繼續受到廣泛認可，這主要受到供應方影響。雖然市場導向的價格必須應對原材料價格的上漲，但我們的現場專案已經看到了強勁的成長勢頭。

And given current corn futures, this is a positive reinforcement that the value chain believes in sulfur to improve economics for the same acreage. While we navigate typical seasonal pricing considerations and what many consider a mix set of broader ag fundamentals, we know that farmers need yield to support their profitability. Overall, we remain excited about the growth prospects for this business and leveraging our expertise as a leader in this space.

考慮到目前的玉米期貨價格，這是一個積極的強化，表明價值鏈相信硫磺可以提高相同種植面積的經濟效益。雖然我們考慮了典型的季節性定價因素以及許多人認為的更廣泛的農業基本面，但我們知道農民需要產量來支持他們的獲利能力。總體而言，我們仍然對該業務的成長前景感到興奮，並利用我們作為該領域領導者的專業知識。

Let's turn to slide 8. For nylon, we continue to focus on optimizing performance in the current environment. While our caprolactam and resin margins over benzene once again expanded year over year in the second quarter, we are seemingly operating in a lower-for-longer macro environment. We're continuing to leverage our position to navigate this extended downturn with global oversupply conditions holding industry pricing steady amid declining input costs.

讓我們翻到第 8 張投影片。對於尼龍，我們繼續專注於在當前環境下優化效能。雖然我們的己內酰胺和樹脂相對於苯的利潤率在第二季度再次同比擴大，但我們似乎在一個長期較低的宏觀環境中運作。我們將繼續利用我們的地位來應對這段長期低迷時期，在全球供應過剩的條件下，在投入成本下降的情況下保持行業價格穩定。

Here in North America, demand has been mixed. Year-to-date, we've seen moderated fiber and filament demand into building construction applications. Packaging has been generally resilient with end market trends stable in meat and cheese packaging. The area that has seen the most headwind has been in engineering plastics with a drawdown in auto inventories alongside uncertain tariff and trade policy impacting demand.

在北美，需求情況喜憂參半。年初至今，建築應用對纖維和長絲的需求有所放緩。包裝整體上具有彈性，肉類和起司包裝的終端市場趨勢穩定。遭遇最大阻力的領域是工程塑料，汽車庫存減少，加上不確定的關稅和貿易政策影響需求。

Outside of the US, operating rates in China have moderated from earlier in the year as oversupply persists relative to soft demand in the region. As a result, trade flows out of China primarily to Southeast Asia and Europe have continued to limit pricing improvement globally. Overall, our efforts are centered around controllable levers to drive performance. This includes focusing on optimizing our fixed cost structure, while upgrading sales volume mix and production output in the most profitable areas of the business.

在美國以外，由於該地區持續存在供應過剩而需求疲軟，中國的開工率較今年稍早放緩。因此，中國主要流向東南亞和歐洲的貿易繼續限制全球價格的改善。總體而言，我們的努力集中在可控的槓桿上，以推動績效。這包括專注於優化我們的固定成本結構，同時提升業務中最賺錢領域的銷售量組合和生產產量。

Let's turn to slide 9. Moving to chemical intermediates. Industry realized acetone prices over refinery grade propylene costs declined year over year in the second quarter amid higher input costs. As you can see from the table on the right side of the page, although spreads are off the 2024 multiyear highs, margins remained healthy and in line with cycle averages.

讓我們翻到第 9 張投影片。轉向化學中間體。由於投入成本上升，第二季產業實現的丙酮價格相對於煉油級丙烯成本較去年同期下降。從頁面右側的表格中可以看出，儘管利差已低於 2024 年的多年高點，但利潤率仍然保持健康並與週期平均值一致。

Phenol operating rates continue to remain lower globally on weaker end market demand, helping to support a more balanced acetone supply and demand dynamic. Into the third quarter, acetone demand is expected to modestly improve sequentially and we continue to see moderation of propylene costs from the first half 2025 highs. Acetone and phenol represent approximately 60% of our chemical intermediate sales with acetone making up a majority of that. As a reminder, approximately 80% of our produced phenol is consumed by our downstream Hopewell operations.

由於終端市場需求疲軟，全球苯酚開工率持續保持較低水平，有助於支持更平衡的丙酮供需動態。進入第三季度，丙酮需求預計將環比略有改善，並且我們將繼續看到丙烯成本從 2025 年上半年的高點回落。丙酮和苯酚約占我們化學中間體銷售額的 60%，其中丙酮佔大部分。提醒一下，我們生產的苯酚中約有 80% 被下游 Hopewell 工廠消耗。

For us, acetone is a key product line with a performing optimized strategy to meet customer needs while driving favorable sales and profitability mix. For the remaining 40% of our chemical intermediates portfolio, our key strategic focus is around placing our various chemistry platforms into select high-value applications in support of longer-term growth and profitability. While demand across this portion of intermediates continue to remain mixed into ag chemicals, electronics and European paints and coatings to name a few, we did see steady revenues and margins in the second quarter year over year.

對我們來說，丙酮是一條關鍵的產品線，我們採用優化策略來滿足客戶需求，同時推動良好的銷售和獲利組合。對於我們化學中間體產品組合中剩餘的 40%，我們的主要策略重點是將我們的各種化學平台投入到精選的高價值應用中，以支持長期成長和獲利能力。儘管對這部分中間體的需求仍然混合在農業化學品、電子產品和歐洲油漆和塗料等行業中，但我們確實看到第二季的收入和利潤率同比穩定。

Let's wrap up on slide 10 before moving to Q&A. As we shared previously, our business is aligned to domestic agriculture, manufacturing supply chains and energy markets and to serve the diverse set of end market applications. 2025 has been a dynamic year thus far, but we remain well positioned as an American manufacturer of essential chemistries. We have been operating with structural tariffs in place globally across our value chains for quite some time. So we are adept at navigating an environment like this. We are largely insulated from first order impacts of reciprocal tariffs with nearly 90% of our sales in the US and our key product lines in a net import industry position.

在進入問答環節之前，讓我們先結束第 10 張投影片。正如我們之前所分享的，我們的業務與國內農業、製造業供應鏈和能源市場保持一致，並服務於多樣化的終端市場應用。到目前為止，2025 年是充滿活力的一年，但我們作為美國必需化學品製造商仍然處於有利地位。很長一段時間以來，我們一直在全球價值鏈上實施結構性關稅。所以我們很擅長在這樣的環境中導航。由於我們近 90% 的銷售額來自美國，而我們的主要產品線處於淨進口行業地位，因此我們基本上不受互惠關稅的直接影響。

In times of uncertainty, we're keenly focused on delivering on controllable levers. This includes taking a measured and disciplined approach to cost and cash management, including tension prioritization of our base capital investments, and optimizing mix and production output for the most profitable parts of our business. We remain confident in the growth prospects for AdvanSix and are committed to delivering long-term value to our shareholders.

在不確定的時期，我們非常注重提供可控制的槓桿。這包括採取一種有節制和嚴謹的成本和現金管理方法，包括對我們的基礎資本投資進行優先排序，以及優化我們業務中最賺錢部分的組合和生產產出。我們對 AdvanSix 的成長前景充滿信心，並致力於為股東創造長期價值。

With that, Adam, let's move to Q&A.

亞當，讓我們進入問答環節。

Thanks, Erin. Wyatt, can you please open the line for questions?

謝謝，艾琳。懷亞特，您能開通熱線來回答問題嗎？

(Operator Instructions) David Silver, Freedom Capital.

（操作員指示）David Silver，Freedom Capital。

So several questions. I think the first one would be on the ammonium sulfate business. And I was wondering if you could maybe give us a little bit of a look ahead maybe on how the fall fill program is shaping up. And maybe overall, how you're looking at the next planning cycle.

所以有幾個問題。我認為第一個是關於硫酸銨業務。我想知道您是否可以向我們稍微介紹一下秋季填充計劃的進展。總體而言，您如何看待下一個規劃週期。

And then separately, there has been some variation in the pricing relationship between ammonium sulfate, at least on the list price basis, and then urea and some other nitrogen products. Could you maybe just touch on how you see that pricing relationship performing, I guess, as the next several months play out?

另外，至少在標價基礎上，硫酸銨與尿素和其他一些氮產品之間的定價關係也發生了一些變化。您能否簡單談談您認為未來幾個月定價關係將如何表現？

Yes. And first, I may start off by just reiterating that we're coming off a strong fertilizer year and where we saw higher pricing continuing to drive our sales increase 7% in the fertilizer year with our domestic granular AS sales volume, again, continuing to be supported by the benefits of the sustained growth program and the favorable North American supply and demand conditions.

是的。首先，我首先要重申的是，我們剛剛度過了一個肥料銷售強勁的年份，我們看到更高的價格繼續推動我們的銷售額在肥料年度增長 7%，而我們的國內顆粒 AS 銷售量再次繼續受到持續增長計劃和有利的北美供需條件的支持。

As we roll forward here into the next year, we started and have built up a robust order book rate supporting a strong anticipated fall fill program. Again, here, again, just a complement to the work done by our team as growers continue to recognize the sulfur value proposition. Every year, we're continuing to see more and more interest in fill programs, particularly as players on the value chain are focused on ensuring supply, which is supporting the pricing consideration.

隨著我們進入下一年，我們已開始並建立了強勁的訂單率，以支持強勁的秋季填充計劃。再次強調，這只是我們團隊所做工作的補充，因為種植者繼續認識到硫的價值主張。每年，我們都會看到人們對填充計劃的興趣越來越濃厚，特別是當價值鏈上的參與者專注於確保供應時，這支持了定價考慮。

And when you think about the premiums, when you look long range and long term, premiums, really ammonium sulfate to urea, have been in about the 75% range. We're expecting similar numbers this year. I would note, though, David, that when you think about a 75% premium on a, let's call it, a 500-type urea number, that's a much higher sulfur value than a 75% premium, let's say, at a 300 as an example. So we're still selling the sulfur value at a very good price, which is what we're really focused on.

當你考慮溢價時，當你從長遠角度考慮時，溢價，實際上是硫酸銨對尿素的溢價，一直在 75% 左右的範圍內。我們預計今年的數字也差不多。不過，大衛，我要指出的是，當你考慮對 500 型尿素進行 75% 的溢價時，其硫值要比 75% 的溢價高得多，比如說 300 型尿素。因此，我們仍然以非常優惠的價格出售硫磺，這也是我們真正關注的重點。

And so as we achieve these robust premiums, it's clear that growers, right, are seeing that value willingness to pay. And then obviously, that supply/demand will always play a factor. Each year, we're seeing perhaps that we may be just coupling a bit from nitron based on that growing sulfur value proposition.

因此，當我們實現這些強勁的溢價時，很明顯種植者看到了這種價值的支付意願。顯然，供給/需求始終會起到一定作用。每年，我們都會看到，基於不斷增長的硫價值主張，我們可能只是從硝中耦合了一點。

I would say we're cognizant of the broader environment. We see that corn prices have come down relative to nitrogen costs, and that relationship is a bit low. So we recognize farmer economics are a bit more challenging. But again, with the signs of the overall good fill program in 2025, we're seeing that strong uptake on our demand, which is a positive reinforcement of the value chain does believe in sulfur as a key nutrient to improve economics for the same acreage. So a lot more to go, but things are looking in the right direction.

我想說，我們了解大環境。我們看到玉米價格相對於氮肥成本有所下降，而且這種相關性有點低。因此我們認識到農民經濟面臨的挑戰更大。但是，隨著 2025 年整體良好填充計劃的跡象，我們看到需求強勁增長，這對價值鍊是一種積極的強化，我們確實相信硫是提高相同土地經濟效益的關鍵營養素。雖然還有很多事情要做，但事情正在朝著正確的方向發展。

Okay, great. Thank you for that. Great. Next question, I think, would just be more on the chemical industry environment that you're operating in right now. So I guess we're most of the way through the current earnings season and a number of major chemical companies have reported what I would say were very weak results. Your results may be there are some puts and takes there, but you're probably not as bad as some that have reported in recent days.

好的，太好了。謝謝你。偉大的。我認為下一個問題將更多地涉及您目前所處的化學工業環境。所以我想我們已經度過了當前的收益季節，並且許多大型化學公司都報告了我認為非常疲軟的表現。您的結果可能存在一些問題，但可能不像最近幾天報告的那麼糟糕。

Maybe if you could just -- focusing on maybe the more petrochemical-oriented products and markets that you're dealing with. Given the tariff uncertainties and some weak regional economies here, I mean how do you view the stability, I guess, or the predictability of AdvanSix's profitability, I guess, or market opportunities, let's say, over the medium term, let's say, through the next couple two, three quarters. Thank you.

也許你可以只專注在你所處理的更多以石化為導向的產品和市場。考慮到關稅的不確定性和一些疲軟的區域經濟，我的意思是，您如何看待 AdvanSix 盈利能力的穩定性或可預測性，或者說市場機會，比如說，在中期內，比如說，在接下來的兩到三個季度內。謝謝。

Certainly, we do recognize that the environment in which we're operating in has been dynamic, right, in a number of value chains, a number of end applications. But we remain cautiously optimistic given the diversified nature of our portfolio, and I think that came through in the Q2 results, right, and coupled with our integrated business model. It also includes our formula and index-based pricing mechanisms that have continued to support pricing and value across various parts of the business.

當然，我們確實認識到我們所處的營運環境是動態的，在許多價值鏈、許多終端應用中都是如此。但考慮到我們投資組合的多樣化性質，我們仍然保持謹慎樂觀，我認為這在第二季的業績中得到了體現，並且與我們的綜合業務模式相結合。它還包括我們的公式和基於指數的定價機制，這些機制繼續支持業務各個部分的定價和價值。

Relative to the broader uncertainty, relative to others, we have the strength of being a US-based manufacturer. All of our assets are here, 90% of our sales are staying within the US. And certainly, we're procuring most materials from the US, 90% of all of our supplier spend is procured domestically. So we get the opportunity set relative to good value in end markets in this region. And as we've shared before, relatively insulated from first order impacts to tariffs. We do have the downstream uncertainty, if you will. And that's probably predominantly what we see in nylon.

相對於更廣泛的不確定性，相對於其他人，我們作為美國製造商擁有優勢。我們所有的資產都在這裡，90% 的銷售額都在美國境內。當然，我們的大部分材料都是從美國採購的，我們所有供應商支出的 90% 都是在國內採購的。因此，我們獲得了與該地區終端市場相關的具有良好價值的機會。正如我們之前所分享的，相對而言，它不受關稅的直接影響。如果你願意的話，我們確實存在下游的不確定性。這可能是我們在尼龍中看到的主要內容。

The price overall spreads have increased. We're pleased to see that pricing has held, right, in this environment. So that's allowed us to see that expansion, particularly with benzene, and really just focus on the stability, driving the opportunity set into those end markets where we are -- can get a differentiated price and hold that stability. On acetone, phenol is mostly impacted given the environment down into building construction, as we share that creates a bit of a natural hedge for us because 80% of our phenol is consumed internally.

價格整體價差有所擴大。我們很高興看到，在這種環境下，價格保持穩定。因此，這讓我們看到了擴張，特別是苯的擴張，並且真正只關注穩定性，將機會帶入我們所處的終端市場——可以獲得差異化的價格並保持穩定性。就丙酮而言，苯酚受到的影響最大，因為它會影響建築施工等環境，正如我們所分享的，這為我們創造了一種天然的對沖，因為 80% 的苯酚是在內部消耗的。

And so globally, that is keeping acetone relatively balanced in the near term. Here, again, pricing holding, we have a portfolio that is well balanced between small, medium and large buyer [no] customers. So it's affording us flexibility to move where the value is in the market. We did have to contend with a spike in propylene costs earlier this year. Those have stabilized and moderated. So I think that the diversity, the regional footprint and just our flexibility. We've long said that we can navigate through a number of macro environments. And I think the goal here is to continue to put those proof points on the board.

因此，從全球範圍來看，短期內丙酮供應將保持相對平衡。在這裡，再次強調，在定價持有方面，我們的投資組合在小型、中型和大型買家（無）客戶之間實現了良好的平衡。因此，它使我們能夠靈活地轉向市場中的價值所在。今年早些時候，我們確實不得不應對丙烯成本的飆升。這些已經穩定下來並有所緩和。所以我認為多樣性、區域足跡和我們的靈活性。我們早就說過，我們可以瀏覽許多宏觀環境。我認為這裡的目標是繼續將這些證據點放在董事會上。

Okay, great, thank you for that. Maybe if I could just follow up. I mean, you did start off your previous answer with the idea of you operate highly vertically integrated production chain. And this was a quarter where you -- I think you cited nylon sales down around 10%. But the ammonium sulfate volumes -- I'm sorry, nylon volumes down about 10% and ammonium sulfate volumes up, I think, 7%. And you've added on with comments about acetone, which I appreciate.

好的，太好了，謝謝你。也許我可以跟進一下。我的意思是，您之前的回答確實以您經營高度垂直整合的生產鏈的想法開始。我認為您提到本季度尼龍銷售額下降了約 10%。但是硫酸銨的產量——抱歉，尼龍的產量下降了約 10%，而硫酸銨的產量則上升了，我想是 7%。您還補充了有關丙酮的評論，對此我表示感謝。

But looking ahead, I mean, it can get a little tricky at different -- under different market environments to confidently, I guess, place all of your products, including those that might be experiencing weaker demand. So again, as you -- maybe as you look forward, maybe thinking about nylon in particular, I mean how confident are you or what strategies are you looking at to kind of make sure that you can maintain those high utilization rates that give you pretty nice cost advantages, and you're able to place all of our co-produced products into a reasonable markets? I hope that made sense, sorry.

但展望未來，在不同的市場環境下，自信地推出所有產品（包括那些需求可能較弱的產品）可能會有點棘手。所以，再說一次，當你——也許當你展望未來，也許特別考慮尼龍時，我的意思是你有多大信心，或者你在考慮什麼策略來確保你能保持那些能給你帶來相當好的成本優勢的高利用率，並且你能夠將我們所有的聯合生產的產品投放到合理的市場中？我希望這是有道理的，抱歉。

Yes. No, I believe I know where you're heading and trying to tease out here. And yes, we do have an integrated value chain. That integrated value chain brings strength to create our global cost advantage in the monomer for Nylon 6, right? So that does afford us, as we've shared in the past, to be able to run higher utilization rates than others, which then as you say then supports the further strength of the business model around the diversification of the end market applications that we reach with our diversified chemistries and the other product lines.

是的。不，我相信我知道你的意思，也知道你試圖梳理的意思。是的，我們確實有一個一體化的價值鏈。這個一體化的價值鏈為我們在尼龍6單體領域創造了全球成本優勢，對嗎？因此，正如我們過去所分享的，這確實使我們能夠比其他人運行更高的利用率，然後正如你所說，這支持了圍繞我們透過多樣化化學品和其他產品線達到的終端市場應用多樣化的商業模式的進一步增強。

When we think about that and oftentimes, we drive to meet demand where it sits, I would say in nylon right now, as we think about the geographic mix, we're being more selective in our export business. In past years, more volume might have been better. But when you look at really where the global clearing price is below cash cost for a number of players, Europe is struggling. I think operating rates there are well 60% or less. We're going to really maintain some discipline as we navigate these current dynamics.

當我們考慮到這一點時，我們常常會努力滿足當地的需求，我想說，就尼龍而言，當我們考慮地理組合時，我們在出口業務方面會更加挑剔。在過去幾年中，交易量越大可能越好。但當你看到全球清算價格確實低於許多參與者的現金成本時，你會發現歐洲正陷入困境。我認為那裡的營運率只有 60% 甚至更低。在應對當前情況時，我們將真正保持一定的紀律。

On the flip side, through these cycles, it's important. We've been working to create more degrees of freedom for ourselves, and we learn that through each cycle, we create levers for ourselves. And one of the things that we've mentioned in SUSTAIN is investing in the capabilities around some synthetic production of AS as well. It's part of that road map to allow us, again, how do you navigate through these times to create more flexibility across the asset base, as perhaps we've had in the past, that allows us to take advantage of the various market opportunities as we go.

另一方面，透過這些週期，這很重要。我們一直在努力為自己創造更多的自由度，我們了解到，透過每個週期，我們都為自己創造了槓桿。我們在 SUSTAIN 中提到的一件事是投資一些 AS 合成生產的能力。這是路線圖的一部分，讓我們能夠再次了解如何度過這些時期，從而在整個資產基礎上創造更多的靈活性，就像我們過去所做的那樣，這使我們能夠利用各種市場機會。

So even in a challenged global nylon environment, we still see North America here as stable. So that's affording our utilization rates. And then coupled with the technology and operational leverage that we've created for ourselves, give us the agility that we're demonstrating here. And we'll continue to seek more of that as we go forward to ensure that we can drive performance in our other product lines and not just be held solely to what we can produce there.

因此，即使在全球尼龍環境面臨挑戰的情況下，我們仍然認為北美市場保持穩定。因此這可以保證我們的利用率。再加上我們自身創造的技術和營運優勢，賦予了我們如今所展現的敏捷性。未來，我們將繼續尋求更多這樣的機會，以確保我們能夠提升其他產品線的效能，而不僅僅是局限於我們能夠生產的產品。

Okay, great, thank you. Maybe my last one here would be a cash flow oriented question. And I was hoping you could just build on the comments you've made in your prepared remarks. But Chris, as I look at the first half cash flow statement, I mean, there were some sources, I guess, of the reduced operating cash flow totals year-to-date.

好的，太好了，謝謝。也許我在這裡的最後一個問題是一個以現金流為導向的問題。我希望您能根據您準備好的發言稿繼續發表意見。但克里斯，當我查看上半年現金流量表時，我猜想，有一些原因導致今年迄今的營運現金流總額減少。

And I was just hoping you could comment on some of the levers or some of the bigger items where you either expect a meaningful pickup in improvement in cash flow through the balance of the year or maybe where your incremental flexibility might be to kind of some levers you might have to support free cash flow generation even in a less than robust environment.

我只是希望您能對一些槓桿或一些較大的項目發表評論，您既可以預期在今年餘下的時間裡現金流會顯著改善，也可以預期您的增量靈活性可能會成為某種槓桿，即使在不太強勁的環境下，您也可能需要支持自由現金流的產生。

And then secondly, I was hoping -- you did provide some big picture numbers on the carbon tax credit opportunity, which was great. But I was just wondering if you might be able to comment on the expected timing of when those cash flows might be received. So for instance, you've claimed, I believe, $20 million thus far. I'm guessing there hasn't been much received there. But when should we expect meaningful cash to be received from the carbon tax credit program? Thank you.

其次，我希望——您確實提供了一些有關碳稅抵免機會的宏觀數字，這很好。但我只是想知道您是否可以評論一下預計何時可以收到這些現金流。舉例來說，我相信您迄今為止已經索償了 2000 萬美元。我猜那裡沒有收到太多東西。但是，我們什麼時候才能從碳稅抵免計劃中獲得可觀的現金呢？謝謝。

Yes. Thanks, David, for the question there. As we have shared, our expected second half cash flow performance is expected to be sequentially better. I would point to probably two larger levers that we're tracking as we move into the second half. 45Q is one of those levers. So just as a little bit of background into the collective process is we've been working with the Department of Energy and the IRS. And we've got the 2018 LCA approved, which does cover the 2018 through 2020 years.

是的。謝謝 David 提出的問題。正如我們所分享的，我們預計下半年的現金流表現將比上半年更好。我想指出，當我們進入下半年時，我們正在追蹤兩個更大的槓桿。45Q 就是其中一種槓桿。因此，作為集體過程的背景介紹，我們一直在與能源部和美國國稅局合作。我們已經獲得了 2018 年 LCA 的批准，該版本涵蓋了 2018 年至 2020 年。

Based on that approval, we've gone and filed amended returns to claim that credit. Those amended returns automatically trigger an audit, and we need to work with the IRS through that audit. Once the audit is complete, we would expect to receive a refund on those credits, and we believe that these will happen in the current calendar year. So that's one item.

根據該批准，我們已提交修改後的申報表以索取該抵免。這些修改後的申報表會自動觸發審計，我們需要與美國國稅局合作完成審計。一旦審計完成，我們預計將收到這些信用額的退款，我們相信這將在本日曆年發生。這是其中一項。

I think our second probably significant item that we would point out to help understand our position on why we believe second half cash flow is going to be better, as I would point out, our ammonium sulfate prebuy program, which by design is a headwind on cash in the first half. I would expect us to continue this program and so we would see a positive cash flow in Q4 of this year, and that would be consistent with our regular practice sort of year over year.

我認為我們要指出的第二個可能重要的事項有助於理解我們為什麼認為下半年現金流會更好，正如我要指出的，我們的硫酸銨預購計劃在設計上對上半年的現金構成了阻力。我希望我們能夠繼續這個計劃，這樣我們就會在今年第四季看到正的現金流，這將與我們去年的常規做法保持一致。

A couple of other things maybe to point out relative to cash flow. We are trying to be very thoughtful about CapEx spend. Obviously, we continue to give priority to sustain and other sort of growth programs, but we are being much more thoughtful about how we deploy sort of the base CapEx in the current environment. I would point out our healthy balance sheet position with our debt levels at the lower end of our target range.

關於現金流，可能還需要指出其他幾點。我們正在努力認真考​​慮資本支出。顯然，我們繼續優先考慮維持和其他類型的成長計劃，但我們正在更加認真地考慮如何在當前環境下部署基礎資本支出。我想指出的是，我們的資產負債表狀況良好，債務水準處於目標範圍的低端。

And as well, I would point out our trailing 12-month free cash flow position and performance as an indicator of how we typically perform in the second half environment. So hopefully that gives you some context and some thoughts there around why we believe it's going to be sequentially better. And I appreciate the question, David.

另外，我想指出我們過去 12 個月的自由現金流狀況和表現，可以作為我們在下半年環境中通常表現如何的指標。所以希望這能給你一些背景資訊和想法，讓你了解為什麼我們相信它會越來越好。我很感謝你提出這個問題，大衛。

So just to clarify, you're one of the rare taxpayers that's actually looking forward to an IRS audit this year. Is that right?

因此，需要澄清的是，您是少數真正期待今年接受國稅局審計的納稅人之一。是嗎？

Yes. I don't think we're the rare, but yes, we're certainly one of them. And once again, when you claim those sort of credits on an amended return, it automatically gets triggered for an audit.

是的。我不認為我們是罕見的，但是是的，我們確實是其中之一。再說一次，當您在修改後的申報表上申請此類抵免時，它將自動觸發審計。

With no further questions, this will conclude our question-and-answer session. I would like to turn the conference back over to Erin Kane for any closing remarks.

如果沒有其他問題，我們的問答環節就結束了。我想將會議交還給 Erin Kane 做結束語。

Thank you all again for your time and interest this morning. We hope this call and discussion have clarified the key considerations that supported our second-quarter performance and outlook across our key end markets. The strength of our business model and our position as a diversified chemistry company will serve us well, and we continue to expect performance this year to demonstrate our resilience. We are confident in our strategic vision to support safe, stable and sustainable operations, improved through-cycle profitability and total shareholder returns.

再次感謝大家今天上午的時間和關注。我們希望此次電話會議和討論能夠闡明支持我們第二季度業績和主要終端市場前景的關鍵考慮因素。我們強大的商業模式和多元化化學公司的地位將為我們提供良好的服務，我們繼續期待今年的業績能展現我們的韌性。我們對我們的策略願景充滿信心，以支持安全、穩定和永續的運營，提高整個週期的獲利能力和股東總回報。

With that, we look forward to speaking with you again next quarter. Stay safe and be well.

因此，我們期待下個季度再次與您交談。保持安全並保持健康。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。