AdvanSix Inc (ASIX) 2025 Q3 法說會逐字稿

Good day, and welcome to the AdvanSix 3Q '25 earnings conference call. (Operator Instructions) Please note, today's event is being recorded. I would now like to turn the conference over to Adam Kressel, Vice President, Investor Relations, and Treasurer. Please go ahead.

大家好，歡迎參加 AdvanSix 2025 年第三季財報電話會議。（操作說明）請注意，今天的活動正在錄製中。現在我將把會議交給投資者關係副總裁兼財務主管亞當·克雷塞爾。請繼續。

Thank you, Rocco. Good morning, and welcome to AdvanSix's third-quarter 2025 earnings conference call. With me here today are President and CEO, Erin Kane; and Interim CFO, Chris Gramm.

謝謝你，羅科。早安，歡迎參加 AdvanSix 2025 年第三季財報電話會議。今天陪同我出席的有總裁兼執行長艾琳·凱恩；以及臨時財務長克里斯·格拉姆。

This call and webcast, including any non-GAAP reconciliations, are available on our website at investors.advansix.com. 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.

本次電話會議和網路直播（包括任何非GAAP財務報表調整表）可在我們的網站 investors.advansix.com 上查看。請注意，本次簡報包含前瞻性陳述，這些陳述是基於我們目前對世界和我們業務的最佳看法。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，請考慮這一點。

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.

請參閱我們新聞稿和盈利報告中的前瞻性聲明。此外，我們在提交給美國證券交易委員會的文件（包括 10-K 表格年度報告）中列明了影響我們業績的主要風險和不確定性，並在隨後提交給美國證券交易委員會的文件中進行了進一步更新。

This morning, we will review our financial results for the third-quarter of 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 年第三季的財務業績，並分享我們對主要產品線和終端市場的展望。最後，我們會留出時間回答大家的問題。

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

那麼，接下來我將把電話交給 AdvanSix 的總裁兼執行長 Erin Kane。

Thanks, Adam, and good morning, everyone. We appreciate you joining us here today for our quarterly call.

謝謝亞當，大家早安。感謝您今天參加我們的季度電話會議。

As you saw in our press release, AdvanSix continued to navigate challenging industry dynamics in the third quarter with a focus on optimizing operational and commercial performance. Our team executed with agility and discipline as we seasonally entered a new fertilizer year in Plant Nutrients with a strong fall fill program amid higher raw material input costs while continuing to realize the ongoing benefits from our sustained growth program.

正如您在我們新聞稿中看到的那樣，AdvanSix 在第三季度繼續應對充滿挑戰的行業動態，重點是優化營運和商業績效。在植物營養肥料新年度到來之際，我們團隊靈活且嚴謹地執行了秋季補貨計劃，同時應對了更高的原材料投入成本，並繼續從我們持續增長的計劃中獲益。

Given the protracted downturn in Nylon Solutions and demand softness in Chemical Intermediates, we're making the strategic choice to moderate production rates to manage inventory levels with a keen focus on free cash flow. Utilization across our integrated value chain was down roughly 4 percentage points sequentially from the second quarter to the third.

鑑於尼龍解決方案市場長期低迷以及化學中間體需求疲軟，我們做出了戰略選擇，降低生產力以控制庫存水平，並專注於自由現金流。從第二季到第三季度，我們整個整合價值鏈的使用率較上季下降了約 4 個百分點。

Operationally, we experienced a site-wide electrical outage at our Chesterfield nylon plant in mid-September. While there was minimal impact to 3Q results, we did have an isolated fire upon restart that impacted one polymerization line of the plant and was fully contained.

9 月中旬，我們位於切斯特菲爾德的尼龍工廠遭遇了全廠停電。雖然對第三季業績的影響微乎其微，但我們在重啟時確實發生了一起孤立火災，影響了工廠的一條聚合生產線，但火勢已被完全控制。

There were no injuries or environmental impacts, and the majority of our plant operations continue as normal. So while we were already tactically opting to reduce production levels, this incident is expected to impact 4Q EBITDA by $7 million to $9 million, primarily related to the negative impact of unabsorbed fixed costs.

沒有人員傷亡或環境影響，我們工廠的大部分運作仍在正常進行。因此，儘管我們已經採取了降低生產水準的策略，但預計此次事件將使第四季度 EBITDA 減少 700 萬至 900 萬美元，主要與未吸收的固定成本的負面影響有關。

On a positive note, our fourth quarter planned plant turnaround centered around our sulfuric acid and oleum plant at Hopewell was completed successfully at the low end of our target range. While our domestic Nylon Solution margins over benzene once again expanded year over year, we are seemingly operating in a lower for longer macro environment.

值得一提的是，我們第四季規劃的以霍普韋爾硫酸和發煙硫酸工廠為中心的工廠檢修工作已成功完成，且進度低於預期。雖然我們國內尼龍溶液相對於苯的利潤率再次同比增長，但我們似乎正處於一個長期低迷的宏觀環境中。

In times of uncertainty, we're focused on delivering on controllable levers. This includes continued optimization of production output and sales volume mix while driving productivity to support through-cycle profitability.

在充滿不確定性的時期，我們專注於發揮可控因素的作用。這包括持續優化生產產量和銷售量組合，同時提高生產效率以支援整個週期的獲利能力。

Taking a disciplined approach to cash management is critical, reflected in our prioritization of base capital investment and anticipated tailwinds in 2026 from 45Q carbon tax credits and recent tax legislation. 2025 CapEx is now expected to be $120 million to $125 million, reflecting $30 million full-year cash conservation through refined risk-based prioritization and execution.

採取有紀律的現金管理方法至關重要，這體現在我們優先考慮基礎資本投資，以及預計 2026 年 45Q 碳稅抵免和最近的稅收立法帶來的利好因素。預計 2025 年資本支出將達到 1.2 億美元至 1.25 億美元，這反映出透過改善基於風險的優先排序和執行，全年現金節省了 3,000 萬美元。

Our select and targeted investments for growth are continuing to progress. The sustained growth program, which unlocks 200,000 tons of granular ammonium sulfate, has been favorably tracking roughly 15% below its capital budget with the final two projects remaining to be completed over the next year. In addition, our planned investment to upgrade our enterprise resource planning system went live in the third quarter, which will help streamline key processes across the organization while enhancing management tools and data analytics.

我們為實現成長而進行的精選定向投資正在持續推進。持續成長計畫可釋放 20 萬噸顆粒狀硫酸銨，目前進展順利，比其資本預算低約 15%，最後兩個項目將在未來一年內完成。此外，我們計劃對企業資源規劃系統進行升級的投資已於第三季上線，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。

Finally, we added two new members to our Board of Directors this past quarter, Dana O'Brien and Daryl Roberts. Their deep industry and professional backgrounds and proven expertise in global manufacturing will be invaluable to our Board's role in ensuring strong corporate governance practices and supporting advancement of our strategic growth priorities.

最後，上個季度我們董事會新增了兩位成員，分別是 Dana O'Brien 和 Daryl Roberts。他們深厚的行業和專業背景以及在全球製造業中久經考驗的專業知識，對於我們董事會在確保強有力的公司治理實踐和支持推進我們的戰略增長重點方面所發揮的作用來說，將是無比寶貴的。

With that, I'll turn it over to Chris to discuss the financials.

接下來，我將把發言權交給克里斯，讓他來討論財務問題。

Thanks, Erin. I'm now on slide 4 to discuss our results for the quarter. Sales of $374 million in the quarter decreased approximately 6% versus the prior year. Sales volume was approximately half of that change, driven primarily by softer demand in both Chemical Intermediates and Nylon end markets. 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.

謝謝你，艾琳。我現在轉到第四張投影片，討論我們本季的業績。本季銷售額為 3.74 億美元，比去年同期下降約 6%。銷售量變化約為上述變化的一半，主要原因是化學中間體和尼龍終端市場的需求疲軟。由於苯（我們最大的原料和產品的關鍵原料—異丙苯的主要投入物）成本下降，原料轉嫁價格下降了 5%。

Market-based pricing was favorable by approximately 2%, driven by continued strength in Plant Nutrients reflecting favorable North American ammonium sulfate supply and demand conditions. Adjusted EBITDA was $25 million, down $28 million from last year, while adjusted EBITDA margin was 6.6%. The decline in earnings versus last year was primarily driven by a reduction in acetone price raw spreads as we anticipated the impact of lower Nylon and Chemical Intermediate sales and production volume and higher utility costs as a result of increasing natural gas prices.

受植物營養素持續強勁的需求推動，市場定價上漲了約 2%，反映了北美硫酸銨供需狀況良好。調整後 EBITDA 為 2,500 萬美元，比去年減少了 2,800 萬美元，而調整後 EBITDA 利潤率為 6.6%。與去年相比，獲利下降的主要原因是丙酮原料價格價差收窄，因為我們預期尼龍和化學中間體的銷售和產量會下降，而且由於天然氣價格上漲，公用事業成本也會上升。

On a sequential basis compared to the second quarter, we saw a nearly $20 million earnings decline due to typical ammonium sulfate seasonality with the start of the new fertilizer year. In addition, our results reflect the impact of moderated production rates amid softer demand for Nylon Solutions and Chemical Intermediates.

與第二季相比，由於新化肥年度開始，硫酸銨的季節性波動導致收益較上季下降近 2,000 萬美元。此外，我們的結果反映了尼龍溶液和化學中間體需求疲軟導致生產率降低的影響。

Now, let's turn to slide 5.

現在，我們來看第5張投影片。

Here, we are illustrating our quarterly sales contributions by product line, as well as price and volume breakdown, both year-over-year and sequentially. We believe this double click into the underlying dynamics of our financials provides insight into our commercial sales and performance.

在這裡，我們將按產品線列出季度銷售貢獻，以及價格和銷售細分，包括同比和環比數據。我們相信，透過這種對財務狀況底層動態的深入分析，可以更了解我們的商業銷售和業績。

Plant Nutrients continues to positively stand out. While we navigated typical seasonal pricing considerations, our continued strong performance in Q3, including the higher year-over-year pricing of our fall fill program and favorable sales mix supported by our sustained growth program, are further proof points to the resiliency of software nutrition demand.

植物營養素持續保持著優異的表現。儘管我們應對了典型的季節性定價因素，但我們在第三季度的持續強勁表現，包括秋季補貨計劃同比價格上漲以及在持續增長計劃支持下的有利銷售組合，進一步證明了軟體營養需求的韌性。

Broader nylon markets continue to face pressure here in the US and abroad. However, domestic market-based pricing across Nylon Solutions is holding steady while raw materials pass-through pricing saw declines on lower benzene input prices. And lastly, acetone pricing has moderated as expected from the multi-year highs witnessed in 2024.

美國國內外的尼龍市場持續面臨壓力。然而，由於苯投入價格走低，尼龍解決方案的國內市場定價保持穩定，而原料轉嫁價格則有所下降。最後，丙酮價格已如預期般從 2024 年的多年高點回落。

Let's turn to slide 6. Our end market exposure remains a strategic advantage. It provides a source of diversification which helps insulate the company from significant variability in any one industry as demonstrated by our results in various environments. We've highlighted our exposure in descending order with agriculture and fertilizer at the top. This is an area that continues to grow.

讓我們翻到第6張投影片。我們在終端市場的佈局仍然是一項策略優勢。它提供了一種多元化來源，有助於使公司免受任何單一行業重大波動的影響，正如我們在各種環境下所證明的那樣。我們已依風險敞口降序排列，農業和化肥業位列首位。這是一個持續發展的領域。

We estimate software nutrition demand growing 3% to 4% per year on average and where we are leveraging our expertise as leaders in the space. There continues to be robust acceptance of the sulfur value proposition amid underlying increases in global nitrogen pricing, primarily driven by supply-side impacts.

我們預計軟體營養需求平均每年增長 3% 至 4%，而我們正在利用我們作為該領域領導者的專業知識來滿足這一需求。在全球氮肥價格上漲（主要受供應側影響）的背景下，硫磺的價值主張仍廣受認可。

Given current corn futures, this is a positive reinforcement that the value chain believes in sulfur to improve economics for the same acreage. We believe stock-to-use ratios globally continue to support fertilizer demand over the long term.

鑑於目前的玉米期貨價格，這有力地證明了價值鏈相信硫磺可以提高相同種植面積的經濟效益。我們認為，全球庫存消費比率將持續長期支撐化肥需求。

Moving to building and construction, dynamics here remain largely unchanged. Across this end application, we have direct and indirect exposure across Nylon and Intermediates through flooring, oriented strand board, and paints and coatings, to name just a few. Our view is latent demand will build and begin to recover through 2026, assuming moderating interest rates going forward.

再來看建築施工領域，這方面的動態基本上保持不變。在這個最終應用領域，我們透過地板、定向刨花板、油漆和塗料等，直接或間接地接觸到尼龍及其中間體。我們認為，在利率持續趨於緩和的前提下，潛在需求將在 2026 年逐漸累積並開始復甦。

Plastics does remain challenged, reflecting broader macro softness. We had previously communicated that the auto sector was a watch-out, including impacts of tariffs uncertainty and trade policy. We've continued to see a drawdown in auto inventories, as well as weakness across consumer durables and other industrial applications.

塑膠產業仍然面臨挑戰，這反映了宏觀經濟的整體疲軟態勢。我們之前曾表示，汽車產業是一個需要密切關注的領域，包括關稅不確定性和貿易政策的影響。我們持續看到汽車庫存下降，同時耐用消費品和其他工業應用領域也出現疲軟。

Solvents, likewise, have been mixed. We've seen moderated growth into construction, pharmaceutical, and electronics industries. In the semiconductor space, Our [naidon] sales demand was down year-over-year in the third quarter but is anticipated to improve sequentially into 4Q and 2026.

同樣，溶劑也被混合在一起。我們看到建築業、製藥業和電子業實現了溫和成長。在半導體領域，我們的[naidon]第三季銷售需求年減，但預計到第四季和2026年將逐週改善。

And lastly, we continue to monitor and track trends in food packaging, where beef is the largest category. Nylon 6 is preferred here due to its excellent barrier properties and its puncture resistance. Our inflationary pressure and tariffs are impacting demand in this space, notwithstanding the relative resilience we are seeing in packaging.

最後，我們將繼續監測和追蹤食品包裝的趨勢，其中牛肉是最大的類別。由於尼龍 6 具有優異的阻隔性能和抗穿刺性能，因此這裡優先選擇尼龍 6。儘管包裝行業表現出相對的韌性，但通膨壓力和關稅正在影響該領域的需求。

Let's move to slide 7.

我們來看第7張投影片。

Cash flow generation remains a critical focus area for us. We believe it's important to view our business performance on a trailing 12-month basis, given the linearity considerations, primarily driven by the timing of the fertilizer season. Trailing 12-month free cash flow through Q3 2025 is approximately break-even, and we continue to target positive free cash flow for the full year of 2025.

現金流的產生仍然是我們關注的重點領域。考慮到線性因素（主要受施肥季節時間的影響），我們認為以過去 12 個月的業績來衡量業務表現非常重要。截至 2025 年第三季的過去 12 個月的自由現金流大致達到損益兩平，我們繼續以 2025 年全年實現正自由現金流為目標。

There are a number of levers that we're focused on to bolster sustained and improved cash flow generation moving forward, including working capital initiatives, risk-based prioritization of capital investments, cost productivity, and tax optimization. Our balance sheet is positioned to provide optionality and the ability to weather the challenging macro environment.

為了持續改善現金流，我們正在重點關注以下幾個方面：營運資本措施、基於風險的資本投資優先排序、成本生產力以及稅務優化。我們的資產負債表結構能夠提供多種選擇，並有能力應對充滿挑戰的宏觀環境。

We expect strong free cash flow in the fourth quarter, supported by working capital tailwinds. including the ammonium sulfate pre-buy cash advances. As Erin mentioned earlier, we're able to capture a roughly $30 million reduction to our full-year 2025 capital plan.

我們預期第四季自由現金流強勁，這得益於營運資金的利多因素，包括硫酸銨預購現金預付款。正如艾琳之前提到的，我們可以在 2025 年全年資本計畫中減少約 3,000 萬美元。

We expect CapEx for 2026 to be in the range of $125 million to $135 million. We're also actively managing our cash tax rate, which we anticipate being below 10% over the next few years, supported by the continued progress on the 45Q carbon capture tax credits, and 100% bonus depreciation.

我們預計 2026 年的資本支出將在 1.25 億美元至 1.35 億美元之間。我們也在積極管理現金稅率，預計在未來幾年內，在 45Q 碳捕獲稅收抵免和 100% 額外折舊的持續進展的支持下，該稅率將低於 10%。

Now, let's turn to slide 8 to wrap up before moving to Q&A.

現在，讓我們翻到第 8 張投影片進行總結，然後再進入問答環節。

Our strategic initiatives, unique combination of assets, and business model, are core to our durable competitive advantage and long-term positioning. Our global low-cost position in vertically integrated caprolactam production serves us well.

我們的策略性舉措、獨特的資產組合和商業模式是我們持久競爭優勢和長期市場地位的核心。我們在全球垂直整合的己內醯胺生產領域擁有低成本優勢，這對我們非常有利。

In addition, ammonia and sulfuric acid platform integration, coupled with a leading granular crystallization technology position, underpins our sustained ammonium sulfate growth and how we win in Plant Nutrients. These capabilities, combined with our asset utilization agility and product mix, position us to navigate cycles and capitalize on emerging opportunities.

此外，氨和硫酸平台的整合，加上領先的顆粒結晶技術地位，支撐著我們硫酸銨的持續成長，以及我們在植物營養領域取得成功的方式。這些能力，加上我們靈活的資產利用和產品組合，使我們能夠應對週期變化並抓住新興機會。

2025 has been a dynamic year, but we remain well positioned as an American manufacturer of essential chemistries. We've 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.

2025 年是充滿活力的一年，但作為美國基礎化學品製造商，我們仍然處於有利地位。我們長期以來一直在全球範圍內，在我們的價值鏈中實行結構性關稅，因此我們非常擅長應對這樣的環境。

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. Our US footprint has allowed us to optimize our tax position with a meaningful impact on cash flow going forward.

由於我們近 90% 的銷售額來自美國，而且我們的主要產品線屬於淨進口行業，因此我們基本上不受相互關稅的直接影響。我們在美國的業務佈局使我們能夠優化稅務狀況，從而對未來的現金流產生重大影響。

Recently, we've seen a number of industry actions with announced European capacity rationalization in phenyl and acetone, as well as caprolactam and ammonium sulfate. We believe we're reaching an inflection point in several markets, and as we've discussed today, we're positioning ourselves to win long-term.

最近，我們看到一些產業採取了行動，宣布對歐洲的苯酚、丙酮、己內醯胺和硫酸銨產能進行合理化調整。我們相信，我們在幾個市場正處於轉折點，正如我們今天所討論的，我們正在為贏得長期勝利做好準備。

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

那麼，亞當，我們進入問答環節吧。

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

謝謝你，艾琳。Rocco，請問可以開放提問通道嗎？

(Operator Instructions) David Silver, Freedom Capital Markets.

（操作說明）大衛·西爾弗，自由資本市場。

Okay, so I did have a number of questions. I think, first, I was hoping maybe you could provide a little additional color on the Chemical Intermediates market and pricing environment. So were the revenue declines and the margin pressures, was that primarily acetone or did the weakness extend to other key products or end markets? Maybe just a little more color on the fall-off in Chemical Intermediates' results this quarter.

好的，我的確有一些問題。首先，我希望您能為化學中間體市場和定價環境提供一些補充資訊。那麼，營收下降和利潤率承壓主要是丙酮的問題，還是其他主要產品或終端市場也出現了疲軟？或許可以更詳細分析化學中間體公司本季業績下滑的原因。

Certainly, and we recognize that we provided some new formats here today, and we did go ahead and include the specific line of business industry spreads and KPI updates in the appendices for reference. But, yes, on the acetone side, as you well know, David, represents roughly 50% of our sales in Chemical Intermediates.

當然，我們也意識到今天我們提供了新的格式，並且我們還在附錄中加入了具體的業務線行業分佈圖和 KPI 更新，以供參考。是的，如你所知，David，丙酮約占我們化學中間體銷售額的 50%。

And we would characterize Q3 as, really, more in line with our expectations. As we headed into the year, we've been saying that we did expect phenol demand overall to remain subdued. That would keep acetone supply and demand balanced, but that we were expecting that we would come off the highs of 2024 and, certainly, probably moderate back to cycle averages. And that's where we continue to see the market play out.

我們認為第三季的表現更符合我們的預期。今年年初，我們曾表示預計苯酚的整體需求將保持低迷。這樣可以保持丙酮供需平衡，但我們預計丙酮價格將從 2024 年的高點回落，並且肯定會回落到週期平均值。而這正是我們持續看到市場走向的地方。

Our portfolio is well-balanced between small, medium, and large buyer that allows us quite a bit of flexibility to go where the value is in the market. And while the moves were significant year over year, they are moderating as we think about the adjustments to those cycle averages sequentially.

我們的投資組合在小型、中型和大型買家之間實現了良好的平衡，這使我們能夠靈活地在市場中尋找價值所在。雖然這些變化同比幅度很大，但隨著我們逐年考慮這些週期平均值的調整，這些變化正在逐漸緩和。

But when you look across the rest of the portfolio, as you say, we hear in a number of other end markets, whether it's electronics, paints and coatings, adhesives, you think about ag chemicals, the full-space, in general, we would say that there's continued views of softness. I think this is thematic, what you're seeing across the entire chemical sector, not necessarily anything unique to us.

但正如你所說，縱觀其他投資組合，我們在許多其他終端市場，無論是電子產品、油漆和塗料、黏合劑，還是農業化學品，整個領域，總體而言，我們認為市場持續疲軟。我認為這是整個化學產業普遍存在的問題，並不一定是我們公司獨有的現象。

We did call out the semiconductor space and NATO in demand. We're seeing signs that that's picking back up in Q4 with some sight of improvement into 2026. So I would like to say that there's some opportunities in different places. We continue to stay focused in the right areas with favorable long-term trends, and that's what we're seeing there on Intermediates. Hopefully that helps.

我們確實提到了半導體領域和北約的需求。我們看到一些跡象表明，這種情況在第四季度有所好轉，並且到 2026 年預計會有所改善。所以我想說，不同的地方都存在一些機會。我們繼續專注於具有良好長期趨勢的正確領域，而這正是我們在中端市場所看到的。希望這能有所幫助。

Okay, great. Thank you. I'm sorry, I should have reviewed the appendix page. A lot of detail just there.

好的，太好了。謝謝。抱歉，我應該先查看附錄頁的。這裡有很多細節。

Okay. I would like to talk about the ammonium sulfate results this quarter. So the revenue number is quite striking. I believe that's your highest third quarter revenue total ever for that segment. And the summer quarter is typically, I guess, when you try to -- you typically sell a little bit more of the standard product and into international markets.

好的。我想談談本季硫酸銨的業績。所以，營收數字相當驚人。我相信這是該業務部門有史以來第三季最高的營收總額。而夏季季度通常是這樣一個時期：你通常會嘗試銷售更多標準產品並進入國際市場。

But maybe just looking at the third quarter results, I mean, was there a disproportionate amount of products sold into the US market? Or was there maybe some advanced purchasing? I mean, maybe just a little more color on the strength in ammonium sulfate.

但或許僅從第三季業績來看，我的意思是，銷往美國市場的產品數量是否不成比例？或者可能存在提前購買的情況？我的意思是，或許可以稍微增加一些硫酸銨濃度的顏色。

Yeah, so as you point out, right, prior to the sustain program, that would have been the trend we would have expected Q2 into Q3. For us, now, right, the additional granular volume that we are producing is coupled with a good fall pickup. We did have less standard to sell across the board, right?

是的，正如你所指出的，沒錯，在永續發展計畫實施之前，這原本是我們預期從第二季到第三季會出現的趨勢。對我們來說，現在，我們生產的額外顆粒量與良好的秋季收割量相結合。我們當時確實缺乏統一的標準來銷售產品，對吧？

So that mixed differential is not as, perhaps, I would say geographical mix consideration is not as great as it used to be. So certainly, 3Q year-over-year granular volume was up 20%, right? And so, again, that is really at the heart of the intent behind sustain and obviously with the year-over-year prices for fill up led to that revenue generation you saw.

因此，混合差異可能不如以前那麼大了，或許可以說，地域混合因素的考量已經不如以前那麼重要了。所以，第三季顆粒物銷量較去年同期成長了 20%，對吧？所以，這再次體現了永續發展背後的真正意圖，顯然，逐年上漲的加油價格也帶來了你所看到的收入成長。

Okay, great. Next question would be probably about raw material cost trends. So you have cited some of the data, again, in the appendix slides. But sulfur, as you noted, continues to track upwards and natural gas has recently shot up a bit, maybe on anticipated winter demand here.

好的，太好了。下一個問題可能是關於原材料成本趨勢的。所以，你在附錄投影片中再次引用了一些數據。但正如你所指出的，硫磺價格持續上漲，天然氣價格最近也略有上漲，可能是因為預期冬季需求所致。

Should we just assume that you are a spot market purchaser for the fourth quarter or would there be the case where maybe you were able to do some hedging or other pre-buying ahead of the quarter? So maybe just a sense of how we should look at the spot market or the recent changes in some of your raw materials and the flow through to your fourth quarter results?

我們是否應該假設您是第四季度的現貨市場買家，或者是否存在您在季度開始前進行一些對沖或其他預購的情況？所以，您能否談談我們應該如何看待現貨市場，或是您最近一些原料的變化，以及這些變化對您第四季業績的影響？

Yeah, that's a great question. I would say, generally, we typically don't execute hedges on a regular basis. Sulfur is probably not as widely traded, and so the hedging process there would command a premium. But I think for natural gas, generally, we've elected to not enter a hedging strategy.

是的，這是一個很好的問題。一般而言，我們通常不會定期進行避險交易。硫磺的交易量可能不如其他商品那麼大，因此對沖硫磺的交易需要支付溢價。但我認為，就天然氣而言，我們總體上選擇不採取對沖策略。

What we've seen from gas, obviously, from a year-over-year perspective, the price has gone up from, let's say, an average of 230 a dekatherms to 340 here this year. So obviously, super sensitive to that, watching for that.

從天然氣價格來看，顯然，從年比來看，價格已經從平均每十千焦/公升 230 上漲到今年的 340。所以很明顯，我對這一點非常敏感，一直在留意。

Most of these two molecules do end up in ammonium sulfate. And while ammonium sulfate is generally based on value pricing, input cost does have a tendency to put pressure on the least marginal producer. So it does have some indirect effect.

這兩種分子大部分最終都會生成​​硫酸銨。雖然硫酸銨的價格通常是基於價值定價的，但投入成本往往會對邊際效益最低的生產者造成壓力。所以它確實有一些間接影響。

I would say as well, particularly on the natural gas side with our formula pricing, that there is natural gas components there. And so even though we don't, let's say, execute a financial or synthetic hedge, we do have some coverage in our formula-based pricing in the Nylon business as well. So hopefully that gives you a bit of color there, David, and how we think about and react to some of these changes so.

我還要補充一點，尤其是在天然氣方面，我們的定價公式包含了天然氣成分。因此，即使我們沒有進行金融或合成對沖，我們在尼龍業務的公式定價中確實有一些覆蓋範圍。所以，大衛，希望這能讓你對這些變化有所了解，以及我們是如何思考和應對這些變化的。

Okay, great. Maybe another one for Chris, but I was looking or hoping to get a bit of an update on the section 45Q carbon capture credits that you've applied for and you may apply for in the future. So maybe just your sense of the timing for capturing, I guess, the first [$20 million] of credits that you've filed for, I guess, in the first half of the year? And then maybe is there an early read on what you may be filing for next year?

好的，太好了。也許這是給克里斯的另一個問題，但我希望了解您已經申請和將來可能申請的第 45Q 節碳捕獲額度的最新情況。所以，也許您只是想把握時機，比如說，今年上半年申請的第一批（2000萬美元）稅收抵免？那麼，或許可以提前了解明年可能需要申報哪些項目？

Yeah, that's a great question. Obviously, 45Q is a significant value driver for us. And just as a reminder, we perfected the 2018 claim last year and 2019 and 2020 this year. Based on those perfected claims, we filed amended returns.

是的，這是一個很好的問題。顯然，45Q 對我們來說是一個重要的價值驅動因素。再次提醒大家，我們去年完善了 2018 年的索賠，今年完善了 2019 年和 2020 年的索賠。基於這些完善的申報，我們提交了修改後的申報表。

Those amended returns, as you can imagine, trigger an audit process that we have to work through. We're confident, based on all the upfront work that we've done, both with the Department of Energy and with the IRS, that we'll be successful through that audit process.

如您所想，這些修改後的申報表會觸發一個審計流程，我們需要完成這個流程。基於我們前期與能源部和國稅局所做的所有準備工作，我們有信心能夠順利通過審計程序。

What I would say is, due to the government shutdown, I think the timing of when we would expect to receive the credits that we have applied for looks like that that's going to be shifting to 2026. I would point out that our early comment on positive free cash flow for the 2025 year does take that shift into account. So we still believe we're going to be positive free cash flow in 2025.

我想說的是，由於政府停擺，我認為我們申請的稅收抵免的預計到帳時間可能會推遲到 2026 年。我想指出的是，我們先前對 2025 年正自由現金流的評論已經考慮到了這種轉變。因此，我們仍然相信我們在 2025 年將實現正自由現金流。

We do expect a cumulative benefit, once again, of $100 million and $120 million across the life of the program. Just as an update, we filed the 2021 Life Cycle Assessment, and that needs to be reviewed and approved by the Department of Energy and the IRS. Under normal circumstances, that would take probably three to four months.

我們預計，在該計畫實施期間，累計收益將再次達到 1 億美元至 1.2 億美元。最新進展是，我們已提交 2021 年生命週期評估報告，該報告需要能源部和國稅局進行審查和批准。正常情況下，這大概要三到四個月。

So we're hoping that, in short order, once things get back to a bit normal, that it wouldn't be too long till we get approval for that. So we're going to continue to obviously provide you updates as we move forward and move along, but we continue to push the opportunity there and the progress as well.

所以我們希望，一旦情況恢復正常，很快就能獲得批准。因此，我們當然會繼續向您提供最新進展，同時也會繼續推動該專案的發展和機會。

Okay, thanks. And I think this one's also for Chris, but I have seen how your carbon capture credits flow through your income statement. Can you just remind me regarding bonus depreciation? Is that something that will impact your GAAP or GAAP and non-GAAP results? Or is that something that strictly shows up on your tax filings? The impact of bonus depreciation is on how I should think about my estimates for next year. Does that impact them or is the impact solely going to be reflected on your tax-based filings?

好的，謝謝。我覺得這個問題也應該問克里斯，但我已經看到你的碳捕獲額度是如何體現在你的損益表中的。可以提醒我一下關於獎金折舊的相關事宜嗎？這是否會影響您的GAAP或GAAP及非GAAP表現？或者說，這只會反映在你的報稅表上？額外折舊的影響在於我該如何看待明年的財務預測。這會對他們產生影響嗎？還是說影響只會反映在你的報稅中？

Yeah. No. Great question. Just as a reminder, the 100% bonus depreciation is really -- affects our cash tax rate. So if you think about our effective tax rate, it looks at and tries to book the expected, I call it tax consequences of what our US GAAP financial statements are. So I would expect the changes in the One Big Beautiful Bill Act won't have a significant impact on the effective tax rate, but it does have a very significant impact on our cash tax rate.

是的。不。問得好。再次提醒，100% 的額外折舊確實會影響我們的現金稅率。所以，如果你考慮我們的實際稅率，它會檢視並試圖記錄我們美國通用會計準則財務報表所預期的稅務後果。因此，我預計《一項宏偉法案》的修改不會對實際稅率產生重大影響，但會對我們的現金稅率產生非常重大的影響。

So -- and to just give you a little color, the biggest benefit on bonus depreciation is on acquired and placed in service assets after January 19 of this year. So the dollar benefit of projects that qualify for both of those is $2 million for the calendar year '25.

所以——為了讓您更清楚地了解情況，額外折舊的最大好處是適用於今年 1 月 19 日之後購買並投入使用的資產。因此，符合這兩項條件的項目在 2025 年日曆年可獲得的美元收益為 200 萬美元。

As we move forward to 2026, the benefit is going to grow as more of the projects qualify for those criteria. And we expect that number to be mid- in the high-single-digits from a cash tax basis. And we would expect '27 to be even larger than that. So hopefully that gives you a sense there of how it'll get expressed in the order of magnitude as we move forward.so.

隨著我們邁向 2026 年，隨著越來越多的項目符合這些標準，收益將會越來越大。我們預計，以現金稅計算，該數字將在個位數中高段位。我們預計 2027 年的規模還會更大。希望這能讓您大致了解隨著我們不斷推進，其數量級將如何變化。

Okay. No. Very, very helpful. I did get my CPA, but it was a long time ago. Thank you for walking me through that elapsed CPA. I know. I admit it.

好的。不。非常非常有用。我確實考了註冊會計師資格，但那是很久以前的事了。謝謝你詳細地向我解釋了那個過期的CPA（註冊會計師資格）。我知道。我承認。

All right. Yeah. So this one has to do with slide 7, and in particular the next to the last bullet point where you talk about inventory management and then you say cost reduction initiatives for 2026. And I think it was touched on briefly in the prepared remarks, but just wondering if you could maybe talk about some of the buckets that go into that category of cost reduction initiatives for 2026? Thank you.

好的。是的。所以這與第 7 張投影片有關，特別是倒數第二個要點，你在那裡談到了庫存管理，然後你說到了 2026 年的成本削減計劃。我認為在準備好的發言稿中已經簡要提及了這一點，但我想請您談談2026年成本削減計劃中都包含哪些方面？謝謝。

Sure. I mean, as you would expect, our normal course focus on productivity includes things like optimizing yield, certainly, inflationary energy environments, energy utilization programs like this. Here specifically, David, we're programmatically setting up to really address non-manpower fixed costs.

當然。我的意思是，正如你所預料的那樣，我們通常的課程重點是生產力，包括優化產量、通貨膨脹的能源環境以及像這樣的能源利用計劃。David，具體來說，我們正在透過程式化的方式，真正解決非人力固定成本問題。

You may see this across other companies when they announce these types of programs. We believe that there is a meaningful opportunity for us to, I would say, target that programmatically, and that's what we're really pointing to here.

你可能會在其他公司宣布此類項目時看到類似的情況。我們認為，我們有機會透過程序化手段來精準定位目標受眾，而這正是我們真正想表達的。

So we would be in a position as we continue to set ourselves up for that. It's likely a two-year type of a program, but in February, we'd be happy to come back and certainly clarify and quantify what we expect to be our 2026 targets and what our full run rate opportunity set would be for that program.

因此，隨著我們繼續為此做好準備，我們將處於有利地位。這可能是一個為期兩年的項目，但我們很樂意在二月回來，明確並量化我們對 2026 年目標的預期，以及該項目的完整運行率機會集。

Sure. Okay. All right. Very good. And let me just ask but am I -- if I'm the only one here, I just have one or two additional questions. Would that be okay? Or is there some -- if not, I can get back in the queue.

當然。好的。好的。非常好。還有，請容許我問一下──如果這裡只有我一個人的話，我還有一兩個問題。這樣可以嗎？或者還有嗎？如果沒有，我可以重新排隊。

Sure, David. Go ahead.

當然可以，大衛。前進。

Okay. Earlier this quarter, you did put out a press release regarding the, I guess, settlement over the -- your intellectual property for, I guess, EZ-Blox and I read the release with interest. I don't have it right in front of me, but I believe it was a settlement that your company considered satisfactory.

好的。本季早些時候，你們發布了一份新聞稿，內容是關於你們的智慧財產權（我猜是 EZ-Blox 的智慧財產權）的和解協議，我饒有興趣地閱讀了這份新聞稿。我手邊沒有這份文件，但我相信那是一份貴公司認為令人滿意的和解協議。

And I was just wondering if, qualitatively, you might be able to discuss the nature of the settlement. In other words, are they going to be a new customer for you longer-term? Or was there a monetary settlement? What was the nature of the settlement in that intellectual property dispute that you considered to your satisfaction?

我只是想問一下，您能否就和解的性質進行一些定性方面的討論。換句話說，他們會成為你的長期新客戶嗎？還是雙方達成了金錢和解？您認為在那起智慧財產權糾紛中達成的和解方案是什麼？

Yeah. This is, I think, a win for us, obviously, when you spend the time, talent, and treasure to put good IP in place, you want to protect it. And so we have been certainly defending that opportunity set for ourselves. And so we certainly were pleased that we were able to agree and resolve the differences of opinion there with the various parties. And yes, with all agreements, there is some monetary settlement. You have an agreement relative to the patent use and upholding licensing from that regard.

是的。我認為這對我們來說顯然是一場勝利，當你投入時間、才能和財力去打造優秀的智慧財產權時，你自然會想要保護它。因此，我們一直在努力捍衛我們自己所擁有的機會。因此，我們非常高興能夠與各方達成一致，解決彼此之間的意見分歧。是的，所有協議都包含一定的金錢結算。你們之間就專利使用和相關許可事宜達成了協議。

But I think importantly here, it allows us to set up the right customer and distribution base that is living by the rightful upholding of the IP and allowing us to make sure that importers that are coming from other regions of the world that are violating [SADA IP] can be held at bay. So we do believe that ultimately this sets us up for increased sales as a result.

但我認為更重要的是，它使我們能夠建立正確的客戶和分銷基礎，這些客戶和分銷商秉持著正確維護知識產權的原則，並且使我們能夠確保來自世界其他地區侵犯[SADA知識產權]的進口商受到抵制。因此我們相信，最終這將為提高銷售額奠定基礎。

And that does conclude our question-and-answer session. I'd like to turn the conference back over to Erin Kane for closing remarks.

我們的問答環節到此結束。我謹將會議交還給艾琳凱恩，請她作閉幕致詞。

Thank you all again for your time and interest this morning. AdvanSix is a resilient company and we are positioning ourselves to win long-term. We're navigating a challenging market environment with discipline and agility while continuing to make risk-adjusted investment decisions to support through-cycle profitability and sustainable performance.

再次感謝各位今天上午抽出時間並對此表示關注。AdvanSix是一家具有韌性的公司，我們正在為長期成功做好準備。我們正以嚴謹的態度和靈活的行動來應對充滿挑戰的市場環境，同時繼續做出經風險調整的投資決策，以支持週期性獲利能力和永續績效。

We're not just reacting to market conditions; we're shaping our future with a clear focus on value creation. And we're doing it with an integrated business model, durable competitive advantage, and a healthy balance sheet. With that, we look forward to speaking with you again next quarter. Stay safe and be well.

我們並非只是對市場狀況做出反應；我們正在以創造價值為明確目標，塑造我們的未來。我們憑藉一體化的商業模式、持久的競爭優勢和健康的資產負債表實現了這一目標。因此，我們期待下個季度再次與您交流。注意安全，保重。

Thank you. That does conclude our conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful weekend.

謝謝。我們的電話會議到此結束。感謝各位蒞臨今天的報告會。現在您可以斷開線路，祝您週末愉快。