AdvanSix (ASIX) risk factors, FY2025 10-K

AdvanSix's FY2025 10-K, filed Feb 20, 2026, lists 30 risk factors in 4 groups. Against the prior year's 31: 2 new, 3 dropped, 4 substantially reworded.

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Risk factors listed
304 groups
New this year
2vs 31 last year
Dropped
3since the prior 10-K
Substantially reworded
4of those kept
Section length
11k wordsItem 1A

What the changes say

  • AI use by AdvanSix, employees, and third-party providers is newly identified as a confidentiality, privacy, regulatory, and liability risk.
  • Newly emphasized toxicological or health-related findings involving raw materials or products could trigger recalls, bans, higher compliance costs, or liability.
  • ESG disclosure, internal-control implementation, and stock-price volatility risks were removed from the listed risk factors.
  • Union coverage declined to approximately 720 employees, or 51%, with agreements now expiring between 2028 and 2029.

What changed since the prior 10-K

New

  • NewRisks Relating to Our Business

    We are subject to risks associated with the potential use of AI in our operations and by third-party providers that we may engage with

    AI used by AdvanSix, employees, or third-party providers could expose personal data, trade secrets, and confidential information, causing penalties, litigation, or reputational damage.

  • NewRisks Relating to Legal and Regulatory Matters

    indirect effect on our financing and operations by disrupting the supply of raw materials to us and transportation or process-related services provided by companies or suppliers with whom we have a business relationship

    Toxicological or health-related findings involving raw materials or products could create liability, regulatory costs, recalls, bans, or reduced marketability; acetone and amines may implicate the Drug Enforcement Act.

Dropped

  • DroppedRisks Relating to Legal and Regulatory Matters

    also incur additional expense as a result of domestic and international regulations requiring disclosures regarding GHG emissions and/or broader ESG matters, related performance indicators and other factors

  • DroppedRisks Relating to Legal and Regulatory Matters

    experience difficulties in their implementation, our business and operating results could be harmed, we could fail to meet our reporting obligations, and there could be a material adverse effect on our stock price

  • DroppedRisks Relating to Our Common Stock and the Securities Market

    fluctuations in our stock price based on temporary or speculative market perceptions or other factors that do not necessarily reflect the underlying fundamentals and prospects of our business

Reworded

  • 53% rewrittenRisks Relating to Our Business

    Data privacy, information security and protection of confidential information may require significant resources and present certain risks

    No substantive change; the data privacy, security breach, unauthorized-access, and operational-disruption discussion is unchanged.

  • 40% rewrittenRisks Relating to Our Common Stock and the Securities Market

    Our stock price may fluctuate significantly and investments in our stock could lose value

    The financing risk now specifically includes obtaining financing or refinancing the existing credit facility.

  • 35% rewrittenRisks Relating to Legal and Regulatory Matters

    Failure to maintain effective internal controls could adversely impact our ability to meet our reporting requirements

    No substantive change; the Sarbanes-Oxley internal-control and auditor-attestation requirements remain described the same way.

  • 26% rewrittenRisks Relating to Our Business

    Some of our workforce is represented by labor unions and our business could be harmed in the event of a prolonged work stoppage

    Union-covered employees decreased from approximately 760 to 720 and from 52% to 51%; agreement expirations shifted from 2025–2029 to 2028–2029.

All 30 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Cautionary Statement Concerning Forward-Looking Statements

Risks Relating to Our Business

  1. 02The industries in which we operate experience cyclicality which can cause significant fluctuations in our cash flows and may adversely affect our business, financial condition and results of operations
  2. 03Difficult and volatile conditions in the overall economy, particularly in the United States but also globally, and in the capital, credit and commodities markets could adversely affect our business, financial condition and results of operations
  3. 04Any significant unplanned downtime or material disruption impacting any of our production facilities, logistics operations or information technology infrastructure, or any third party on which we rely, may adversely affect our business, financial condition and results of operations
  4. 05Raw material price fluctuations and the ability of key suppliers to meet delivery requirements can increase the cost of our products and services, impact our ability to meet commitments to customers and cause us to incur significant liabilities
  5. 06Disruptions in transportation or significant changes in transportation costs could adversely impact our business, financial condition and results of operations
  6. 07The loss of one or more of our significant customers could adversely affect our business, financial condition and results of operations
  7. 08Our operations and growth projects require substantial capital, and we may not be able to obtain additional capital that we need in the future on favorable terms or at all
  8. 09Our competitive position, as well as our failure to develop and commercialize new products or technologies to address our customers’ needs and to effectively compete, could adversely affect our business, financial condition and results of operations
  9. 10Hazards and compliance costs associated with chemical manufacturing, storage and transportation could adversely affect our business, financial condition and results of operations
  10. 11Our business, financial condition and results of operations could be adversely affected by litigation and other commitments and contingencies
  11. 12The occurrence or threat of extraordinary events, including terrorist attacks, may disrupt our operations and could adversely affect our business, financial condition and results of operations
  12. 13Failure to protect our intellectual property could adversely affect our business, financial condition and results of operations
  13. 14Some of our workforce is represented by labor unions and our business could be harmed in the event of a prolonged work stoppage26% rewritten
  14. 15We depend on the recruitment and retention of qualified personnel, and our failure to attract and retain such personnel could adversely affect our business, financial condition and results of operations
  15. 16Data privacy, information security and protection of confidential information may require significant resources and present certain risks53% rewritten
  16. 17We are subject to risks associated with the potential use of AI in our operations and by third-party providers that we may engage withNew
  17. 18We may be required to make significant cash contributions to our defined benefit pension plan
  18. 19We may be required to record significant charges from impairment to goodwill, intangibles, and other long-lived assets
  19. 20Exposure to risks and events beyond our control could adversely impact our business, financial condition and results of operations

Risks Relating to Our Indebtedness

  1. 21We are subject to certain risks associated with our indebtedness

Risks Relating to Legal and Regulatory Matters

  1. 22indirect effect on our financing and operations by disrupting the supply of raw materials to us and transportation or process-related services provided by companies or suppliers with whom we have a business relationshipNew
  2. 23Our operations are dependent on numerous required permits and approvals
  3. 24We are subject to risks related to adverse trade policies inherent in international sales and associated regulations in certain important markets for our products
  4. 25Failure to maintain effective internal controls could adversely impact our ability to meet our reporting requirements35% rewritten
  5. 26Our spin-off could result in significant tax liability

Risks Relating to Our Common Stock and the Securities Market

  1. 27Our stock price may fluctuate significantly and investments in our stock could lose value40% rewritten
  2. 28We cannot guarantee the timing, declaration, amount or payment of any dividends, and the terms of our indebtedness could limit our ability to pay dividends on our common stock
  3. 29Stockholder percentage ownership in AdvanSix may be diluted in the future
  4. 30Certain provisions in our Amended and Restated Certificate of Incorporation and Amended and Restated By-laws and Delaware law may discourage takeovers

Other AdvanSix 10-Ks

  • FY2024 10-K risk factors
    31 risks

    AdvanSix faces primary risks from chemical manufacturing hazards, cyclical demand for products like Nylon 6 resin and ammonium sulfate, and raw material cost volatility. Operations depend heavily on continuous plant uptime, logistics networks, and key suppliers for materials like cumene and natural gas. Regulatory compliance, environmental permits, and labor union contracts across major employee bases also significantly impact business stability.

    Filed Feb 21, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.