AdvanSix Inc.ASIX

AdvanSix Inc. Earnings Per Share Disclosure

10-KFiled Feb 20, 20263 min read
Earnings Per Share
The details of the earnings per share calculations for the years ended December 31, 2025, 2024 and 2023 are as follows:
 Years Ended December 31,
 202520242023
Basic
   
Net Income
$49,286 $44,149 $54,623 
Weighted average common shares outstanding
26,901,046 26,828,338 27,302,254 
EPS – Basic
$1.83 $1.65 $2.00 
 Years Ended December 31,
 202520242023
Diluted
   
Net Income
$49,286 $44,149 $54,623 
Weighted average common shares outstanding – Basic
26,901,046 26,828,338 27,302,254 
Dilutive effect of unvested equity awards
426,403 426,875 705,376 
Weighted average common shares outstanding – Diluted
27,327,449 27,255,213 28,007,630 
EPS – Diluted
$1.80 $1.62 $1.95 
Diluted EPS is computed based upon the weighted average number of common shares outstanding for the year plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the year.

The diluted EPS calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period. For the years ended December 31, 2025, 2024 and 2023, stock options of 950,283, 834,288 and 475,359, respectively, were anti-dilutive and excluded from the computations of dilutive EPS.

In September 2017, the Board of Directors (the "Board") adopted the AdvanSix Inc. Deferred Compensation Plan (the “DCP”), effective January 1, 2018. Pursuant to the DCP, our directors may elect to defer their cash retainer fees and allocate their deferrals to the AdvanSix stock unit fund. Each unit allocated under the stock unit fund represents the economic equivalent of one share of common stock. Units are paid out in shares of AdvanSix common stock upon distribution. As of December 31, 2025, a total of 80,850 units were allocated to the AdvanSix stock unit fund under the DCP.

On May 4, 2018, the Company announced that the Board authorized a share repurchase program of up to $75 million of the Company’s common stock. On February 22, 2019, the Company announced that the Board authorized a share repurchase program of up to an additional $75 million of the Company's common stock, which was in addition to the remaining capacity available under the May 2018 share repurchase program. Repurchases may be made, from time to time, on the open market, including through the use of trading plans intended to qualify under Rule 10b5-1 of the Exchange Act of 1934, as amended. The size and timing of these repurchases will depend on pricing, market and economic conditions, legal and contractual requirements and other factors. The share repurchase program has no expiration date and may be modified, suspended or discontinued at any time. The par value of the shares repurchased is applied to Treasury stock and the excess of the purchase price over par value is applied to Additional paid in capital. During 2025, the Company had repurchased 61,660 shares of common stock, all of which were withheld to cover the tax withholding obligations in connection with the vesting awards, for an aggregate of $1.7 million at a weighted average market price of $26.90 per share. The purchase of shares reduces the weighted average number of shares outstanding in the basic and diluted earnings per share calculations.

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2023Feb 16, 2024
2022Feb 17, 2023
2021Feb 18, 2022

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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