Revenue
AdvanSix serves approximately 375 customers annually, primarily in the United States, spanning a wide variety of industries worldwide. For 2025, 2024 and 2023, the Company's ten largest customers accounted for approximately 40%, 38% and 39% of total sales, respectively.
We typically sell to customers under master services agreements, with primarily one-year terms, or by purchase orders. We have historically experienced low customer turnover and have an average customer relationship of approximately 20 years. Our largest customer is Shaw Industries Group Inc. ("Shaw"), a significant consumer of caprolactam and Nylon 6 resin. We sell caprolactam and Nylon 6 resin to Shaw under a long-term agreement. Sales to Shaw were 10% of our total sales for the years ended December 31, 2025 and 2024, and 11% for the year ended December 31, 2023.
The Company’s revenue by product line, and related approximate percentage of total sales for 2025, 2024 and 2023 were as follows:
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| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Nylon | $ | 309,678 | | | 20% | | $ | 348,501 | | | 23% | | $ | 356,632 | | | 23% |
| Caprolactam | 271,370 | | | 18% | | 276,303 | | | 18% | | 298,375 | | | 20% |
| Plant Nutrients* | 563,688 | | | 37% | | 458,152 | | | 30% | | 477,929 | | | 31% |
| Chemical Intermediates* | 377,497 | | | 25% | | 434,601 | | | 29% | | 400,663 | | | 26% |
| $ | 1,522,233 | | | 100% | | $ | 1,517,557 | | | 100% | | $ | 1,533,599 | | | 100% |
* In 2024, the Company transferred certain products between its Chemical Intermediates product line and its Plant Nutrients product line to align more closely with its current sales structure. Historical information was reclassified to reflect these changes for all periods presented in the Consolidated Financial Statements. Total revenue amounts were not impacted for either period.
The Company’s revenues by geographic area, and related approximate percentage of total sales for 2025, 2024 and 2023 were as follows:
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| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| United States | $ | 1,309,755 | | | 86 | % | | $ | 1,304,971 | | | 86 | % | | $ | 1,250,094 | | | 82 | % |
| International* | 212,478 | | | 14 | % | | 212,586 | | | 14 | % | | 283,505 | | | 18 | % |
| Total | $ | 1,522,233 | | | 100 | % | | $ | 1,517,557 | | | 100 | % | | $ | 1,533,599 | | | 100 | % |
* Predominantly Latin America and Canada.
Deferred Income and Customer Advances
The Company defers revenues when cash payments are received in advance of our performance. Customer advances relate primarily to sales from the ammonium sulfate business. Below is a roll-forward of Deferred income and customer advances for the twelve months ended December 31, 2025:
| | | | | | | | | | | |
| Deferred Income and Customer Advances | | | 2025 |
| Opening balance January 1, 2024 | | | $ | 37,538 | |
| Additional cash advances | | | 14,318 | |
| Less amounts recognized in revenues | | | (37,320) | |
| Ending balance December 31, 2025 | | | $ | 14,536 | |
The Company expects to recognize as revenue the December 31, 2025 ending balance of Deferred income and customer advances within one year or less.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.