Image source: The Motley Fool.
Date
Friday, Aug. 1, 2025 at 1:30 p.m. ET
Call participants
President and Chief Executive Officer — Erin N. Kane
Interim Chief Financial Officer — Chris Graham
Need a quote from one of our analysts? Email [email protected]
Takeaways
Sales: $410 million for Q2 2025, down approximately 10% compared to the prior year, with an 8% decline attributed to lower sales volume, primarily from softer nylon end-market demand.
Raw material pass-through pricing: Down 5% in Q2 2025 due to reduced benzene costs, offset by a 3% market-based pricing increase from plant nutrients.
Adjusted EBITDA: Adjusted EBITDA was $56 million for Q2 2025, translating to a 13.6% adjusted EBITDA margin.
Adjusted earnings per share: Adjusted earnings per share was $1.24 for Q2 2025, reflecting a 0.9% effective tax rate due to $8 million in 45Q carbon capture tax credits claimed for 2020.
Cash flow from operations: $21 million cash flow from operations for Q2 2025, $29 million lower than the prior year, mainly from reduced net income, timing differences in 45Q tax credit cash, and unwinding prior year ammonium sulfate pre-buy advances.
Capital expenditures: $28 million in capital expenditures for Q2 2025, $5 million lower than Q2 2024, in line with progression of sustained growth and tension prioritization.
Free cash flow: Negative $7 million of free cash flow for Q2 2025, with management guiding for strengthened generation and positive full-year results.
EBITDA drivers: Pricing over raw materials was unfavorable by $10 million in Q2 2025, with acetone margin contraction and headwinds from higher sulfur and natural gas impacting plant nutrients.
Ammonium sulfate domestic granular sales volume: Domestic granular sales volume increased 7% for the North American fertilizer year (July through June), attributed to the sustained growth program.
Granular conversion capability: Granular conversion is expected to reach 72% by the end of the North American fertilizer year in 2025, up from approximately 70% at the end of 2024.
Carbon capture tax credits: $8 million claimed in Q2 2025, $20 million in total 45Q carbon capture tax credits claimed for the 2018-2020 tax years; management sees this as a "significant value driver."
CapEx forecast: Lowered to $135 million-$145 million in capital expenditures for 2025, reflecting refined execution timing on growth and risk mitigation projects.
U.S. market exposure: 90% of sales and 90% of procurement are domestic, providing insulation from first-order tariff impacts.
ERP upgrade: Nearing completion, with anticipated benefits in process streamlining and analytics.
Corporate social responsibility recognition: Received 2025 EcoVadis gold rating, placing in the top 3% of all companies assessed.
Summary
AdvanSix(ASIX -1.41%) reported a 10% sales decline in Q2 2025 compared to the prior year, driven largely by lower nylon volumes and raw material pricing dynamics, but adjusted EBITDA margin held at 13.6%, supported by benefits from plant nutrients pricing. The company leveraged $8 million in 45Q carbon capture credits to achieve a sharply reduced effective tax rate of 0.9%, supporting earnings per share and anticipated cash flow improvements for the remainder of the year. Management lowered the CapEx outlook and emphasized disciplined cost management, cash preservation, and focused investments in enterprise systems and core growth initiatives. Strategic positioning in domestic markets and balanced end-market exposure may enable mitigation of external commodity and trade headwinds.
Interim CFO Chris Graham stated, "We expect free cash flow generation to strengthen in the second half and we are targeting a positive full-year free cash flow."
CEO Erin Kane highlighted, "90% of our sales are staying within The US," characterizing the company as largely insulated from direct tariff effects.
Kane also noted that "Premiums of ammonium sulfate to urea are continuing in about the 75% range for 2025," supporting favorable realized sulfur pricing.
Graham explained that the receipt of 45Q tax credit cash refunds is likely in the current calendar year as pending IRS audits close.
Industry glossary
45Q tax credits: U.S. federal credits issued for carbon capture, utilization, and sequestration, determined by the volume of CO₂ captured and applied over a twelve-year eligibility window.
Granular conversion: The process of converting ammonium sulfate into granular form, enhancing application efficiency and value in agricultural markets.
Ammonium sulfate prebuy program: Advance purchasing mechanism impacting cash flow timing, wherein customers pay ahead of delivery for ammonium sulfate fertilizer.
Enterprise resource planning (ERP) system: Integrated software platform supporting business process management, data analytics, and operational coordination.
Acetone margin: The price spread between acetone and its primary input, refinery grade propylene, representing the profitability of acetone production.
Life cycle assessment (LCA): Environmental analysis quantifying greenhouse gas emissions across product lifespans, utilized for regulatory and tax credit calculations.
Full Conference Call Transcript
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 and 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. 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.
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, namely natural gas and sulfur. Supported by our healthy balance sheet, we have supplemented our commercial and operational performance with investment in growth and 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. 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 to $145 million, reflecting the planned progression of our sustained growth program, refined execution timing to address critical enterprise risk mitigation, and tension prioritization in our base CapEx. 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 period. This continues to represent a significant value driver for our company and stakeholders. 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 U.S.-based manufacturer aligned to domestic supply chains and energy markets as well as a diverse set of end market applications. Lastly, we're happy to have Chris Graham 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 spent nearly twenty years at Honeywell, in various finance leadership positions including as Controller of the Aerospace Division and earlier in his tenure as CFO of the Resins and Chemicals business, that ultimately became AdvanSix. Let me now turn the call over to Chris to walk through the financials.
Chris Graham: 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 four 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. 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%. 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 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 pre-buy cash advances.
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. Now let's turn to slide five. 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. 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. Let's turn to slide six.
Through the enactment of the One Big Beautiful Bill Act, we anticipate taking advantage of notable tax benefits, including a meaningful reduction on our cash tax rate, driven by a 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 twelve-year period.
Our approved 2018 life cycle assessment or LCA of greenhouse gas emissions allows a federal tax credit based on the amount of CO2 captured and utilized that would otherwise have been 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. 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 remaining ahead of us for future periods. Now let me turn the call back to Erin.
Erin Kane: Thanks, Chris. I'm now on slide seven to discuss each of our key product lines. Starting with our Plant Nutrients 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. 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.
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 2025 to reach a milestone of 72% granular conversion, up from roughly 70% at the end of 2024. Moving into the new season fill, prices reset each year. We have entered 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.
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 mixed 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. Let's turn to Slide eight. 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, global oversupply conditions holding industry pricing steady amid declining input costs. 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 tariffs and trade policy impacting demand. Outside of the U.S., 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. This includes focusing on optimizing our fixed cost structure. 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 remain healthy and in line with cycle averages. 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. For us, acetone is a key product line with a perform and optimize to meet customer needs 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 continues 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. 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. Have been operating with structural tariffs in place globally across our value chains for quite some time. 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 U.S., and our key product lines in a net import industry position. 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. With that, Adam, let's move to Q&A.
Adam Kressel: Thanks, Erin. Wyatt, can you please open the line for questions?
Operator: Thank you. We will now begin the question and answer session. At this time, again, it is star then one. Our first question will come from David Silver with Freedom Capital. Please go ahead.
David Silver: Yes. Hi. Good morning. Am I coming through clearly, please?
Erin Kane: Yes. Yeah. We can hear you. Good to hear you. Yep.
David Silver: Okay. Sorry. My phone is a little dodgy here. Okay. Thank you very much. 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 program is shaping up and maybe overall, you're looking at the next planning cycle? And then separately, there has been some variation in the pricing relationship between ammonium sulfate, at least on the list price basis. And then, you know, 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? Thank you.
Erin Kane: Yeah. Thanks for that. And, you know, first, I may start off by just reiterating that, you know, we're coming off a strong fertilizer year and where we saw higher pricing, you know, continuing to, you know, drive our sales increase 7% in the fertilizer year, you know, with our domestic granular AS sales volume, you know, again, continue to be supported by the benefits of the sustained growth program and, the favorable North American supply and demand conditions, You know, 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 filled program.
Again, here, again, just a compliment to, you know, the work done by our team as growers continue to recognize the sulfur value proposition. Proposition. You know, every year, we're continuing to see more and more interest in field programs, particularly as players down the value chain are focused on ensuring supply, which is supporting the pricing, consideration. You know, when you think about, the premiums, when you look long range, and long term, you know, 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, you know, 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, a 300 as an example. So We're still selling the software value at a very good price which is what we're really focused on. And so as we achieve these robust premiums, it's clear that growers are seeing that value willingness to pay and then obviously, you know, that supply demand, will always play a factor. So, you know, each year, we're, you know, seeing perhaps that we may be decoupling a bit from, you know, Nitrin based on growing software value proposition.
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. We recognize farmer economics are a bit more challenging But, again, with the signs of the overall good sales program in 2025, we're seeing that strong uptake on our demand, which is a positive reinforcement that the value chain does believe in sulfur as a key nutrient to improve economics for the same acreage. So we'll lot more to go, but things are looking in the right direction.
David Silver: Okay. Great. Thank you for that. 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 you know, what I would say were very weak results. Your results may be there's some puts and takes there, but you're probably not as bad as some that have reported in recent days. Maybe if you could just focus 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, the medium term, let's say, through the next couple two, three quarters Thank you.
Erin Kane: Certainly, do recognize that, you know, the environment in which we're operating in, you know, has been dynamic, right, in a number of value chains, number of end applications. But we remain cautiously optimistic given the diversified nature of our portfolio. And I think that came through when they Q2 results, right, and coupled with our integrated business model. It also includes our, you know, formula and index based pricing mechanisms that continue to support, you know, pricing and value across various parts of the business. You know, relative, you know, to the broader, you know, uncertainty, you know, relative to others, we have this strength of being a US based manufacturer.
You know, all of our assets you know, are here. 90% of our sales are staying within The US. And certainly, we're procuring, you know, most materials from The US. 90% of all of our suppliers spend is procured domestically. And so we get the opportunity set real to good value in end markets, in this region. And, know, as we've shared before, relatively insulated from first order impacts you know, to tariffs. We do have the downstream you know, uncertainty, if you will. And that's probably predominantly what we, you know, see in nylon. You know, the price overall spreads have, have increased. You know, we're we're pleased to see that pricing has held, right, in this environment.
So that's allowed us to you know, see that expansion in the particularly with benzene. And, it really just focused on the stability driving the, the opportunity sets into those end markets where we are, you know, can get a differentiated price and hold that stability. You know, on acetone, you know, phenol is mostly impacted. Given the environment, you know, down into building construction. You know, as we shared, that creates a bit of a natural hedge for us. Because 80% of our phenol is consumed internally, And, you know, so globally, that is you know, keeping acetone relatively balanced in the near term.
Here again, you know, pricing, you know, holding, we have a portfolio that is well balanced between small, medium, and large buyer, no customers. So it's affording us, you know, flexibility to move where the value is in the market. We did have to contend with, you know, a spike in propylene costs, earlier this year. Those have stabilized and moderated. You know? So I think that the diversity, the regional footprint, and just our flexibility, we've we've long said that we can navigate through a number of you know, macro environments, and I think the goal here is to continue to put, those proof points on the board.
David Silver: Okay, great. Thank you for that. Maybe if I could just follow-up, I mean, 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 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. But looking ahead, I mean, it can get a little tricky at you know, 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 know, you can maintain those high that give you pretty nice cost advantages. And you're able to place all of your co-produced products into a market? Reasonable markets. Yeah. Hope that made sense. Sorry.
Erin Kane: No. I believe I know where you're where you're heading trying to tease out here. And, yeah, I we do have an integrated value chain. That integrated value chain, you know, brings strength to create, you know, our global cost advantage in the monomer for nylon six. Right? So that does afford us you know, as we shared in the past to be able to run, you know, higher utilization rates, you know, than others, which then, as you say, then stuff support you know, the further strength of the business model around the diversification of, the end market applications that we reach with, you know, our diverse chemistries and the other product lines.
You know, when we think about that and oftentimes, you know, we drive to meet demand where it sits, But I would say in nylon right now, as we think about the geographic mix, we're we're being more selective in our export business. You know, in past years, more volume might have been better, but when you look at you know, really where, you know, the global clearing prices, you know, below cash cost for a number of players. You know, Europe is struggling You know, I think, operating rates there are well, you know, 60% or less. You know, we're gonna really maintain some discipline as we navigate these current dynamics.
You know, in the flip side, you know, through these cycles, it's important. We've been working to create more degrees of freedom for ourselves you know, and we learn that through each cycle we, you know, create, levers for ourselves and you know, one of the things that we've mentioned in sustain is invest in, you know, the capabilities around some synthetic production of AS well as part of that you know, road map, you know, to allow us again, you know, how do you navigate through these times, you know, create more flexibility, you know, across the asset base than perhaps we've had in the past.
That allows us to take advantage of the various market opportunities as we go. So, you know, even in a you know, challenge, global nylon, environment. You know, we still see North America here as stable. You know? So that's affording our utilization rates. And then coupled with, you know, the technology and you know, operational levers that we've created for ourselves, you know, give us you know, the, the agility that we're demonstrating here, you know, 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 you know, solely to what we can what we produce there.
David Silver: 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.
And I was just hoping you could comment on some of the levers or some of the bigger items where you know, 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. 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.
Chris Graham: Yes. David for the question there. As we have shared our expected second half cash flow performance is expected to be sequentially better. Would point to probably two, larger levers that we're tracking as we move into the second half. 45Q is one of those levers. Just as a little bit of background into the collective process is, you know, 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. 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's complete, we would expect to receive a refund on those credits, and we believe that these will have in the current calendar year. So that's one item. 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 gonna be better is 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.
Couple 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. And we'll as well, we'd point out our trailing twelve month free cash flow position and performance as an indicator of how we typically perform in a in a second half environment.
Hopefully, hopefully that gives you some context and some thoughts there around why we believe it's going to be sequentially better. Appreciate the question, David.
David Silver: 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?
Chris Graham: Yeah. I don't think we're the rare, but, yeah, We were, we were 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. So
David Silver: Okay. Very good. That's all I have. Thank you very much for all the detail. Appreciate it.
Erin Kane: Great. Great. Thanks, David. We look forward to working with you at Freedom Capital.
David Silver: Very good. Yes. Same here. Thank you.
Operator: 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.
Erin Kane: Thank you all again for your time and interest this morning. We hope this call and discussion have clarified the key considerations 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 improve through cycle profitability, and total shareholder returns. With that, we look forward to speaking with you again next quarter. Stay safe. And be well.
Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.