AdvanSix (NYSE:ASIX) Releases Quarterly Earnings Results, Misses Estimates By $0.20 EPS

Key Points

• AdvanSix reported a quarterly loss of $0.24 per share, missing analyst estimates by $0.20, despite revenue of $430.8 million exceeding expectations. Sales rose 15%, but adjusted EBITDA fell $10 million year over year to $15 million amid raw-material costs and lower production.
• Cash flow improved, with $48 million in operating cash flow and $30 million in free cash flow. Management sees a path to break-even free cash flow for full-year 2026, excluding a potentially delayed $18 million tax refund.
• AdvanSix was selected for proposed $47 million in USDA funding for a $98 million project to modernize its Hopewell facility and add ammonia capacity; final grant approvals are still pending.

AdvanSix (NYSE:ASIX - Get Free Report) announced its quarterly earnings data on Wednesday. The company reported ($0.24) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.20), FiscalAI reports. AdvanSix had a negative return on equity of 1.28% and a negative net margin of 1.14%. The company had revenue of $430.81 million for the quarter, compared to analysts' expectations of $426.00 million.

Here are the key takeaways from AdvanSix's conference call:

• Third-quarter sales rose 15% to $431 million, largely on higher pricing, but adjusted EBITDA fell $10 million year over year to $15 million. A $65 million raw-material cost headwind and reduced production, which hurt fixed-cost absorption, weighed on results; pricing largely offset benzene and propylene inflation but not sulfur costs in Plant Nutrients.
• Cash generation improved: operating cash flow was $48 million and free cash flow was $30 million in the quarter, supported by disciplined working capital and lower capital spending. Management sees a path to break-even free cash flow for full-year 2026, excluding an expected $18 million 45Q refund that may be delayed until 2027.
• Management expects a year-over-year price-over-raw-material headwind in the fourth quarter, with high sulfur costs continuing to pressure Plant Nutrients. It sees potential for tighter ammonium sulfate supply and improved demand into spring 2027, while noting that nylon caprolactam production remains about 8%–10% below levels associated with healthier markets amid weak building and construction demand.
• AdvanSix was selected for $47 million in proposed USDA funding toward Project CENTURY, a planned $98 million investment to modernize Hopewell and add about 84,000 tons of annual ammonia capacity. The company expects an attractive return above its 20% hurdle rate, though final grant approvals remain in process and major spending is expected later in the project.

AdvanSix Trading Down 2.3%

ASIX traded down $0.36 during trading on Wednesday, hitting $15.22. 158,771 shares of the company's stock were exchanged, compared to its average volume of 331,282. The company has a current ratio of 1.28, a quick ratio of 0.70 and a debt-to-equity ratio of 0.35. AdvanSix has a 1 year low of $14.10 and a 1 year high of $26.73. The stock has a 50 day moving average price of $16.28 and a 200 day moving average price of $19.41. The firm has a market cap of $410.83 million, a P/E ratio of -23.05 and a beta of 1.27.

AdvanSix Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th were given a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date of this dividend was Tuesday, August 18th. AdvanSix's dividend payout ratio is -96.97%.

Analysts Set New Price Targets

A number of equities analysts have weighed in on ASIX shares. Weiss Ratings downgraded shares of AdvanSix from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, August 21st. Wall Street Zen cut shares of AdvanSix from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. Finally, Truist Financial dropped their price objective on AdvanSix from $20.00 to $18.00 and set a "hold" rating for the company in a report on Monday, August 10th. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, AdvanSix presently has a consensus rating of "Reduce" and a consensus price target of $21.50.

About AdvanSix

AdvanSix Inc NYSE: ASIX is a diversified chemistry company that manufactures and sells polymer resins, chemical intermediates and performance products. Its portfolio includes nylon 6 resin, caprolactam, ammonium sulfate fertilizer, acetone and other chemical products used in a range of industrial and consumer applications.

The company's nylon 6 products are used in fibers, engineered plastics, films, automotive components, electrical and electronics products, and other applications. Its chemical intermediates support the production of coatings, adhesives, solvents and other materials, while its ammonium sulfate products are marketed as nitrogen and sulfur fertilizers for agricultural use.

AdvanSix was established as an independent, publicly traded company in 2016 following its separation from Honeywell International.

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