AdvanSix Q3 sales fall 6%

Reuters
Nov 07
AdvanSix Q3 sales fall 6%

Overview

  • AdvanSix Q3 sales of $374 mln, down 6% yr/yr amid challenging market conditions

  • Adjusted EPS for Q3 at $0.08, reflecting lower pricing in Chemical Intermediates

  • Company cites ongoing benefits from SUSTAIN growth program and strong Plant Nutrients

Outlook

  • AdvanSix expects 2025 capital expenditures to be $120-$125 mln, reflecting $30 mln cash conservation

  • Company anticipates continued strength in Plant Nutrients amid higher raw material costs

  • AdvanSix expects cash flow tailwind in 2026 from carbon capture tax credits and bonus depreciation

Result Drivers

  • PLANT NUTRIENTS - Strong performance in Plant Nutrients driven by favorable supply and demand conditions in North America

  • RAW MATERIAL COSTS - Higher raw material input costs impacted pricing strategy, particularly in Chemical Intermediates

  • PRODUCTION ADJUSTMENTS - Co moderated production rates to manage inventory levels amid weak market conditions in Nylon Solutions

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

$374.47 mln

Q3 Adjusted EPS

$0.08

Q3 Net Income

-$2.64 mln

Q3 Adjusted EBITDA

$24.73 mln

Q3 Adjusted EBITDA Margin

6.60%

Q3 Free Cash Flow

$66,000

Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the specialty chemicals peer group is "buy"

  • Wall Street's median 12-month price target for AdvanSix Inc is $28.00, about 35.2% above its November 6 closing price of $18.15

Press Release: ID:nBw6hpNtka

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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