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

AdvanSix (NYSE:ASIX) posted its quarterly earnings results on Wednesday. The company reported ($0.24) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.20), FiscalAI reports. AdvanSix had a negative net margin of 1.14% and a negative return on equity of 1.28%. The company had revenue of $430.81 million during 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 0.6%

Shares of ASIX stock traded down $0.09 during trading hours on Wednesday, hitting $15.49. The company had a trading volume of 378,500 shares, compared to its average volume of 332,383. The company’s fifty day moving average is $16.28 and its 200 day moving average is $19.41. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.28 and a quick ratio of 0.70. AdvanSix has a fifty-two week low of $14.10 and a fifty-two week high of $26.73. The stock has a market capitalization of $418.31 million, a PE ratio of -23.47 and a beta of 1.27.

AdvanSix Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Tuesday, November 17th will be issued a $0.16 dividend. This represents a $0.64 annualized dividend and a dividend yield of 4.1%. The ex-dividend date is Tuesday, November 17th. AdvanSix’s dividend payout ratio is currently -96.97%.

Wall Street Analyst Weigh In

ASIX has been the subject of several analyst reports. Truist Financial dropped their target price on AdvanSix from $20.00 to $18.00 and set a “hold” rating for the company in a report on Monday, August 10th. Weiss Ratings lowered shares of AdvanSix from a “sell (d+)” rating to a “sell (d)” rating in a research report on Friday, August 21st. Finally, Wall Street Zen cut AdvanSix from a “hold” rating to a “sell” rating in a report on Saturday, August 8th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, AdvanSix presently has a consensus rating of “Reduce” and an average target price of $21.50.

AdvanSix Company Profile

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.