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

AdvanSix (NYSE:ASIX) announced its earnings results on Wednesday. The company reported ($0.24) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.20), FiscalAI reports. AdvanSix had a negative net margin of 1.40% and a negative return on equity of 2.29%. 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 Up 2.9%

AdvanSix stock traded up $0.48 during trading hours on Friday, reaching $16.72. The company had a trading volume of 379,587 shares, compared to its average volume of 333,227. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.20 and a quick ratio of 0.70. The company has a 50-day moving average price of $16.25 and a 200 day moving average price of $19.40. The firm has a market cap of $451.41 million, a price-to-earnings ratio of -19.90 and a beta of 1.27. AdvanSix has a 12-month low of $14.10 and a 12-month high of $26.73.

AdvanSix Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Tuesday, November 17th will be given a dividend of $0.16 per share. This represents a $0.64 annualized dividend and a yield of 3.8%. The ex-dividend date is Tuesday, November 17th. AdvanSix’s dividend payout ratio (DPR) is presently -96.97%.

Analyst Ratings Changes

Several research analysts have commented on the stock. Truist Financial decreased their price target on shares of AdvanSix from $20.00 to $18.00 and set a “hold” rating on the stock in a research note on Monday, August 10th. Wall Street Zen lowered shares of AdvanSix from a “hold” rating to a “sell” rating in a report on Saturday, August 8th. Finally, Weiss Ratings cut shares of AdvanSix from a “sell (d+)” rating to a “sell (d)” rating in a research report on Friday, August 21st. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus 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.