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AdvanSix Announces Third Quarter 2025 Financial Results

businesswire.com

PARSIPPANY, N.J.--( BUSINESS WIRE)--AdvanSix (NYSE: ASIX), a diversified chemistry company, today announced its financial results for the third quarter ending September 30, 2025. Overall, the Company continued to navigate challenging industry dynamics with a focus on optimizing operational and commercial performance.

Third Quarter 2025 Summary

"In the third quarter, our team executed with agility and discipline as we seasonally entered a new fertilizer year in Plant Nutrients with a strong fall fill program, amid higher raw material input costs, while continuing to realize the ongoing benefits from our SUSTAIN growth program,” said Erin Kane, president and CEO of AdvanSix. “In the face of continued weak market conditions in Nylon Solutions and lower net pricing in Chemical Intermediates year over year as anticipated, we are making the strategic choice to moderate production rates to manage inventory levels with a keen focus on free cash flow. We have a demonstrated track record of navigating through cycles and complex dynamics, and our durable competitive advantage will serve us well through this time."

Summary third quarter 2025 financial results for the Company are included below:

($ in Thousands, Except Earnings Per Share)

3Q 2025

3Q 2024

Variance

Sales

$374,473

$398,187

($23,714)

Net Income (Loss)

(2,638)

22,266

(24,904)

Diluted Earnings Per Share

(0.10)

0.82

(0.92)

Adjusted Diluted Earnings Per Share (1)

0.08

0.88

(0.80)

Adjusted EBITDA (1)

24,734

53,161

(28,427)

Adjusted EBITDA Margin % (1)

6.6%

13.4%

(680) bps

Cash Flow from Operations

26,588

57,250

(30,662)

Capital Expenditures

26,522

30,490

(3,968)

Free Cash Flow (1)(2)

66

26,760

(26,694)

(1)

See “Non-GAAP Measures” included in this press release for non-GAAP reconciliations

(2)

Net cash provided by operating activities less capital expenditures

Sales of $374 million in the quarter decreased approximately 6% versus the prior year. Sales volume decreased approximately 3% primarily driven by softer demand in chemical intermediates and nylon end markets. Raw material pass-through pricing was down approximately 5% following a net cost decrease in benzene and propylene (inputs to cumene which is a key feedstock to our products). Market-based pricing was favorable by approximately 2% driven by continued strength in Plant Nutrients reflecting favorable North American ammonium sulfate supply and demand conditions.

Sales by product line and approximate percentage of total sales are included below:

($ in Thousands)

3Q 2025

3Q 2024 (1)

Sales

% of Total

Sales

% of Total

Nylon

$

79,029

21

%

$

93,693

24

%

Caprolactam

73,137

20

%

76,338

19

%

Plant Nutrients

138,661

37

%

113,552

29

%

Chemical Intermediates

83,646

22

%

114,604

28

%

Total

$

374,473

100

%

$

398,187

100

%

(1) The Company transferred certain products between its Chemical Intermediates product line and its Plant Nutrients product line to align more closely with its current sales structure. Historical information has been reclassified to reflect these changes for all periods presented in the Consolidated Financial Statements. Total revenue amounts were not impacted for either period.

Adjusted EBITDA of $24.7 million in the quarter decreased $28.4 million versus the prior year primarily driven by a decline in Chemical Intermediates pricing, net of raw material costs, and the impact of lower Nylon and Chemical Intermediates sales and production volume.

Adjusted earnings per share of $0.08 decreased $0.80 versus the prior year driven primarily by the factors discussed above.

Cash flow from operations of $26.6 million in the quarter decreased $30.7 million versus the prior year primarily due to lower net income. Capital expenditures of $26.5 million in the quarter decreased $4.0 million versus the prior year.

Outlook

"We are well-positioned as an American manufacturer of essential chemistries serving a diverse set of end market applications with alignment to domestic agriculture, manufacturing supply chains and energy markets. The current market backdrop has been mixed. We've seen continued strength in Plant Nutrients and acetone margins remain near cycle averages, while nylon has been more challenging. In times of uncertainty, we're focused on delivering on controllable levers. This includes continued optimization of production output and sales volume mix while driving productivity to support through-cycle profitability. Taking a disciplined approach to cash management is critical reflected in our prioritization of base capital investments and we anticipate tailwinds in 2026 from 45Q carbon capture tax credits. We are committed to delivering long-term value to our shareholders,” concluded Kane.

Dividend

The Company's Board of Directors declared a quarterly cash dividend of $0.16 per share on the Company's common stock. The dividend is payable on December 2, 2025 to stockholders of record as of the close of business on November 18, 2025.

Conference Call Information

AdvanSix will discuss its results during its investor conference call today starting at 9:30 a.m. ET. To participate on the conference call, dial (844) 855-9494 (domestic) or (412) 858-4602 (international) approximately 10 minutes before the 9:30 a.m. ET start, and tell the operator that you are dialing in for AdvanSix’s third quarter 2025 earnings call. The live webcast of the investor call as well as related presentation materials can be accessed at http://investors.advansix.com. Investors can hear a replay of the conference call from 12 noon ET on Nov 7 until 12 noon ET on Nov 14 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international). The access code is 9358968.

About AdvanSix

AdvanSix is a diversified chemistry company that produces essential materials for our customers in a wide variety of end markets and applications that touch people’s lives. Our integrated value chain of our five U.S.-based manufacturing facilities plays a critical role in global supply chains and enables us to innovate and deliver essential products for our customers across building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives, electronics and other end markets. Guided by our core values of Safety, Integrity, Accountability and Respect, AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, plant nutrients, and chemical intermediates. More information on AdvanSix can be found at http://www.advansix.com.

Forward Looking Statements

This release contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or developments that our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements may be identified by words such as "expect," "anticipate," "estimate," “outlook,” "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should" and "believe" and other variations or similar terminology and expressions. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and difficult to predict, which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: general economic and financial conditions in the U.S. and globally; the potential effects of inflationary pressures, tariffs or the imposition of new tariffs, trade wars, barriers or restrictions, or threats of such actions, changes in interest rates, labor market shortages and supply chain issues; instability or volatility in financial markets or other unfavorable economic or business conditions caused by geopolitical concerns, including as a result of new or proposed legislation or regulatory, trade or other policies in or impacting the U.S., the conflict between Russia and Ukraine, the conflicts in Israel, Gaza and Iran, and related uncertainty in the surrounding region, and the possible expansion of such conflicts; the effect of any of the foregoing on our customers’ demand for our products and our suppliers’ ability to manufacture and deliver our raw materials, including implications of reduced refinery utilization in the U.S.; our ability to sell and provide our goods and services; the ability of our customers to pay for our products; any closures of our and our customers’ offices and facilities; risks associated with increased phishing, compromised business emails and other cybersecurity attacks, data privacy incidents and disruptions to our technology infrastructure; risks associated with operating with a reduced workforce; risks associated with our indebtedness including compliance with financial and restrictive covenants, and our ability to access capital on reasonable terms, at a reasonable cost, or at all, due to economic conditions or otherwise; the impact of scheduled turnarounds and significant unplanned downtime and interruptions of production or logistics operations as a result of mechanical issues or other unanticipated events such as fires, severe weather conditions, natural disasters, pandemics, geopolitical conflicts and related events; price fluctuations, cost increases and supply of raw materials; our operations and growth projects requiring substantial capital; growth rates and cyclicality of the industries we serve including global changes in supply and demand; failure to develop and commercialize new products or technologies; loss of significant customer relationships; adverse trade and tax policies; extensive environmental, health and safety laws that apply to our operations; hazards associated with chemical manufacturing, storage and transportation; litigation associated with chemical manufacturing and our business operations generally; inability to acquire and integrate businesses, assets, products or technologies; protection of our intellectual property and proprietary information; prolonged work stoppages as a result of labor difficulties or otherwise; failure to maintain effective internal controls; our ability to declare and pay quarterly cash dividends and the amounts and timing of any future dividends; our ability to repurchase our common stock and the amount and timing of any future repurchases; disruptions in supply chain, transportation and logistics; potential for uncertainty regarding qualification for tax treatment of our spin-off; fluctuations in our stock price; and changes in laws or regulations applicable to our business. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ materially from those contemplated by such forward-looking statements as a result of a number of risks, uncertainties and other factors including those noted above and those identified in our filings with the Securities and Exchange Commission (SEC), including the risk factors in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, as updated in subsequent reports filed with the SEC. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph. We do not undertake to update or revise any of our forward-looking statements.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures intended to supplement, not to act as substitutes for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided in this press release. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those measures provided. Non-GAAP measures in this press release may be calculated in a way that is not comparable to similarly-titled measures reported by other companies.

AdvanSix Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands, except share and per share amounts)

September 30, 2025

December 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

$

23,696

$

19,564

Accounts and other receivables – net

184,490

145,673

Inventories – net

209,120

212,386

Taxes receivable

23,758

503

Other current assets

13,931

8,990

Total current assets

454,995

387,116

Property, plant and equipment – net

943,332

917,858

Operating lease right-of-use assets

155,652

153,438

Goodwill

56,192

56,192

Intangible assets

40,857

43,144

Other assets

37,319

37,172

Total assets

$

1,688,347

$

1,594,920

LIABILITIES

Current liabilities:

Accounts payable

$

236,053

$

228,761

Accrued liabilities

55,850

47,264

Income taxes payable

49

1,047

Operating lease liabilities – short-term

41,695

42,493

Deferred income and customer advances

681

37,538

Total current liabilities

334,328

357,103

Deferred income taxes

159,758

145,299

Operating lease liabilities – long-term

114,924

111,400

Line of credit – long-term

250,000

195,000

Postretirement benefit obligations

257

Other liabilities

10,848

11,468

Total liabilities

870,115

820,270

STOCKHOLDERS' EQUITY

Common stock, par value $0.01; 200,000,000 shares authorized; 33,177,824 shares issued and 26,864,035 outstanding at September 30, 2025; 32,989,165 shares issued and 26,737,036 outstanding at December 31, 2024

332

330

Preferred stock, par value $0.01; 50,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2025 and December 31, 2024

Treasury stock at par (6,313,789 shares at September 30, 2025; 6,252,129 shares at December 31, 2024)

(63

)

(63

)

Additional paid-in capital

141,876

136,872

Retained earnings

670,264

631,541

Accumulated other comprehensive income

5,823

5,970

Total stockholders' equity

818,232

774,650

Total liabilities and stockholders' equity

$

1,688,347

$

1,594,920

AdvanSix Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except share and per share amounts)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Sales

$

374,473

$

398,187

$

1,162,286

$

1,188,495

Costs, expenses and other:

Costs of goods sold

349,088

340,885

1,024,716

1,046,860

Selling, general and administrative expenses

27,425

24,265

76,250

72,290

Interest expense, net

2,322

2,924

6,119

9,137

Other non-operating (income) expense, net

(815

)

368

(1,831

)

1,808

Total costs, expenses and other

378,020

368,442

1,105,254

1,130,095

Income (loss) before taxes

(3,547

)

29,745

57,032

58,400

Income tax expense (benefit)

(909

)

7,479

4,955

14,603

Net income (loss)

$

(2,638

)

$

22,266

$

52,077

$

43,797

Earnings per common share

Basic

$

(0.10

)

$

0.83

$

1.94

$

1.63

Diluted

$

(0.10

)

$

0.82

$

1.91

$

1.61

Weighted average common shares outstanding

Basic

26,927,305

26,790,752

26,887,489

26,836,114

Diluted

26,927,305

27,204,714

27,248,759

27,209,680

AdvanSix Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Dollars in thousands)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Cash flows from operating activities:

Net income (loss)

$

(2,638

)

$

22,266

$

52,077

$

43,797

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

20,327

18,933

58,966

57,197

(Gain) loss on disposal of assets

154

(177

)

415

Deferred income taxes

7,820

2,887

14,466

3,638

Stock-based compensation

1,632

1,559

5,919

5,963

Amortization of deferred financing fees

155

155

464

464

Operational asset adjustments

1,200

Changes in assets and liabilities, net of business acquisitions:

Accounts and other receivables

(24,977

)

21,073

(38,971

)

15,069

Inventories

12,644

(37,607

)

3,266

(1,603

)

Taxes receivable

(8,515

)

(196

)

(23,255

)

1,059

Accounts payable

4,123

17,994

16,546

(43,687

)

Income taxes payable

(335

)

(572

)

(998

)

(7,598

)

Accrued liabilities

8,352

4,839

8,913

10,988

Deferred income and customer advances

(1,177

)

369

(36,857

)

(14,161

)

Other assets and liabilities

9,177

5,396

(1,218

)

(1,493

)

Net cash provided by operating activities

26,588

57,250

59,141

71,248

Cash flows from investing activities:

Expenditures for property, plant and equipment

(26,522

)

(30,490

)

(88,849

)

(99,373

)

Other investing activities

(262

)

(2,317

)

(6,153

)

(6,053

)

Net cash used for investing activities

(26,784

)

(32,807

)

(95,002

)

(105,426

)

Cash flows from financing activities:

Borrowings from line of credit

85,000

54,000

316,500

311,500

Repayments of line of credit

(75,000

)

(69,000

)

(261,500

)

(266,500

)

Principal payments of finance leases

(249

)

(260

)

(740

)

(762

)

Dividend payments

(4,296

)

(4,276

)

(12,876

)

(12,858

)

Purchase of treasury stock

(121

)

(42

)

(1,658

)

(10,427

)

Issuance of common stock

112

328

267

755

Net cash provided by (used for) financing activities

5,446

(19,250

)

39,993

21,708

Net change in cash and cash equivalents

5,250

5,193

4,132

(12,470

)

Cash and cash equivalents at beginning of period

18,446

12,105

19,564

29,768

Cash and cash equivalents at the end of period

$

23,696

$

17,298

$

23,696

$

17,298

Supplemental non-cash investing activities:

Capital expenditures included in accounts payable

$

14,894

$

15,018

AdvanSix Inc.

Non-GAAP Measures

(Dollars in thousands, except share and per share amounts)

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Net cash provided by operating activities

$

26,588

$

57,250

$

59,141

$

71,248

Expenditures for property, plant and equipment

(26,522

)

(30,490

)

(88,849

)

(99,373

)

Free cash flow (1)

$

66

$

26,760

$

(29,708

)

$

(28,125

)

(1) Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment.

Reconciliation of Net Income to Adjusted EBITDA and Earnings Per Share to Adjusted Earnings Per Share

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Net income (loss)

$

(2,638

)

$

22,266

$

52,077

$

43,797

Non-cash stock-based compensation

1,632

1,559

5,919

5,963

Non-recurring, unusual or extraordinary expense (2)

1,200

Non-cash amortization from acquisitions

532

531

1,595

1,595

Strategic advisory and professional fees (3)

4,000

4,000

Income tax benefit relating to reconciling items

(1,378

)

(367

)

(2,287

)

(1,594

)

Adjusted Net income (non-GAAP)

2,148

23,989

61,304

50,961

Interest expense, net

2,322

2,924

6,119

9,137

Income tax expense - Adjusted

469

7,846

7,242

16,197

Depreciation and amortization - Adjusted

19,795

18,402

57,371

55,602

Adjusted EBITDA (non-GAAP)

$

24,734

$

53,161

$

132,036

$

131,897

Sales

$

374,473

$

398,187

$

1,162,286

$

1,188,495

Adjusted EBITDA Margin (non-GAAP) (4)

6.6

%

13.4

%

11.4

%

11.1

%

(2) 2024 includes a pre-tax loss of approximately $1.2 million from the reduction of the Company's anticipated receivable related to the gain on the termination fee recorded upon the exit from the Oben Holding Group S.A. alliance during the third quarter of 2023

(3) Legal and professional fees associated with strategic regulatory matters and potential inorganic growth options

(4) Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Sales

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Net income (loss)

$

(2,638

)

$

22,266

$

52,077

$

43,797

Adjusted Net income (non-GAAP)

2,148

23,989

61,304

50,961

Weighted-average number of common shares outstanding - basic

26,927,305

26,790,752

26,887,489

26,836,114

Dilutive effect of equity awards and other stock-based holdings

413,962

361,270

373,566

Weighted-average number of common shares outstanding - diluted

26,927,305

27,204,714

27,248,759

27,209,680

EPS - Basic

$

(0.10

)

$

0.83

$

1.94

$

1.63

EPS - Diluted

$

(0.10

)

$

0.82

$

1.91

$

1.61

Adjusted EPS - Basic (non-GAAP)

$

0.08

$

0.90

$

2.28

$

1.90

Adjusted EPS - Diluted (non-GAAP)

$

0.08

$

0.88

$

2.25

$

1.87

The Company believes the non-GAAP financial measures presented in this release provide meaningful supplemental information as they are used by the Company’s management to evaluate the Company’s operating performance, enhance a reader’s understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and performance relative to its competitors, as these non-GAAP measures exclude items that are not considered core to the Company’s operations.

AdvanSix Inc.

Appendix

(Pre-tax income impact, Dollars in millions)

Planned Plant Turnaround Schedule (4)

1Q

2Q

3Q

4Q

FY

Primary Unit Operation

2017

~$10

~$4

~$20

~$34

Sulfuric Acid

2018

~$2

~$10

~$30

~$42

Ammonia

2019

~$5

~$5

~$25

~$35

Sulfuric Acid

2020

~$2

~$7

~$20

~$2

~$31

Ammonia

2021

~$3

~$8

~$18

~$29

Sulfuric Acid

2022

~$1

~$5

~$44 (5)

~$50

Ammonia

2023

~$2

~$1

~$27

~$30

Sulfuric Acid

2024

~$5

~$3

~$3

~$47 (6)

~$58

Ammonia

2025E

~$5

~$6

~$14

~$25

Sulfuric Acid

(4) Primarily reflects the impact of fixed cost absorption, maintenance expense, and the purchase of feedstocks which are normally manufactured by the Company.

(5) During the multi-site planned plant turnaround, additional required maintenance at our Frankford phenol plant contributed to reduced production across our integrated value chain and a delayed ramp to full operating rates at our Hopewell and Chesterfield sites, resulting in an incremental $15 million unfavorable impact to pre-tax income, which is reflected in this amount and is inclusive of fixed cost absorption, higher maintenance expense and lost sales.

(6) During the multi-site planned plant turnaround, additional required maintenance at our Hopewell plant contributed to reduced production across our integrated value chain and a delayed ramp to full operating rates, resulting in an incremental approximately $17 million unfavorable impact to pre-tax income, which is reflected in this amount and is inclusive of fixed cost absorption, higher maintenance expense, and lost sales.