AdvanSix (NYSE:ASIX) Announces Quarterly Earnings Results

AdvanSix (NYSE:ASIX) released its quarterly earnings results on Wednesday. The company reported ($0.24) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.20), FiscalAI reports. The firm had revenue of $430.81 million for the quarter, compared to analyst estimates of $426.00 million. AdvanSix had a negative return on equity of 1.28% and a negative net margin of 1.14%.

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 Stock Up 3.7%

Shares of ASIX traded up $0.58 during midday trading on Thursday, hitting $16.10. The stock had a trading volume of 122,876 shares, compared to its average volume of 331,283. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.28 and a quick ratio of 0.70. The firm has a market cap of $434.61 million, a price-to-earnings ratio of -24.48 and a beta of 1.27. AdvanSix has a twelve month low of $14.10 and a twelve month high of $26.73. The company has a 50 day simple moving average of $16.26 and a two-hundred day simple moving average of $19.40.

AdvanSix Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Tuesday, November 17th will be paid a $0.16 dividend. The ex-dividend date of this dividend is Tuesday, November 17th. This represents a $0.64 dividend on an annualized basis and a yield of 4.0%. AdvanSix’s dividend payout ratio is presently -96.97%.

Analysts Set New Price Targets

ASIX has been the subject of several recent research reports. Truist Financial lowered 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. Wall Street Zen downgraded shares of AdvanSix from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. Finally, Weiss Ratings lowered shares of AdvanSix from a “sell (d+)” rating to a “sell (d)” rating in a research note on Friday, August 21st. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average price target 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.