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AdvanSix Q3 sales rise on higher pricing

By Reuters News


Overview

  • U.S. chemicals maker's Q3 sales rose 15% yr/yr, driven by higher pricing and lower volumes

  • Adjusted EPS turned negative, down from prior year due to higher costs and lower output

  • Cash flow from operations improved on disciplined working capital performance


Outlook

  • Company expects tighter ammonium sulfate supply and demand dynamics into 2027

  • AdvanSix now expects 2026 capital expenditures of about $90 mln, down from $116 mln in 2025

  • Company continues to expect $17 mln pre-tax income impact from plant turnarounds in 2026


Result Drivers

  • HIGHER PRICING - Co said sales growth was driven by favorable pricing, including raw material pass-through and market-based pricing

  • LOWER CAPROLACTAM VOLUME - Co said reduced caprolactam sales led to lower overall sales volume

  • REDUCED OUTPUT AND HIGHER INPUT COSTS - Co said lower production output and higher raw material costs weighed on profitability


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$430.81 mln

$426 mln (2 Analysts)

Q3 Adjusted Loss Per Share

Miss

$0.24

$0.05 (2 Analysts)

Q3 Net Loss

$7.56 mln

Q3 Adjusted EBITDA

$14.64 mln

Q3 Adjusted EBITDA Margin

3.40%

Q3 Free Cash Flow

$29.69 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

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

  • Wall Street's median 12-month price target for AdvanSix Inc. is $20.00, about 28.4% above its November 3 closing price of $15.58

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Nov 3 - Specialty chemicals supplier Innospec's Q3 revenue slightly misses estimates

  • Nov 3 - Mosaic Q3 adjusted loss misses estimates as lower volumes, raw material costs cut EBITDA

  • Nov 3 - Canada's EcoSynthetix Q3 sales fall 38% on lower volumes, macroeconomic conditions


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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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