AdvanSix Inc. reported third‑quarter 2025 results that included $374.5 million in sales, a 6% decline from the same period last year, and a net loss of $2.6 million, translating to a diluted earnings per share of –$0.10. Adjusted earnings per share were $0.08, while adjusted EBITDA reached $24.7 million, a margin of 6.6% that fell sharply from 13.4% in Q3 2024.
The revenue miss can be traced to a combination of weak demand and pricing pressure in the Nylon Solutions and Chemical Intermediates segments. Management noted that lower net pricing and reduced sales volumes in these areas, coupled with higher utility costs driven by rising natural gas prices, eroded margins. In contrast, the Plant Nutrients segment benefited from a 2% favorable market‑based pricing lift, partially offsetting the downturn.
Margin compression was driven by both lower pricing and higher input costs. The company cited a decline in acetone price spreads and a drop in nylon and chemical intermediates sales, while utility costs climbed due to natural gas price increases. These factors pushed the adjusted EBITDA margin down to 6.6%, a 6.8‑percentage‑point decline from the prior year.
Cash flow from operations fell 30.7% to $26.6 million, and free cash flow turned negative at $66,000 after $26.5 million in capital expenditures. Despite the operating loss, AdvanSix declared a quarterly cash dividend of $0.16 per share, payable December 2, 2025, underscoring management’s commitment to shareholder returns while it works to improve cash‑flow generation.
Management emphasized a focus on optimizing production output and sales mix to improve cash flow and margin performance in the coming quarters. The company highlighted expected tailwinds from 45Q carbon‑capture tax credits and 100% bonus depreciation in 2026, which should help lift cash flow. The guidance signals a cautious outlook, with the company maintaining its dividend policy while acknowledging the need to navigate current market headwinds.
Investors reacted negatively to the earnings miss, citing the significant shortfall in both revenue and adjusted earnings per share relative to analyst consensus of $365 million in revenue and $0.40 in EPS. The market reaction reflected concerns about the company’s ability to sustain profitability amid weak demand in key segments and higher operating costs.
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