3Q 2026
Filed Nov 4, 20263Q26 Sales of $431 million, up 15% versus prior year; 3Q26 Earnings Per Share of ($0.28); Adjusted Earnings Per Share of ($0.24)
Sales grew 15% year over year on favorable pricing, and cash flow from operations increased to $47,962, but the company reported a net loss, adjusted EBITDA declined, adjusted EBITDA margin compressed, and volume declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales - Three Months Ended September 30GAAP | $430.8M | – | 15% |
| Cost of goods sold - Three Months Ended September 30GAAP | $419.6M | – | – |
| Selling, general and administrative expenses - Three Months Ended September 30GAAP | $19.20M | – | – |
| Interest expense, net - Three Months Ended September 30GAAP | $4.03M | – | – |
| Other non-operating income, net - Three Months Ended September 30GAAP | ($890) | – | – |
| Income (loss) before taxes - Three Months Ended September 30GAAP | ($11,128) | – | – |
| Income tax expense (benefit) - Three Months Ended September 30GAAP | ($3,573) | – | – |
| Net income (loss) - Three Months Ended September 30GAAP | ($7,555) | – | – |
| Diluted earnings per common share - Three Months Ended September 30GAAP | ($0.28) | – | – |
| Adjusted diluted earnings per share - Three Months Ended September 30non-GAAP | ($0.24) | – | – |
| Adjusted EBITDA - Three Months Ended September 30non-GAAP | $14.64M | – | ($10,091) |
| Adjusted EBITDA Margin - Three Months Ended September 30non-GAAP | 3.4% | – | (320) bps |
| Net cash provided by operating activities - Three Months Ended September 30GAAP | $47.96M | – | $21,374 |
| Expenditures for property, plant and equipment - Three Months Ended September 30GAAP | ($18,275) | – | – |
| Free cash flow - Three Months Ended September 30non-GAAP | $29.69M | – | – |
| Sales - Nine Months Ended September 30GAAP | $1.26B | – | – |
| Net income (loss) - Nine Months Ended September 30GAAP | ($19,853) | – | – |
| Diluted earnings per common share - Nine Months Ended September 30GAAP | ($0.73) | – | – |
| Adjusted diluted earnings per share - Nine Months Ended September 30non-GAAP | ($0.55) | – | – |
| Adjusted EBITDA - Nine Months Ended September 30non-GAAP | $51.29M | – | – |
| Adjusted EBITDA Margin - Nine Months Ended September 30non-GAAP | 4.1% | – | – |
| Net cash provided by operating activities - Nine Months Ended September 30GAAP | $42.67M | – | – |
| Expenditures for property, plant and equipment - Nine Months Ended September 30GAAP | ($74,925) | – | – |
| Free cash flow - Nine Months Ended September 30non-GAAP | ($32,257) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| NylonMarket-based pricing improved by 7% primarily reflecting an increase across all product lines and strong commercial execution amid a higher input cost environment. | $104.7M | – | 33% |
| CaprolactamLower sales volume was primarily driven by lower caprolactam sales. | $73.07M | – | – |
| Plant NutrientsThe company expects tighter ammonium sulfate supply and demand dynamics into 2027 amid challenged sulfur input cost environment. | $149.3M | – | 8% |
| Chemical IntermediatesMarket-based pricing improved by 7% primarily reflecting an increase across all product lines and strong commercial execution amid a higher input cost environment. | $103.7M | – | 24% |
2026 outlook
- NoteExpect tighter ammonium sulfate supply and demand dynamics into 2027 amid challenged sulfur input cost environment
- NoteAcetone spread over propylene costs expected to hold near cycle averages
- NoteContinue to optimize Nylon Solutions price over raws spreads and sales volume mix in soft industrial end market environment
- NoteNow expect Capital Expenditures of approximately $90 million in 2026 versus $116 million in 2025, reflecting risk-based prioritization of base investments and enterprise programs with continued progression of growth programs including SUSTAIN
- NoteContinue to expect pre-tax income impact of plant turnarounds to be approximately $17 million in 2026 versus $25 million in 2025
- NoteContinue to expect 2H 2026 sequential cash flow improvement primarily due to a reduced Capital Expenditures run-rate, working capital tailwinds including our 4Q 2026 pre-buy program in Plant Nutrients, and timing of annual payments paid in 1H 2026
Capital returns
- 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 1, 2026 to stockholders of record as of the close of business on November 17, 2026.
- Dividend payments were $4,320 for the Three Months Ended September 30, 2026 and $12,947 for the Nine Months Ended September 30, 2026.
- Purchase of treasury stock was $41 for the Three Months Ended September 30, 2026 and $1,438 for the Nine Months Ended September 30, 2026.
What drove it
- Sales increased approximately 15% versus the prior year, driven by 17% favorable pricing, partially offset by a 2% decline in volume.
- Raw material pass-through pricing was up 10% following a net cost increase in benzene and propylene.
- Market-based pricing improved by 7% primarily reflecting an increase across all product lines and strong commercial execution amid a higher input cost environment.
- Cash flow from operations increased primarily due to disciplined working capital performance.
- Capital expenditures decreased as expected, driven by continued risk-based prioritization of base investments and progression of growth projects including SUSTAIN.
Concerns
- Reduced production output drove unfavorable fixed cost absorption in the quarter.
- Adjusted EBITDA decreased primarily due to the unfavorable impact of reduced production output and higher raw material costs.
- Lower sales volume was primarily driven by lower caprolactam sales.
- The company cited a soft industrial end market environment for Nylon Solutions.
- The company expects a challenged sulfur input cost environment.
What to watch
- Execution of the non-manpower fixed cost savings program, which management said remains on track.
- Whether the expected tighter ammonium sulfate supply and demand dynamics extend into 2027.
- Progression of growth programs including SUSTAIN, the potential DEF growth project, and Project CENTURY.
- The anticipated 45Q carbon capture tax credits to support improved earnings and cash flow generation.
- Fourth-quarter 2026 pre-buy program in Plant Nutrients and the expected second-half 2026 sequential cash flow improvement.
Balance sheet and cash flow
- Cash and cash equivalents were $22,550 at September 30, 2026, compared with $19,766 at December 31, 2025.
- Line of credit - long-term was $120,000 at September 30, 2026, compared with $215,000 at December 31, 2025.
- Long-term debt was $144,727 at September 30, 2026, compared with $0 at December 31, 2025.
- Current portion of long-term debt was $3,750 at September 30, 2026, compared with $0 at December 31, 2025.
- On August 14, 2026, the Company entered into a new 5-year $425 million credit facility, comprised of a $275 million senior secured revolving credit facility and a $150 million senior secured term loan facility.
- Net cash provided by operating activities was $47,962 for the Three Months Ended September 30, 2026 and $42,668 for the Nine Months Ended September 30, 2026.
- Free cash flow was $29,687 for the Three Months Ended September 30, 2026 and ($32,257) for the Nine Months Ended September 30, 2026.
Analysis
AdvanSix reported third-quarter sales of $430,807, up 15% from $374,473 in the prior-year quarter. The company attributed the increase to 17% favorable pricing, partly offset by a 2% volume decline. Raw-material pass-through pricing increased 10% after higher benzene and propylene costs, while market-based pricing improved 7%. Product-line performance was led by Nylon sales of $104,738, up 33%, and Chemical Intermediates sales of $103,663, up 24%; Caprolactam sales were $73,072, with lower caprolactam sales identified as the primary volume headwind.
Profitability weakened despite higher revenue. Net loss was ($7,555), compared with net loss of ($2,638), while diluted EPS was ($0.28), compared with ($0.10). Adjusted EBITDA declined to $14,643 from $24,734 and adjusted EBITDA margin fell to 3.4% from 6.6%. Management cited reduced production output and resulting unfavorable fixed-cost absorption, along with higher raw-material costs, as the primary factors, partly offset by higher pricing and non-manpower fixed-cost savings.
Cash generation improved in the quarter. Net cash provided by operating activities was $47,962 versus $26,588, primarily due to disciplined working-capital performance. Capital expenditures were ($18,275), down from ($26,522), and free cash flow was $29,687 versus $66. For the nine months, however, net cash provided by operating activities was $42,668 compared with $59,141, and free cash flow was ($32,257) compared with ($29,708). The company refinanced its facility in August with a new 5-year $425 million credit facility. Cash and cash equivalents were $22,550 at September 30, 2026.
The outlook retains a focus on cash preservation, cost management and selected growth investment. The company now expects capital expenditures of approximately $90 million in 2026 versus $116 million in 2025 and continues to expect plant-turnaround pre-tax income impact of approximately $17 million in 2026 versus $25 million in 2025. Management expects second-half sequential cash flow improvement from reduced capital expenditures, working-capital tailwinds and timing of annual payments. Key operating issues remain sulfur input costs, soft industrial end markets, Nylon Solutions price-over-raws spreads, and caprolactam volume.
Capital allocation continues to include the quarterly dividend, with the board declaring $0.16 per share payable December 1, 2026. Management is also progressing SUSTAIN, evaluating a potential DEF growth project and Project CENTURY, and expects 45Q carbon capture tax credits to support future earnings and cash flow generation. The quarter demonstrates pricing execution and improved quarterly cash flow, but reduced output, lower volume and margin compression remain the central financial constraints.
Management, verbatim
Our third quarter results reflect strong commercial execution and the resilience of our integrated business model as we navigate significant input cost inflation and a dynamic market environment.
Erin Kane, president and CEO of AdvanSix
We generated 15% sales growth year-over-year as our teams continued to leverage both formula and market-based pricing mechanisms to offset inflationary raw material costs.
Erin Kane, president and CEO of AdvanSix
Looking ahead, we remain focused on navigating near-term market dynamics while strengthening our performance and positioning AdvanSix for the future.
Erin Kane, president and CEO of AdvanSix
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating income (loss) was not reported.
- Quarterly sequential comparisons were not reported for the reported financial metrics.
- Revenue guidance was not provided.
- Gross-margin guidance was not provided.
- Operating-expense guidance was not provided.
- Tax-rate guidance was not provided.
- A previous outlook section was not provided, so comparison of actual results with prior guidance is unavailable.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.