AdvanSix (NYSE: ASIX) swings to Q1 loss, eyes DEF ammonia expansion
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
AdvanSix Inc. reported first quarter 2026 sales of $404.2 million, up about 7% from a year earlier, but swung to a net loss of $15.5 million after higher sulfur and natural gas costs, winter storm impacts and the absence of prior-year insurance proceeds. Adjusted EBITDA fell to $4.8 million and adjusted diluted EPS to ($0.50), while free cash flow was ($51.3 million) on capital expenditures of $35.9 million. The company is evaluating an expansion of its integrated ammonia platform in Hopewell, Virginia to supply the growing diesel exhaust fluid market, targeting a final investment decision in the first half of 2027 and start-up in 2029. AdvanSix also appointed Patrick Day as senior vice president and CFO and declared a quarterly dividend of $0.16 per share, payable June 2, 2026 to stockholders of record on May 19, 2026.
Positive
- None.
Negative
- Profitability deteriorated sharply: Q1 2026 swung to a net loss of $15.5 million from $23.3 million net income a year earlier, with adjusted EBITDA plunging from $51.6 million to $4.8 million and adjusted diluted EPS falling from $0.93 to ($0.50).
Insights
AdvanSix grew sales but margins collapsed, turning Q1 2026 into a loss.
AdvanSix delivered $404.2M in Q1 2026 sales, up 7% year over year, driven by stronger Chemical Intermediates volume and better Plant Nutrients pricing. However, higher sulfur and natural gas costs, winter storm impacts and lapping $26M of 2025 insurance proceeds crushed profitability.
Adjusted EBITDA dropped to $4.8M from $51.6M, with adjusted diluted EPS falling to ($0.50) from $0.93. Free cash flow was a negative $51.3M, while net debt rose as the line of credit increased to $270M. These data points indicate materially weaker earnings quality this quarter.
Management highlighted medium-term levers: 2026 capital expenditures of $75–$95M, expected $17–$22M pre-tax turnaround impact, and anticipated cash flow benefits from 45Q carbon capture tax credits and 100% bonus depreciation. The planned diesel exhaust fluid ammonia expansion, with a final investment decision targeted by 1H 2027 and start-up in 2029, represents a longer-dated growth project rather than an immediate earnings driver.
8-K Event Classification
3 items: 2.02, 8.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Sales: $404.2M
Net income (loss): ($15.5M)
Adjusted diluted EPS: ($0.50)
+5 more
8 metrics
Sales
$404.2M
Q1 2026 revenue, up about 7% year over year
Net income (loss)
($15.5M)
Q1 2026 net loss versus $23.3M net income in Q1 2025
Adjusted diluted EPS
($0.50)
Q1 2026 non-GAAP adjusted earnings per share
Adjusted EBITDA
$4.8M
Q1 2026 adjusted EBITDA versus $51.6M a year earlier
Free cash flow
($51.3M)
Q1 2026 free cash flow (operating cash flow less capex)
Capital expenditures
$35.9M
Q1 2026 spending on property, plant and equipment
Dividend per share
$0.16
Quarterly cash dividend payable June 2, 2026
Line of credit
$270.0M
Long-term line of credit balance as of March 31, 2026
Key Terms
Adjusted EBITDA, Free cash flow, Front End Engineering and Design (FEED), 45Q carbon capture tax credits, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA of $4.8 million in the quarter decreased $46.9 million versus the prior year"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free cash flow financial
"Free Cash Flow (2)(3) | (51,268) | | (22,619)"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Front End Engineering and Design (FEED) technical
"The Company is progressing through Front End Engineering and Design (FEED) work with a final investment decision targeted"
Front-end engineering and design (FEED) is the detailed planning phase of a major capital project where engineers and planners define the scope, technical approach, cost estimates, schedule and key risks before construction begins. Think of it as producing the blueprints, materials list and budget for a large home renovation so contractors and lenders know what’s needed. Investors care because a thorough FEED reduces surprises, improves cost and schedule accuracy, and shapes financing, permitting and the project’s expected returns.
45Q carbon capture tax credits financial
"Expect cash flow benefit in 2026 and beyond from 45Q carbon capture tax credits and 100% bonus depreciation"
A federal tax credit that pays a set amount for each metric ton of carbon dioxide a project captures and permanently stores or uses in a durable way, similar to receiving a rebate for each bag of trash you divert from a landfill. It matters to investors because it directly improves the economics and cash flows of carbon-capture projects, lowers project risk by subsidizing operating costs, and can materially affect valuations and financing decisions for companies pursuing emission reductions.
diesel exhaust fluid (DEF) technical
"expansion of its integrated ammonia platform ... to supply the growing DEF market"
A clear liquid made from urea and water that is injected into the exhaust stream of diesel engines to convert harmful nitrogen oxide emissions into harmless nitrogen and water, similar to how a neutralizer treats a strong chemical. It matters to investors because its use is mandated by emissions rules, affects fuel and maintenance costs, influences demand for suppliers and distributors, and can impact fleet uptime and regulatory compliance risks for companies operating diesel vehicles.
Earnings Snapshot
Revenue: $404.2M · Guidance included
Q1 2026
Revenue
$404.2M
+7% YoY
Net income (loss)
($15.5M)
Adjusted diluted EPS
($0.50)
Adjusted EBITDA
$4.8M
Free cash flow
($51.3M)
Guidance
For 2026, AdvanSix expects capital expenditures of $75 to $95 million, pre-tax income impact from plant turnarounds of $17 to $22 million, and cash flow benefits from 45Q carbon capture tax credits and 100% bonus depreciation.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________
Form 8-K
_____________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 8, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices)
Registrant’s telephone number, including area code: (973 ) 526-1800
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 Results of Operations and Financial Condition.
On May 8, 2026, AdvanSix Inc. (the "Company") issued a press release announcing its financial results for the quarter ended March 31, 2026. A copy of the press release is furnished herewith as Exhibit 99.1.
ITEM 8.01 Other Events.
Dividend
On May 8, 2026, the Company announced that its Board of Directors declared a cash dividend of $0.16 per share on the Company's common stock. The dividend will be paid on June 2, 2026 to stockholders of record as of the close of business on May 19, 2026.
The Company's announcement of the dividend is included in the press release furnished herewith as Exhibit 99.1.
ITEM 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Description | |||||||
| 99.1 | Press Release dated May 8, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: May 8, 2026
| AdvanSix Inc. | ||||||||
| By: | /s/ Achilles B. Kintiroglou | |||||||
| Name: | Achilles B. Kintiroglou | |||||||
| Title: | Senior Vice President, General Counsel and Corporate Secretary | |||||||
Exhibit 99.1
News Release
ADVANSIX ANNOUNCES FIRST QUARTER 2026 FINANCIAL RESULTS
1Q26 Sales of $404 million, up 7% versus prior year
1Q26 Earnings Per Share of ($0.58); Adjusted Earnings Per Share of ($0.50)
1Q26 Cash Flow from Operations of ($15) million
Evaluating Expansion of Integrated Ammonia Platform to Meet Growing Regional Demand for Diesel Exhaust Fluid (DEF)
Appointed Patrick Day as SVP and CFO, effective April 27th
Parsippany, N.J., May 8, 2026 - AdvanSix (NYSE: ASIX), a vertically integrated chemistry company serving diverse end markets, today announced its financial results for the first quarter ending March 31, 2026. Overall, the Company navigated a dynamic market environment while progressing on key growth, cost savings and strategic initiatives.
First Quarter 2026 Summary
"The AdvanSix team delivered a solid first quarter performance consistent with our expectations while navigating a number of headwinds, including the early quarter winter storm-related impacts and new geopolitical challenges amid continued subdued industrial end market demand,” said Erin Kane, president and CEO of AdvanSix. "We generated 7% sales growth year-over-year, supported by improvements in Chemical Intermediates volume and Plant Nutrients market pricing, partially offsetting the margin impacts driven by increased sulfur and natural gas costs. We remain well positioned to serve our customers across our diversified portfolio including fertilizer as the domestic planting season progresses, in chemical intermediates amid a tightening acetone global supply and demand environment, and across a modestly recovering nylon industry supporting expected meaningful sequential performance improvement into the second quarter."
Summary first quarter 2026 financial results for the Company are included below:
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($ in Thousands, Except Earnings Per Share) | 1Q 2026 | 1Q 2025 (1) | |||||||||
| Sales | $404,183 | $377,791 | |||||||||
| Net Income (loss) | (15,546) | 23,344 | |||||||||
| Diluted Earnings Per Share | (0.58) | 0.86 | |||||||||
Adjusted Diluted Earnings Per Share (2) | (0.50) | 0.93 | |||||||||
Adjusted EBITDA (2) | 4,756 | 51,626 | |||||||||
Adjusted EBITDA Margin % (2) | 1.2% | 13.7% | |||||||||
| Cash Flow from Operations | (15,332) | 11,443 | |||||||||
| Capital Expenditures | 35,936 | 34,062 | |||||||||
Free Cash Flow (2)(3) | (51,268) | (22,619) | |||||||||
(1) 1Q 2025 includes ~$26 million pre-tax income benefit from insurance proceeds reflected in Cost of Goods Sold
(2) See “Non-GAAP Measures” included in this press release for non-GAAP reconciliations
(3) Net cash provided by operating activities less capital expenditures
Sales of $404 million in the quarter increased approximately 7% versus the prior year comprised of 6% volume growth and 1% favorable price. Sales volume growth was primarily driven by favorable Chemical Intermediates sales. Market-based pricing improved by 3% primarily driven by an increase in Plant Nutrients reflecting higher nitrogen pricing amid increased sulfur input costs. Raw material pass-through pricing was down 2% following a net cost decrease in benzene and propylene (inputs to cumene which is a key feedstock to our products).
Sales by product line and approximate percentage of total sales are included below:
| ($ in Thousands) | 1Q 2026 | 1Q 2025 | |||||||||||||||||||||
| Sales | % of Total | Sales | % of Total | ||||||||||||||||||||
| Nylon | $ | 88,467 | 22% | $ | 88,369 | 23% | |||||||||||||||||
| Caprolactam | 67,768 | 17% | 67,432 | 18% | |||||||||||||||||||
| Plant Nutrients | 140,635 | 35% | 128,240 | 34% | |||||||||||||||||||
| Chemical Intermediates | 107,313 | 26% | 93,750 | 25% | |||||||||||||||||||
| Total | $ | 404,183 | 100% | $ | 377,791 | 100% | |||||||||||||||||
Adjusted EBITDA of $4.8 million in the quarter decreased $46.9 million versus the prior year primarily driven by the absence of $26 million of prior year insurance proceeds, the unfavorable impact of higher sulfur and natural gas raw material prices, and higher plant costs primarily driven by utilities costs and $11 million of winter storm impact.
Adjusted earnings per share of ($0.50) decreased $1.43 versus the prior year driven primarily by the factors discussed above.
Cash flow from operations of ($15.3) million in the quarter decreased $26.8 million versus the prior year
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primarily due to lower net income including the impact of insurance proceeds, partially offset by net changes in working capital. Capital expenditures of $35.9 million in the quarter increased $1.9 million versus the prior year, as expected.
Outlook
•Anticipate balanced U.S. ammonium sulfate supply and demand fundamentals in heart of domestic planting season amid meaningfully higher sulfur input costs
•Acetone spread over propylene costs expected to hold near cycle averages for the full year 2026
•Continue to optimize Nylon Solutions production output, inventories and sales volume mix in extended soft industrial end market environment
•Continue to expect Capital Expenditures of $75 to $95 million in 2026 versus approximately $116 million in 2025, reflecting risk-based prioritization of base investments and enterprise programs with continued progression of growth programs including SUSTAIN
•Now expect pre-tax income impact of plant turnarounds to be $17 to $22 million in 2026 versus approximately $25 million in 2025
•Expect cash flow benefit in 2026 and beyond from 45Q carbon capture tax credits and 100% bonus depreciation
Integrated Ammonia Platform - Diesel Exhaust Fluid (DEF) Growth Project
AdvanSix announced yesterday it has entered into a process design and licensing agreement to assess expansion of its integrated ammonia platform at its Hopewell, Virginia site to supply the growing DEF market. Leveraging its integrated ammonia operations, manufacturing capabilities of required feedstocks and advantaged geographic location, the Company is well positioned to provide reliable, domestic supply into a high‑demand regional market, with no expected impact to ammonium sulfate fertilizer production. The Company is progressing through Front End Engineering and Design (FEED) work with a final investment decision targeted for the first half of 2027. The Company anticipates a multi-year capital investment supporting attractive financial returns, which align with the Company's long-term value creation objectives, following expected operational start up in 2029.
"Our strategic initiatives, unique combination of assets and business model are core to our durable competitive advantage and long-term positioning. Our global low-cost position in vertically integrated caprolactam production serves us well. In addition, ammonia and sulfuric acid platform integration coupled with a leading granular crystallization technology position underpins how we win in Plant Nutrients. We are progressing our SUSTAIN ammonium sulfate growth program and have now announced another high-return growth opportunity to further expand through our core assets to serve the growing DEF market. These capabilities, combined with our asset utilization agility and diversified product and end market mix, position us to navigate cycles and capitalize on emerging opportunities. We remain focused on delivering on controllable levers including our non-manpower fixed cost savings program, risk-based prioritization of our capital investments and carbon capture tax credits to support through-cycle profitability and improved cash flow generation,” concluded Kane.
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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 June 2, 2026 to stockholders of record as of the close of business on May 19, 2026.
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 first quarter 2026 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 May 8 until 12 noon ET on May 15 by dialing (855) 669-9658 (domestic) or (412) 317-0088 (international). The access code is 2291728.
About AdvanSix
AdvanSix is a vertically integrated chemistry company that produces essential materials for our customers across diverse end markets. Our 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 potential use of artificial intelligence in our operations or those of third party service providers; 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
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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, 2025, 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.
# # #
| Contacts: | |||||
| Media | Investors | ||||
| Janeen Lawlor | Adam Kressel | ||||
| (973) 526-1615 | (973) 526-1700 | ||||
| janeen.lawlor@advansix.com | adam.kressel@advansix.com | ||||
5
AdvanSix Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands, except share and per share amounts)
| March 31, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 17,574 | $ | 19,766 | |||||||
| Accounts and other receivables – net | 207,607 | 154,102 | |||||||||
| Inventories – net | 201,358 | 236,495 | |||||||||
| Taxes receivable | 22,092 | 21,605 | |||||||||
| Other current assets | 5,360 | 8,639 | |||||||||
| Total current assets | 453,991 | 440,607 | |||||||||
| Property, plant and equipment – net | 965,087 | 963,718 | |||||||||
| Operating lease right-of-use assets | 155,044 | 164,494 | |||||||||
| Goodwill | 56,192 | 56,192 | |||||||||
| Intangible assets | 39,333 | 40,095 | |||||||||
| Other assets | 41,106 | 41,042 | |||||||||
| Total assets | $ | 1,710,753 | $ | 1,706,148 | |||||||
| LIABILITIES | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 284,334 | $ | 284,016 | |||||||
| Accrued liabilities | 30,546 | 45,945 | |||||||||
| Income taxes payable | 579 | 1,100 | |||||||||
| Operating lease liabilities – short-term | 43,670 | 44,354 | |||||||||
| Deferred income and customer advances | 11,303 | 14,536 | |||||||||
| Total current liabilities | 370,432 | 389,951 | |||||||||
| Deferred income taxes | 150,641 | 154,061 | |||||||||
| Operating lease liabilities – long-term | 112,690 | 121,201 | |||||||||
| Line of credit – long-term | 270,000 | 215,000 | |||||||||
| Other liabilities | 10,701 | 10,719 | |||||||||
| Total liabilities | 914,464 | 890,932 | |||||||||
| STOCKHOLDERS' EQUITY | |||||||||||
Common stock, par value $0.01; 200,000,000 shares authorized; 33,345,325 shares issued and 26,959,036 outstanding at March 31, 2026; 33,177,824 shares issued and 26,864,035 outstanding at December 31, 2025 | 334 | 332 | |||||||||
Preferred stock, par value $0.01; 50,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2026 and December 31, 2025 | — | — | |||||||||
Treasury stock at par (6,386,289 shares at March 31, 2026; 6,313,789 shares at December 31, 2025) | (64) | (63) | |||||||||
| Additional paid-in capital | 144,066 | 142,932 | |||||||||
| Retained earnings | 642,949 | 663,019 | |||||||||
| Accumulated other comprehensive income | 9,004 | 8,996 | |||||||||
| Total stockholders' equity | 796,289 | 815,216 | |||||||||
| Total liabilities and stockholders' equity | $ | 1,710,753 | $ | 1,706,148 | |||||||
6
AdvanSix Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except share and per share amounts)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Sales | $ | 404,183 | $ | 377,791 | |||||||
| Costs, expenses and other: | |||||||||||
| Cost of goods sold | 400,381 | 324,320 | |||||||||
| Selling, general and administrative expenses | 22,518 | 23,409 | |||||||||
| Interest expense, net | 2,430 | 1,541 | |||||||||
| Other non-operating income, net | (469) | (408) | |||||||||
| Total costs, expenses and other | 424,860 | 348,862 | |||||||||
| Income (loss) before taxes | (20,677) | 28,929 | |||||||||
| Income tax expense (benefit) | (5,131) | 5,585 | |||||||||
| Net income (loss) | $ | (15,546) | $ | 23,344 | |||||||
| Earnings per common share | |||||||||||
| Basic | $ | (0.58) | $ | 0.87 | |||||||
| Diluted | $ | (0.58) | $ | 0.86 | |||||||
| Weighted average common shares outstanding | |||||||||||
| Basic | 26,980,742 | 26,838,146 | |||||||||
| Diluted | 26,980,742 | 27,289,144 | |||||||||
7
AdvanSix Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in thousands)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | (15,546) | $ | 23,344 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 20,958 | 19,178 | |||||||||
| (Gain) loss on disposal of assets | 4 | (210) | |||||||||
| Deferred income taxes | (3,420) | 4,054 | |||||||||
| Stock-based compensation | 2,045 | 1,978 | |||||||||
| Amortization of deferred financing fees | 123 | 155 | |||||||||
| Changes in assets and liabilities, net of business acquisitions: | |||||||||||
| Accounts and other receivables | (53,497) | (33,652) | |||||||||
| Inventories | 35,137 | (10,471) | |||||||||
| Taxes receivable | (487) | 448 | |||||||||
| Accounts payable | 16,162 | 19,362 | |||||||||
| Income taxes payable | (521) | 1,543 | |||||||||
| Accrued liabilities | (15,163) | (4,949) | |||||||||
| Deferred income and customer advances | (3,233) | (10,956) | |||||||||
| Other assets and liabilities | 2,106 | 1,619 | |||||||||
| Net cash provided by (used for) operating activities | (15,332) | 11,443 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Expenditures for property, plant and equipment | (35,936) | (34,062) | |||||||||
| Other investing activities | (227) | (2,732) | |||||||||
| Net cash used for investing activities | (36,163) | (36,794) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Borrowings from line of credit | 139,500 | 118,500 | |||||||||
| Repayments of line of credit | (84,500) | (98,500) | |||||||||
| Principal payments of finance leases | (263) | (247) | |||||||||
| Dividend payments | (4,313) | (4,290) | |||||||||
| Purchase of treasury stock | (1,275) | (1,486) | |||||||||
| Issuance of common stock | 154 | 154 | |||||||||
| Net cash used for financing activities | 49,303 | 14,131 | |||||||||
| Net change in cash and cash equivalents | (2,192) | (11,220) | |||||||||
| Cash and cash equivalents at beginning of period | 19,766 | 19,564 | |||||||||
| Cash and cash equivalents at the end of period | $ | 17,574 | $ | 8,344 | |||||||
| Supplemental non-cash investing activities: | |||||||||||
| Capital expenditures included in accounts payable | $ | 11,006 | $ | 14,605 | |||||||
8
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 March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by (used for) operating activities | $ | (15,332) | $ | 11,443 | |||||||
| Expenditures for property, plant and equipment | (35,936) | (34,062) | |||||||||
Free cash flow (1) | $ | (51,268) | $ | (22,619) | |||||||
(1) Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment. | |||||||||||
The Company believes that this metric is useful to investors and management as a measure to evaluate our ability to generate cash flow from business operations and the impact that this cash flow has on our liquidity.
Reconciliation of Net Income to Adjusted EBITDA and Earnings Per Share to Adjusted Earnings Per Share
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net income (loss) | $ | (15,546) | $ | 23,344 | ||||||||||
| Non-cash stock-based compensation | 2,045 | 1,978 | ||||||||||||
| Non-recurring, unusual or extraordinary expense | — | — | ||||||||||||
| Non-cash amortization from acquisitions | 532 | 532 | ||||||||||||
| Strategic advisory and professional fees | — | — | ||||||||||||
| Income tax benefit relating to reconciling items | (440) | (430) | ||||||||||||
| Adjusted Net income (loss) (non-GAAP) | (13,409) | 25,424 | ||||||||||||
| Interest expense, net | 2,430 | 1,541 | ||||||||||||
| Income tax expense (benefit) - Adjusted | (4,691) | 6,015 | ||||||||||||
| Depreciation and amortization - Adjusted | 20,426 | 18,646 | ||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 4,756 | $ | 51,626 | ||||||||||
| Sales | $ | 404,183 | $ | 377,791 | ||||||||||
Adjusted EBITDA Margin (non-GAAP) (2) | 1.2% | 13.7% | ||||||||||||
(2) Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Sales | ||||||||||||||
9
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income (loss) | $ | (15,546) | $ | 23,344 | |||||||
| Adjusted Net income (non-GAAP) | (13,409) | 25,424 | |||||||||
| Weighted-average number of common shares outstanding - basic | 26,980,742 | 26,838,146 | |||||||||
| Dilutive effect of equity awards and other stock-based holdings | — | 450,998 | |||||||||
| Weighted-average number of common shares outstanding - diluted | 26,980,742 | 27,289,144 | |||||||||
| EPS - Basic | $ | (0.58) | $ | 0.87 | |||||||
| EPS - Diluted | $ | (0.58) | $ | 0.86 | |||||||
| Adjusted EPS - Basic (non-GAAP) | $ | (0.50) | $ | 0.95 | |||||||
| Adjusted EPS - Diluted (non-GAAP) | $ | (0.50) | $ | 0.93 | |||||||
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.
10
AdvanSix Inc.
Appendix
(Pre-tax income impact, Dollars in millions)
Planned Plant Turnaround Schedule (3)
| 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(4) | — | ~$50 | Ammonia | ||||||||||||||
| 2023 | ~$2 | ~$1 | ~$27 | — | ~$30 | Sulfuric Acid | ||||||||||||||
| 2024 | ~$5 | ~$3 | ~$3 | ~$47(5) | ~$58 | Ammonia | ||||||||||||||
| 2025 | ~$5 | ~$6 | — | ~$14 | ~$25 | Sulfuric Acid | ||||||||||||||
| 2026E | — | $10-$15 | — | ~$7 | $17-$22 | Ammonia | ||||||||||||||
(3) Primarily reflects the impact of fixed cost absorption, maintenance expense, and the purchase of feedstocks which are normally manufactured by the Company.
(4) 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.
(5) 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.
11
FAQ
How did AdvanSix (ASIX) perform financially in Q1 2026?
AdvanSix reported Q1 2026 sales of $404.2 million, up about 7% year over year, but posted a net loss of $15.5 million. Adjusted EBITDA fell to $4.8 million and adjusted diluted EPS declined to ($0.50), reflecting higher costs and weather-related impacts.
What drove AdvanSix’s revenue growth in the first quarter of 2026?
Revenue rose 7% in Q1 2026 to $404.2 million, mainly from 6% volume growth and 1% favorable pricing. Stronger Chemical Intermediates volume and improved Plant Nutrients market pricing offset lower raw material pass-through pricing tied to benzene and propylene cost declines.
Why did AdvanSix’s profitability decline despite higher sales in Q1 2026?
Profitability weakened as AdvanSix faced higher sulfur and natural gas costs, increased plant utilities expenses and about $11 million of winter storm impacts. The company also lacked roughly $26 million of prior-year insurance proceeds, compressing margins and contributing to the Q1 2026 net loss.
What is AdvanSix’s diesel exhaust fluid (DEF) ammonia expansion project?
AdvanSix is assessing an expansion of its integrated ammonia platform at Hopewell, Virginia to supply the growing DEF market. It is in Front End Engineering and Design, targeting a final investment decision in the first half of 2027 and operational start-up expected in 2029.
What dividend did AdvanSix declare with its Q1 2026 results?
AdvanSix’s board declared a quarterly cash dividend of $0.16 per share on its common stock. The dividend is payable on June 2, 2026 to stockholders of record as of the close of business on May 19, 2026.
What guidance did AdvanSix provide for 2026 capital spending and turnarounds?
For 2026, AdvanSix expects capital expenditures of $75 to $95 million, down from about $116 million in 2025. It now projects a $17 to $22 million pre-tax income impact from plant turnarounds, compared with approximately $25 million in 2025.
Who is AdvanSix’s new CFO and when did he start?
AdvanSix appointed Patrick Day as senior vice president and chief financial officer. His appointment became effective on April 27, 2026, and it was highlighted alongside the company’s first quarter 2026 financial results and strategic updates.