AdvanSix Adjusted EBITDA Falls on Lower Production Output

The Tip Desk · November 11, 2026 · 3 min read

Sales reached $430.8 million in the third quarter, up 15% from a year earlier, while adjusted EBITDA fell to $14.6 million.

AdvanSix (ASIX), a vertically integrated chemistry company, reported third-quarter sales of $430.8 million, up 15% from a year earlier, as 17% favorable pricing more than offset a 2% decline in volume.

That sales growth was the fastest of the year. Year-over-year sales had risen 3% in the second quarter and 7% in the first. Pricing continued to lift the top line: raw-material pass-through was up 10% after a net cost increase in benzene and propylene, and market-based pricing improved 7% across product lines. Lower volume was driven primarily by lower caprolactam sales.

Profitability did not follow. Adjusted EBITDA was $14.6 million, down $10.1 million from a year earlier, after a $23.8 million year-over-year decline in the second quarter and a $46.9 million decline in the first. Adjusted EBITDA margin compressed to 3.4% from 6.6%. The company said the EBITDA decline was driven primarily by reduced production output and higher raw-material costs, partially offset by higher pricing and cost savings including a non-manpower fixed-cost initiative. President and CEO Erin Kane said the core caprolactam operating rate continued to exceed global industry averages, but reduced output drove unfavorable fixed-cost absorption.

Adjusted diluted earnings were a loss of $0.24 a share, down $0.32 from $0.08 a year earlier. GAAP diluted earnings were a loss of $0.28 a share, versus a $0.10 loss a year earlier.

Nylon sales were $104.7 million, or 24% of the total, up 33% year-over-year after 26% growth in the second quarter. Chemical Intermediates sales were $103.7 million, or 24% of the total, up 24%. Plant Nutrients sales were $149.3 million, or 35% of the total, up 8% after a 16% year-over-year decline in the second quarter. Caprolactam sales were $73.1 million, or 17% of the total, unchanged from a year earlier.

Cash generation improved. Cash flow from operations was $48.0 million, up $21.4 million versus the prior year, which the company attributed primarily to working-capital performance. Free cash flow was $29.7 million. Capital expenditures were $18.3 million.

On August 14, the company completed a refinancing into a new five-year $425 million credit facility comprising a $275 million senior secured revolver and a $150 million senior secured term loan. Project CENTURY was selected for a $47 million FIELDS grant to support ammonia-platform investment.

The company now expects 2026 capital expenditures of approximately $90 million versus $116 million in 2025, reflecting risk-based prioritization of base investments and growth programs including SUSTAIN. It continues to expect a pre-tax income impact of plant turnarounds of approximately $17 million in 2026 versus $25 million in 2025. It expects tighter ammonium sulfate supply and demand dynamics into 2027 amid a challenged sulfur input-cost environment, and expects the acetone spread over propylene costs to hold near cycle averages. It continues to expect second-half 2026 sequential cash-flow improvement from a reduced capital-expenditure run-rate, working-capital tailwinds including a fourth-quarter pre-buy in Plant Nutrients, and timing of annual payments made in the first half.

The board declared a quarterly cash dividend of $0.16 a share, payable December 1, 2026. Kane said the company remains focused on executing strategic priorities and positioning AdvanSix to deliver sustainable long-term value.