AdvanSix Inc. (NYSE:ASIX) on Friday reported a steep decline in third-quarter earnings, though revenue came in slightly ahead of Wall Street estimates.

The chemical manufacturer posted earnings of 8 cents per share, missing analysts’ average estimate of 40 cents, a decline from 88 cents per share a year earlier.

Quarterly sales fell 6% to $374.47 million, beating the consensus estimate of $365 million.

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Adjusted EBITDA margin fell to 6.6% in the quarter, down from 13.4% a year earlier.

Cash flow from operations totaled $26.59 million for the quarter, down by $30.66 million from a year earlier, primarily reflecting lower net income.

Capital expenditures were $26.5 million, a decrease of $4.0 million from the prior-year period.

The company’s board declared a quarterly cash dividend of 16 cents per share, payable on December 2, 2025, to shareholders of record as of November 18, 2025.

AdvanSix ended the quarter with cash and cash equivalents of $23.69 million.

Outlook

The company expects continued strength in its Plant Nutrients business despite higher input costs, supported by the ongoing SUSTAIN growth program.

Acetone spreads are below 2024’s multi-year highs but should remain around cycle averages. Management is navigating a prolonged nylon-market downturn by focusing on controllable efficiency levers.

Capital expenditures are now projected at $120–$125 million in 2025, about $30 million lower due to reprioritization aimed at preserving cash and supporting strong cash generation.

The planned fourth-quarter 2025 plant turnaround was completed as expected, with an estimated $14 million pre-tax income impact.

Looking ahead, the company expects a 2026 cash-flow boost from 45Q carbon-capture tax credits and 100% bonus depreciation.

CEO Commentary

Erin Kane, president and CEO of AdvanSix, stated, “In the third quarter, our team executed with agility and discipline as we seasonally entered a new fertilizer year in Plant Nutrients with a strong fall fill program, amid higher raw material input costs, while continuing to realize the ongoing benefits from our SUSTAIN growth program.”

“In the face of continued weak market conditions in Nylon Solutions and lower net pricing in Chemical Intermediates year over year as anticipated, we are making the strategic choice to moderate production rates to manage inventory levels with a keen focus on free cash flow. We have a demonstrated track record of navigating through cycles and complex dynamics, and our durable competitive advantage will serve us well through this time,” she added.

Price Action: ASIX shares were trading lower by 0.17% to $18.11 premarket at last check Friday.

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