AdvanSix Announces First Quarter 2025 Financial Results

1Q25 Sales of $378 million, up 12% versus prior year

1Q25 Earnings Per Share of $0.86; Adjusted Earnings Per Share of $0.93

1Q25 Cash Flow from Operations of $11 million, up $48 million versus prior year

1Q25 results include previously announced $26 million final insurance settlement proceeds related to 2019 PES supplier shutdown

AdvanSix (NYSE:ASIX), a diversified chemistry company, today announced its financial results for the first quarter ending March 31, 2025. Overall, year-over-year results reflect improved operational performance, continued strength in Plant Nutrients, and the previously announced insurance settlement proceeds.

First Quarter 2025 Summary

• Sales up approximately 12% versus prior year driven by an approximately 7% increase in volume, 4% favorable market-based pricing and 1% higher raw material pass-through pricing
• Net Income of $23.3 million, an increase of $40.7 million versus the prior year
• Adjusted EBITDA of $51.6 million, an increase of $51.0 million versus the prior year
• Adjusted EBITDA Margin of 13.7%, up 1,350 bps versus the prior year
• Cash Flow from Operations of $11.4 million, an increase of $47.6 million versus the prior year
• Capital Expenditures of $34.1 million, a decrease of $1.3 million versus the prior year
• Free Cash Flow of ($22.6) million, an increase of $49.0 million versus the prior year

"Our significantly improved first quarter results demonstrate our commitment to execute in an evolving macroeconomic environment as we delivered operational performance to meet our customers' needs and drove the successful conclusion of our multi-year efforts to recover losses associated with the 2019 PES cumene supplier shutdown," said Erin Kane, president and CEO of AdvanSix. "Our competitive position enabled our commercial team to achieve a 4% increase in market pricing led by strength in Plant Nutrients with continued robust ammonium sulfate premiums over urea, while we navigated margin impact driven by higher raw material prices, namely natural gas and sulfur. We remain well positioned to serve our customers across our diversified portfolio including fertilizer as the domestic planting season progresses, in acetone amid a balanced global supply and demand environment, and across a modestly recovering nylon industry. We have supplemented our commercial success with continued investment in growth and enterprise initiatives in support of sustainably improving through-cycle performance."

Summary first quarter 2025 financial results for the Company are included below:

Sales of $378 million in the quarter increased approximately 12% versus the prior year. Sales volume increased approximately 7% primarily driven by improved performance following the operational disruption in the prior year period and higher granular ammonium sulfate sales supported by our SUSTAIN program. Market-based pricing was favorable by 4% driven by continued strength in Plant Nutrients reflecting favorable North American ammonium sulfate supply and demand conditions. Raw material pass-through pricing was up 1%.

Sales by product line and approximate percentage of total sales are included below:

Adjusted EBITDA of $51.6 million in the quarter increased $51.0 million versus the prior year primarily driven by improved operational performance, higher volume, and $26 million of insurance proceeds, partially offset by unfavorable net pricing over raw materials.

Adjusted earnings per share of $0.93 increased $1.49 versus the prior year driven primarily by the factors discussed above.

Cash flow from operations of $11.4 million in the quarter increased $47.6 million versus the prior year primarily due to higher net income. Capital expenditures of $34.1 million in the quarter decreased $1.3 million versus the prior year.

Outlook

• Strong sulfur nutrition demand and tight North American ammonium sulfate supply expected to support sulfur premiums at or near high end of historical range; Anticipated higher raw material prices impacting fertilizer margins
• Acetone spread over refinery grade propylene costs anticipated to be lower year-over-year, in part due to higher input costs, but expected to remain at or above cycle averages
• Leveraging our nylon competitive position to navigate a more protracted downturn in the cycle - global oversupply conditions impacting industry pricing dynamics
• Expect Capital Expenditures of $145 to $155 million in 2025, reflecting the planned progression of our SUSTAIN growth program, and refined execution timing to address critical enterprise risk mitigation
• Continue to expect pre-tax income impact of plant turnarounds to be $25 to $30 million in 2025 versus approximately $58 million in 2024

"While we know that 2025 will again be another dynamic year, we are well-positioned as an American manufacturer of essential chemistries aligned to domestic agricultural and manufacturing supply chains and energy markets as well as a diverse set of end market applications, and will continue to pivot where needed. In times of uncertainty, we're keenly focused on delivering on what we can control. This includes taking a measured and disciplined approach to cost and cash management while maintaining smart investments for sustainable long-term performance. We also continue to protect our healthy balance sheet enabling our strategic capital allocation framework to provide optionality for further value creation and remain confident in the potential of AdvanSix," concluded Kane.

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 May 27, 2025 to stockholders of record as of the close of business on May 13, 2025.

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 2025 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 2 until 12 noon ET on May 9 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international). The access code is 5103628.

About AdvanSix

AdvanSix is a diversified chemistry company that produces essential materials for our customers in a wide variety of end markets and applications that touch people's lives. Our integrated 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 regulatory, trade or other policies of the U.S., and the conflict between Russia and Ukraine, the conflict in Israel and Gaza 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 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 and 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 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, 2024, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250501406865/en/

Media

Janeen Lawlor

(973) 526-1615

[email protected]



Investors

Adam Kressel

(973) 526-1700

[email protected]