AdvanSix reported an adjusted loss of $0.24 per share for the third quarter of 2026, missing analysts’ forecast of earnings of $0.28 per share. Revenue increased 15% year over year to $430.81 million, broadly in line with expectations of $431 million.
The chemical maker’s adjusted EBITDA fell by $10 million from a year earlier to $15 million. Higher raw material costs and lower output at its Hopewell and Frankford sites weighed on margins, including through weaker absorption of fixed costs. AdvanSix said pricing gains across its product lines nearly offset the increase in input costs.
Sales growth was supported by a 17% improvement in pricing, partly offset by a 2% decline in volume. Market-based prices rose across the company’s product lines, while pass-through pricing reflected higher raw material costs. Nylon resin sales increased 33% year over year, Plant Nutrients sales rose 8%, and Chemical Intermediates sales grew 24%.
Cash flow improved during the quarter. Cash flow from operations reached $48 million, up $21 million from a year earlier, while Free cash flow was $30 million. Capital spending was $18 million, down $8 million year over year.
AdvanSix shares fell 2.86% to $15.14 in premarket trading, compared with a previous close of $15.58. The stock was trading near the lower end of its reported 52-week range of $14.10 to $26.73.
Management expects the full-year 2026 effective tax rate to be about 20% and capital spending to total approximately $90 million, comprising $75 million of base investment and $15 million of growth spending. For the fourth quarter, the company expects pressure from prices relative to raw material costs year over year, with sulfur remaining a headwind for Plant Nutrients.
AdvanSix said it sees a path to break-even free cash flow in calendar 2026, citing working capital discipline and expected pre-buy activity. The company noted that a potential $18 million 45Q refund is excluded from that outlook because its timing could move into 2027.
Sources: Investing.com News.