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Investing.com - AdvanSix Inc. (NYSE:ASIX) shares surged 4.2% on Friday after the diversified chemistry company reported third quarter results that missed analyst expectations but provided a positive outlook for its Plant Nutrients segment.
The company reported adjusted earnings per share of $0.08 for the third quarter, falling well short of the analyst consensus estimate of $1.00. Revenue came in at $374.5 million, below the expected $393.5 million and down 6% compared to the same period last year.
Despite the earnings miss, investors appeared encouraged by the company’s outlook and cash flow management strategy. Sales volume decreased approximately 3% during the quarter, primarily due to softer demand in chemical intermediates and nylon end markets.
Raw material pass-through pricing was down approximately 5%, while market-based pricing improved by about 2%, driven by strength in the Plant Nutrients segment.
"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," said Erin Kane, president and CEO of AdvanSix.
The company reported cash flow from operations of $26.6 million in the quarter, down from $57.3 million in the same period last year. Capital expenditures totaled $26.5 million, resulting in minimal free cash flow of just $66,000 for the quarter.
AdvanSix expects continued strength in its Plant Nutrients segment and anticipates acetone spread over refinery grade propylene costs to hold near cycle averages, though below 2024’s multi-year highs. The company is navigating what it describes as "an extended downturn in the nylon cycle" by focusing on controllable performance levers.
Management reduced its capital expenditure forecast for 2025 to $120-125 million, representing $30 million in cash conservation through "refined prioritization and focus on strong cash flow generation." The company also anticipates cash flow tailwinds in 2026 from 45Q carbon capture tax credits and 100% bonus depreciation.
The company’s Board of Directors declared a quarterly cash dividend of $0.16 per share, payable on December 2, 2025, to stockholders of record as of November 18, 2025.
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