AdvanSix Q2 sales rise on increase in pricing
AdvanSix Q2 sales rise on increase in pricing
Overview
U.S. chemistry firm's Q2 sales rose 3% yr/yr, driven by higher pricing offsetting lower volumes
Adjusted EPS for Q2 fell sharply yr/yr, reflecting lower Plant Nutrients volume and higher tax rate
Outlook
Company expects Q3 2026 domestic ammonium sulfate pricing to decline sequentially
AdvanSix sees 2026 capital expenditures at $75 mln to $95 mln, down from $116 mln in 2025
Company now expects 2026 pre-tax income impact of plant turnarounds at $17 mln, down from $25 mln in 2025
Result Drivers
HIGHER PRICING - Sales growth was driven by an 18% increase in pricing, including raw material pass-through and market-based price improvements, especially in Plant Nutrients
LOWER PLANT NUTRIENTS VOLUME - Sales volume declined, mainly due to reduced ammonium sulfate demand as challenging agricultural fundamentals and farmer profitability led to lower fertilizer purchases
REDUCED PRODUCTION OUTPUT - Lower production output contributed to the decline in adjusted EBITDA, partially offset by lower SG&A expenses
Company press release: ID:nBwc4nBXxa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $421.28 mln | $452.15 mln (2 Analysts) |
Q2 Adjusted EPS | Miss | $0.19 | $0.56 (2 Analysts) |
Q2 Net Income |
| $3.25 mln |
|
Q2 Adjusted EBITDA |
| $31.89 mln |
|
Q2 Adjusted EBITDA Margin |
| 7.60% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialty chemicals peer group is "buy"
Wall Street's median 12-month price target for AdvanSix Inc. is $23.50, about 16.7% above its August 6 closing price of $20.14
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Aug 5 - Nutrien misses profit estimates as lower volumes blunt higher fertilizer prices
Aug 5 - CF Industries Q2 sales miss estimates as nitrogen volumes fall
Aug 4 - Mosaic posts fall in quarterly revenue on lower production
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)