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AdvanSix pricing offset raw material costs as fertilizer demand softened
In the second quarter, sales rose 3% while adjusted EBITDA fell and fertilizer volume missed expectations, with pricing gains offsetting a $72 million raw material headwind.
AdvanSix reported second-quarter sales of $421 million, up about 3% year over year, but profitability declined as adjusted EBITDA fell $24 million to $32 million and adjusted EPS dropped $1.50 to $0.19, according to Yahoo Finance. The company said the quarter reflected two opposing forces. A $72 million year-over-year increase in raw material costs was offset by pricing, with 18% favorable pricing alongside a 15% volume decline. AdvanSix also pointed to a shift in the net price or cost impact, moving from a $10 million headwind in the first quarter to a $39 million tailwind in the second. On the demand side, AdvanSix reported fertilizer season weakness as farmers spent less than the company expected. Fertilizer volume delivered a $17 million unfavorable impact, management linked to rising grower input costs alongside steady but lower crop and grain prices that pressured farmer profitability and reduced fertilizer consumption. Looking ahead, AdvanSix said it plans to grow ammonia sales volume 30% in 2026 versus 2025, and it is applying for a USDA grant to expand ammonia capacity. The company also cited improving cash flow in the back half of 2026, including a lower capital spending run rate, working capital tailwinds from the fourth quarter fertilizer pre-buy program, and 45Q carbon capture tax credits.