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Jun 30, 2021
Advansix Q2 2021 Earnings Report
AdvanSix's Q2 2021 financial results were announced, showcasing record sales and earnings driven by strong execution amidst a tight supply and demand environment.
Key Takeaways
AdvanSix reported record sales, earnings, and margin in Q2 2021, driven by strong execution amid improved end market demand and tight industry supply conditions. Sales reached $438 million, up 88% year-over-year, with earnings per share at $1.53, a 273% increase. Cash flow from operations was $52 million, reflecting a significant rise from the previous year.
Sales increased by approximately 88% compared to the prior year, driven by higher volume, raw material pass-through pricing, and favorable market-based pricing.
Net income reached $44.1 million, marking a $32.7 million increase from the prior year.
EBITDA was $76.0 million, a $45.2 million increase versus the prior year, with an EBITDA margin of 17.4%, up 420 bps.
Cash flow from operations totaled $51.9 million, reflecting a $43.1 million increase compared to the prior year.
Revenue by Segment
Forward Guidance
The outlook for AdvanSix's business remains favorable, supported by strong underlying demand trends, benefits from high-return capital projects, a differentiated product portfolio, and operational agility, all contributing to expected record earnings and cash flow in 2021.
Positive Outlook
- Expect steady North America nylon demand amid favorable end market conditions and tight industry supply.
- Expect strong agricultural industry fundamentals to continue; Typical North America ammonium sulfate seasonality expected to drive 3Q21 higher export mix sequentially.
- Expect robust demand for chemical intermediates to continue; Acetone industry fundamentals to remain strong with continued balancing of supply and demand in 2H 2021.
- Expect Capital Expenditures to be $65 to $70 million in 2021 reflecting timing of project execution.
- Driving efficiencies in planned plant turnaround programs - expect pre-tax income impact of $24 to $27 million in 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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