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Jun 30, 2023
Advansix Q2 2023 Earnings Report
Delivered solid earnings and cash flow results amidst a dynamic macro environment.
Key Takeaways
AdvanSix reported Q2 2023 sales of $428 million, a 27% decrease compared to the prior year. Earnings per share (EPS) was $1.16, and adjusted EPS was $1.25. The company returned $19 million to shareholders through repurchases and dividends and announced a 10% increase in the quarterly dividend.
Sales decreased by approximately 27% compared to the prior year, influenced by market-based pricing, raw material pass-through pricing, and lower volume.
Net Income was $32.7 million, a decrease of $32.4 million compared to the prior year.
Adjusted EBITDA was $65.8 million, a decrease of $39.6 million compared to the prior year.
Free Cash Flow was $15.7 million, a decrease of $62.4 million versus the prior year.
Revenue by Segment
Forward Guidance
AdvanSix anticipates favorable agriculture industry fundamentals, balanced acetone supply and demand, and continued unfavorable conditions in nylon and chemical intermediates. Capital expenditures are expected to be $110 million to $120 million in 2023, and the pre-tax income impact of planned plant turnarounds is expected to be $25 million to $30 million in 3Q23.
Positive Outlook
- Expect favorable underlying agriculture industry fundamentals to continue
- Expect balanced supply and demand conditions for North American acetone to continue
- Well positioned to offer near, medium and long-term value for our shareholders supported by the structural improvements made to the underlying earnings power of this business.
- Committed to producing the right chemistries with the right properties to solve our customers' most exciting opportunities
- Recently illustrated by the introduction of new 100 percent post-consumer recycled content nylon
Challenges Ahead
- Typical North American ammonium sulfate seasonality expected to drive 3Q23 sequential domestic pricing decline
- Expect continued unfavorable supply and demand conditions across nylon and other chemical intermediates due to headwinds in consumer durables and building and construction end markets
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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