Overview

• US chemical maker's Q1 sales rose 7% yr/yr, driven by Chemical Intermediates and Plant Nutrients

• Adjusted EPS for Q1 fell to negative $0.50, down from prior year, amid higher input costs

• Company evaluating ammonia platform expansion to supply growing diesel exhaust fluid market

Outlook

• AdvanSix expects 2026 capital expenditures of $75-$95 mln, down from $116 mln in 2025

• Company now expects 2026 plant turnaround pre-tax income impact of $17-$22 mln, down from $25 mln in 2025

• Company anticipates cash flow benefit in 2026 and beyond from 45Q carbon capture tax credits and bonus depreciation

Result Drivers

• HIGHER INPUT COSTS - Co said increased sulfur and natural gas costs negatively impacted margins and profitability

• WINTER STORM IMPACT - Co cited $11 mln in winter storm-related costs as a factor in higher plant costs

• ABSENCE OF INSURANCE PROCEEDS - Co noted prior year results benefited from $26 mln in insurance proceeds, which were not repeated

Company press release: ID:nBwbN398ta

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$404.18 mln	$364.90 mln (2 Analysts)
Q1 Adjusted EPS	Miss	-$0.50	-$0.48 (2 Analysts)
Q1 Net Income		-$15.55 mln

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 1.8% below its May 7 closing price of $23.94

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.