NYSE$ASIX
Advansix Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Delivered solid earnings and cash flow results amidst a dynamic macro environment.
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.
Headline financials
Revenue & EPS history
Advansix · Revenue · Quarterly
$428M
Revenue by segment
Advansix · $289M total across 3 segments · Q2 2023
- Chemical Intermediates$121M-23.5%42.0%
- Nylon$93M-29.6%32.2%
- Caprolactam$74.7M-14.3%25.8%
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.
Tailwinds
- 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
Headwinds
- 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
- Continue to expect Capital Expenditures of $110 million to $120 million in 2023, reflecting increased spend due to critical infrastructure, other maintenance, and growth and cost savings projects
- Continue to expect pre-tax income impact of planned plant turnarounds to be $25 million to $30 million in 3Q23, totaling $28 million to $33 million in full year 2023
- Highly focused on the execution of our upcoming third quarter planned plant turnaround to support safe, stable and sustainable operations at higher utilization rates relative to our industry.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2023
-0.8%
Avg return
Earnings day
-1.1%
Avg return
5 days after
+0.6%
Avg return
30 days after
52%
23 / 44 earnings
Positive
+15.6%
Q1 2016
Best reaction
-15.5%
Q4 2019
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -14.5% | -6.0% | -9.9% | |
| Q4 2025 | +3.9% | +0.8% | +12.5% | |
| Q3 2025 | -15.0% | -10.9% | -11.7% | |
| Q1 2025 | +6.1% | +6.9% | +10.4% | |
| Q3 2024 | +5.0% | +11.8% | +14.5% | |
| Q2 2024 | +2.7% | +4.0% | +10.5% | |
| Q1 2024 | -9.9% | -6.3% | -8.0% | |
| Q4 2023 | +0.8% | -0.6% | -4.2% | |
| Q3 2023 | -9.5% | -13.2% | -5.0% | |
| Q2 2023 | -8.1% | -5.3% | -14.0% | |
| Q1 2023 | -0.7% | -1.2% | +1.1% | |
| Q4 2022 | -3.3% | -0.9% | -17.7% | |
| Q3 2022 | +3.7% | +1.7% | +14.9% | |
| Q2 2022 | +1.6% | +2.0% | -8.2% | |
| Q1 2022 | -3.9% | -4.2% | -2.2% | |
| Q4 2021 | -11.0% | -14.7% | +30.5% | |
| Q3 2021 | +5.4% | +8.3% | +2.4% | |
| Q2 2021 | +2.6% | +6.9% | +11.5% | |
| Q1 2021 | +3.3% | +6.7% | +3.4% | |
| Q4 2020 | +11.5% | +8.1% | +2.8% | |
| Q3 2020 | +4.4% | -1.3% | +23.6% | |
| Q2 2020 | +1.5% | +5.2% | +16.4% | |
| Q1 2020 | -6.0% | -7.2% | -2.8% | |
| Q4 2019 | -15.5% | -27.0% | -34.1% | |
| Q3 2019 | +3.4% | +4.0% | -11.1% | |
| Q2 2019 | -2.3% | -10.3% | -12.9% | |
| Q1 2019 | +8.1% | +1.6% | -18.7% | |
| Q4 2018 | +2.0% | -1.2% | -15.6% | |
| Q3 2018 | -8.9% | -2.9% | -2.5% | |
| Q2 2018 | -13.2% | -13.5% | -15.0% | |
| Q1 2018 | -5.5% | +2.0% | +2.9% | |
| Q4 2017 | +4.5% | +6.6% | -12.2% | |
| Q3 2017 | -6.7% | -7.2% | -11.4% | |
| Q2 2017 | -4.6% | -4.0% | +3.2% | |
| Q2 2016 | -4.6% | -4.0% | +3.2% | |
| Q1 2017 | +15.6% | +13.7% | +11.3% | |
| Q1 2016 | +15.6% | +13.7% | +11.3% | |
| Q1 2015 | -7.1% | -9.9% | -11.7% | |
| Q2 2015 | -7.1% | -9.9% | -11.7% | |
| Q4 2014 | -7.1% | -9.9% | -11.7% | |
| Q4 2016 | +1.3% | -2.2% | +1.3% | |
| Q4 2015 | +8.5% | +6.9% | +30.4% | |
| Q3 2016 | +8.5% | +6.9% | +30.4% | |
| Q3 2015 | +8.5% | +6.9% | +30.4% |
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