AdvanSix (ASIX) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, February 20, 2026 astatine 9:54 AM CST 29 min read

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Friday, Feb. 20, 2026 astatine 9:30 a.m. ET

• President and Chief Executive Officer — Erin N. Kane

• Senior Vice President and Chief Financial Officer — Christopher Gramm

• Director, Investor Relations and Communications — Adam Kressel

Erin N. Kane: Thanks, Adam, and bully morning, everyone. We admit you joining america present contiguous for our quarterly call. As you saw successful our property release, the AdvanSix Inc. squad executed good to adjacent retired 2025. A large acknowledgment to our enactment for remaining focused connected safely optimizing operational and commercialized performance. We delivered afloat twelvemonth adjusted EBITDA of $157,000,000 and generated $6,000,000 of escaped currency flow, successful a twelvemonth characterized by continued cyclical trough marketplace conditions for Nylon Solutions, robust works nutrient proviso and request fundamentals amid an expanding input outgo environment, and mixed chemic intermediates manufacture conditions with little acetone nett pricing arsenic anticipated.

While the macro situation has been challenging, determination were a fig of highlights implicit the past twelvemonth to recognize. We successfully executed our planned turnarounds astatine the debased extremity of people walk range. We delivered grounds yearly accumulation crossed some of our cardinal ammonia and sulfuric acerb portion operations. We invested $116,000,000 successful CapEx backing cardinal maturation and endeavor initiatives, including our Sustained Growth Program. We progressed taxation strategies, claiming further 45Q c taxation credits, received the last $26,000,000 colony proceeds successful the archetypal 4th 2025 related to the 2019 PES supplier shutdown claim, and we preserved our competitory dividend portion maintaining blimpish indebtedness leverage levels and ample liquidity.

At the extremity of the year, we besides welcomed Jeffrey Bird to our Board of Directors. Jeff's breadth of acquisition and heavy fiscal and operational enactment successful analyzable industries volition further fortify our Board's strategical oversight. As we look up to 2026, the extremity marketplace situation remains mixed overall. We expect continued spot successful works nutrient supply-demand fundamentals and expect acetone margins to stay adjacent rhythm averages portion nylon remains plateaued successful its trough. Now determination person been respective caller manufacture announcements pointing to capableness rationalization successful the nylon concatenation and little operating rates successful China, which we judge should pb to much favorable proviso and request conditions implicit time.

Raw worldly input costs are expected to beryllium a headwind, peculiarly successful the archetypal fractional of the year, connected meaningfully higher sulfur and earthy state prices. As galore good know, we precocious navigated a important wintertime tempest crossed the state and Mid-Atlantic. We are arrogant that we were palmy successful safely and continuously moving our operations done these utmost temperature, crystal and snowfall conditions. Everyone astatine our operating sites came unneurotic to present this result. We did person to contend with earthy state restrictions, further attraction costs, and we elected to mean operating rates, which was a indispensable interaction to support harmless operations.