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AdvanSix(ASIX) - 2025 Q1 - Quarterly Results
ASIXAdvanSix(ASIX)2025-05-02 10:31

Financial Performance - 1Q25 sales reached 378million,a12378 million, a 12% increase compared to the prior year, driven by a 7% increase in volume and 4% favorable market-based pricing [2][5][8]. - Net income for 1Q25 was 23.3 million, an increase of 40.7millionyear−over−year,withadjustedearningspershareof40.7 million year-over-year, with adjusted earnings per share of 0.93, up 1.49fromthepreviousyear[5][11].−AdjustedEBITDAforthequarterwas1.49 from the previous year [5][11]. - Adjusted EBITDA for the quarter was 51.6 million, a significant increase of 51.0millioncomparedtotheprioryear,withanadjustedEBITDAmarginof13.751.0 million compared to the prior year, with an adjusted EBITDA margin of 13.7%, up 1,350 basis points [5][10]. - Total sales for Q1 2025 reached 377.791 million, a 12.1% increase from 336.829millioninQ12024[25].−NetincomeforQ12025was336.829 million in Q1 2024 [25]. - Net income for Q1 2025 was 23.344 million, compared to a net loss of 17.396millioninQ12024,markingasignificantturnaround[25].−AdjustedEBITDAforQ12025was17.396 million in Q1 2024, marking a significant turnaround [25]. - Adjusted EBITDA for Q1 2025 was 51.626 million, with an adjusted EBITDA margin of 13.7%, up from 0.2% in Q1 2024 [30]. - Basic earnings per share (EPS) for Q1 2025 was 0.87,comparedtoalosspershareof0.87, compared to a loss per share of (0.65) in Q1 2024 [31]. Cash Flow and Capital Expenditures - Cash flow from operations improved to 11.4million,anincreaseof11.4 million, an increase of 47.6 million year-over-year, while free cash flow was (22.6)million,animprovementof22.6) million, an improvement of 49.0 million [5][11]. - Capital expenditures for 1Q25 were 34.1million,adecreaseof34.1 million, a decrease of 1.3 million compared to the prior year, with expectations for total capital expenditures of 145to145 to 155 million in 2025 [5][15]. - The company reported a free cash flow of (22.619)millionforQ12025,animprovementfrom(22.619) million for Q1 2025, an improvement from (71.590) million in Q1 2024 [28]. - Cash and cash equivalents decreased to 8.344millionattheendofQ12025,downfrom8.344 million at the end of Q1 2025, down from 19.564 million at the end of Q4 2024 [27]. Assets and Liabilities - Total current assets increased to 418.182millionasofMarch31,2025,comparedto418.182 million as of March 31, 2025, compared to 387.116 million at December 31, 2024 [24]. - Total liabilities rose to 831.606millionasofMarch31,2025,upfrom831.606 million as of March 31, 2025, up from 820.270 million at December 31, 2024 [24]. Strategic Focus and Market Conditions - The company anticipates a pre-tax income impact of plant turnarounds to be 25to25 to 30 million in 2025, down from approximately 58millionin2024[15].−StrongdemandforsulfurnutritionandtightNorthAmericanammoniumsulfatesupplyareexpectedtosupportsulfurpremiumsatornearthehighendofhistoricalranges[15].−Thecompanyisfocusedondisciplinedcostandcashmanagementwhilemaintaininginvestmentsforsustainablelong−termperformance[13].−Thecompanycontinuestoleverageitscompetitivepositioninnylontonavigateaprotracteddownturninthecycleduetoglobaloversupplyconditions[15].DividendsandInvestments−Aquarterlycashdividendof58 million in 2024 [15]. - Strong demand for sulfur nutrition and tight North American ammonium sulfate supply are expected to support sulfur premiums at or near the high end of historical ranges [15]. - The company is focused on disciplined cost and cash management while maintaining investments for sustainable long-term performance [13]. - The company continues to leverage its competitive position in nylon to navigate a protracted downturn in the cycle due to global oversupply conditions [15]. Dividends and Investments - A quarterly cash dividend of 0.16 per share was declared, payable on May 27, 2025 [14]. - The company plans to invest approximately 25−25-30 million in sulfuric acid operations for FY 2025 [34]. - The company experienced an unfavorable impact of approximately $17 million to pre-tax income due to maintenance during a planned plant turnaround [36].