On August 7, AdvanSix (NYSE:ASIX) reported second-quarter sales of $421 million, up about 3% from a year earlier, while adjusted EBITDA fell $24 million to $32 million and adjusted EPS dropped $1.50 to $0.19.
Behind those numbers sits a story of two forces pulling in opposite directions: a $72 million year-over-year jump in raw material costs, and a fertilizer season where farmers spent less than the company expected
What stands out is how completely AdvanSix priced its way through the cost spike, even as volume told a rougher story. Bull Case: Pricing Power Outruns Rising Costs The quarter’s 3% sales growth broke down into 18% favorable pricing against a 15% volume decline. Raw material pass-through pricing rose 13% as benzene and propylene costs climbed, while market-based pricing improved 5%, largely on higher plant nutrient pricing tied to sulfur input costs.
That combination fully offset the $72 million raw material headwind for the quarter, and the swing looked even sharper sequentially: a $10 million net price/cost headwind in the first quarter flipped into a $39 million tailwind in the second. AdvanSix also closed out the full fertilizer year near a record for domestic granular ammonium sulfate volume, supported by progress toward a 75% ammonium sulfate granular conversion mix, with its sustained growth program generating returns above 30%. Looking ahead, the company plans to grow ammonia sales volume 30% in 2026 against 2025’s already record year, and it is applying for a USDA grant to expand ammonia capacity further.