AdvanSix Reports Decline in Revenue and Net Income for Q2 2025

AdvanSix Inc. reported its financial results for the second quarter of 2025, revealing a decline in both revenue and net income compared to the same period in 2024. The company generated sales of $410.0 million for the three months ended June 30, 2025, a decrease of 9.6% from $453.5 million in the prior year. For the first half of 2025, total sales were $787.8 million, slightly down from $790.3 million in the same period last year. Net income for the second quarter was $31.4 million, down from $38.9 million in 2024, while year-to-date net income increased to $54.7 million from $21.5 million, largely due to insurance proceeds from a previous business interruption claim.

The decline in quarterly revenue was attributed to an 8.1% decrease in sales volume, primarily driven by softer demand in key nylon end markets, and a 1.5% reduction in pricing due to lower raw material pass-through pricing. However, the company noted a 3% increase in market-based pricing for its Plant Nutrients segment, reflecting favorable supply and demand conditions for ammonium sulfate. In contrast, the six-month results showed a marginal decline in sales volume of 1.2%, offset by a slight increase in pricing.

AdvanSix has made strategic moves to enhance its operational efficiency, including a planned investment to upgrade its enterprise resource planning (ERP) system. This upgrade is expected to improve transactional processing and reporting capabilities. The company also continues to execute its share repurchase program, having repurchased a total of 6.3 million shares since its inception, with approximately $62 million remaining under the current authorization.

Operationally, AdvanSix serves around 400 customers annually, with its ten largest customers accounting for approximately 39% of total sales. The company reported a gross margin percentage of 14.3% for the second quarter, down from 17.9% in the prior year, primarily due to increased operational costs and the impact of market-based pricing. The company’s total assets increased to $1.65 billion as of June 30, 2025, compared to $1.59 billion at the end of 2024, supported by a rise in accounts receivable and inventory levels.

Looking ahead, AdvanSix anticipates continued challenges in the market, particularly in the nylon segment, but remains optimistic about the growth potential in its Plant Nutrients and Chemical Intermediates segments. The company expects to maintain its focus on operational efficiency and strategic investments to drive long-term growth, while also navigating the complexities of market conditions and customer demand.