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AdvanSix Inc.
5/8/2026
Good day and welcome to the Advanced 6 First Quarter 2026 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your touchtone phone. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Adam Kressel, Vice President, Investor Relations and Treasurer. Please go ahead.
Thank you, Danielle. Good morning and welcome to Advance6's first quarter 2026 earnings conference call. With me here today are President and CEO Aaron Kane, Senior Vice President and CFO Patrick Day, and Vice President of Corporate Finance and Strategic FP&A, Chris Graham. This call and webcast, including any non-GAAP reconciliations, are available on our website at investors.advancix.com. Note that elements of this presentation contain forward-looking statements that are based on our best view of the world and of our business as we see it today. Those elements can change, and the actual results could differ materially from those projected, and we ask that you consider them in that light. We refer you to the forward-looking statements included in our press release and earnings presentation. In addition, we identify the principal risks and uncertainties that affect our performance in our SEC filings, including our annual report on Form 10-K, as further updated in subsequent filings with the SEC. This morning, we will review our financial results for the first quarter of 2026 and share our outlook for our key product lines and end markets. Finally, we'll leave time for your questions at the end. So with that, I'll turn the call over to Advance6's President and CEO, Aaron Cain.
Thanks, Adam, and good morning, everyone. We appreciate you joining us here today for our quarterly call. As you saw in our press release, the Advantix team navigated a number of headwinds to deliver a solid first quarter performance, including the earlier winter storm related impacts and new geopolitical challenges amid continued subdued industrial and market demand. In the quarter, we generated 7% sales growth year over year, supported by improvements in chemical intermediates volume and plant nutrients market pricing, partially offsetting the margin impacts driven by increased sulfur and natural gas costs. We are executing with a focus to recover inflationary raw material input costs by leveraging both our pass-through formula and freely negotiated pricing mechanisms. I'd like to thank all of our teammates who contributed to successfully maintaining safe operations during the winter storm earlier this year. While the earnings impact related to this event came in just above the high end of our anticipated range, we were able to save $3 million of planned turnaround expense for the year. Looking ahead, we anticipate significant sequential earnings and cash flow improvement into the second quarter. We are in a solid position as the domestic planting season progresses and continue to operate amid a tightening acetone global supply and demand environment and a modestly recovering nylon industry. We're maintaining a disciplined focus on cost productivity, capital spending, turnaround execution, and full year free cash flow generation. We continue to expect full year CapEx in the range of $75 to $95 million with targeted allocation of nearly 20% of that towards high return growth investments. We also continue to expect debt leverage ratios near the low end of our target range of one to two and a half times by the end of this year. Key to our strategy is a keen focus on controllable levers to support through-cycle profitability and cash conversion while progressing targeted growth strategies and initiatives. We announced yesterday an exciting new opportunity to expand our integrated ammonia platform at our Hopewell, Virginia site to supply the growing regional diesel exhaust fluid, or DEF, market. I'll share more about this later in the call. Lastly, effective April 27th, We welcome Patrick Day as our new Senior Vice President and Chief Financial Officer. Pat has tremendous experience establishing corporate and financial strategies that accelerate growth and shareholder value, and we look forward to his expertise as we advance in our next chapter. I'd like to also give thanks to Chris Graham for his commitment and support during his time as Interim CFO over the last year. With that, I'll turn it to Chris to discuss the financials.
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