AdvanSix Expects 2026 Capital Expenditures Of $75M-$95M Vs. ~$116M In 2025

Outlook

• Anticipate continued strength in Plant Nutrients supply and demand fundamentals amid meaningfully higher sulfur input costs
• Acetone spread over propylene costs expected to hold near cycle averages; Anti-dumping duties into U.S. renewed for another five years
• Navigating an extended trough in the nylon cycle - focused on controllable levers to optimize performance
• Expect Capital Expenditures of $75 to $95 million in 2026 versus approximately $116 million in 2025, reflecting a risk-based prioritization of base investments and enterprise programs with continued progression of growth programs including SUSTAIN
• Expect pre-tax income impact of plant turnarounds to be $20 to $25 million in 2026 versus approximately $25 million in 2025
• Expect cash flow benefit in 2026 and beyond from 45Q carbon capture tax credits and 100% bonus depreciation

"The end market environment entering 2026 remains mixed overall. We've seen continued strength in Plant Nutrients and acetone margins remain near cycle averages, while nylon has plateaued in its trough. Conversely, there have been several recent industry announcements pointing to capacity rationalization and lower operating rates, which we believe should lead to more favorable supply and demand conditions over time. We remain highly focused on delivering on controllable levers including continued optimization of production output and sales volume mix while driving productivity to support through-cycle profitability. We have embarked on a multi-year non-manpower fixed cost savings program targeting approximately $30 million of annual savings. In addition, we now anticipate capital expenditures to be in the range of $75 to $95 million in 2026 driven by a risk-based prioritization of our capital investments and keen focus on cash flow generation and conversion. Our strategic initiatives, unique combination of assets and business model are core to our durable competitive advantage and long-term positioning," concluded Kane.