We refer you to the forward-looking statements included in our press release and earnings presentation. This morning, we will review our financial results for the third quarter 2025 and share our outlook for our key product lines and end markets. Given the protracted downturn in nylon solutions and demand softness in chemical intermediates, we're making the strategic choice to moderate production rates to manage inventory levels with a keen focus on free cash flow. While we were already tactically opting to reduce production levels, this incident is expected to impact 4Q EBITDA by $7 million-$9 million, primarily related to the negative impact of unabsorbed fixed costs.
Taking a disciplined approach to cash management is critical, reflected in our prioritization of base capital investment and anticipated tailwinds in 2026 from 45Q carbon tax credits and recent tax legislation. 2025 CapEx is now expected to be $120 million-$125 million, reflecting $30 million full-year cash conservation through refined risk-based prioritization and execution. Their deep industry and professional backgrounds and proven expertise in global manufacturing will be invaluable to our board's role in ensuring strong corporate governance practices and supporting advancement of our strategic growth priorities. Sales volume was approximately half of that change, driven primarily by softer demand in both chemical intermediates and nylon end markets.
Market-based pricing was favorable by approximately 2%, driven by continued strength in plant nutrients, reflecting favorable North American ammonium sulfate supply and demand conditions. Adjusted EBITDA was $25 million, down $28 million from last year, while adjusted EBITDA margin was 6.6%. The decline in earnings versus last year was primarily driven by a reduction in acetone price raw spreads, as we anticipated. On a sequential basis, compared to the second quarter, we saw a nearly $20 million earnings decline due to typical ammonium sulfate seasonality with the start of the new fertilizer year.