Ascent Industries Co. Delivers Strongest Earnings Since 2022; Gross Profit Nearly Doubles Year-Over-Year
SCHAUMBURG, Ill.--( BUSINESS WIRE)--Ascent Industries Co. (Nasdaq: ACNT) (“Ascent” or the “Company”), a specialty chemicals platform focused on the development, production, and distribution of tailored, performance-driven chemical solutions, is reporting its results for the third quarter ended September 30, 2025.
Third Quarter 2025 Summary 1
(in millions, except per share and margin)
Q3 2025
Q3 2024
Change
Net Sales
$19.7
$20.9
(5.7)%
Gross Profit
$5.8
$3.0
94.2%
Gross Profit Margin
29.7%
14.4%
1,525bps
Net Loss
$(0.1)
$(7.8)
(98.4)%
Diluted Loss per Share
$(0.01)
$(0.77)
(98.7)%
Adjusted EBITDA
$1.4
$(0.7)
+2.1M
Adjusted EBITDA Margin
7.0%
(3.4)%
1,038bps
Management Commentary
“Our third quarter—and our first full quarter as a pure-play specialty chemicals company—delivered our strongest earnings performance since 2022,” said Bryan Kitchen, President and CEO of Ascent Industries Co. “That year included both our Chemicals and Tubular segments and benefited from pandemic-era tailwinds. Achieving this level of profitability today, while still absorbing the drag from our Munhall asset, underscores the resilience and earnings power of the platform we are building.”
“Gross profit nearly doubled year-over-year, and EBITDA margins improved significantly. This performance reflects disciplined sourcing, focused product-line management, and relentless operational rigor that continue to expand gross margin and earnings, even as demand remains muted across many end markets. The improvement is structural, not situational.”
Kitchen added, “Momentum is building. Quarter after quarter, we’re proving that our Chemicals-as-a-Service model delivers durable value, even in a sluggish macro backdrop. Our customer-centric approach and agility are resonating, and our growing pipeline of high-quality opportunities reinforces confidence in both our organic growth runway and earnings trajectory ahead.”
Third Quarter 2025 Financial Results
Net sales from continuing operations were $19.7 million compared to $20.9 million in the third quarter of 2024. The decline was a result of lower volume partially offset by increased average selling prices.
Gross profit from continuing operations increased 94.2% to $5.8 million, or 29.7% of net sales, compared to $3.0 million, or 14.4% of net sales, in the third quarter of 2024. The increase was primarily driven by continued cost management, strategic sourcing enhancements and further product line optimization.
Net loss from continuing operations decreased to ($0.1) million, or ($0.01) diluted loss per share compared to a net loss from continuing operations of ($7.8) million, or ($0.77) diluted loss per share, in the third quarter of 2024.
Adjusted EBITDA from continuing operations increased to $1.4 million in the third quarter of 2025, with adjusted EBITDA margin increasing to 7.0% compared to (3.4)% in the prior year period. The increase was primarily driven by the aforementioned increase in gross profit partially offset by investments in selling, general and administrative expenses.
Liquidity
As of September 30, 2025, the Company had $58.0 million in cash and cash equivalents, no debt outstanding under its revolving credit facilities and had $13.7 million in availability under its revolving credit facility.
For the quarter ended September 30, 2025, the Company repurchased 64,782 shares at an average cost of $12.85 per share for approximately $0.8 million.
Conference Call
Ascent will hold a conference call today at 5:00 p.m. Eastern time to discuss its financial results for the third quarter ended September 30, 2025.
Ascent management will host the conference call, followed by a question-and-answer period.
Date: Tuesday, November 4, 2025
Time: 5:00 p.m. Eastern time
Live Call Registration Link: Here
Webcast Registration Link: Here
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group, Inc. at 1-949-574-3860
The conference call will also be broadcast live and available for replay via the webcast registration link above here. The webcast will be archived for one year in the investor relations section of the Company’s website at www.ascentco.com.
About Ascent Industries Co.
Ascent Industries Co. (Nasdaq: ACNT) is a specialty chemicals platform focused on the development, production, and distribution of tailored, performance-driven chemical solutions. For more information about Ascent, please visit its website at www.ascentco.com.
Forward-Looking Statements
This press release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable federal securities laws. All statements that are not historical facts are forward-looking statements. Forward looking statements can be identified through the use of words such as "estimate," "project," "intend," "expect," "believe," "should," "anticipate," "hope," "optimistic," "plan," "outlook," "should," "could," "may" and similar expressions. The forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from historical results or those anticipated. Readers are cautioned not to place undue reliance on these forward-looking statements and to review the risks as set forth in more detail in Ascent Industries Co.’s Securities and Exchange Commission filings, including our Annual Report on Form 10-K, which filings are available from the SEC or on our website. Ascent Industries Co. assumes no obligation to update any forward-looking information included in this release.
Non-GAAP Financial Information
Financial statement information included in this earnings release includes non-GAAP (Generally Accepted Accounting Principles) measures and should be read along with the accompanying tables which provide a reconciliation of non-GAAP measures to GAAP measures.
We define "EBITDA" as earnings before interest, income taxes, depreciation and amortization. We define "Adjusted EBITDA" as EBITDA further adjusted for the impact of non-cash and other items we do not consider in our evaluation of ongoing performance. These items include: goodwill impairment, asset impairment, gain on lease modification, stock-based compensation, non-cash lease cost, acquisition costs and other fees, shelf registration costs, loss on extinguishment of debt, retention costs and restructuring and severance costs from net income. We caution investors that amounts presented in accordance with our definitions of EBITDA and Adjusted EBITDA may not be comparable to similar measures disclosed by other companies because not all companies calculate EBITDA and Adjusted EBITDA in the same manner. We present EBITDA and Adjusted EBITDA because we consider them to be important supplemental measures of our performance and investors' understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations.
Ascent Industries Co.
Condensed Consolidated Balance Sheets
(in thousands, except par value and share data)
(Unaudited)
September 30, 2025
December 31, 2024
Assets
Current assets:
Cash and cash equivalents
$
58,042
$
16,098
Accounts receivable, net of allowance for credit losses of $1,161 and $202, respectively
12,603
12,232
Advances and other receivables
5,378
52
Inventories
7,178
5,727
Prepaid expenses and other current assets
1,682
1,122
Current assets of discontinued operations
—
47,841
Total current assets
84,883
83,072
Property, plant and equipment, net
16,096
17,589
Right-of-use assets, operating leases, net
15,075
28,140
Intangible assets, net
2,986
3,445
Deferred charges, net
338
309
Other non-current assets, net
511
512
Long-term assets of discontinued operations
—
14,183
Total assets
$
119,889
$
147,250
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable
$
5,466
$
6,836
Accrued expenses and other current liabilities
5,691
3,598
Current portion of note payable
758
369
Current portion of operating lease liabilities
1,035
1,495
Current portion of finance lease liabilities
306
293
Current liabilities of discontinued operations
—
9,756
Total current liabilities
13,256
22,347
Long-term portion of operating lease liabilities
18,563
29,972
Long-term portion of finance lease liabilities
784
1,015
Deferred income taxes
153
320
Other long-term liabilities
45
51
Total non-current liabilities
19,545
31,358
Total liabilities
$
32,801
$
53,705
Commitments and contingencies
Shareholders' equity:
Common stock, par value $1 per share; 24,000,000 shares authorized; 9,373,680 and 10,072,590 shares outstanding as of September 30, 2025 and December 31, 2024, respectively
$
11,085
$
11,085
Capital in excess of par value
47,577
47,339
Retained earnings
46,825
44,919
105,487
103,343
Less: cost of common stock in treasury - 1,711,423 and 1,012,513 shares, respectively
(18,399
)
(9,798
)
Total shareholders' equity
87,088
93,545
Total liabilities and shareholders' equity
$
119,889
$
147,250
Note: The condensed consolidated balance sheets at December 31, 2024 have been derived from the audited consolidated financial statements at that date.
Condensed Consolidated Statements of Income (Loss) (Unaudited)
($ in thousands, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2024
2023
Net sales
$
19,697
$
20,878
$
56,183
$
62,642
Cost of sales
13,856
17,870
42,410
55,435
Gross profit
5,841
3,008
13,773
7,207
Selling, general and administrative
6,253
5,034
17,567
15,518
Acquisition costs and other
398
2
665
54
Asset impairments
—
—
1,622
—
Gain on lease modification
—
(67
)
(544
)
(67
)
Operating loss from continuing operations
(810
)
(1,961
)
(5,537
)
(8,298
)
Other expense (income)
Interest expense (income), net
(447
)
124
(347
)
323
Other, net
(296
)
(91
)
(581
)
(303
)
Loss from continuing operations before income taxes
(67
)
(1,994
)
(4,609
)
(8,318
)
Income tax expense (benefit)
58
5,807
(32
)
4,413
Loss from continuing operations
(125
)
(7,801
)
(4,577
)
(12,731
)
Income (loss) from discontinued operations, net of tax
(1,962
)
1,649
6,483
160
Net income (loss)
$
(2,087
)
$
(6,152
)
$
1,906
$
(12,571
)
Net loss per common share from continuing operations:
Basic
$
(0.01
)
$
(0.77
)
$
(0.46
)
$
(1.26
)
Diluted
$
(0.01
)
$
(0.77
)
$
(0.46
)
$
(1.26
)
Net income (loss) per common share from discontinued operations:
Basic
$
(0.20
)
$
0.16
$
0.65
$
0.02
Diluted
$
(0.20
)
$
0.16
$
0.65
$
0.02
Net income (loss) per common share:
Basic
$
(0.20
)
$
(0.61
)
$
0.19
$
(1.24
)
Diluted
$
(0.20
)
$
(0.61
)
$
0.19
$
(1.24
)
Weighted average shares outstanding:
Basic
9,751
10,126
9,913
10,110
Diluted
9,751
10,126
9,913
10,110
Adjusted EBITDA 1
$
1,376
$
(709
)
$
575
$
(4,139
)
1We define "EBITDA" as earnings before interest, income taxes, depreciation and amortization. We define "Adjusted EBITDA" as EBITDA further adjusted for the impact of non-cash and other items we do not consider in our evaluation of ongoing performance. These items include: goodwill impairment, asset impairment, gain on lease modification, stock-based compensation, non-cash lease cost, acquisition costs and other fees, shelf registration costs, loss on extinguishment of debt, retention costs and restructuring and severance costs from net income. We caution investors that amounts presented in accordance with our definitions of EBITDA and Adjusted EBITDA may not be comparable to similar measures disclosed by other companies because not all companies calculate EBITDA and Adjusted EBITDA in the same manner. We present EBITDA and Adjusted EBITDA because we consider them to be important supplemental measures of our performance and investors' understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations.
Consolidated Statements of Cash Flows (Unaudited)
($ in thousands)
Nine Months Ended September 30,
2025
2024
Operating activities
Net income (loss)
$
1,906
$
(12,571
)
Income from discontinued operations, net of tax
6,483
160
Net loss from continuing operations
(4,577
)
(12,731
)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation expense
2,724
2,923
Amortization expense
459
522
Amortization of debt issuance costs
217
74
Asset impairments
1,622
—
Deferred income taxes
(32
)
6,639
(Reduction of) provision for losses on accounts receivable
(488
)
214
Non-cash lease expense
85
96
Stock-based compensation expense
512
592
Changes in operating assets and liabilities:
Accounts receivable and advances
(5,210
)
(246
)
Inventories
(1,450
)
3,692
Other assets and liabilities
(1,517
)
(708
)
Accounts payable
(1,535
)
(2,621
)
Accrued expenses
1,741
1,809
Accrued income taxes
(119
)
669
Net cash (used in) provided by operating activities - continuing operations
(7,568
)
924
Net cash provided by operating activities - discontinued operations
6,783
4,934
Net cash (used in) provided by operating activities
(785
)
5,858
Investing activities
Purchases of property, plant and equipment
(1,082
)
(737
)
Net cash used in investing activities - continuing operations
(1,082
)
(737
)
Net cash provided by investing activities - discontinued operations
52,525
2,253
Net cash provided by investing activities
51,443
1,516
Financing activities
Borrowings from credit facilities
114,470
156,923
Proceeds from note payable
1,085
914
Payments on credit facilities
(114,470
)
(156,923
)
Payments on note payable
(696
)
(633
)
Principal payments on finance lease obligations
(219
)
(219
)
Repurchase of common stock
(8,875
)
(738
)
Net cash used in financing activities - continuing operations
(8,705
)
(676
)
Net cash used in financing activities - discontinued operations
(19
)
(2
)
Net cash used in financing activities
(8,724
)
(678
)
Increase in cash and cash equivalents
41,934
6,696
Less: Cash and cash equivalents of discontinued operations
—
10
Cash and cash equivalents, beginning of period
16,108
1,841
Cash and cash equivalents, end of period
$
58,042
$
8,547
Ascent Industries Co.
Non-GAAP Financial Measures Reconciliation
Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited)
($ in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in thousands)
2025
2024
2025
2024
Consolidated
Net loss from continuing operations
$
(125
)
$
(7,801
)
$
(4,577
)
$
(12,731
)
Adjustments:
Interest expense (income), net
(447
)
124
(347
)
323
Income taxes
58
5,807
(32
)
4,413
Depreciation
854
962
2,725
2,923
Amortization
153
174
458
522
EBITDA
493
(734
)
(1,773
)
(4,550
)
Acquisition costs and other
398
2
665
54
Asset impairments
—
—
1,622
—
Gain on lease modification
—
(67
)
(544
)
(67
)
Stock-based compensation
197
55
318
148
Non-cash lease expense
86
35
85
96
Retention expense
—
—
—
3
Restructuring and severance costs
202
—
202
177
Adjusted EBITDA
$
1,376
$
(709
)
$
575
$
(4,139
)
% sales
7.0
%
(3.4
)%
1.0
%
(6.6
)%
Specialty Chemicals
Net income (loss)
$
2,138
$
367
$
4,375
$
(681
)
Adjustments:
Interest expense, net
7
19
39
57
Depreciation
830
945
2,671
2,863
Amortization
153
174
458
522
EBITDA
3,128
1,505
7,543
2,761
Acquisition costs and other
—
—
92
—
Stock-based compensation
4
—
4
7
Non-cash lease expense
26
19
30
57
Restructuring and severance costs
—
—
—
109
Specialty Chemicals Adjusted EBITDA
$
3,158
$
1,524
$
7,669
$
2,934
% segment sales
16.0
%
7.3
%
13.7
%
4.7
%