SCHAUMBURG, Ill.--(BUSINESS WIRE)--May 06, 2026--
Ascent Industries Co. (Nasdaq: ACNT) ("Ascent" or the "Company"), a specialty chemicals platform delivering differentiated, performance-driven chemical solutions, is reporting its results for the first quarter ended March 31, 2026.
First Quarter 2026 Summary(1)
(in millions, except per share and margin) Q1 2026 Q1 2025 Change
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Net Sales $19.4 $17.8 9.0%
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Gross Profit $2.8 $3.1 (8.3)%
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Gross Profit Margin 14.5% 17.2% -272bps
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Net Loss $(2.0) $(2.2) (9.0)%
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Diluted Loss per Share $(0.21) $(0.22) (4.5)%
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Adjusted EBITDA $(1.0) $(0.5) -$0.5M
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Adjusted EBITDA Margin (5.0)% (2.6)% -235bps
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______________ (1) On June 30, 2025, the Company closed on a transaction to
sell substantially all of the assets of American Stainless Tubing, Inc
("ASTI"). As a result, financial results from ASTI for the first quarter of
2025 have been categorized into discontinued operations.
Management Commentary
"Despite ongoing market headwinds, we delivered nearly double-digit growth versus the prior year and sequential improvement quarter over quarter, reflecting strong execution and continued momentum across the business," said J. Bryan Kitchen, President and Chief Executive Officer of Ascent Industries Co. "During the quarter, we moved with speed to win and onboard a range of high-quality, long-term customer programs. This reflects the flexibility of our platform, allowing us to secure the right work quickly and then optimize how it is sourced, routed, and produced."
"As expected, onboarding these programs created near-term inefficiencies; however, these impacts are temporary and reflect sequencing, not structure," Kitchen continued. "This same sequencing is reflected in our gross margin performance for the quarter, where timing and cost absorption related to onboarding and scaling new programs pressured reported results. Importantly, the underlying indicators remain constructive: material margins are improving, we have not seen a structural change in our labor or overhead cost base, and as we optimize sourcing, align production across our asset base, and scale volumes, we expect these programs to meet our long-term margin thresholds. Based on actions already underway, we see a clear path to more than $3 to $5 million of incremental run-rate gross profit improvement, with the majority expected to be realized by the fourth quarter of 2026."
"We were also active in deploying capital during the quarter, repurchasing approximately 3.2% of our outstanding shares," Kitchen added. "We remain disciplined in how we allocate capital, investing in the platform, executing on targeted acquisitions, and returning capital to shareholders where we see compelling value."
First Quarter 2026 Financial Results
Net sales from continuing operations were $19.4 million compared to $17.8 million in the first quarter of 2025. The increase was a result of increases in volume and average selling prices.
Gross profit from continuing operations decreased 8.3% to $2.8 million, or 14.5% of net sales, compared to $3.1 million, or 17.2% of net sales, in the first quarter of 2025. The decrease was primarily driven by the timing of manufacturing variances and cost recovery in relation to sales.
Net loss from continuing operations decreased to ($2.0) million compared to ($2.2) million in the first quarter of 2025. Diluted loss per share decreased to ($0.21) in the first quarter of 2026 compared to a diluted loss per share of ($0.22) in the first quarter of 2025.
Adjusted EBITDA from continuing operations decreased to a loss of ($1.0) million in the first quarter of 2026, with adjusted EBITDA margin decreasing to (5.0)% compared to (2.6)% in the prior year period. The decrease was primarily driven by the aforementioned decrease in gross profit.
As of March 31, 2026, the Company had $47.8 million in cash and cash equivalents, no debt outstanding under its revolving credit facilities and had $14.2 million in availability under its revolving credit facility.
For the quarter ended March 31, 2026, the Company repurchased 295,695 shares at an average cost of $12.92 per share for approximately $3.9 million.
Conference Call
Ascent will hold a conference call today at 5:00 p.m. Eastern time to discuss its financial results for the first quarter ended March 31, 2026.
Ascent management will host the conference call, followed by a question-and-answer period.
Date: Wednesday, May 6, 2026
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 Investor Relations at 1-630-884-9181.
The conference call will also be broadcast live and available for replay via the webcast registration link above. 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 delivering differentiated, 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)
March 31, 2026 December 31, 2025
---------------- ---------------------
Assets
Current assets:
Cash and cash equivalents $ 47,821 $ 57,606
Accounts receivable, net of
allowance for credit losses
of $1,018 and $1,004,
respectively 12,541 10,040
Advances and other receivables 5,397 5,389
Inventories 7,429 8,742
Prepaid expenses and other
current assets 1,125 1,243
----------- --------------
Total current assets 74,313 83,020
Property, plant and equipment,
net 15,466 15,762
Right-of-use assets, operating
leases, net 9,221 9,368
Intangible assets, net 2,716 2,833
Deferred charges, net 351 401
Other non-current assets, net 547 553
----------- --------------
Total assets $ 102,614 $ 111,937
=========== ==============
Liabilities and Shareholders'
Equity
Current liabilities:
Accounts payable $ 4,447 $ 5,490
Accrued expenses and other
current liabilities 2,929 5,389
Current portion of note
payable 107 433
Current portion of operating
lease liabilities 733 712
Current portion of finance
lease liabilities 335 331
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Total current liabilities 8,551 12,355
Long-term portion of operating
lease liabilities 11,301 11,496
Long-term portion of finance
lease liabilities 722 808
Deferred income taxes 356 241
Other long-term liabilities 43 45
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Total non-current
liabilities 12,422 12,590
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Total liabilities $ 20,973 $ 24,945
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Commitments and contingencies
Shareholders' equity:
Common stock, par value $1 per
share; 24,000,000 shares
authorized; 9,212,814 and
9,400,898 shares outstanding
as of March 31, 2026 and
December 31, 2025,
respectively $ 11,085 $ 11,085
Capital in excess of par value 47,656 48,276
Retained earnings 43,806 45,786
----------- --------------
102,547 105,147
Less: cost of common stock in
treasury - 1,872,289 and
1,684,205 shares,
respectively (20,906) (18,155)
----------- --------------
Total shareholders' equity 81,641 86,992
----------- --------------
Total liabilities and
shareholders' equity $ 102,614 $ 111,937
=========== ==============
Note: The condensed consolidated balance sheets at December 31, 2025 have
been derived from the audited consolidated financial statements at that
date.
Ascent Industries Co. Condensed Consolidated
Statements of Income (Loss) ($ in thousands,
except per share data)
(Unaudited)
Three Months Ended
March 31,
------------------------
2026 2025
------- ------
Net sales $ 19,415 $17,835
Cost of sales 16,604 14,767
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Gross profit 2,811 3,068
Selling, general and administrative 5,124 4,871
Research and development 63 --
Acquisition costs and other -- 237
------- ------
Operating loss from continuing operations (2,376) (2,040)
Other expense (income)
Interest (income) expense, net (294) 114
Other, net (216) (148)
------- ------
Loss from continuing operations before income
taxes (1,866) (2,006)
Income tax expense 114 169
------- ------
Loss from continuing operations (1,980) (2,175)
Loss from discontinued operations, net of tax -- (118)
------- ------
Net loss $ (1,980) $(2,293)
======= ======
Net loss per common share from continuing
operations:
Basic $ (0.21) $ (0.22)
Diluted $ (0.21) $ (0.22)
Net loss per common share from discontinued
operations:
Basic $ -- $ (0.01)
Diluted $ -- $ (0.01)
Net loss per common share:
Basic $ (0.21) $ (0.23)
Diluted $ (0.21) $ (0.23)
Weighted average shares outstanding:
Basic 9,418 10,076
Diluted 9,418 10,076
Adjusted EBITDA(1) $ (963) $ (465)
(1) 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. Consolidated
Statements of Cash Flows ($ in
thousands)
(Unaudited)
Three Months Ended March 31,
--------------------------------------
2026 2025
----------- ----------
Cash flows from operating
activities:
Net loss $ (1,980) $ (2,293)
Loss from discontinued operations,
net of tax -- (118)
----------- ----------
Net loss from continuing operations (1,980) (2,175)
Adjustments to reconcile net loss to
net cash used in operating
activities:
Depreciation expense 861 977
Amortization expense 117 153
Amortization of debt issuance
costs 50 28
Deferred income taxes 114 --
Provision for (reduction of)
losses on accounts receivable 15 (384)
Non-cash lease expense (26) 24
Stock-based compensation expense 157 118
Changes in operating assets and
liabilities:
Accounts receivable and
advances (2,524) (1,070)
Inventories 1,312 (1,086)
Other assets and liabilities 121 (336)
Accounts payable (1,185) 156
Accrued expenses (2,599) 1,949
Accrued income taxes 139 (52)
----------- ----------
Net cash used in operating
activities - continuing operations (5,428) (1,698)
Net cash provided by operating
activities - discontinued
operations -- 998
----------- ----------
Net cash used in operating
activities (5,428) (700)
----------- ----------
Cash flows from investing
activities:
Purchases of property, plant and
equipment (422) (318)
----------- ----------
Net cash used in investing
activities - continuing operations (422) (318)
Net cash used in investing
activities - discontinued
operations -- (252)
----------- ----------
Net cash used in investing
activities (422) (570)
----------- ----------
Cash flows from financing
activities:
Borrowings from credit facilities 27,150 44,571
Proceeds from exercise of stock
options 398 --
Payments on credit facilities (27,150) (44,571)
Payments on note payable (326) (271)
Principal payments on finance
lease obligations (81) (72)
Repurchase of common stock (3,926) (215)
----------- ----------
Net cash used in financing
activities - continuing operations (3,935) (558)
Net cash used in financing
activities - discontinued
operations -- (8)
----------- ----------
Net cash used in financing
activities (3,935) (566)
----------- ----------
Decrease in cash and cash
equivalents (9,785) (1,836)
Cash and cash equivalents, beginning
of period 57,606 16,108
----------- ----------
Cash and cash equivalents, end of
period $ 47,821 $ 14,272
=========== ==========
Ascent Industries Co. Non-GAAP Financial
Measures Reconciliation Reconciliation of Net
Income (Loss) to Adjusted EBITDA ($ in
thousands)
(Unaudited)
Three Months Ended
March 31,
------------------------
($ in thousands) 2026 2025
------ ------
Consolidated
Net loss from continuing operations $(1,980) $(2,175)
Adjustments:
Interest (income) expense, net (294) 114
Income taxes 114 169
Depreciation 861 978
Amortization 117 153
------ ------
EBITDA (1,182) (761)
Acquisition costs and other -- 237
Shelf registration costs 14 --
Stock-based compensation 134 35
Non-cash lease expense (26) 24
Restructuring and severance costs 97 --
------ ------
Adjusted EBITDA $ (963) $ (465)
====== ======
% sales (5.0)% (2.6)%
Specialty Chemicals
Net income (loss) $(2,142) $ 738
Adjustments:
Interest expense, net 12 16
Depreciation 817 962
Amortization 117 153
------ ------
EBITDA (1,196) 1,869
Acquisition costs and other -- 92
Stock-based compensation 30 --
Non-cash lease expense (15) 9
Restructuring and severance costs 38 --
------ ------
Specialty Chemicals Adjusted EBITDA $(1,143) $ 1,970
====== ======
% segment sales (5.9)% 11.0%
View source version on businesswire.com: https://www.businesswire.com/news/home/20260506394297/en/
CONTACT: Investor Relations
1-630-884-9181
investorrelations@ascentco.com
(END) Dow Jones Newswires
May 06, 2026 16:05 ET (20:05 GMT)