MARKET WIRE NEWS

Ascent Industries Co. Announces Fourth Quarter and Full Year 2025 Results

MWN-AI** Summary

Ascent Industries Co. (NASDAQ: ACNT) has released its financial results for the fourth quarter and full year 2025, reflecting mixed outcomes amidst challenging market conditions. For Q4 2025, the company reported net sales of $18.8 million, a 3.9% increase from Q4 2024’s $18.1 million. However, gross profit declined by 2.9% to $3.4 million, with a gross profit margin of 18.3%, down 90 basis points year-over-year. The company faced a net loss of $1.0 million for the quarter, resulting in a diluted loss per share of $0.11, compared to a profit of $0.2 million or $0.01 per share in 2024. Adjusted EBITDA also worsened, with a loss of $1.1 million.

In contrast, the full year results indicated significant improvements despite a drop in total net sales to $74.9 million from $80.8 million in 2024 (a 7.3% decline). Notably, gross profit rose by 61% to $17.2 million, led by effective cost management and operational optimization, boosting the gross margin to 23%. The annual net loss narrowed to $5.6 million from $12.6 million, improving the diluted loss per share to $0.58 from $1.24 in the previous year. Adjusted EBITDA showed a marked improvement, rising by $4.1 million to a loss of $0.6 million.

Management commented on the results, noting that while Q4 faced seasonal softness and market challenges, the overall progress throughout the year points to a strengthening earnings profile. Ascent is focusing on becoming a streamlined specialty chemicals platform, positioning itself for profitable growth moving into 2026. The company ended the year with substantial liquidity, including $57.6 million in cash.

MWN-AI** Analysis

Ascent Industries Co. (Nasdaq: ACNT) reported its Q4 and full-year results for 2025, presenting an intriguing case for investors in the specialty chemicals sector. While the company's fourth-quarter net sales increased slightly by 3.9% year-on-year, the overall financial trajectory signals both challenges and opportunities worth considering.

A closer look reveals that the full-year net sales decreased by 7.3%, reflecting a challenging market landscape and lower volumes across its operations. However, Ascent managed to enhance its gross profit margin significantly from 13.2% to 23.0%, indicating effective cost management strategies and operational efficiencies. Improved gross profit, despite reduced revenues, underscores a potentially robust underlying business model.

The notable increase in adjusted EBITDA—from a loss of $4.7 million last year to a loss of just $0.6 million this year—demonstrates Ascent's tactical repositioning following the divestitures of two underperforming segments, BRISMET and ASTI. The strategic decision to streamline operations may position the company to capitalize on evolving market conditions and focus on core strengths within specialty chemicals.

Furthermore, Ascent's liquidity position is strong, with $57.6 million in cash and no debt, providing a buffer for future growth investments or potential acquisitions. The management's commentary hints at a renewed focus on creating a more streamlined and specialized business, which could lead to accelerated growth as market conditions stabilize.

Investors may consider initiating positions in Ascent Industries despite the short-term losses, capitalizing on its improved margins and robust liquidity. The potential for profitable growth, particularly as the specialty chemicals market rebounds, presents an appealing scenario for long-term investment. However, close monitoring of market conditions and management’s execution on strategic plans is advised.

**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.

Source: Business Wire

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 fourth quarter and year ended December 31, 2025.

Fourth Quarter 2025 Summary 1

(in millions, except per share and margin)

Q4 2025

Q4 2024

Change

Net Sales

$18.8

$18.1

3.9%

Gross Profit

$3.4

$3.5

(2.9)%

Gross Profit Margin

18.3%

19.2%

-90bps

Net Income (Loss)

$(1.0)

$0.2

(600.0)%

Diluted Income (Loss) per Share

$(0.11)

$0.01

(1200.0)%

Adjusted EBITDA

$(1.1)

$(0.6)

-$0.5M

Adjusted EBITDA Margin

(6.1)%

(3.1)%

-304bps

Full Year 2025 Summary 1

(in millions, except per share and margin)

2025

2024

Change

Net Sales

$74.9

$80.8

(7.3)%

Gross Profit

$17.2

$10.7

61.0%

Gross Profit Margin

23.0%

13.2%

972bps

Net Loss

$(5.6)

$(12.6)

(54.6)%

Diluted Loss per Share

$(0.58)

$(1.24)

(53.2)%

Adjusted EBITDA

$(0.6)

$(4.7)

+4.1M

Adjusted EBITDA Margin

(0.8)%

(5.8)%

5,051bps

1 On April 4, 2025, the Company closed on a transaction to sell substantially all of the assets of Bristol Metals, LLC (“BRISMET”). 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 BRISMET and ASTI have been categorized into discontinued operations.

Management Commentary

“Fourth quarter results reflected normal seasonal softness, compounded by continued market softness across several end markets,” said Bryan Kitchen, President and Chief Executive Officer of Ascent Industries Co. “Despite that environment, the progress delivered across the full year underscores the strengthening earnings profile of the business.”

“Full-year results reflected a strong step forward, with gross profit increasing 61%, gross margin expanding by nearly 1,000 basis points, and Adjusted EBITDA improving by more than $4 million year over year, achieved while executing two divestitures and an asset carve-out associated with the Tubular segment.”

Kitchen added, “We are entering 2026 with a clean, focused, specialty chemicals platform. The actions taken over the past year are translating into higher-quality earnings and increasing operating leverage, positioning the Company to accelerate profitable growth as market conditions evolve.”

Fourth Quarter 2025 Financial Results

Net sales from continuing operations were $18.8 million compared to $18.1 million in the fourth quarter of 2024. The increase was a result of higher volume partially offset by decreases in average selling prices.

Gross profit from continuing operations decreased 2.9% to $3.4 million, or 18.3% of net sales, compared to $3.5 million, or 19.2% of net sales, in the fourth quarter of 2024. The decrease was primarily driven by increases in material and fulfillment costs.

Net loss from continuing operations increased to ($1.0) million, or ($0.11) diluted loss per share compared to net income from continuing operations of $0.2 million, or $0.01 diluted earnings per share, in the fourth quarter of 2024.

Adjusted EBITDA from continuing operations decreased to a loss of ($1.1) million in the fourth quarter of 2025, with adjusted EBITDA margin decreasing to (6.1)% compared to (3.4)% in the prior year period. The decrease was primarily driven by the aforementioned decrease in gross profit and by strategic investments in selling, general and administrative expenses.

Full Year 2025 Financial Results

Net sales from continuing operations were $74.9 million compared to $80.8 million in 2024. The decline was a result of lower volume partially offset by increased average selling prices.

Gross profit from continuing operations increased 61.0% to $17.2 million, or 23.0% of net sales, compared to $10.7 million, or 13.2% of net sales in 2024. The increase was primarily driven by continued cost management, strategic sourcing enhancements and product line optimization.

Net loss from continuing operations decreased to ($5.6) million, or ($0.58) diluted loss per share compared to a net loss from continuing operations of ($12.6) million, or ($1.24) diluted loss per share in 2024.

Adjusted EBITDA from continuing operations increased to ($0.6) million with adjusted EBITDA margin increasing to (0.8)% compared to Adjusted EBITDA of ($4.7) million and Adjusted EBITDA margin of (5.8)% 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 December 31, 2025, the Company had $57.6 million in cash and cash equivalents, no debt outstanding under its revolving credit facilities and had $11.4 million in availability under its revolving credit facility.

For the quarter ended December 31, 2025, the Company repurchased 19,749 shares at an average cost of $13.23 per share for approximately $0.3 million. For the year ended December 31, 2025, the Company repurchased 745,524 shares at an average cost of $12.26 per share for approximately $9.2 million.

Conference Call

Ascent will hold a conference call today at 5:00 p.m. Eastern time to discuss its financial results for the fourth quarter and year ended December 31, 2025.

Ascent management will host the conference call, followed by a question-and-answer period.

Date: Tuesday, March 3, 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)

December 31, 2025

December 31, 2024

Assets

Current assets:

Cash and cash equivalents

$

57,606

$

16,098

Accounts receivable, net of allowance for credit losses of $1,004 and $202, respectively

10,040

12,232

Advances and other receivables

5,389

52

Inventories

8,742

5,727

Prepaid expenses and other current assets

1,243

1,122

Current assets of discontinued operations

47,841

Total current assets

83,020

83,072

Property, plant and equipment, net

15,762

17,589

Right-of-use assets, operating leases, net

9,368

28,140

Intangible assets, net

2,833

3,445

Deferred charges, net

401

309

Other non-current assets, net

553

512

Long-term assets of discontinued operations

14,183

Total assets

$

111,937

$

147,250

Liabilities and Shareholders' Equity

Current liabilities:

Accounts payable

$

5,490

$

6,836

Accrued expenses and other current liabilities

5,389

3,598

Current portion of note payable

433

369

Current portion of operating lease liabilities

712

1,495

Current portion of finance lease liabilities

331

293

Current liabilities of discontinued operations

9,756

Total current liabilities

12,355

22,347

Long-term portion of operating lease liabilities

11,496

29,972

Long-term portion of finance lease liabilities

808

1,015

Deferred income taxes

241

320

Other long-term liabilities

45

51

Total non-current liabilities

12,590

31,358

Total liabilities

$

24,945

$

53,705

Commitments and contingencies

Shareholders' equity:

Common stock, par value $1 per share; 24,000,000 shares authorized; 9,400,898 and 10,072,590 shares outstanding as of December 31, 2025 and 2024, respectively

$

11,085

$

11,085

Capital in excess of par value

48,276

47,339

Retained earnings

45,786

44,919

105,147

103,343

Less: cost of common stock in treasury - 1,684,205 and 1,012,513 shares, respectively

(18,155

)

(9,798

)

Total shareholders' equity

86,992

93,545

Total liabilities and shareholders' equity

$

111,937

$

147,250

Note: The condensed consolidated balance sheets at December 31, 2024 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
December 31,

Year Ended
December 31,

2025

2024

2025

2024

Net sales

$

18,759

$

18,122

$

74,942

$

80,763

Cost of sales

15,320

14,636

57,730

70,071

Gross profit

3,439

3,486

17,212

10,692

Selling, general and administrative

6,525

5,381

24,093

20,899

Research and development

71

71

Acquisition costs and other

65

609

731

662

Asset impairments

1,622

Gain on lease modification

(1,733

)

(2,278

)

(67

)

Operating loss from continuing operations

(1,489

)

(2,504

)

(7,027

)

(10,802

)

Other expense (income)

Interest (income) expense, net

(365

)

94

(712

)

417

Other, net

(171

)

(145

)

(753

)

(448

)

Loss from continuing operations before income taxes

(953

)

(2,453

)

(5,562

)

(10,771

)

Income tax expense (benefit)

54

(2,608

)

22

1,806

Income (loss) from continuing operations

(1,007

)

155

(5,584

)

(12,577

)

Income (loss) from discontinued operations, net of tax

(32

)

(1,182

)

6,451

(1,021

)

Net income (loss)

$

(1,039

)

$

(1,027

)

$

867

$

(13,598

)

Net income (loss) per common share from continuing operations:

Basic

$

(0.11

)

$

0.02

$

(0.58

)

$

(1.24

)

Diluted

$

(0.11

)

$

0.01

$

(0.58

)

$

(1.24

)

Net income (loss) per common share from discontinued operations:

Basic

$

$

(0.12

)

$

0.67

$

(0.11

)

Diluted

$

$

(0.11

)

$

0.67

$

(0.11

)

Net income (loss) per common share:

Basic

$

(0.11

)

$

(0.10

)

$

0.09

$

(1.35

)

Diluted

$

(0.11

)

$

(0.10

)

$

0.09

$

(1.35

)

Weighted average shares outstanding:

Basic

9,377

10,090

9,643

10,106

Diluted

9,377

10,338

9,643

10,106

Adjusted EBITDA 1

$

(1,146

)

$

(555

)

$

(571

)

$

(4,695

)

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)

Year Ended December 31,

2025

2024

Cash flows from operating activities:

Net income (loss)

$

867

$

(13,598

)

Income (loss) from discontinued operations, net of tax

6,451

(1,021

)

Net loss from continuing operations

(5,584

)

(12,577

)

Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:

Depreciation expense

3,574

3,884

Amortization expense

612

695

Amortization of debt issuance costs

258

105

Asset impairments

1,622

Deferred income taxes

22

1,806

Loss on disposal of property, plant and equipment

1

289

(Reduction of) provision for losses on accounts receivable

(569

)

51

Non-cash lease expense

128

111

Gain on lease modification

(2,278

)

(67

)

Stock-based compensation expense

1,302

760

Changes in operating assets and liabilities:

Accounts receivable and advances

(2,576

)

2,762

Inventories

(3,015

)

5,039

Other assets and liabilities

(521

)

(160

)

Accounts payable

(1,565

)

(3,246

)

Accrued expenses

1,469

40

Accrued income taxes

(149

)

1,485

Net cash (used in) provided by operating activities - continuing operations

(7,269

)

977

Net cash provided by operating activities - discontinued operations

6,750

13,704

Net cash (used in) provided by operating activities

(519

)

14,681

Cash flows from investing activities:

Purchases of property, plant and equipment

(1,544

)

(1,120

)

Net cash used in investing activities - continuing operations

(1,544

)

(1,120

)

Net cash provided by investing activities - discontinued operations

52,525

2,025

Net cash provided by investing activities

50,981

905

Cash flows from financing activities:

Borrowings from credit facilities

137,075

197,898

Proceeds from note payable

1,085

914

Proceeds from exercise of stock options

415

Payments on credit facilities

(137,075

)

(197,898

)

Payments on note payable

(1,021

)

(906

)

Principal payments on finance lease obligations

(287

)

(289

)

Repurchase of common stock

(9,137

)

(1,037

)

Net cash used in financing activities - continuing operations

(8,945

)

(1,318

)

Net cash used in financing activities - discontinued operations

(19

)

(11

)

Net cash used in financing activities

(8,964

)

(1,329

)

Increase in cash and cash equivalents

41,498

14,257

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

$

57,606

$

16,108

Ascent Industries Co.

Non-GAAP Financial Measures Reconciliation

Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited)

($ in thousands)

Three Months Ended
December 31,

Year Ended
December 31,

2025

2024

2025

2024

Consolidated

Net income (loss) from continuing operations

$

(1,007

)

$

155

$

(5,584

)

$

(12,577

)

Adjustments:

Interest (income) expense, net

(365

)

94

(712

)

417

Income taxes

54

(2,608

)

22

1,806

Depreciation

851

961

3,576

3,884

Amortization

153

174

611

695

EBITDA

(314

)

(1,224

)

(2,087

)

(5,775

)

Acquisition costs and other

65

609

731

662

Asset impairments

1,622

Gain on lease modification

(1,733

)

(2,278

)

(67

)

Stock-based compensation

752

45

1,070

193

Non-cash lease expense

43

15

128

112

Retention expense

3

Restructuring and severance costs

41

243

177

Adjusted EBITDA

$

(1,146

)

$

(555

)

$

(571

)

$

(4,695

)

% sales

(6.1

)%

(3.1

)%

(0.8

)%

(5.8

)%

Specialty Chemicals

Net income (loss)

$

(676

)

$

1,775

$

3,700

$

1,093

Adjustments:

Interest expense, net

14

17

52

75

Depreciation

810

946

3,481

3,809

Amortization

153

174

611

695

EBITDA

301

2,912

7,844

5,672

Acquisition costs and other

477

93

477

Stock-based compensation

123

126

7

Non-cash lease expense

15

9

45

66

Restructuring and severance costs

14

14

110

Specialty Chemicals Adjusted EBITDA

$

453

$

3,398

$

8,122

$

6,332

% segment sales

2.4

%

18.7

%

10.8

%

7.8

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20260303410552/en/

Investor Relations
1-630-884-9181
investorrelations@ascentco.com

FAQ**

How does Ascent Industries Co. (ACNT) plan to improve its gross profit margin, which decreased by 90 basis points in Q4 2025 compared to Q4 2024?

Ascent Industries Co. (ACNT) plans to improve its gross profit margin by optimizing production efficiency, reducing costs through strategic sourcing, and enhancing its product mix to focus on higher-margin offerings.

Sure, please provide the question you'd like me to answer in one sentence.

2. What specific strategies is Ascent Industries Co. (ACNT) implementing to address the seasonal and market softness that impacted its Q4 2025 results?

Ascent Industries Co. (ACNT) is diversifying its product offerings, enhancing digital marketing efforts, optimizing supply chain efficiency, and expanding into new markets to mitigate the effects of seasonal and market softness affecting its Q4 2025 results.

3. Considering the significant decrease in net income from Q4 2024 to Q4 2025, what measures will Ascent Industries Co. (ACNT) take to achieve profitable growth in 2026?

Ascent Industries Co. (ACNT) plans to achieve profitable growth in 2026 by implementing cost-cutting measures, enhancing operational efficiency, diversifying product offerings, and focusing on strategic partnerships to drive revenue and optimize resource allocation.

4. With $57.6 million in cash and no debt under the revolving credit facilities as of December 31, 202how does Ascent Industries Co. (ACNT) plan to leverage its liquidity for future investments or acquisitions?

Ascent Industries Co. (ACNT) plans to leverage its $57.6 million cash reserve and debt-free status to pursue strategic investments and acquisitions that align with its growth initiatives and enhance its market position.

**MWN-AI FAQ is based on asking OpenAI questions about Ascent Industries Co. (NASDAQ: ACNT).

Ascent Industries Co.

NASDAQ: ACNT

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