Ascent Industries Co. Announces First Quarter 2026 Results

Key Terms

adjusted ebitda financial

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

ebitda financial

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

shelf registration costs financial

Shelf registration costs are the fees and expenses a company pays to register securities in advance so they can be sold later as market conditions suit, similar to paying a listing or membership fee to keep products ready on a store shelf. For investors, these costs reduce the net proceeds when securities are actually sold and signal that management wants flexibility to raise capital quickly without repeating the full registration process.

operating lease liabilities technical

Long-term lease payments a company is legally committed to because it rents assets such as offices, factories, or equipment; under modern accounting rules these future rent obligations are recorded on the balance sheet as liabilities. Investors care because operating lease liabilities act like debt that drains future cash, affects measures of leverage and borrowing capacity, and can change profitability and valuation — think of them as a company’s large, ongoing rent payments that limit its financial flexibility.

finance lease liabilities technical

Finance lease liabilities are the long-term payment obligations a company records when it effectively finances the use of an asset through a lease rather than buying it outright. Think of it like taking a car on a long-term financed rental: you get the asset now but also take on a loan-like obligation. Investors watch these liabilities because they increase reported debt, affect interest and cash-flow commitments, and can change leverage and valuation assessments.

treasury stock financial

Treasury stock is shares that a company has bought back from the public and kept in its own control rather than retiring them. Think of it like a company holding its own tickets in a drawer: those shares no longer vote or receive dividends while held, but the company can reissue or retire them later; this reduces the number of shares available to outside investors and can boost per‑share earnings and influence ownership and stock price.

stock-based compensation financial

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

SCHAUMBURG, Ill.--(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 first quarter ended March 31, 2026.

First Quarter 2026 Summary¹

(in millions, except per share and margin)	Q1 2026	Q1 2025	Change
Net Sales	$19.4	$17.8	9.0%
Gross Profit	$2.8	$3.1	(8.3)%
Gross Profit Margin	14.5%	17.2%	-272bps
Net Loss	$(2.0)	$(2.2)	(9.0)%
Diluted Loss per Share	$(0.21)	$(0.22)	(4.5)%
Adjusted EBITDA	$(1.0)	$(0.5)	-$0.5M
Adjusted EBITDA Margin	(5.0)%	(2.6)%	-235bps
______________ 1On 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.

Liquidity

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
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
Total non-current liabilities		12,422				12,590
Total liabilities	$	20,973			$	24,945
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
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 EBITDA1	$	(963	)		$	(465	)
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.

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	%

 

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

Source: Ascent Industries Co.