Ascent Industries Q3 sales rise 37.8% to $27.1M
Midwest's first full quarter included $2.3 million in sales, a $0.7 million net loss and negative $0.2 million in Adjusted EBITDA.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Ascent Industries Co. (ACNT) reported Q3 2026 continuing-operations net sales of $27.1 million, up 37.8% year over year, and net income of $1.4 million versus a $0.1 million loss. Adjusted EBITDA rose to $3.5 million from $1.4 million, while gross profit increased 21.9% to $7.1 million. Gross margin declined to 26.2% from 29.7%.
Excluding Midwest Graphic Sales, net sales were $24.9 million, up 26.3%, net income was $2.1 million and Adjusted EBITDA was $3.8 million. The third quarter included $2.3 million in sales, a $0.7 million net loss and negative $0.2 million in Adjusted EBITDA from the Midwest acquisition, which closed May 4, 2026. Management attributed sales gains to higher volume and average selling prices; increased production and cost recovery supported gross profit, partly offset by higher material, labor, overhead and shipping costs. Ascent received the full $4.55 million escrow holdback associated with the sale of certain assets related to Bristol Metals. As of September 30, 2026, cash and cash equivalents were $28.7 million, revolving-facility availability was $21.1 million, and no debt was outstanding under its revolving credit facilities. Year to date, Ascent repurchased 505,563 shares at an average cost of $13.29 per share for approximately $6.8 million; it repurchased no shares in Q3.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet sales rose 37.8% year over year to $27.1 million.
- Moderate pointAdjusted EBITDA rose 155.8% year over year to $3.5 million.
Negative
- Moderate pointGross margin declined 342 basis points to 26.2% year over year.
Filing Explained
At
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net Sales: $27.1 million
Net Sales Excluding Midwest: $24.9 million
Gross Profit: $7.1 million
+5 more
8 metrics
Net Sales
$27.1 million
Q3 2026; up 37.8% from Q3 2025
Net Sales Excluding Midwest
$24.9 million
Q3 2026; up 26.3% year over year
Gross Profit
$7.1 million
Q3 2026; up 21.9% year over year
Gross Profit Margin
26.2%
Q3 2026, compared with 29.7% in Q3 2025; down 342 basis points
Net Income from Continuing Operations
$1.4 million
Q3 2026; compared with a $0.1 million loss in Q3 2025
Diluted Earnings per Share
$0.15 per share
Q3 2026; compared with a $0.01 loss per share in Q3 2025
Adjusted EBITDA
$3.5 million
Q3 2026; compared with $1.4 million in Q3 2025
Cash and Cash Equivalents
$28.7 million
As of September 30, 2026
Key Terms
Adjusted EBITDA, Gross Profit Margin, escrow holdback, revolving credit facilities, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA from continuing operations increased to $3.5 million"
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.
Gross Profit Margin financial
"Gross Profit Margin | 26.2% | 29.7%"
Gross profit margin shows how much money a company keeps from sales after paying for the goods or services it sold. It’s like checking how much profit is left over from each dollar earned before covering other costs. A higher margin indicates the company makes more money from its sales, which helps assess its profitability and efficiency.
escrow holdback financial
"received the full $4.55 million escrow holdback"
An escrow holdback is a portion of transaction proceeds placed with a neutral escrow agent after a deal closes and held under the purchase agreement to secure specific post-closing obligations, indemnity claims, adjustments, or unresolved contingencies. The holdback amount, release schedule, conditions for release, and dispute-resolution rules are defined in the agreement; funds are returned to the designated party or used to satisfy valid claims only when those contractual conditions are met.
revolving credit facilities financial
"no debt outstanding under its revolving credit facilities"
A revolving credit facility is a bank-backed borrowing arrangement that lets a company draw, repay and redraw funds up to an agreed limit, much like a business credit card. It matters to investors because it provides flexible short-term cash for operations, growth or emergencies without issuing new shares; the size, cost and attached conditions affect a company’s financial health, liquidity and risk profile.
continuing operations financial
"Net sales from continuing operations were $27.1 million"
Continuing operations are the parts of a company's business that it expects to keep running into the future, excluding divisions or activities it has sold, closed, or classified as discontinued. Investors watch continuing operations because they show the company’s core ability to generate revenue and profit over time — like evaluating the healthy, ongoing crops on a farm rather than one-off harvests from fields you've already sold.
Earnings Snapshot
Net Sales: $27.1 million
Third quarter ended September 30, 2026
Net Sales
$27.1 million
+37.8% year over year
Gross Profit
$7.1 million
+21.9% year over year
Gross Profit Margin
26.2%
Down 342 basis points year over year
Net Income from Continuing Operations
$1.4 million
Compared with a $0.1 million loss in Q3 2025
Adjusted EBITDA
$3.5 million
+155.8% year over year
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did ACNT's net sales and Adjusted EBITDA change in Q3 2026?
Net sales were $27.1 million, up 37.8% from $19.7 million in Q3 2025. Adjusted EBITDA was $3.5 million, compared with $1.4 million a year earlier, and its margin was 13.0%, versus 7.0%.
Did ACNT report a profit in Q3 2026?
Net income from continuing operations was $1.4 million, compared with a $0.1 million loss in Q3 2025. Diluted earnings per share were $0.15, compared with a diluted loss per share of $0.01.
What drove ACNT's Q3 2026 sales growth?
Ascent attributed the increase in continuing-operations net sales to increases in volume and average selling prices.
What were ACNT's trailing 12-month results through September 2026?
For the trailing twelve months ended September 30, 2026, Ascent reported post-COVID record net sales of $91.0 million across Chemicals and post-COVID record Adjusted EBITDA of $2.9 million across continuing operations.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 4, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
| (Registrant's telephone number, including area code) | ||||||||||||||
| Inapplicable | ||||||||||||||
| (Former name or former address if changed since last report) | ||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02. Results of Operations and Financial Condition
On November 4, 2026, the Company issued a press release announcing financial information for its third quarter ended September 30, 2026. The press release is attached as Exhibit 99.1 to this Form 8-K and is furnished to, but not filed with, the Commission.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
| Exhibit Number | Description of Exhibit | ||||
99.1 | Earnings Press Release dated November 4, 2026 | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Ascent Industries Co. | |||||
| Dated: November 4, 2026 | By: /s/ Ryan Kavalauskas | ||||
| Ryan Kavalauskas | |||||
| Chief Financial Officer | |||||
Exhibit 99.1
Ascent Industries Reports Third Quarter 2026 Results; Year-Over-Year Net Sales Increase 37.8%, Including 26.3% Growth in Sales Excluding the Midwest Graphic Sales Acquisition; Adjusted EBITDA Improves by $2.1 Million
Sequentially, net sales increased 5.7%, gross profit increased 28.3% and
Adjusted EBITDA improved by $2.1 million.
Schaumburg, Illinois, November 4, 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 third quarter ended September 30, 2026.
Third Quarter 2026 Summary1
| (in millions, except per share and margin) | Q3 2026 | Q3 2025 | Change | ||||||||
| Net Sales | $27.1 | $19.7 | 37.8% | ||||||||
| Gross Profit | $7.1 | $5.8 | 21.9% | ||||||||
| Gross Profit Margin | 26.2% | 29.7% | -342bps | ||||||||
| Net Income (Loss) | $1.4 | $(0.1) | NM | ||||||||
| Diluted Income (Loss) per Share | $0.15 | $(0.01) | NM | ||||||||
| Adjusted EBITDA | $3.5 | $1.4 | +$2.1M | ||||||||
| Adjusted EBITDA Margin | 13.0% | 7.0% | +598bps | ||||||||
______________
1On May 4, 2026, the Company closed on a transaction to acquire substantially all of the assets of Midwest Graphic Sales, Inc and Sigma Coatings, Inc. (together "Midwest"). The third quarter of 2026 included $2.3 million in net sales, $(0.7) million in net loss and $(0.2) million in Adjusted EBITDA from the acquisition of Midwest.
Management Commentary
“The third quarter represented another meaningful step forward in the financial performance of our business,” said J. Bryan Kitchen, President and Chief Executive Officer of Ascent Industries Co. “Net sales from Continuing Operations increased 37.8% year over year to $27.1 million, gross profit increased 21.9% to $7.1 million and Adjusted EBITDA increased 155.8% to $3.5 million, amid muted market conditions. Sequentially, net sales increased 5.7%, gross profit increased 28.3% and Adjusted EBITDA improved by approximately $2.1 million. For the trailing twelve months ended September 30, 2026, the Company achieved post-COVID record net sales of $91.0 million across Chemicals and post-COVID record Adjusted EBITDA of $2.9 million across continuing operations.”
“We are encouraged by the progress reflected in our third-quarter results,” Kitchen added. “As we work to grow our way out of the built-in seasonality associated with our legacy business, we recognize that there is additional work ahead to make that improvement more consistent and durable. As we continue to scale the business, our focus is increasingly on the operating disciplines that support sustainable margin expansion — improving how work moves through the organization, standardizing processes across our assets, increasing automation where appropriate and addressing areas of structural cost. Pricing has contributed to performance, but over time we expect a greater share of margin improvement to come from better execution, productivity and a more efficient operating model.”
“The performance of Midwest Graphic Sales continues to reinforce our confidence in both the acquisition and the growth runway ahead,” Kitchen continued. “In its first full quarter as part of Ascent, Midwest contributed positively to our financial results and remained accretive to earnings when excluding the impact of corporate allocations. The manufacturing transition remains on schedule, and our teams continue to identify and progress commercial opportunities beyond the original underwriting case.”
“We are also pleased to report that the Company received the full $4.55 million escrow holdback associated with the sale of certain assets related to Bristol Metals, further strengthening our liquidity,” Kitchen said. “Separately, our business generated
1
positive operating cash flow during the quarter, a meaningful improvement from the cash-use run rate earlier in the year. Our capital allocation priorities remain focused on protecting liquidity, improving working capital and investing in the business, while preserving flexibility for disciplined M&A and opportunistic share repurchases.”
Kitchen concluded, “Our strategy remains unchanged, and the evidence supporting it continues to strengthen. We are improving the quality of our portfolio, accelerating growth and translating a greater share of that growth into earnings. We remain focused on disciplined capital allocation and the continued execution of our optimization initiatives. Together, these priorities position Ascent to deliver higher returns on invested capital and greater long-term value for our shareholders.”
Third Quarter 2026 Financial Results
Net sales from continuing operations were $27.1 million compared to $19.7 million in the third quarter of 2025. Excluding Midwest, net sales from continuing operations were $24.9 million in the third quarter of 2026. The increase was a result of increases in volume and average selling prices.
Gross profit from continuing operations increased 21.9% to $7.1 million, or 26.2% of net sales, compared to $5.8 million, or 29.7% of net sales, in the third quarter of 2025. Excluding Midwest, gross profit from continuing operations increased 14.1% to $6.7 million in the third quarter of 2026. The increase in dollars was primarily driven by increases in sales and cost recovery in the period due to increased production partially offset by increases in material cost, labor and overhead and shipping costs.
Net income from continuing operations increased to $1.4 million compared to a net loss of ($0.1) million in the third quarter of 2025. Diluted earnings per share increased to $0.15 in the third quarter of 2026 compared to a diluted loss per share of ($0.01) in the third quarter of 2025. Excluding Midwest, net income from continuing operations increased to $2.1 million and diluted earnings per share increased to $0.23 in the third quarter of 2026.
Adjusted EBITDA from continuing operations increased to $3.5 million in the third quarter of 2026, with adjusted EBITDA margin increasing to 13.0% compared to 7.0% in the prior year period. Excluding Midwest, Adjusted EBITDA from continuing operations increased to $3.8 million, with adjusted EBITDA margin increasing to 15.1% in the third quarter of 2026. The increase was primarily driven by the aforementioned increase in gross profit as well as reductions in SG&A in the current year.
Liquidity
As of September 30, 2026, the Company had $28.7 million in cash and cash equivalents, no debt outstanding under its revolving credit facilities and had $21.1 million in availability under its revolving credit facility.
For the quarter ended September 30, 2026, the Company repurchased no shares under its authorized share repurchase program. Year to date, the Company has repurchased 505,563 shares at an average cost of $13.29 per share for approximately $6.8 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, 2026.
Ascent management will host the conference call, followed by a question-and-answer period.
Date: Wednesday, November 4, 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.
2
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.
Investor Relations
1-630-884-9181
investorrelations@ascentco.com
3
Ascent Industries Co.
Condensed Consolidated Balance Sheets
(in thousands, except par value and share data)
| (Unaudited) | |||||||||||
| September 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 28,709 | $ | 57,606 | |||||||
Accounts receivable, net of allowance for credit losses of $139 and $1,004, respectively | 21,090 | 10,040 | |||||||||
| Advances and other receivables | 4,605 | 5,389 | |||||||||
| Inventories | 10,927 | 8,742 | |||||||||
| Prepaid expenses and other current assets | 1,770 | 1,243 | |||||||||
| Total current assets | 67,101 | 83,020 | |||||||||
| Property, plant and equipment, net | 15,878 | 15,762 | |||||||||
| Right-of-use assets, operating leases, net | 8,927 | 9,368 | |||||||||
| Goodwill | 4,824 | — | |||||||||
| Intangible assets, net | 9,424 | 2,833 | |||||||||
| Deferred charges, net | 251 | 401 | |||||||||
| Other non-current assets, net | 1,465 | 553 | |||||||||
| Total assets | $ | 107,870 | $ | 111,937 | |||||||
| Liabilities and Shareholders' Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 9,644 | $ | 5,490 | |||||||
| Accrued expenses and other current liabilities | 3,548 | 5,389 | |||||||||
| Current portion of note payable | 598 | 433 | |||||||||
| Current portion of operating lease liabilities | 776 | 712 | |||||||||
| Current portion of finance lease liabilities | 345 | 331 | |||||||||
| Total current liabilities | 14,911 | 12,355 | |||||||||
| Long-term portion of operating lease liabilities | 10,907 | 11,496 | |||||||||
| Long-term portion of finance lease liabilities | 547 | 808 | |||||||||
| Deferred income taxes | 147 | 241 | |||||||||
| Other long-term liabilities | 39 | 45 | |||||||||
| Total non-current liabilities | 11,640 | 12,590 | |||||||||
| Total liabilities | $ | 26,551 | $ | 24,945 | |||||||
| Commitments and contingencies | |||||||||||
| Shareholders' equity: | |||||||||||
Common stock, par value $1 per share; 24,000,000 shares authorized; 9,021,347 and 9,400,898 shares outstanding as of September 30, 2026 and December 31, 2025, respectively | $ | 11,085 | $ | 11,085 | |||||||
| Capital in excess of par value | 47,976 | 48,276 | |||||||||
| Retained earnings | 45,878 | 45,786 | |||||||||
| 104,939 | 105,147 | ||||||||||
Less: cost of common stock in treasury - 2,063,756 and 1,684,205 shares, respectively | (23,620) | (18,155) | |||||||||
| Total shareholders' equity | 81,319 | 86,992 | |||||||||
| Total liabilities and shareholders' equity | $ | 107,870 | $ | 111,937 | |||||||
Note: The condensed consolidated balance sheets at December 31, 2025 have been derived from the audited consolidated financial statements at that date.
4
Ascent Industries Co.
Condensed Consolidated Statements of Income (Loss)
($ in thousands, except per share data)
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net sales | $ | 27,135 | $ | 19,697 | $ | 72,218 | $ | 56,183 | |||||||||||||||
| Cost of sales | 20,016 | 13,856 | 56,740 | 42,410 | |||||||||||||||||||
| Gross profit | 7,119 | 5,841 | 15,478 | 13,773 | |||||||||||||||||||
| Selling, general and administrative | 5,314 | 6,253 | 15,964 | 17,567 | |||||||||||||||||||
| Research and development | 92 | — | 262 | — | |||||||||||||||||||
| Acquisition costs and other | 75 | 398 | 251 | 665 | |||||||||||||||||||
| Asset impairments | — | — | — | 1,622 | |||||||||||||||||||
| Gain on lease modification | — | — | — | (544) | |||||||||||||||||||
| Operating income (loss) from continuing operations | 1,638 | (810) | (999) | (5,537) | |||||||||||||||||||
| Other income | |||||||||||||||||||||||
| Interest income, net | (114) | (447) | (562) | (347) | |||||||||||||||||||
| Other, net | (145) | (296) | (537) | (581) | |||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 1,897 | (67) | 100 | (4,609) | |||||||||||||||||||
| Income tax expense (benefit) | 495 | 58 | 8 | (32) | |||||||||||||||||||
| Income (loss) from continuing operations | 1,402 | (125) | 92 | (4,577) | |||||||||||||||||||
| Income (loss) from discontinued operations, net of tax | — | (1,962) | — | 6,483 | |||||||||||||||||||
| Net income (loss) | $ | 1,402 | $ | (2,087) | $ | 92 | $ | 1,906 | |||||||||||||||
| Net income (loss) per common share from continuing operations: | |||||||||||||||||||||||
| Basic | $ | 0.16 | $ | (0.01) | $ | 0.01 | $ | (0.47) | |||||||||||||||
| Diluted | $ | 0.15 | $ | (0.01) | $ | 0.01 | $ | (0.47) | |||||||||||||||
| Net income (loss) per common share from discontinued operations: | |||||||||||||||||||||||
| Basic | $ | — | $ | (0.21) | $ | — | $ | 0.67 | |||||||||||||||
| Diluted | $ | — | $ | (0.21) | $ | — | $ | 0.67 | |||||||||||||||
| Net income (loss) per common share: | |||||||||||||||||||||||
| Basic | $ | 0.16 | $ | (0.22) | $ | 0.01 | $ | 0.20 | |||||||||||||||
| Diluted | $ | 0.15 | $ | (0.22) | $ | 0.01 | $ | 0.20 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 9,012 | 9,379 | 9,158 | 9,733 | |||||||||||||||||||
| Diluted | 9,097 | 9,379 | 9,251 | 9,733 | |||||||||||||||||||
Adjusted EBITDA1 | $ | 3,520 | $ | 1,376 | $ | 4,008 | $ | 575 | |||||||||||||||
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.
5
Ascent Industries Co.
Consolidated Statements of Cash Flows
($ in thousands)
| (Unaudited) | |||||||||||
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 92 | $ | 1,906 | |||||||
| Income from discontinued operations, net of tax | — | 6,483 | |||||||||
| Net income (loss) from continuing operations | 92 | (4,577) | |||||||||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||
| Depreciation expense | 2,622 | 2,724 | |||||||||
| Amortization expense | 1,074 | 459 | |||||||||
| Amortization of debt issuance costs | 150 | 217 | |||||||||
| Asset impairments | — | 1,622 | |||||||||
| Deferred income taxes | 8 | (32) | |||||||||
| Reduction of losses on accounts receivable | (952) | (488) | |||||||||
| Non-cash lease expense | (77) | 85 | |||||||||
| Stock-based compensation expense | 687 | 512 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable and advances | (8,115) | (5,210) | |||||||||
| Inventories | (1,573) | (1,450) | |||||||||
| Other assets and liabilities | (503) | (1,517) | |||||||||
| Accounts payable | 3,088 | (1,535) | |||||||||
| Accrued expenses | (2,085) | 1,741 | |||||||||
| Accrued income taxes | 126 | (119) | |||||||||
| Net cash used in operating activities - continuing operations | (5,458) | (7,568) | |||||||||
| Net cash provided by operating activities - discontinued operations | — | 6,783 | |||||||||
| Net cash used in operating activities | (5,458) | (785) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property, plant and equipment | (2,256) | (1,082) | |||||||||
| Acquisitions, net of cash acquired | (13,600) | — | |||||||||
| Net cash used in investing activities - continuing operations | (15,856) | (1,082) | |||||||||
| Net cash provided by investing activities - discontinued operations | — | 52,525 | |||||||||
| Net cash provided by (used in) investing activities | (15,856) | 51,443 | |||||||||
| Cash flows from financing activities: | |||||||||||
| Borrowings from credit facilities | 80,350 | 114,470 | |||||||||
| Proceeds from note payable | 997 | 1,085 | |||||||||
| Proceeds from exercise of stock options | 398 | — | |||||||||
| Payments on credit facilities | (80,350) | (114,470) | |||||||||
| Payments on note payable | (832) | (696) | |||||||||
| Principal payments on finance lease obligations | (246) | (219) | |||||||||
| Repurchase of common stock | (6,850) | (8,875) | |||||||||
| Net cash used in financing activities - continuing operations | (6,533) | (8,705) | |||||||||
| Net cash used in financing activities - discontinued operations | — | (19) | |||||||||
| Net cash used in financing activities | (6,533) | (8,724) | |||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | (27,847) | 41,934 | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 57,606 | 16,108 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 29,759 | $ | 58,042 | |||||||
6
Ascent Industries Co.
Non-GAAP Financial Measures Reconciliation
Reconciliation of Net Income (Loss) to Adjusted EBITDA
($ in thousands)
| (Unaudited) | (Unaudited) | |||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| ($ in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 1,402 | $ | (125) | $ | 92 | $ | (4,577) | ||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Interest income, net | (114) | (447) | (562) | (347) | ||||||||||||||||||||||
| Income taxes | 495 | 58 | 8 | (32) | ||||||||||||||||||||||
| Depreciation | 885 | 854 | 2,622 | 2,725 | ||||||||||||||||||||||
| Amortization | 584 | 153 | 1,074 | 458 | ||||||||||||||||||||||
| EBITDA | 3,252 | 493 | 3,234 | (1,773) | ||||||||||||||||||||||
| Acquisition costs and other | 75 | 398 | 251 | 665 | ||||||||||||||||||||||
| Shelf registration costs | — | — | 14 | — | ||||||||||||||||||||||
| Asset impairments | — | — | — | 1,622 | ||||||||||||||||||||||
| Gain on lease modification | — | — | — | (544) | ||||||||||||||||||||||
| Stock-based compensation | 120 | 197 | 390 | 318 | ||||||||||||||||||||||
| Non-cash lease expense | (26) | 86 | (77) | 85 | ||||||||||||||||||||||
| Retention expense | 46 | — | 46 | — | ||||||||||||||||||||||
| Restructuring and severance costs | 53 | 202 | 150 | 202 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 3,520 | $ | 1,376 | $ | 4,008 | $ | 575 | ||||||||||||||||||
| % sales | 13.0 | % | 7.0 | % | 5.6 | % | 1.0 | % | ||||||||||||||||||
| Specialty Chemicals | ||||||||||||||||||||||||||
| Net income | $ | 2,564 | $ | 2,138 | $ | 1,078 | $ | 4,375 | ||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Interest expense, net | 11 | 7 | 36 | 39 | ||||||||||||||||||||||
| Depreciation | 842 | 830 | 2,494 | 2,671 | ||||||||||||||||||||||
| Amortization | 584 | 153 | 1,074 | 458 | ||||||||||||||||||||||
| EBITDA | 4,001 | 3,128 | 4,682 | 7,543 | ||||||||||||||||||||||
| Acquisition costs and other | — | — | — | 92 | ||||||||||||||||||||||
| Stock-based compensation | 13 | 4 | 67 | 4 | ||||||||||||||||||||||
| Non-cash lease expense | (15) | 26 | (45) | 30 | ||||||||||||||||||||||
| Restructuring and severance costs | 53 | — | 91 | — | ||||||||||||||||||||||
| Specialty Chemicals Adjusted EBITDA | $ | 4,052 | $ | 3,158 | $ | 4,795 | $ | 7,669 | ||||||||||||||||||
| % segment sales | 14.9 | % | 16.0 | % | 6.6 | % | 13.7 | % | ||||||||||||||||||
7