Ascent Industries Co.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 3 March 2026: press release. The quarter’s numbers.

Key takeaways

Fourth-quarter sales rose 3.9%: Net sales from continuing operations were $18.8 million, up from $18.1 million. The company attributed the increase to higher volume, partly offset by lower average selling prices. Source
Fourth-quarter net loss from continuing operations: Net loss from continuing operations was $(1.0) million, or $(0.11) per diluted share, compared with net income from continuing operations of $0.2 million, or $0.01 per diluted share, a year earlier. Source
Full-year gross profit rose 61%: Gross profit from continuing operations was $17.2 million, or 23.0% of net sales, compared with $10.7 million, or 13.2%, in 2024. Source
Fourth-quarter adjusted EBITDA loss widened: Adjusted EBITDA from continuing operations was a $(1.1) million loss, a (6.1)% margin, against a $(0.6) million loss a year earlier. The narrative gives the prior-year margin as (3.4)%; the table gives (3.1)%. Source
Specialty Chemicals fourth-quarter adjusted EBITDA fell: Segment adjusted EBITDA was $453 thousand, or 2.4% of segment sales, compared with $3.4 million, or 18.7%, a year earlier. The full-year figure was $8.1 million, or 10.8%. Source
Fourth-quarter gross margin fell on material costs: Gross profit was $3.4 million, or 18.3% of net sales, compared with 19.2% a year earlier. Management attributed the decrease primarily to higher material and fulfillment costs. Source
Softness across several end markets: Management said the fourth quarter reflected normal seasonal softness and continued market softness across several end markets. Source
Cash rose to $57.6 million: Cash and cash equivalents were $57.6 million at December 31, 2025, against $16.1 million a year earlier. There was no revolver debt and $11.4 million of revolver availability, against $13.7 million at September 30. Source
Discontinued operations added to full-year net income: Income from discontinued operations, net of tax, was $6.5 million for 2025, bringing net income to $0.9 million. The continuing operations net loss for the year was $5.6 million. Source

“Fourth quarter results reflected normal seasonal softness, compounded by continued market softness across several end markets,”
Bryan Kitchen, President and Chief Executive Officer

Fourth quarter and full-year results

Fourth-quarter sales rose 3.9%: Net sales from continuing operations were $18.8 million, up from $18.1 million. The company attributed the increase to higher volume, partly offset by lower average selling prices. Source
Fourth-quarter net loss from continuing operations: Net loss from continuing operations was $(1.0) million, or $(0.11) per diluted share, compared with net income from continuing operations of $0.2 million, or $0.01 per diluted share, a year earlier. Source
Full-year gross profit rose 61%: Gross profit from continuing operations was $17.2 million, or 23.0% of net sales, compared with $10.7 million, or 13.2%, in 2024. Source
Full-year adjusted EBITDA loss narrowed: Adjusted EBITDA from continuing operations was $(0.6) million, a margin of (0.8)%, compared with $(4.7) million, a margin of (5.8)%, in 2024. Source
Fourth-quarter adjusted EBITDA loss widened: Adjusted EBITDA from continuing operations was a $(1.1) million loss, a (6.1)% margin, against a $(0.6) million loss a year earlier. The narrative gives the prior-year margin as (3.4)%; the table gives (3.1)%. Source

Specialty Chemicals segment results

Specialty Chemicals fourth-quarter adjusted EBITDA fell: Segment adjusted EBITDA was $453 thousand, or 2.4% of segment sales, compared with $3.4 million, or 18.7%, a year earlier. The full-year figure was $8.1 million, or 10.8%. Source
Specialty Chemicals is the only segment shown: The reconciliation in the fourth-quarter release shows only Specialty Chemicals as a segment. The third-quarter release described it as the company's first full quarter as a pure-play specialty chemicals company.

“We are entering 2026 with a clean, focused, specialty chemicals platform.”
Bryan Kitchen, President and Chief Executive Officer

Costs, margins and pricing

Fourth-quarter gross margin fell on material costs: Gross profit was $3.4 million, or 18.3% of net sales, compared with 19.2% a year earlier. Management attributed the decrease primarily to higher material and fulfillment costs. Source
SG&A investment weighed on adjusted EBITDA: Selling, general and administrative expense was $6.5 million in the quarter, against $5.4 million, and $24.1 million for the year, against $20.9 million. Management cited strategic investments in SG&A. Source
Full-year margin gains from cost actions: Management attributed the rise in full-year gross profit to continued cost management, strategic sourcing enhancements and product line optimization. Source
Lease modification gain and impairment: The operating loss from continuing operations was $1.5 million in the quarter, after a $1.7 million gain on lease modification. The full year included a $1.6 million asset impairment and a $2.3 million gain on lease modification. Source

Demand and end markets

Softness across several end markets: Management said the fourth quarter reflected normal seasonal softness and continued market softness across several end markets. Source
Full-year sales fell on lower volume: Full-year net sales were $74.9 million, down 7.3%. Management attributed the decline to lower volume, partly offset by increased average selling prices. Source

“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.”
Bryan Kitchen, President and Chief Executive Officer

Cash, capital and shareholder returns

Cash rose to $57.6 million: Cash and cash equivalents were $57.6 million at December 31, 2025, against $16.1 million a year earlier. There was no revolver debt and $11.4 million of revolver availability, against $13.7 million at September 30. Source
Full-year buybacks of $9.2 million: The company repurchased 745,524 shares in 2025 at an average $12.26 per share, for about $9.2 million. In the fourth quarter it repurchased 19,749 shares for about $0.3 million. Source
Continuing operations used operating cash: Net cash used in operating activities from continuing operations was $7.3 million in 2025, against $1.0 million provided in 2024. Purchases of property, plant and equipment were $1.5 million. Source
Long-term lease liabilities declined: Long-term operating lease liabilities were $11.5 million at December 31, 2025, against $30.0 million a year earlier. Long-term finance lease liabilities were $0.8 million. Source

Divestitures and discontinued operations

BRISMET and ASTI sales closed in 2025: The company closed the sale of substantially all assets of Bristol Metals on April 4, 2025, and of American Stainless Tubing on June 30, 2025. Both are reported as discontinued operations. Source
Discontinued operations added to full-year net income: Income from discontinued operations, net of tax, was $6.5 million for 2025, bringing net income to $0.9 million. The continuing operations net loss for the year was $5.6 million. Source

Strategy and platform

Company enters 2026 as specialty platform: Kitchen said the company enters 2026 with a clean, focused specialty chemicals platform, and that actions over the past year are translating into higher-quality earnings and increasing operating leverage. Source
Growth acceleration tied to markets: Management said the company is positioned to accelerate profitable growth as market conditions evolve. No timing or figures were given for this. Source

Risks management discussed

Operational: Higher material and fulfillment costs reduced fourth-quarter gross margin. Source
Demand: Management cited continued market softness across several end markets, on top of normal seasonal softness. Source
Demand: Full-year net sales declined on lower volume, and average selling prices fell in the fourth quarter. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Schaumburg, Illinois, March 3, 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 fourth quarter and year ended December 31, 2025.

Fourth Quarter 2025 Summary

(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

(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

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.

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.

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	$(1,146)		$(555)	$(571)	$(4,695)

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

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,
($ in thousands)			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%

Contacts
1-630-884-9181 investorrelations@ascentco.com