Ascent Industries Co.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 4 August 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Key takeaways

Net sales rose 37.6% year over year: Net sales from continuing operations were $25.7 million, compared with $18.7 million a year earlier. The company attributed the increase to volume and average selling prices. Source
Adjusted EBITDA improved $1.8 million: Adjusted EBITDA from continuing operations was $1.5 million, a margin of 5.7%, compared with a margin of (1.8)% in the prior year period. Source
Sequential gains in sales and margin: Compared with the first quarter, legacy net sales rose about 22% and gross margin expanded about 710 basis points. Volume, average selling price, gross profit and Adjusted EBITDA also improved. Source
Gross margin still below last year: Gross margin was 21.6% of net sales, compared with 26.1% a year earlier. Management said it remains below both the prior-year level and long-term expectations. Source
Midwest acquisition closed May 4: The company closed the purchase of substantially all assets of Midwest Graphic Sales and Sigma Coatings on May 4, 2026, during the second quarter. Source
Midwest added sales and EBITDA: Midwest contributed $1.9 million of net sales, no net income, and $0.3 million of Adjusted EBITDA in the second quarter. Source
Cash balance of $28.1 million: At June 30, 2026, cash was $28.1 million, with no debt under the revolving credit facilities and $17.9 million of revolver availability. Source
Second-quarter share buybacks: In the quarter the company repurchased 209,868 shares at an average cost of $13.80, for about $2.9 million. First-quarter repurchases were 295,695 shares. Source

“Our strategy remains unchanged. What has changed is the evidence that it is delivering the outcomes we envisioned.”
J. Bryan Kitchen, President and Chief Executive Officer of Ascent Industries Co.

Guidance

Area	Period	Figure	Against last quarter
Gross profit improvement from platform-wide optimization Source	run-rate by the end of 2026	approximately $3 million to $5 million in annualized gross profit improvement	Kept

What changed from last quarter

New: The company closed the acquisition of substantially all assets of Midwest Graphic Sales, Inc and Sigma Coatings, Inc. on May 4, 2026, after the first-quarter report. Source
Guidance kept: The optimization gross profit target was restated in the second-quarter release with the same $3 million to $5 million range and an end-2026 timing. Source

Results and growth drivers

Net sales rose 37.6% year over year: Net sales from continuing operations were $25.7 million, compared with $18.7 million a year earlier. The company attributed the increase to volume and average selling prices. Source
Net income turned positive: Net income from continuing operations was $0.7 million, against a loss of $2.4 million a year earlier. Diluted EPS was $0.07, compared with a loss of $0.25. Source
Adjusted EBITDA improved $1.8 million: Adjusted EBITDA from continuing operations was $1.5 million, a margin of 5.7%, compared with a margin of (1.8)% in the prior year period. Source
Sequential gains in sales and margin: Compared with the first quarter, legacy net sales rose about 22% and gross margin expanded about 710 basis points. Volume, average selling price, gross profit and Adjusted EBITDA also improved. Source

Segments and regions

Specialty Chemicals EBITDA declined: Specialty Chemicals Adjusted EBITDA was $1.9 million, or 7.3% of segment sales, compared with $2.5 million, or 13.6%, in the prior year second quarter. Source
Segment net income stayed positive: Specialty Chemicals net income was $656 thousand in the second quarter, compared with $1,499 thousand a year earlier. Source
Consolidated EBITDA below segment figure: Consolidated Adjusted EBITDA was $1.5 million, below the $1.9 million segment figure. The documents give no reconciling explanation for the difference. Source

“Although gross margin remains below both the prior-year level and our long-term expectations, our priorities remain unchanged.”
J. Bryan Kitchen, President and Chief Executive Officer of Ascent Industries Co.

Costs, gross margin and pricing

Gross margin still below last year: Gross margin was 21.6% of net sales, compared with 26.1% a year earlier. Management said it remains below both the prior-year level and long-term expectations. Source
Gross profit rose 14%: Gross profit from continuing operations was $5.5 million, up 14.0%, though the margin was lower than in the prior year. Source
Cost recovery drove gross profit: Gross profit rose mainly on higher cost recovery from increased production, lower utilities, and lower repairs and maintenance. Higher labor and overhead partly offset these gains. Source
SG&A reductions supported EBITDA: Selling, general and administrative expense was $5.5 million, compared with $6.4 million a year earlier. Management cited the lower SG&A as a driver of higher Adjusted EBITDA. Source

Demand and volumes

Sales rose on volume and price: Management attributed the net sales increase to higher volume and higher average selling prices in the quarter. Source
Trailing-twelve-month records set: On a trailing-twelve-month basis, the company reported record highs for volume, net sales, gross profit and Adjusted EBITDA from continuing operations. Source
Year-over-year growth in a soft market: Management described the specialty chemicals market as soft. Year-over-year net sales rose about 28% and total gross profit rose 14%. Source

“We are building a combined business that is more capable and more valuable than either company could have become independently.”
J. Bryan Kitchen, President and Chief Executive Officer of Ascent Industries Co.

Midwest acquisition

Midwest acquisition closed May 4: The company closed the purchase of substantially all assets of Midwest Graphic Sales and Sigma Coatings on May 4, 2026, during the second quarter. Source
Midwest added sales and EBITDA: Midwest contributed $1.9 million of net sales, no net income, and $0.3 million of Adjusted EBITDA in the second quarter. Source
Midwest performing to expectations: Management said the business performed in line with expectations in the first two months after closing, positively contributing to gross profit and Adjusted EBITDA. Source

Optimization program progress

Optimization beginning to lift earnings: Management said the sequential gross margin improvement shows optimization initiatives are beginning to turn growth into stronger earnings. Source
Onboarding inefficiencies described as temporary: In the first quarter, management said onboarding new programs created near-term inefficiencies that it described as temporary and reflecting sequencing rather than structure.

Capital, cash and shareholder returns

Cash balance of $28.1 million: At June 30, 2026, cash was $28.1 million, with no debt under the revolving credit facilities and $17.9 million of revolver availability. Source
Second-quarter share buybacks: In the quarter the company repurchased 209,868 shares at an average cost of $13.80, for about $2.9 million. First-quarter repurchases were 295,695 shares. Source
Operating cash use narrowed: Continuing operations used $7.7 million of operating cash in the six months, compared with $8.9 million a year earlier. Source
Acquisition used $13.5 million cash: Acquisitions, net of cash acquired, used $13.5 million of investing cash in the six months ended June 30, 2026. Source
Receivables rose to $18.6 million: Accounts receivable, net, were $18.6 million at June 30, 2026, compared with $10.0 million at December 31, 2025. Source

Strategy and leadership

Strategy unchanged, evidence stronger: Management said the strategy is unchanged and that the evidence of its results has changed. It cited portfolio quality, commercial execution, operational excellence and disciplined capital allocation. Source
Midwest value beyond underwriting: Management said the combined business is expected to be more capable and valuable than either company would have been independently. Source

Coming up, as management said on 4 August 2026

Manufacturing transition still in progress: Management said the manufacturing transition for the Midwest business remains on schedule, with the teams continuing to develop further areas beyond the original underwriting case. Source

Risks management discussed

Financial: Gross margin remains below both the prior-year level and management's long-term expectations, per the company. Source
Demand: Management described the specialty chemicals market as soft during the quarter. Source
Operational: Higher labor and overhead costs partly offset the gross profit gains from cost recovery and lower utilities. Source

Earlier plans management reported on

On track: Management said the optimization initiative remains on track for the run-rate improvement by the end of 2026, as it reported last quarter. Source
Ahead: Management said back-office integration was completed a full quarter ahead of the original commitment. Source
Not stated: In the first quarter, management expected the programs to meet long-term margin thresholds. The second-quarter release says gross margin remains below long-term expectations.

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

Ascent Industries Reports Second Quarter 2026 Results; Year-Over-Year Net Sales Increase 37.6% and Adjusted EBITDA Improves by $1.8 Million

Sequentially, legacy net sales increased approximately 22% and gross margin expanded approximately 710 basis points; Midwest Graphic Sales was immediately accretive to Adjusted EBITDA.

Schaumburg, Illinois, August 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 second quarter ended June 30, 2026.

Second Quarter 2026 Summary

(in millions, except per share and margin)	Q2 2026	Q2 2025	Change
Net Sales	$25.7	$18.7	37.6%
Gross Profit	$5.5	$4.9	14.0%
Gross Profit Margin	21.6%	26.1%	-447bps
Net Income (Loss)	$0.7	$(2.4)	127.4%
Diluted Income (Loss) per Share	$0.07	$(0.25)	129.3%
Adjusted EBITDA	$1.5	$(0.3)	+$1.8M
Adjusted EBITDA Margin	5.7%	(1.8)%	+745bps

On 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 second quarter of 2026 included $1.9 million in net sales, no net income and $0.3 million in Adjusted EBITDA from the acquisition of Midwest.

Management Commentary

“The second quarter was one of the strongest in our recent history, reflecting continued improvement across the business,” said J. Bryan Kitchen, President and Chief Executive Officer of Ascent Industries Co. “Sequentially, legacy net sales increased approximately 22% and gross margin expanded approximately 710 basis points, while volume, average selling price, gross profit and Adjusted EBITDA also improved. Despite a specialty chemicals market that remains soft, year over year net sales increased approximately 28%, total gross profit increased 14%, and Adjusted EBITDA improved by $1.8 million. On a trailing-twelve-month basis, the company saw record highs for volume, net sales, gross profit and Adjusted EBITDA from Continuing Operations.”

"The sequential improvement in gross margin demonstrates that our optimization initiatives are beginning to translate growth into stronger earnings," Kitchen added. "Although gross margin remains below both the prior-year level and our long-term expectations, our priorities remain unchanged. Commercial execution is creating profitable growth opportunities, while our operations teams apply the same standardize, simplify and optimize playbook that transformed our operating foundation over the past two years. Growth creates the opportunity. Optimization converts that opportunity into earnings. As reported last quarter, our platform-wide optimization initiative remains on track to achieve a run-rate improvement of approximately $3 million to $5 million in annualized gross profit improvement by the end of 2026. As we continue to grow, each operational improvement expands the earnings power of the platform and compounds long-term shareholder returns."

“The successful integration of the Midwest Graphic Sales acquisition further reinforces our disciplined acquisition strategy,” Kitchen continued. “In the first two months since we closed, the business performed in line with our expectations, positively contributing to gross profit and Adjusted EBITDA. Back-office integration was completed a full quarter ahead of our original commitment, the manufacturing transition remains on schedule, and our teams are already developing opportunities beyond the original underwriting case. We are building a combined business that is more capable and more valuable than either company could have become independently.”

Kitchen concluded, “Our strategy remains unchanged. What has changed is the evidence that it is delivering the outcomes we envisioned. Over the past two years, we have systematically improved the quality of our portfolio, strengthened our commercial execution, enhanced our operational excellence and applied disciplined capital allocation. Together, these capabilities are reinforcing one another, creating a higher-quality business capable of delivering consistent growth, higher returns on invested capital and greater long-term shareholder value across market cycles.”

Second Quarter 2026 Financial Results

Net sales from continuing operations were $25.7 million compared to $18.7 million in the second quarter of 2025. The increase was a result of increases in volume and average selling prices.

Gross profit from continuing operations increased 14.0% to $5.5 million, or 21.6% of net sales, compared to $4.9 million, or 26.1% of net sales, in the second quarter of 2025. The increase in dollars was primarily driven by increases in cost recovery in the period due to increased production, reductions in utilities, and repairs and maintenance partially offset by increases in labor and overhead.

Net income from continuing operations increased to $0.7 million compared to a net loss of ($2.4) million in the second quarter of 2025. Diluted earnings per share increased to $0.07 in the second quarter of 2026 compared to a diluted loss per share of ($0.25) in the second quarter of 2025.

Adjusted EBITDA from continuing operations increased to $1.5 million in the second quarter of 2026, with adjusted EBITDA margin increasing to 5.7% compared to (1.8)% in the prior year period. 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 June 30, 2026, the Company had $28.1 million in cash and cash equivalents, no debt outstanding under its revolving credit facilities and had $17.9 million in availability under its revolving credit facility.

For the quarter ended June 30, 2026, the Company repurchased 209,868 shares at an average cost of $13.80 per share for approximately $2.9 million.

Conference Call

Ascent will hold a conference call today at 5:00 p.m. Eastern time to discuss its financial results for the second quarter ended June 30, 2026.

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

Date: Tuesday, August 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.

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)

	(Unaudited)
	June 30, 2026	December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$28,069	$57,606
Accounts receivable, net of allowance for credit losses of $119 and $1,004, respectively	18,642	10,040
Advances and other receivables	5,406	5,389
Inventories	10,488	8,742
Prepaid expenses and other current assets	2,115	1,243
Total current assets	64,720	83,020
Property, plant and equipment, net	15,693	15,762
Right-of-use assets, operating leases, net	9,074	9,368
Goodwill	4,735	-
Intangible assets, net	10,008	2,833
Deferred income taxes	279	-
Deferred charges, net	301	401
Other non-current assets, net	1,506	553
Total assets	$106,316	$111,937
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$9,125	$5,490
Accrued expenses and other current liabilities	3,689	5,389
Deferred revenue	34	-
Current portion of note payable	997	433
Current portion of operating lease liabilities	754	712
Current portion of finance lease liabilities	340	331
Total current liabilities	14,939	12,355
Long-term portion of operating lease liabilities	11,105	11,496
Long-term portion of finance lease liabilities	635	808
Deferred income taxes	-	241
Other long-term liabilities	41	45
Total non-current liabilities	11,781	12,590
Total liabilities	$26,720	$24,945
Commitments and contingencies
Shareholders' equity:
Common stock, par value $1 per share; 24,000,000 shares authorized; 9,009,453 and 9,400,898 shares outstanding as of June 30, 2026 and December 31, 2025, respectively	$11,085	$11,085
Capital in excess of par value	47,791	48,276
Retained earnings	44,476	45,786
	103,352	105,147
Less: cost of common stock in treasury - 2,075,650 and 1,684,205 shares, respectively	(23,756)	(18,155)
Total shareholders' equity	79,596	86,992
Total liabilities and shareholders' equity	$106,316	$111,937

Note: The condensed consolidated balance sheets at December 31, 2025 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)			(Unaudited)
	Three Months Ended June 30,			Six Months Ended June 30,
	2026		2025	2026	2025
Net sales	$25,667		$18,652	$45,083	$36,486
Cost of sales	20,119		13,786	36,723	28,553
Gross profit	5,548		4,866	8,360	7,933
Selling, general and administrative	5,527		6,444	10,650	11,315
Research and development	107		-	170	-
Acquisition costs and other	176		31	177	268
Asset impairments		-	1,622	-	1,622
Gain on lease modification	-		(544)	-	(544)
Operating loss from continuing operations	(262)		(2,687)	(2,637)	(4,728)
Other expense (income)
Interest (income) expense, net	(155)		(15)	(448)	99
Other, net	(176)		(136)	(392)	(285)
Income (loss) from continuing operations before income taxes	69		(2,536)	(1,797)	(4,542)
Income tax benefit	(601)		(89)	(487)	(89)
Income (loss) from continuing operations	670		(2,447)	(1,310)	(4,453)
Income from discontinued operations, net of tax	-		8,733	-	8,446
Net income (loss)	$670		$6,286	$(1,310)	$3,993
Net income (loss) per common share from continuing operations:
Basic	$0.07		$(0.25)	$(0.14)	$(0.45)
Diluted	$0.07		$(0.25)	$(0.14)	$(0.45)
Net income per common share from discontinued operations:
Basic	$ -		$0.90	$ -	$0.85
Diluted	$ -		$0.90	$ -	$0.85
Net income (loss) per common share:
Basic	$0.07		$0.65	$(0.14)	$0.40
Diluted	$0.07		$0.65	$(0.14)	$0.40
Weighted average shares outstanding:
Basic	9,047		9,751	9,232	9,913
Diluted	9,114		9,751	9,232	9,913
Adjusted EBITDA	$1,451		$(335)	$489	$(802)

Consolidated Statements of Cash Flows

($ in thousands)

	(Unaudited)
	Six Months Ended June 30,
	2026	2025
Cash flows from operating activities:
Net income (loss)	$(1,310)	$3,993
Income from discontinued operations, net of tax	-	8,446
Net loss from continuing operations	(1,310)	(4,453)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation expense	1,737	1,870
Amortization expense	490	306
Amortization of debt issuance costs	100	179
Asset impairments	-	1,622
Deferred income taxes	(487)	(90)
Reduction of losses on accounts receivable	(961)	(506)
Non-cash lease expense	(51)	(1)
Stock-based compensation expense	366	222
Changes in operating assets and liabilities:
Accounts receivable and advances	(6,458)	(4,908)
Inventories	(1,134)	(939)
Other assets and liabilities	(783)	(1,937)
Accounts payable	2,584	(1,712)
Accrued expenses	(2,006)	1,387
Accrued income taxes	189	19
Net cash used in operating activities - continuing operations	(7,724)	(8,941)
Net cash provided by operating activities - discontinued operations	-	6,845
Net cash used in operating activities	(7,724)	(2,096)
Cash flows from investing activities:
Purchases of property, plant and equipment	(1,176)	(466)
Acquisitions, net of cash acquired	(13,536)	-
Net cash used in investing activities - continuing operations	(14,712)	(466)
Net cash provided by investing activities - discontinued operations	-	54,425
Net cash provided by (used in) investing activities	(14,712)	53,959
Cash flows from financing activities:
Borrowings from credit facilities	54,850	89,670
Proceeds from note payable	997	1,085
Proceeds from exercise of stock options	398	-
Payments on credit facilities	(54,850)	(89,670)
Payments on note payable	(433)	(370)
Principal payments on finance lease obligations	(163)	(144)
Repurchase of common stock	(6,850)	(8,044)
Net cash used in financing activities - continuing operations	(6,051)	(7,473)
Net cash used in financing activities - discontinued operations	-	(19)
Net cash used in financing activities	(6,051)	(7,492)
Increase (decrease) in cash, cash equivalents and restricted cash	(28,487)	44,371
Cash, cash equivalents and restricted cash, beginning of period	57,606	16,108
Cash, cash equivalents and restricted cash, end of period	$29,119	$60,479

Non-GAAP Financial Measures Reconciliation

Reconciliation of Net Income (Loss) to Adjusted EBITDA

($ in thousands)

		(Unaudited)				(Unaudited)
		Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)			2026		2025		2026		2025
Consolidated
Net income (loss) from continuing operations		$670		$(2,447)		$(1,310)		$(4,453)
Adjustments:
	Interest (income) expense, net	(155)		(15)		(448)		99
	Income taxes	(601)		(89)		(487)		(89)
	Depreciation	877		893		1,737		1,870
	Amortization	373		153		490		306
EBITDA		1,164		(1,505)		(18)		(2,267)
	Acquisition costs and other	176		31		177		268
	Shelf registration costs	-		-		14		-
	Asset impairments	-		1,622		-		1,622
	Gain on lease modification	-		(544)		-		(544)
	Stock-based compensation	137		86		270		120
	Non-cash lease expense	(26)		(25)		(51)		(1)
	Restructuring and severance costs	-		-		97		-
Adjusted EBITDA		$1,451		$(335)		$489		$(802)
	% sales	5.7%		(1.8)%		1.1%		(2.2)%
Specialty Chemicals
Net income (loss)		$656		$1,499		$(1,486)		$2,237
Adjustments:
	Interest expense, net	13		15		25		32
	Depreciation	835		878		1,652		1,840
	Amortization	373		153		490		306
EBITDA		1,877		2,545		681		4,415
	Acquisition costs and other	-		-		-		92
	Stock-based compensation	24		-		54		-
	Non-cash lease expense	(15)		(5)		(30)		3
	Restructuring and severance costs	-		-		38		-
Specialty Chemicals Adjusted EBITDA		$1,886		$2,540		$743		$4,510
	% segment sales	7.3%		13.6%		1.6%		12.4%

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