Ascent Industries Reports First Quarter 2025 Results

SCHAUMBURG, Ill.--(BUSINESS WIRE)--May 12, 2025-- 

Ascent Industries Co. (Nasdaq: ACNT) ("Ascent" or the "Company"), an industrials company focused on the production of specialty chemicals and industrial tubular products, is reporting its results for the first quarter ended March 31, 2025.

 
First Quarter 2025 Summary(1) 
---------------------------------------------------------------------- 
(in millions, except per share and margin)   Q1 2025  Q1 2024  Change 
-------------------------------------------  -------  -------  ------- 
Net Sales                                     $24.7    $28.0   (11.8)% 
-------------------------------------------  -------  -------  ------- 
Gross Profit                                  $4.8     $2.3    108.7% 
-------------------------------------------  -------  -------  ------- 
Gross Profit Margin                           19.4%    8.2%    1120bps 
-------------------------------------------  -------  -------  ------- 
Net Loss                                     ($1.0)   $(5.5)   (81.8)% 
-------------------------------------------  -------  -------  ------- 
Diluted Loss per Share                       ($0.10)  $(0.37)  (73.0)% 
-------------------------------------------  -------  -------  ------- 
Adjusted EBITDA                               $0.8    $(2.7)   +$3.5M 
-------------------------------------------  -------  -------  ------- 
Adjusted EBITDA Margin                        3.4%    (9.6)%   1300bps 
-------------------------------------------  -------  -------  ------- 
 
 
____________________________ 
(1) On April 4, 2025, the Company closed on a transaction to sell 
substantially all of the assets of Bristol Metals, LLC ("BRISMET"). As a 
result, financial results from BRISMET have been categorized into discontinued 
operations. 
 

Management Commentary

"In Q1 2025, we built on our 2024 self--help initiatives to double gross profit to $4.8 million and expand gross margin by 1,120 basis points to 19.4%, even as net sales held at $24.7 million," said Ascent CEO Bryan Kitchen. Despite muted demand, our disciplined focus on product-mix optimization, cost management and operational rigor drove Specialty Chemicals Adjusted EBITDA to $2.0 million from a $0.3 million loss and lifted Tubular Products Adjusted EBITDA to $1.3 million, pushing margins toward 20%.

"As we shift from stabilization to growth mode, our team's disciplined execution is already creating a robust pipeline of high-quality, organic growth opportunities. Although post--election dynamics can provide additional tailwinds, it's our strengthened foundation, clear strategy, disciplined operating model and exceptional talent that will carry Ascent toward a predictable, reliable, and profitable business model delivering durable value for our shareholders.."

First Quarter 2025 Financial Results

Net sales from continuing operations were $24.7 million compared to $28.0 million in the first quarter of 2024. The decline was a result of lower volume within both segments partially offset by increased pricing with specialty chemicals.

Gross profit from continuing operations increased 108.7% to $4.8 million, or 19.4% of net sales, compared to $2.3 million, or 8.2% of net sales, in the first quarter of 2024. The increase was primarily driven by continued cost management, improved strategic sourcing, and continued product line optimization.

Net loss from continuing operations improved to ($1.0) million, or ($0.10) diluted loss per share compared to a net loss from continuing operations of ($5.5) million, or ($0.37) diluted loss per share, in the first quarter of 2024.

Adjusted EBITDA increased to $0.8 million compared to $(2.7) million in the first quarter of 2024, with adjusted EBITDA margin increasing to 3.4% compared to (9.6)% in the prior year period. The improvement was primarily driven by the aforementioned cost and product mix optimization initiatives.

Segment Results

Ascent Chemicals -- net sales totaled $17.8 million, compared to $20.3 million in Q1 2024, reflecting a 12.3% decrease. This was the anticipated result of a purposeful shift in product mix that began in 2024, which focused on building a more rateable, predictable and profitable book of business. While this shift led to a decrease in volume, it was offset by higher average selling prices, driving improved profitability in line with our long-term margin enhancement goals. Operating income in the first quarter improved significantly to $0.8 million compared to an operating loss of ($1.4) million in the prior year period. Adjusted EBITDA in the first quarter increased significantly to $2.0 million compared to $(0.3) million in the prior year period. As a percentage of segment net sales, adjusted EBITDA increased significantly to 11.0% compared to (1.4)% in the first quarter of 2024.

Ascent Tubular -- net sales from continuing operations in the first quarter of 2025 were $6.9 million compared to $7.7 million in the first quarter of 2024. Operating income from continuing operations in the first quarter increased significantly to $1.0 million compared to an operating loss from continuing operations of ($0.1) million in the prior year period, reflecting reductions in material and labor costs. Adjusted EBITDA from continuing operations in the first quarter increased significantly to $1.3 million compared to $0.3 million in the prior year period. As a percentage of segment net sales, adjusted EBITDA increased significantly to 19.0% compared to 3.5% in the first quarter of 2024.

On April 4, 2025, the Company closed on the sale of substantially all of the assets of Bristol Metals, LLC. ("BRISMET") for a transaction price of $45 million in cash, subject to working capital and other closing adjustments. The sale of BRISMET leaves ASTI as the only remaining asset in the Tubular segment of Ascent.

Liquidity

As of March 31, 2025, the Company had $14.3 million in cash and cash equivalents, no debt outstanding under its revolving credit facilities and had $53.3 million in availability under its revolving credit facility. On April 4, 2025, the Company entered into an amended credit facility associated with the BRISMET transaction reducing its maximum revolving loan commitment. As of April 4, 2025, the Company had $18.8 million of remaining availability under it credit facility.

For the quarter ended March 31, 2025, the Company repurchased 16,822 shares at an average cost of $12.73 per share for approximately $0.2 million.

Conference Call

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

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

Date: Monday, May 12, 2025

Time: 5:00 p.m. Eastern time

Live Call Registration Link: Here

Webcast Registration Link: Here

To access the call by phone, please register via the live call registration link above or here and you will be provided with dial-in instructions and details. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.

The conference call will also be broadcast live and available for replay via the webcast registration link above here. 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 company that engages in the production of specialty chemicals and stainless steel tubular products. 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.

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