ACNT

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 5:00 p.m. ET Vice President of Finance - Kenneth Wayne Herring Jr. Chief Executive Officer - J. Bryan Kitchen Operator: Good day, and thank you for standing by. Welcome to Ascent Industries Co.'s Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today; Vice President of Finance, Kenny Herring. Please go ahead. Kenneth Wayne Herring Jr.: Thanks, Bonnie, and good afternoon, everyone. Before we continue, I would like to remind all participants that the discussion today may contain certain forward-looking statements pursuant to the safe harbor provisions of the federal securities laws. These statements are based on information currently available to us and are subject to various risks and uncertainties that could cause actual results to differ materially. Ascent advises all of those listening to the call today to review the latest 10-Q and 10-K posted on its website for a summary of these risks and uncertainties. Ascent does not undertake the responsibility to update any forward-looking statements. Further, the discussion today may include non-GAAP measures. In accordance with Regulation G, the company has reconciled these amounts back to the closest GAAP-based measurement. The reconciliations can be found in the earnings press release issued earlier today, and posted on the Investors section of the company's website at ascentco.com. Please note that this call is available for replay via webcast link that is also posted on the Investors section of the company's website. With that, I'd like to turn the call over to Bryan Kitchen, Ascents' CEO, to discuss second quarter results. J. Kitchen: Thanks, Kenny, and good afternoon, everyone. We are pleased with the progress we saw in the second quarter, not because of any single performance metric but because the improvement was broad-based. Ryan will discuss the financial results in greater detail, but the headlines are straightforward. Sequentially and on a year-over-year basis, volume, average selling price, revenue, gross profit and adjusted EBITDA all improved. On a trailing 12-month basis, the company saw record highs for volume, net sales, gross profit and adjusted EBITDA from continuing operations. To us, that's meaningful evidence that the strategy that we've been executing over the past 2 years is working. Excluding the sales from the Midwest Graphic Sales acquisition during the quarter, the legacy business delivered approximately 28% growth versus the prior year, substantially outpacing the broader specialty chemicals market. On that same basis, June was our strongest chemical sales month since March of 2023, and Q2 was our strongest sales quarter since the third quarter of 2022. Including the acquisition, net sales increased 37% versus the prior year, building on the strong momentum already established within the legacy business. Collectively, these results demonstrate that we're building a better business, not just a bigger one. To us, a higher-quality business generates more recurring product revenue, earns higher margins, produces more predictable cash flows, requires less capital to grow and deliver stronger returns on invested capital. We believe we're making measurable progress on each of those dimensions. Our disciplined execution is making Ascent a stronger company, one that's increasingly capable of performing well through the cycle, but we still have work to do. Portions of our legacy custom manufacturing portfolio continued to exhibit the same seasonality and normal program turnover that we've historically affected the fourth and first quarter performance. And while we're making good strides in growing our way out of it, we expect those dynamics to remain a near-term characteristics of the business. What's encouraging is that the improvements that we're making are becoming increasingly visible across the business, and it starts with our commercial performance. During the quarter, we converted 17 commercial opportunities across 13 customers and to approximately $5.8 million of annualized revenue, achieving a 26% conversion rate, well above the specialty chemicals industry benchmark of 10% to 15%. Just as importantly, we're winning better business. This quarter, 44% of our commercial wins came from core technologies, products that improve our customers' products and processes. That's another meaningful step toward building a higher quality business that we've been describing over the past 2 years, one with more predictable demand, greater ratability and stronger margins. And we're also creating more value with the customers that we already serve. Approximately 73% of the project wins came from existing customers, reinforcing that we're expanding our share of wallet by solving more technical challenges and becoming a more strategic partner. That deeper engagement extends well beyond the individual projects. During the quarter, we hosted 15 current and prospective customers across our manufacturing sites, giving them direct exposure to our technical capabilities, our manufacturing platform, our innovation process and our incredible team. Those engagements are strengthening customer relationships, accelerating commercial opportunities and reinforcing our position as a strategic partner. Looking ahead, our active selling project pipeline reached a record $140 million, up approximately 33% sequentially. That increase was supported by the addition of Midwest Graphics Sales commercial pipeline following the acquisition, while also reflecting continued momentum across our legacy business. These results didn't happen by accident. They're the product of a commercial engine that wins better business and an operating model that steadily improves the business over time. Winning new business is important, converting that business into profitable, repeatable earnings is ultimately what creates shareholder value. That's where the commercial execution and operational excellence come together. The second quarter provided several good examples. Approximately 65% of our raw material spend is petroleum-based. During the quarter, our industry experienced a meaningful inflationary pressure following the heightened geopolitical tensions in the Middle East, affecting both raw materials and freight costs. Despite that volatility, our strategic sourcing and commercial teams operated as one, working to secure critical supply continuity for our customers while implementing price increases in real time where contractual mechanisms allow. Those actions protect the customers' supply while preserving the economics of the business. That same operating discipline that helps us navigate that volatility is also driving continuous improvement across our manufacturing network. Last quarter, we announced a platform-wide optimization initiative expected to generate approximately $3 million to $5 million of annualized gross profit improvement at run rate. Today, we remain on track. We expect these improvements to be fully institutionalized across the platform by the end of 2026, with the earnings benefits continuing to build as these actions are implemented, embedded in the business and leverage across our growing platform. One recent example, illustrates how a relatively small improvement can create meaningful financial value. During the quarter, our process engineering team developed and implemented an OE-driven debottlenecking initiative that increased the effective capacity of a key reaction asset, unlocking more than 500,000 pounds of incremental annual capacity. As utilization continues to improve across our assets, these types of incremental improvements become increasingly valuable because they allow us to support profitable growth with limited future capital investments. Now viewed in isolation, many of these improvements may appear modest, but collectively, they compound over time, steadily increasing the quality, the resilience and earnings power of the business. Everything I've discussed thus far focused on how we're improving Ascent's existing business. But what's particularly encouraging is that we're now beginning to leverage those same commercial capabilities, the operational discipline in the manufacturing platform to create value beyond our legacy operations. The Midwest acquisition is the first demonstration of that. Since we closed the acquisition on May 4, Midwest has validated the core elements of the investment thesis that we outlined when we announced the transaction. Immediate earnings accretion, disciplined integration and the ability to create new growth opportunities by combining the strengths of both organizations. We retained key customers while maintaining exceptional service levels throughout the integration. In fact, Midwest secured its first new customers since joining Ascent, while simultaneously executing broad-based pricing actions across the portfolio. Back-office integration was completed a full quarter ahead of our original commitment. Cost synergy initiatives remain on schedule, and the transition of manufacturing into the Ascent network continues to progress as planned. Beyond the integration, we're already creating opportunities that neither company could have pursued and more importantly, one independently. By combining Midwest deep applications expertise with Ascent's manufacturing platform, commercial capabilities and operational discipline, we recently secured a significant field trial program with a very large prospective customer. And while it's still early, we're encouraged by the initial results. More importantly, it demonstrates how combining Midwest application expertise with Ascent's commercial, operational and manufacturing capabilities creates differentiated solutions and unlocks opportunities that were beyond the reach of either company on a stand-alone basis. What gives us confidence in the long-term opportunity isn't simply that Midwest is a high-quality business. It's how quickly it's benefiting from the operating model that we spent past 2 years building. We believe that capability will become an increasingly important competitive advantage as we continue to deploy capital in a disciplined manner. Before I turn it over to Ryan, I'd like to leave you with one final thought. Our strategy hasn't changed. For the past 2 years, we've remained focused on improving the quality of our business through stronger commercial capabilities, greater operational discipline and disciplined capital allocation. Taken together, our results through the second quarter of 2026 reinforce that we're on the right path. The breadth of the progress that we've delivered sequentially, year-over-year and across our trailing 12-month performance demonstrates that the operating model that we've built over the past 2 years is translating into measurable financial results. Ultimately, our objective is straightforward. Create a company capable of delivering more consistent growth, higher returns on invested capital and greater long-term value for our shareholders. And while there's still significant work ahead, we believe this quarter reinforces a simple but important point. We're not waiting for the market to improve our business. We're improving our business regardless of the market. That's with disciplined execution, continuous improvement and thoughtful capital allocation are designed to do. None of that would be possible without the dedication of our employees, the trust our customers and the confidence of our shareholders. To each of you, thank you for your continued support. And with that, I'll turn it over to Ryan to review our financial results and capital allocation in more detail. Ryan, over to you. Ryan Kavalauskas: Thanks, Bryan. The second quarter reflects meaningful progress in the direction we have been working toward. Revenue grew strongly and business returned to positive adjusted EBITDA and Midwest began contributing immediately. Those results are encouraging, but they also underscore the next phase of our work, ensuring that growth translates more consistently into gross margin, cash generation and returns. I'll provide additional context on where that conversion stands today, the actions underway to improve it and how those priorities are guiding our capital allocation. Starting with the top line. Second quarter net sales were $25.7 million an increase of $7 million or 37.6% compared with the prior year period. Pounds shipped increased 15.2% and average selling price increased approximately 23% while Midwest contributed $1.9 million of sales following the May 4 acquisition. Excluding Midwest, our legacy business still grew approximately 28% year-over-year, but a strong growth in the specialty chemicals market that remains soft. Before turning to gross margin, I'll briefly cover the remainder of the income statement. SG&A was $5.5 million in the quarter, down approximately $900,000 from the prior year and improving to 21.5% of sales from 34.5%. The year-over-year reduction included lower incentive compensation and professional fees partially offset by investments in salaries, wages and benefits and the addition of Midwest. Over the longer term, our objective is to bring SG&A toward approximately 15% of revenue on a run rate basis. We have increasing confidence in the target as we continue to optimize our corporate functions, install repeatable processes and standardize how we operate across the portfolio. Reaching that level require both continued cost discipline and growth across the platform, but we believe the operating model we are putting in place can support meaningful additional leverage as the business scales. Adjusted EBITDA from continuing operations was $1.5 million or 5.7% of sales compared with a loss of approximately $300,000 in the prior year quarter. The improvement reflects higher gross profit and materially lower corporate cost. While this is an important step forward, the earnings contribution from the growth we have won remains below our expectations, which brings me to profitability. Gross profit increased 14% to $5.5 million from $4.9 million in the prior year quarter. Gross margin, however, declined 21.6% from 26.1%. On a year-to-date basis, gross profit increased 5% to $8.4 million, while gross margin declined 320 basis points to 18.5% from 21.7%. The year-to-date margin decline reflected pressure in both material cost and conversion costs. Material costs increased by approximately 127 basis points as a percentage of sales, driven in-part by inflation in petroleum-based raw materials and freight, while other cost of goods sold increased by approximately 193 basis points. We have taken pricing and sourcing actions to offset those pressures but there's typically a timing gap between those actions -- typically, a timing gap before those actions are fully reflected in reporting -- reported results. The conversion cost pressure also reflects where Ascent is in its development. As we scale newer expanding programs can require incremental inventory, production planning, labor, customer support and network coordination before they reach steady-state efficiency. At our current scale, changes in mix, production timing and asset utilization can therefore have a more visible impact on quarterly margins than they would in a larger, more mature platform. The result is that the revenue growth we have generated is not yet carrying through the gross profit at the level we expect. That is the opportunity in front of us, improving sourcing, pricing realization, throughput, campaign planning and network utilization of the growth already in the business converts more consistently into margin and cash flow. Midwest is a positive early example of that model in practice. The business entered the portfolio with a gross margin of approximately 26% and was accretive to the quarter, while also adding a greater mix of product revenue, technical capability and customer access. Its contribution reinforces the type of higher quality earnings profile we are working to build across the broader platform. The near-term focus is therefore execution, allowing recently won business to mature, tightening production and labor planning and improving absorption as utilization builds. We expect those actions, together with the pricing and sourcing initiatives already underway, to reduce the temporary inefficiencies associated with growth and improve the consistency of margin performance over time. We do working capital in the same way, extending appropriate terms, carrying the right raw materials and positioning inventory to support a customer launch can be productive uses of capital when they help us win and retain attractive business. The growth alone is not sufficient. Those investments must be accompanied by disciplined pricing, reliable collection, optimize inventory, efficient production and margins that support an acceptable return on the capital deployed. We are, therefore, managing margin and working capital as one operating objective, not a separate finance exercises. We will continue to support growth, but we will be increasingly selective about where we deploy working capital and will not accept structurally weak margins simply to add revenue. The optimization work Bryan described is intended to improve annual gross profit by approximately $3 million to $5 million through sourcing, manufacturing improvements and better use of the network. We are seeing tangible progress, including improved capacity on reaction assets, lower corporate costs and the early integration benefits from Midwest. At the same time, the current margin profile makes clear that the work is not complete. Our near-term financial priority is to translate the revenue base we have built into higher gross margin and more consistent cash generation. As we look to the balance of the year, investors should expect a moderate contraction in gross margin in the fourth quarter from the stronger second and third quarter periods. That is consistent with the seasonal pattern we experienced in 2025 and with the normal program timing and turnover in portions of our custom manufacturing portfolio. We are not viewing that expected movement as a change in trajectory. Ascent is not yet a fully scaled platform, and quarterly results can move meaningfully based on mix, production timing and customer schedules. For that reason, we believe the trailing 12-month view provides the clearest measure of whether this business is progressing through the quarterly noise. On that basis, the direction of the business continues to point upward. Turning to cash. We ended June with $28.1 million of cash and cash equivalents and no borrowings under our revolving credit facility. We have an additional $17.9 million of revolver availability, resulting in approximately $46 million of total liquidity. Cash declined by approximately $29.5 million from year end. The principal uses were clear and deliberate, approximately $14.6 million for the Midwest acquisition, $6.9 million for share repurchases and $1.2 million for capital expenditures. Operating activities used $7.7 million of cash during the first half, driven primarily by working capital. Accounts receivable used approximately $6.5 million of cash, reflecting higher receivables as sales grew. The $800,000 escrow related to the sale of American Stainless Tubing has already been received and is additive to the quarter end cash balance I referenced, while the remaining $4.5 million associated with the Bristol Metals transaction is expected to be released in October 2026. Beyond receivables and the timing of those escrow proceeds inventory used approximately $1.1 million, while accounts payable provided approximately $2.6 million of cash. Overall, operating working capital absorbed approximately $7.6 million in the first half. Separately, the timing of the escrow proceeds reduced reported cash at quarter end, but those amounts represent contractually deferred divestiture proceeds rather than underlying operating cash consumption. Our cash conversion cycle increased to 75 days, up 12 days from the prior year. Days sales outstanding increased to 66 days. Days inventory outstanding increased to 47 days and days payable outstanding declined to 37 days. Some of that reflects the timing and support required to the growth we have won, but the current level is higher than we want and is not a permanent requirement of the business. We are targeting an initial 5-day improvement in the cash conversion cycle with the greatest opportunities in inventory discipline and vendor terms, while continuing to improve collections without undermining strategically important customer relationships. At our current scale, we estimate that each 5-day improvement could release approximately $1 million to $1.5 million cash, depending on the mix of working capital improvements. Our objective is to bring the cycle towards 70 days and then to continue to improve as the new revenue base matures. The opportunity is also an important context for how investors should view our first half cash use, relative to the run rate we anticipate going forward. Excluding the acquisition and share repurchases, the business used approximately $9 million of free cash flow in the first half, of which approximately $7.6 million is working capital. Before working capital changes, the business was near cash breakeven. As we restore margin, normalized working capital and sequence capital deployment against our priorities, we expect the cash use run rate to decline materially from the first half. Looking ahead, before considering any additional discretionary capital deployment, we expect cash to recover into the mid-$30 million range as operating cash use moderates and the 2 escrow amounts are received. With borrowing capacity expected to remain in the high-teens that would result in an anticipated total liquidity in the low to mid-$50 million range. We would then evaluate acquisitions and share repurchases within the capital allocation framework and in light of liquidity, working capital needs and expected returns. That leads directly to our capital allocation framework. We are managing capital across five priorities in order: liquidity, working capital, internal investment, strategic M&A and share repurchases. The order matters. First, we will protect liquidity and maintain sufficient flexibility to operate through normal volatility. Second, we will fund working capital where it supports attractive durable growth while holding the organization accountable for cash conversion and margin. Third, we will invest internally in safety, maintenance, technology and high-return projects to improve productivity, capacity and gross profit. Fourth, we will preserve strategic optionality for acquisitions that improve the quality of the portfolio. Midwest is a good example. It added higher-margin product revenue, technical application capabilities and customer access and it was immediately accretive to adjusted EBITDA. We remain disciplined and prioritize existing earnings quality over speculative synergy assumptions. Fifth, we will repurchase shares opportunistically, when the expected return is compelling relative to other uses of capital and when liquidity, working capital and operating investments are appropriately funded. During the second quarter, we repurchased approximately 210,000 shares or $2.9 million at an average price of $13.80 per share. For the first half, we repurchased approximately 506,000 shares for $6.9 million, and we had approximately 1.5 million shares remaining under the authorization at quarter end. In the near term, the highest return use of capital is improving cash conversion and restoring gross margin. That does not mean stepping back from growth. It simply means making the growth we have already won, more efficient, more profitable and less cash intensive while deploying capital in order we have outlined. We believe that discipline will produce a substantially lower cash use run rate and allow the upward trajectory of the business to become more visible over time. With that, I'll turn it back to the operator for questions. Operator: [Operator Instructions]. I'm showing no questions at this time. I would now like to turn it back to President and CEO, Bryan Kitchen. J. Kitchen: Okay. Thank you, Bonnie. We'd like to thank everyone for listening to today's call, and we look forward to speaking with you again when we report our third quarter 2026 results. Thank you and be safe. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Before you buy stock in Ascent Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ascent Industries wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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This article first appeared on GuruFocus. Net Sales: $25.7 million, up 37.6% year-over-year. Legacy Business Growth: Increased approximately 28% year-over-year, excluding Midwest Graphics sales acquisition. Pounds Shipped: Increased 15.2% year-over-year. Average Selling Price: Increased approximately 23% year-over-year. Gross Profit: $5.5 million, up 14% from $4.9 million in the prior year quarter. Gross Margin: Declined to 21.6% from 26.1% in the prior year quarter. Adjusted EBITDA: $1.5 million, or 5.7% of sales, compared with a loss of approximately $300,000 in the prior year quarter. SG&A: $5.5 million, down approximately $900,000 from the prior year, improving to 21.5% of sales from 34.5%. Midwest Acquisition Sales: Contributed $1.9 million of sales following the May 4 acquisition. Midwest Gross Margin: Approximately 26%, accretive to the quarter. Cash and Cash Equivalents: $28.1 million at end of June, with no borrowings under revolving credit facility. Total Liquidity: Approximately $46 million, including $17.9 million of revolver availability. Cash Used in Operating Activities: $7.7 million during the first half, driven primarily by working capital. Cash Conversion Cycle: Increased to 75 days, up 12 days from the prior year. Share Repurchases: Approximately 210,000 shares for $2.9 million in Q2 at an average price of $13.80 per share; approximately 506,000 shares for $6.9 million in the first half. Warning! GuruFocus has detected 4 Warning Signs with ACNT. Is ACNT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ascent Industries Co (NASDAQ:ACNT) reported broad-based improvements in Q2 2026, with sequential and year-over-year gains in volume, average selling price, revenue, gross profit, and adjusted EBITDA, including record trailing 12-month highs for these metrics. The legacy business (excluding Midwest acquisition) grew approximately 28% year-over-year, significantly outpacing the broader specialty chemicals market, with June being the strongest sales month since March 2023. Commercial execution was strong, with a 26% conversion rate on 17 opportunities (vs. industry benchmark of 10-15%), 44% of wins from core technologies, and 73% from existing customers, indicating higher-quality, more predictable revenue. The Midwest acquisition is performing well, with immediate earnings accretion, back-office integration completed a quarter ahead of schedule, and new customer wins, while also enabling a significant field trial with a large prospective customer. The company is on track with its platform-wide optimization initiative, expected to generate $3-5 million in annualized gross profit improvements, and has already unlocked over 500,000 pounds of incremental annual capacity through debottlenecking. Gross margin declined to 21.6% in Q2 2026 from 26.1% in the prior year, and year-to-date margins fell 320 basis points to 18.5%, due to pressure from material costs (petroleum-based raw materials and freight) and conversion costs. The company expects a moderate contraction in gross margin in Q4 2026 due to seasonality and normal program turnover in its custom manufacturing portfolio, which could impact near-term profitability. Cash flow was weak, with operating activities using $7.7 million in the first half, driven by working capital absorption of $7.6 million, and the cash conversion cycle increased to 75 days (up 12 days year-over-year). The business was only near cash breakeven before working capital changes, and free cash flow was negative $9 million in the first half, excluding acquisition and share repurchases. The company's growth has not yet translated into expected gross profit levels, with revenue growth outpacing margin improvement, indicating temporary inefficiencies from scaling new programs and production planning. Q: What were the key financial highlights for the second quarter of 2026?A: Ryan Kavalauskas (CFO) reported that net sales increased 37.6% year-over-year to $25.7 million, driven by a 15.2% increase in pounds shipped and a 23% increase in average selling price. The company returned to positive adjusted EBITDA of $1.5 million (5.7% of sales), compared to a loss of $300,000 in the prior year. Excluding the Midwest acquisition, the legacy business grew approximately 28% year-over-year. Q: Can you elaborate on the gross margin decline despite the strong revenue growth?A: Ryan Kavalauskas (CFO) explained that gross margin declined to 21.6% from 26.1% in the prior year quarter. The pressure came from increased material costs (up 127 basis points) due to petroleum-based raw material inflation and freight, as well as higher conversion costs (up 193 basis points). The conversion cost pressure reflects the company's current development stage, where newer expanding programs require incremental inventory, labor, and production planning before reaching steady-state efficiency. Q: What is the company's outlook for gross margin in the second half of 2026?A: Ryan Kavalauskas (CFO) stated that investors should expect a moderate contraction in gross margin in the fourth quarter, consistent with the seasonal pattern experienced in 2025 and normal program timing in the custom manufacturing portfolio. The company believes the trailing 12-month view provides the clearest measure of progress, and the direction of the business continues to point upward. Q: How is the Midwest Graphics acquisition performing since closing?A: Bryan Kitchen (CEO) stated that Midwest has validated the core investment thesis: immediate earnings accretion, disciplined integration, and new growth opportunities. The business secured its first new customers since joining Ascent, executed broad-based pricing actions, and completed back-office integration a full quarter ahead of schedule. The transition of manufacturing into the Ascent network is progressing as planned. Q: What is the status of the platform-wide optimization initiative?A: Bryan Kitchen (CEO) confirmed the company remains on track to generate approximately $3 million to $5 million of annualized gross profit improvement. The improvements are expected to be fully institutionalized across the platform by the end of 2026. As an example, a debottlenecking initiative increased effective capacity of a key reaction asset, unlocking more than 500,000 pounds of incremental annual capacity. Q: How is the company managing its working capital and cash conversion cycle?A: Ryan Kavalauskas (CFO) reported that the cash conversion cycle increased to 75 days, up 12 days from the prior year. The company is targeting an initial five-day improvement, which could release approximately $1 million to $1.5 million of cash. The objective is to bring the cycle towards 70 days and continue improving as the new revenue base matures. Q: What is the company's capital allocation framework?A: Ryan Kavalauskas (CFO) outlined five priorities in order: liquidity, working capital, internal investment, strategic M&A, and share repurchases. The company repurchased approximately 210,000 shares for $2.9 million in Q2 at an average price of $13.80 per share. The near-term highest return use of capital is improving cash conversion and restoring gross margin. Q: What is the company's expected cash position going forward?A: Ryan Kavalauskas (CFO) stated that before considering additional discretionary capital deployment, the company expects cash to recover into the mid-$30 million range as operating cash use moderates and escrow amounts are received. With borrowing capacity expected to remain in the high teens, total liquidity is anticipated to be in the low to mid-$50 million range. Q: How is the company's commercial pipeline looking?A: Bryan Kitchen (CEO) reported that the active selling project pipeline reached a record $140 million, up approximately 33% sequentially. During the quarter, the company converted 17 commercial opportunities across 13 customers into approximately $5.8 million of annualized revenue, achieving a 26% conversion rate, well above the industry benchmark of 10% to 15%. Q: What is the company's SG&A outlook?A: Ryan Kavalauskas (CFO) stated that SG&A improved to 21.5% of sales from 34.5% in the prior year. The long-term objective is to bring SG&A toward approximately 15% of revenue on a run-rate basis, which will require both continued cost discipline and growth across the platform. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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, Ill., August 04, 2026--(BUSINESS WIRE)--Ascent Industries Co. (Nasdaq: ACNT) ("Ascent" or the "Company"), a specialty chemicals platform delivering differentiated, performance-driven chemical solutions, is reporting its results for the second quarter ended June 30, 2026. Second Quarter 2026 Summary1 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, 2026Time: 5:00 p.m. Eastern timeLive 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804372016/en/ Contacts Investor Relations [email protected]

Interested in Ascent Industries Co.? Here are five stocks we like better. Sales and profitability improved: Second-quarter sales rose 37.6% year over year to $25.7 million, helped by higher volumes, pricing and the Midwest Graphic Sales acquisition. Adjusted EBITDA returned to positive territory at $1.5 million, although gross margin declined to 21.6% from 26.1% because of material, freight and conversion costs. Growth pipeline strengthened: Ascent converted 17 commercial opportunities into approximately $5.8 million of annualized revenue, while its active project pipeline reached a record $140 million. The company is also pursuing optimization initiatives expected to generate $3 million to $5 million in annualized gross-profit improvement. Cash management remains a priority: The company ended the quarter with about $46 million in total liquidity but used $7.7 million in operating cash during the first half as its cash-conversion cycle expanded to 75 days. Management plans to focus on working-capital improvements, margin recovery and operational efficiency before increasing discretionary capital deployment. Ascent Industries (NASDAQ:ACNT) reported higher second-quarter sales and a return to positive adjusted EBITDA as its specialty chemicals business expanded and the recently acquired Midwest Graphic Sales business began contributing to results. Management said the quarter reflected broad-based improvement in volume, pricing, revenue and profitability, although gross-margin pressure and working-capital use remained key areas of focus. Second-quarter net sales rose 37.6% year over year to $25.7 million, an increase of $7 million. Pounds shipped increased 15.2%, while average selling prices rose about 23%. Midwest Graphic Sales, acquired May 4, contributed $1.9 million of sales during the quarter. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Excluding Midwest, Ascent’s legacy business grew approximately 28% from a year earlier, according to President and CEO Bryan Kitchen. He said June was the company’s strongest chemical-sales month since March 2023, while the second quarter was its strongest sales quarter since the third quarter of 2022. “We’re building a better business, not just a bigger one,” Kitchen said, describing the company’s goal of generating more recurring product revenue, higher margins, more predictable cash flow and stronger returns on invested capital. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Ascent converted 17 commercial opportunities across 13 customers during the quarter into roughly $5.8 million of annualized revenue. Kitchen said the company achieved a 26% conversion rate, above what he characterized as a 10% to 15% specialty-chemicals industry benchmark. About 44% of commercial wins came from the company’s core technologies, while 73% of project wins came from existing customers. The active selling-project pipeline reached a record $140 million, up approximately 33% sequentially. The increase included commercial opportunities brought in through the Midwest acquisition as well as growth in the legacy business pipeline. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Management also highlighted efforts to manage inflation in petroleum-based raw materials and freight costs. Kitchen said approximately 65% of Ascent’s raw-material spending is petroleum based, leaving the company exposed to cost pressure during heightened geopolitical tensions in the Middle East. The company’s sourcing and commercial teams worked to preserve customer supply and implement price increases where contracts allowed, he said. Ascent remains on track with a platform-wide optimization initiative expected to produce $3 million to $5 million in annualized gross-profit improvement at run rate. The company expects the measures to be fully institutionalized by the end of 2026. One process-engineering project increased the effective capacity of a key reaction asset by more than 500,000 pounds annually, Kitchen said. Management said Midwest Graphic Sales was immediately accretive to earnings and entered Ascent’s portfolio with a gross margin of approximately 26%. The acquired business has retained key customers, secured its first new customer since joining Ascent and implemented pricing actions across its portfolio, Kitchen said. Back-office integration was completed one quarter ahead of the company’s original commitment, while cost-synergy initiatives and the transition of manufacturing into Ascent’s network remain on schedule, according to management. Kitchen also said the combined businesses recently secured a field-trial program with a large prospective customer, though he noted that the effort remains at an early stage. Adjusted EBITDA from continuing operations was $1.5 million, or 5.7% of sales, compared with an adjusted EBITDA loss of about $300,000 in the prior-year quarter. Selling, general and administrative expense declined by roughly $900,000 year over year to $5.5 million, improving to 21.5% of sales from 34.5%. Chief Financial Officer Ryan Kavalauskas said Ascent’s longer-term objective is to reduce SG&A to approximately 15% of revenue on a run-rate basis through cost discipline, standardized processes and growth across the platform. Gross profit increased 14% to $5.5 million, but gross margin fell to 21.6% from 26.1% a year earlier. For the first half, gross profit rose 5% to $8.4 million, while gross margin declined 320 basis points to 18.5%. Kavalauskas attributed the margin decline to higher material costs, freight inflation and conversion costs associated with scaling new and expanding programs. Material costs increased by about 127 basis points as a percentage of sales, while other cost-of-goods-sold expenses increased by roughly 193 basis points. The company has taken pricing and sourcing actions, but Kavalauskas said there is typically a delay before those measures are fully reflected in reported results. He said management’s near-term priority is improving sourcing, pricing realization, throughput, production planning and network utilization so that revenue growth converts more consistently into margins and cash flow. Ascent expects a moderate gross-margin contraction in the fourth quarter compared with the stronger second- and third-quarter periods, reflecting seasonal patterns and program turnover within portions of its custom-manufacturing portfolio. Ascent ended June with $28.1 million in cash and cash equivalents, no borrowings under its revolving credit facility and $17.9 million of remaining revolver availability, for total liquidity of about $46 million. Cash declined approximately $29.5 million from year-end, primarily due to $14.6 million spent on the Midwest acquisition, $6.9 million in share repurchases and $1.2 million of capital expenditures. Operating activities used $7.7 million of cash in the first half, largely because of working-capital needs. The company’s cash conversion cycle increased to 75 days, up 12 days from the prior year. Management is targeting an initial five-day improvement, which it estimates could release about $1 million to $1.5 million of cash depending on the mix of working-capital improvements. Ascent aims to bring the cycle toward 70 days over time. Management expects cash to recover into the mid-$30 million range before additional discretionary capital deployment as operating cash use moderates and deferred escrow proceeds are received. The company said it expects an $800,000 escrow related to the American Stainless Tubing sale has already been received, while $4.5 million associated with the Bristol Metal transaction is expected to be released in October 2026. During the second quarter, Ascent repurchased about 210,000 shares for $2.9 million at an average price of $13.80 per share. First-half repurchases totaled about 506,000 shares for $6.9 million, leaving approximately 1.5 million shares available under its authorization at quarter-end. Kavalauskas said the company’s capital-allocation priorities are liquidity, working capital, internal investment, strategic acquisitions and share repurchases, in that order. In the near term, he said the highest-return use of capital is improving cash conversion and restoring gross margin while making existing growth less cash intensive. Ascent Industries Co an industrials company, produces and distributes stainless steel pipe and tube and specialty chemicals in the United States and internationally. The company operates through two segments, Tubular Products and Specialty Chemicals. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and ornamental stainless steel tubes for automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ascent Industries Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Revenue acceleration: Ascent reported net sales of $19.4 million, up 8.9% YoY, driven by conversion of 31 projects (across 27 customers) representing about $7.6 million of annualized revenue and a pipeline that rose 34%. Margin pressure but temporary: Gross margin declined roughly 270 basis points to 14.5% ($2.8M gross profit) due to onboarding inefficiencies, higher utilities and a ~$600k deferred manufacturing variance, with management expecting a return to the low-20% range in one to two quarters and a long-term 30% target unchanged. Capital deployment and acquisition: Cash ended the quarter at $47.8 million after roughly $14.9 million of repurchases since Jan. 1 (about $3.9M in Q1), and the post-quarter acquisition of Midwest Graphic Sales/Sigma Coatings (≈$10.8M revenue, ~$2M adjusted EBITDA) is expected to be immediately accretive. Interested in Ascent Industries Co.? Here are five stocks we like better. Ascent Industries (NASDAQ:ACNT) executives highlighted accelerating revenue from prior project wins, near-term gross margin pressure tied to onboarding and absorption, and a recently announced acquisition during the company’s first-quarter earnings call. Chief Executive Bryan Kitchen said a “meaningful number of projects won in 2025” converted into “real measurable revenue” during the quarter, helping the company deliver net sales of $19.4 million. Kitchen said the performance reflected execution rather than market conditions, noting that March marked the company’s “strongest monthly sales performance since March of 2023.” → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries Ryan, who reviewed financial results and capital allocation, said first-quarter net sales rose 8.9% from the prior year. He attributed the increase to both volume and price, with tons shipped up 7.6% and average selling prices up 5.2%. Kitchen said the company converted 31 projects across 27 customers in the quarter, with conversion rates improving to 22% and an average sales cycle of roughly three and a half months. He described the projects as “committed programs backed by purchase orders received, shipped, and invoiced in Q1,” representing about $7.6 million of annualized revenue. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches From a mix standpoint, Kitchen said 58% of pipeline wins came from product sales and 42% from custom manufacturing. He also said the broader pipeline increased 34% compared with the end of 2025, positioning the business for continued growth. While leadership emphasized sales momentum, both Kitchen and Ryan focused on the quarter’s margin profile. Kitchen said gross margin declined by about 270 basis points year-over-year, but argued it was not a “structural change in the business” or a breakdown in discipline. He said the company was prioritizing speed in onboarding and routing new work through its multi-asset platform, sometimes running programs “not initially” in their optimal state, which created near-term inefficiencies. → Tyson Foods' Total Returns: Tasty Treats for Income Investors? Ryan reported gross profit of $2.8 million, or 14.5% of sales, compared with $3.1 million, or 17.2% of sales, in the prior-year quarter. He said gross profit declined about $257,000 despite higher revenue and described the margin compression as concentrated in “non-material COGS,” including routing, labor efficiency, overhead recovery, utilities, freight, and other plant-level costs. On raw materials and pricing, management stressed that material economics held up. Kitchen said the company maintained pricing discipline and passed through raw material inflation, noting about 65% of inputs are petroleum-based. Ryan added that standard material cost was about $0.61 per pound in Q1, compared with about $0.71 per pound in Q4 and about $0.66 per pound for full-year 2025. Ryan cited utilities as a specific headwind, saying January and February utility costs were “materially above the Q4 monthly run rate,” creating roughly a 150 to 175 basis point drag to gross margin in the quarter. He also pointed to deferred manufacturing variance as a timing issue, explaining that as shipments rose and inventory declined, costs embedded in inventory flowed through cost of sales. Ryan said that effect represented about $600,000, or roughly 290 basis points of Q1 sales, with a sequential swing versus Q4 of about $900,000 to $1 million. Asked during Q&A about the path from 14.5% gross margin back toward prior expectations, Kitchen said it would “take a quarter or 2,” adding that as the year progresses the company expects to return to “those low 20s” and that full-year margins are expected to be in the low 20% range. He also said there was “not at all” any change to the company’s longer-term goal of being a 30% gross margin business. Ryan said SG&A expense was $5 million, up about $300,000 year-over-year, but improved as a percentage of sales to 26.4% from 27.3%. He attributed the increase mainly to salaries, wages and benefits, rent expense, and stock compensation, partially offset by lower incentive bonus expense. He characterized part of the spending as investment in commercial and technical capabilities needed to support higher-value, more complex sales cycles. Below the operating line, Ryan said other income benefited from interest income on cash balances and sublease income. He noted the company had no debt outstanding on its revolver at quarter-end. Ryan reported a net loss from continuing operations of $2 million and an adjusted EBITDA loss of about $1 million. He said those results did not reflect where management expects the business to be over time, describing a quarter in which reported earnings “lagged the commercial progress and operational work already underway.” Ascent ended the quarter with $47.8 million in cash and no revolver debt, compared with $57.6 million at year-end, reflecting a $9.8 million decline. Ryan broke down the movement into several major uses: Share repurchases: The company bought back about 296,000 shares for $3.9 million at an average price of $12.92 per share. Ryan said that compared with the May 5 closing price of $14.94, the repurchases reflected an “approximately 16% discount,” or about $600,000 of implied value creation in under two months. Incentive compensation: The company paid about $2.2 million tied to work completed in 2025 to reposition Ascent as a pure-play specialty chemicals platform. Working capital: Net working capital consumed about $3.2 million, driven mainly by higher receivables tied to revenue growth and timing of collections and payments. Ryan said inventory was a $1.3 million source of cash. Capital expenditures: About $400,000. Ryan also said that since Jan. 1, 2025, the company repurchased about 1.18 million shares for roughly $14.9 million at a weighted average price of about $12.61, representing about 11% to 12% of the beginning 2025 share base repurchased on a gross basis. During Q&A, management said it would continue to monitor the stock price and remain opportunistic with buybacks, while prioritizing balance sheet protection and investment in the business. Kitchen said that after quarter-end the company announced the acquisition of Midwest Graphic Sales and Sigma Coatings, describing it as aligned with Ascent’s stated focus on “high-value, formulation-driven product lines.” He said Midwest is a specialty formulator serving packaging, food service, and other consumer applications, and that the deal is intended to add formulation capability, deepen market positioning, and create cross-selling opportunities across “more than 60 active customers.” Responding to a question from Howard Root of Fairhope Capital, management provided additional metrics. On an unaudited basis, they said Midwest’s 2025 revenue was roughly $10.8 million, with adjusted EBITDA “just north of $2 million” and an adjusted EBITDA margin in the 19% to 20% range. Management said the acquired revenue would begin to be reflected in quarterly results starting in the second quarter and that the deal is expected to be immediately accretive to annual adjusted EBITDA. Ryan added that the acquisition fits the company’s underwriting approach, emphasizing existing earnings quality. He said the business has a pre-synergy gross margin profile of roughly 25% before purchase accounting adjustments and before Ascent-led sourcing, cost, and commercial initiatives. Kitchen also said the company expects to transition production from Midwest’s current manufacturing facility into Ascent’s manufacturing network over time, arguing the company is “not buying an asset that’s gonna compound” utilization challenges, but rather “a product line” that can be integrated into existing capacity with little to no incremental capital investment. During Q&A, management also said an escrow release tied to past matters would occur in two tranches, with about $5 million expected to be released in July and a separate tranche in October. Kitchen said the company does not plan to provide revenue or profitability targets “inside of 2026,” citing moving parts and historical quarter-to-quarter lumpiness. On tariffs, management said it did not expect any material tariff refunds, noting most raw material inputs are sourced domestically. Kitchen also addressed the company’s digital-first marketing efforts launched in late 2025, saying the website was seeing “an enormous amount of traffic” and that the company was encouraged by the quality of inquiries, including requests from new customers for samples and sourcing discussions. Ascent Industries Co an industrials company, produces and distributes stainless steel pipe and tube and specialty chemicals in the United States and internationally. The company operates through two segments, Tubular Products and Specialty Chemicals. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and ornamental stainless steel tubes for automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries. The article "Ascent Industries Q1 Earnings Call Highlights" was originally published by MarketBeat.

SCHAUMBURG, Ill., May 06, 2026--(BUSINESS WIRE)--Ascent Industries Co. (Nasdaq: ACNT) ("Ascent" or the "Company"), a specialty chemicals platform delivering differentiated, performance-driven chemical solutions, is reporting its results for the first quarter ended March 31, 2026. First Quarter 2026 Summary1 Management Commentary "Despite ongoing market headwinds, we delivered nearly double-digit growth versus the prior year and sequential improvement quarter over quarter, reflecting strong execution and continued momentum across the business," said J. Bryan Kitchen, President and Chief Executive Officer of Ascent Industries Co. "During the quarter, we moved with speed to win and onboard a range of high-quality, long-term customer programs. This reflects the flexibility of our platform, allowing us to secure the right work quickly and then optimize how it is sourced, routed, and produced." "As expected, onboarding these programs created near-term inefficiencies; however, these impacts are temporary and reflect sequencing, not structure," Kitchen continued. "This same sequencing is reflected in our gross margin performance for the quarter, where timing and cost absorption related to onboarding and scaling new programs pressured reported results. Importantly, the underlying indicators remain constructive: material margins are improving, we have not seen a structural change in our labor or overhead cost base, and as we optimize sourcing, align production across our asset base, and scale volumes, we expect these programs to meet our long-term margin thresholds. Based on actions already underway, we see a clear path to more than $3 to $5 million of incremental run-rate gross profit improvement, with the majority expected to be realized by the fourth quarter of 2026." "We were also active in deploying capital during the quarter, repurchasing approximately 3.2% of our outstanding shares," Kitchen added. "We remain disciplined in how we allocate capital, investing in the platform, executing on targeted acquisitions, and returning capital to shareholders where we see compelling value." First Quarter 2026 Financial Results Net sales from continuing operations were $19.4 million compared to $17.8 million in the first quarter of 2025. The increase was a result of increases in volume and average selling prices. Gross profit from continuing operations decreased 8.3% to $2.8 million, or 14.5% of net sales, compared to $3.1 million, or 17.2% of net sales, in the first quarter of 2025. The decrease was primarily driven by the timing of manufacturing variances and cost recovery in relation to sales. Net loss from continuing operations decreased to ($2.0) million compared to ($2.2) million in the first quarter of 2025. Diluted loss per share decreased to ($0.21) in the first quarter of 2026 compared to a diluted loss per share of ($0.22) in the first quarter of 2025. Adjusted EBITDA from continuing operations decreased to a loss of ($1.0) million in the first quarter of 2026, with adjusted EBITDA margin decreasing to (5.0)% compared to (2.6)% in the prior year period. The decrease was primarily driven by the aforementioned decrease in gross profit. Liquidity As of March 31, 2026, the Company had $47.8 million in cash and cash equivalents, no debt outstanding under its revolving credit facilities and had $14.2 million in availability under its revolving credit facility. For the quarter ended March 31, 2026, the Company repurchased 295,695 shares at an average cost of $12.92 per share for approximately $3.9 million. Conference Call Ascent will hold a conference call today at 5:00 p.m. Eastern time to discuss its financial results for the first quarter ended March 31, 2026. Ascent management will host the conference call, followed by a question-and-answer period. Date: Wednesday, May 6, 2026 Time: 5:00 p.m. Eastern time Live Call Registration Link: Here Webcast Registration Link: Here Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Investor Relations at 1-630-884-9181. The conference call will also be broadcast live and available for replay via the webcast registration link above. The webcast will be archived for one year in the investor relations section of the Company’s website at www.ascentco.com. About Ascent Industries Co. Ascent Industries Co. (Nasdaq: ACNT) is a specialty chemicals platform delivering differentiated, performance-driven chemical solutions. For more information about Ascent, please visit its website at www.ascentco.com. Forward-Looking Statements This press release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable federal securities laws. All statements that are not historical facts are forward-looking statements. Forward looking statements can be identified through the use of words such as "estimate," "project," "intend," "expect," "believe," "should," "anticipate," "hope," "optimistic," "plan," "outlook," "should," "could," "may" and similar expressions. The forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from historical results or those anticipated. Readers are cautioned not to place undue reliance on these forward-looking statements and to review the risks as set forth in more detail in Ascent Industries Co.’s Securities and Exchange Commission filings, including our Annual Report on Form 10-K, which filings are available from the SEC or on our website. Ascent Industries Co. assumes no obligation to update any forward-looking information included in this release. Non-GAAP Financial Information Financial statement information included in this earnings release includes non-GAAP (Generally Accepted Accounting Principles) measures and should be read along with the accompanying tables which provide a reconciliation of non-GAAP measures to GAAP measures. We define "EBITDA" as earnings before interest, income taxes, depreciation and amortization. We define "Adjusted EBITDA" as EBITDA further adjusted for the impact of non-cash and other items we do not consider in our evaluation of ongoing performance. These items include: goodwill impairment, asset impairment, gain on lease modification, stock-based compensation, non-cash lease cost, acquisition costs and other fees, shelf registration costs, loss on extinguishment of debt, retention costs and restructuring and severance costs from net income. We caution investors that amounts presented in accordance with our definitions of EBITDA and Adjusted EBITDA may not be comparable to similar measures disclosed by other companies because not all companies calculate EBITDA and Adjusted EBITDA in the same manner. We present EBITDA and Adjusted EBITDA because we consider them to be important supplemental measures of our performance and investors' understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. View source version on businesswire.com: https://www.businesswire.com/news/home/20260506394297/en/ Contacts Investor Relations 1-630-884-9181 [email protected]