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

(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
_________________________

1On May 4, 2026, the Company closed on a transaction to acquire substantially all of the assets of Midwest Graphic Sales, Inc and Sigma Coatings, Inc. (together “Midwest”). The 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.

Ascent Industries Co.

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.

Ascent Industries Co.

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 EBITDA1

$

1,451

 

 

$

(335

)

 

$

489

 

 

$

(802

)

1We define “EBITDA” as earnings before interest, income taxes, depreciation and amortization. We define “Adjusted EBITDA” as EBITDA further adjusted for the impact of non-cash and other items we do not consider in our evaluation of ongoing performance. These items include: goodwill impairment, asset impairment, gain on lease modification, stock-based compensation, non-cash lease cost, acquisition costs and other fees, shelf registration costs, loss on extinguishment of debt, retention costs and restructuring and severance costs from net income. We caution investors that amounts presented in accordance with our definitions of EBITDA and Adjusted EBITDA may not be comparable to similar measures disclosed by other companies because not all companies calculate EBITDA and Adjusted EBITDA in the same manner. We present EBITDA and Adjusted EBITDA because we consider them to be important supplemental measures of our performance and investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations.

Ascent Industries Co.

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

 

Ascent Industries Co.

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

%

 

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