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

About this update from Ascent Industries Co.

Ascent Industries Co. (Nasdaq: ACNT) (“Ascent” or the “Company”), a specialty chemicals platform delivering differentiated, performance-driven chemical solutions, is reporting its results for the second quarter ended June 30, 2026. Second Quarter 2026 Summary 1 (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 _________________________ 1 On May 4, 2026, the Company closed on a transaction to acquire substantially all of the assets of Midwest Graphic Sales, Inc and Sigma Coatings, Inc. (together "Midwest"). The second quarter of 2026 included $1.9 million in net sales, no net income and $0.3 million in Adjusted EBITDA from the acquisition of Midwest. Management Commentary “The second quarter was one of the strongest in our recent history, reflecting continued improvement across the business,” said J. Bryan Kitchen, President and Chief Executive Officer of Ascent Industries Co. “Sequentially, legacy net sales increased approximately 22% and gross margin expanded approximately 710 basis points, while volume, average selling price, gross profit and Adjusted EBITDA also improved. Despite a specialty chemicals market that remains soft, year over year net sales increased approximately 28%, total gross profit increased 14%, and Adjusted EBITDA improved by $1.8 million. On a trailing-twelve-month basis, the company saw record highs for volume, net sales, gross profit and Adjusted EBITDA from Continuing Operations.” "The sequential improvement in gross margin demonstrates that our optimization initiatives are beginning to translate growth into stronger earnings," Kitchen added. "Although gross margin remains below both the prior-year level and our long-term expectations, our priorities remain unchanged. Commercial execution is creating profitable growth opportunities, while our operations teams apply the same standardize, simplify and optimize playbook that transformed our operating foundation over the past two years. Growth creates the opportunity. Optimization converts that opportunity into earnings. As reported last quarter, our platform-wide optimization initiative remains on track to achieve a run-rate improvement of approximately $3 million to $5 million in annualized gross profit improvement by the end of 2026. As we continue to grow, each operational improvement expands the earnings power of the platform and compounds long-term shareholder returns." “The successful integration of the Midwest Graphic Sales acquisition further reinforces our disciplined acquisition strategy,” Kitchen continued. “In the first two months since we closed, the business performed in line with our expectations, positively contributing to gross profit and Adjusted EBITDA. Back-office integration was completed a full quarter ahead of our original commitment, the manufacturing transition remains on schedule, and our teams are already developing opportunities beyond the original underwriting case. We are building a combined business that is more capable and more valuable than either company could have become independently.” Kitchen concluded, “Our strategy remains unchanged. What has changed is the evidence that it is delivering the outcomes we envisioned. Over the past two years, we have systematically improved the quality of our portfolio, strengthened our commercial execution, enhanced our operational excellence and applied disciplined capital allocation. Together, these capabilities are reinforcing one another, creating a higher-quality business capable of delivering consistent growth, higher returns on invested capital and greater long-term shareholder value across market cycles.” Second Quarter 2026 Financial Results Net sales from continuing operations were $25.7 million compared to $18.7 million in the second quarter of 2025. The increase was a result of increases in volume and average selling prices. Gross profit from continuing operations increased 14.0% to $5.5 million, or 21.6% of net sales, compared to $4.9 million, or 26.1% of net sales, in the second quarter of 2025. The increase in dollars was primarily driven by increases in cost recovery in the period due to increased production, reductions in utilities, and repairs and maintenance partially offset by increases in labor and overhead. Net income from continuing operations increased to $0.7 million compared to a net loss of ($2.4) million in the second quarter of 2025. Diluted earnings per share increased to $0.07 in the second quarter of 2026 compared to a diluted loss per share of ($0.25) in the second quarter of 2025. Adjusted EBITDA from continuing operations increased to $1.5 million in the second quarter of 2026, with adjusted EBITDA margin increasing to 5.7% compared to (1.8)% in the prior year period. The increase was primarily driven by the aforementioned increase in gross profit as well as reductions in SG&A in the current year. Liquidity As of June 30, 2026, the Company had $28.1 million in cash and cash equivalents, no debt outstanding under its revolving credit facilities and had $17.9 million in availability under its revolving credit facility. For the quarter ended June 30, 2026, the Company repurchased 209,868 shares at an average cost of $13.80 per share for approximately $2.9 million. Conference Call Ascent will hold a conference call today at 5:00 p.m. Eastern time to discuss its financial results for the second quarter ended June 30, 2026. Ascent management will host the conference call, followed by a question-and-answer period. Date: Tuesday, August 4, 2026 Time: 5:00 p.m. Eastern time Live Call Registration Link: Here Webcast Registration Link: Here Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Investor Relations at 1-630-884-9181. The conference call will also be broadcast live and available for replay via the webcast registration link above. The webcast will be archived for one year in the investor relations section of the Company’s website at www.ascentco.com . About Ascent Industries Co. Ascent Industries Co. (Nasdaq: ACNT) is a specialty chemicals platform delivering differentiated, performance-driven chemical solutions. For more information about Ascent, please visit its website at www.ascentco.com . Forward-Looking Statements This press release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable federal securities laws. All statements that are not historical facts are forward-looking statements. Forward looking statements can be identified through the use of words such as "estimate," "project," "intend," "expect," "believe," "should," "anticipate," "hope," "optimistic," "plan," "outlook," "should," "could," "may" and similar expressions. The forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from historical results or those anticipated. Readers are cautioned not to place undue reliance on these forward-looking statements and to review the risks as set forth in more detail in Ascent Industries Co.’s Securities and Exchange Commission filings, including our Annual Report on Form 10-K, which filings are available from the SEC or on our website. Ascent Industries Co. assumes no obligation to update any forward-looking information included in this release. Non-GAAP Financial Information Financial statement information included in this earnings release includes non-GAAP (Generally Accepted Accounting Principles) measures and should be read along with the accompanying tables which provide a reconciliation of non-GAAP measures to GAAP measures. We define "EBITDA" as earnings before interest, income taxes, depreciation and amortization. We define "Adjusted EBITDA" as EBITDA further adjusted for the impact of non-cash and other items we do not consider in our evaluation of ongoing performance. These items include: goodwill impairment, asset impairment, gain on lease modification, stock-based compensation, non-cash lease cost, acquisition costs and other fees, shelf registration costs, loss on extinguishment of debt, retention costs and restructuring and severance costs from net income. We caution investors that amounts presented in accordance with our definitions of EBITDA and Adjusted EBITDA may not be comparable to similar measures disclosed by other companies because not all companies calculate EBITDA and Adjusted EBITDA in the same manner. We present EBITDA and Adjusted EBITDA because we consider them to be important supplemental measures of our performance and investors' understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. 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 EBITDA 1 $ 1,451     $ (335 )   $ 489     $ (802 ) 1 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. 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 %   View source version on businesswire.com: https://www.businesswire.com/news/home/20260804372016/en/

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