ASCENT INDUSTRIES CO. SEC 10-Q Report

Ascent Industries Co., a leading player in the specialty chemicals industry, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant financial and operational metrics, reflecting the company's ongoing transformation and strategic initiatives.

Financial Highlights

• Net Sales: $18.7 million, a decrease of $2.8 million or 13.1% compared to the second quarter of 2024, primarily driven by a 29.6% decrease in pounds shipped partially offset by a 23.1% increase in average selling prices.
• Gross Profit: $4.9 million, representing 26.1% of sales, an increase of 73.0% compared to $2.8 million or 13.1% of sales in the second quarter of 2024, primarily due to continued sourcing improvements resulting in lower raw material costs.
• Operating Loss: $2.7 million, compared to an operating loss of $1.8 million in the second quarter of 2024, primarily driven by the asset impairment on the remaining Munhall facility right-of-use asset and increased SG&A expenses.
• Net Income (Loss): $6.3 million, compared to a net loss of $0.9 million in the second quarter of 2024, with the improvement largely attributed to income from discontinued operations.
• Net Income (Loss) Per Share: $0.65, compared to a net loss per share of $0.09 in the second quarter of 2024, reflecting the impact of income from discontinued operations.

Business Highlights

• Revenue Segments: The Specialty Chemicals segment reported net sales of $18.7 million for the second quarter of 2025, with a decrease in pounds shipped by 29.6% but an increase in average selling prices by 23.1%. For the six months ended June 30, 2025, net sales were $36.5 million, reflecting a 27.4% decrease in pounds shipped and a 19.2% increase in average selling prices.
• Sales Units: The decrease in net sales was primarily driven by a significant reduction in pounds shipped, which decreased by 29.6% in the second quarter and 27.4% for the six months ended June 30, 2025.
• Operational Efficiency: The company achieved a 73.0% increase in gross profit for the second quarter of 2025, attributed to sourcing improvements and reductions in raw material costs. Gross profit for the six months ended June 30, 2025, increased by 88.9%, driven by similar factors.
• SG&A Expenses: Selling, general, and administrative expenses increased to $6.4 million in the second quarter of 2025, primarily due to higher salaries, wages, and benefits, as well as rent expenses. For the six months ended June 30, 2025, SG&A expenses were $11.3 million, reflecting similar cost drivers.
• Asset Impairment: The company recorded an asset impairment charge of $1.6 million related to the right-of-use asset for the Munhall facility during the second quarter of 2025.
• Divestitures: The company completed the divestiture of its American Stainless Tubing and Bristol Metals operations, marking its transformation into a pure-play specialty chemicals platform. These divestitures resulted in preliminary, pretax gains on sale of $4.6 million and $4.4 million, respectively.
• Future Outlook: The company is focused on reinvesting in innovation, expanding its commercial reach, and pursuing new growth opportunities to enhance shareholder returns. The recent divestitures are expected to align the company with its vision of building a scalable, high-margin chemicals platform.

SEC Filing: ASCENT INDUSTRIES CO. [ ACNT ] - 10-Q - Aug. 06, 2025