Ascent Industries Co. Reports Q1 2025 Financial Results with Improved Net Loss and Decreased Sales

Ascent Industries Co. reported its financial results for the first quarter of 2025, revealing a net loss of $2.3 million, a significant improvement from the $5.5 million loss recorded in the same period last year. The company's net sales decreased by 11.5% to $24.7 million, down from $27.9 million in the first quarter of 2024. This decline was primarily attributed to a 22.8% decrease in pounds shipped, although it was partially offset by a 13.5% increase in average selling prices. The gross profit for the quarter increased to $4.8 million, representing 19.3% of sales, compared to $2.3 million or 8.3% of sales in the prior year, driven by lower raw material costs and improved sourcing efficiencies.

In terms of operational performance, Ascent's Specialty Chemicals segment reported net sales of $17.8 million, a decrease of 12.1% from the previous year, while the Tubular Products segment saw sales of $6.9 million, down 9.9%. Despite the decline in sales, both segments experienced increases in gross profit, with Specialty Chemicals achieving $3.7 million (21.0% of sales) and Tubular Products reaching $1.7 million (24.8% of sales). The overall operating loss narrowed to $1.0 million from $4.3 million in the prior year, reflecting improved cost management and operational efficiencies.

Strategically, Ascent completed the divestiture of its Bristol Metals, LLC subsidiary on April 4, 2025, for approximately $45 million in cash. This transaction is expected to streamline operations and focus resources on the remaining Specialty Chemicals and Tubular Products segments. The company also initiated a new share repurchase program in February 2025, allowing for the repurchase of up to 1 million shares over the next two years, with 16,822 shares repurchased in the first quarter of 2025.

Ascent's cash and cash equivalents stood at $14.3 million as of March 31, 2025, with an additional $53.3 million available under its credit facilities. The company reported a decrease in cash used in operating activities, primarily due to changes in working capital, and a net cash outflow of $1.2 million for the quarter. The current ratio decreased to 2.5 from 3.1 at the end of 2024, while the return on average equity improved to -1.9% from -25.8% year-over-year.

Looking ahead, Ascent Industries Co. remains cautious about macroeconomic conditions, including inflation and potential tariff impacts, which could affect sales and profitability. The company is focused on leveraging its operational improvements and strategic divestitures to enhance its financial performance in the coming quarters.