Ascent Industries (US:ACNT)2025-11-04 21:11Financial Performance - Net sales for Q3 2025 were $19.7 million, a decrease of 5.7% from $20.9 million in Q3 2024[2] - Gross profit increased by 94.2% year-over-year to $5.8 million, representing a gross profit margin of 29.7%, up from 14.4%[5] - Net loss decreased significantly to $(0.1) million, or $(0.01) diluted loss per share, compared to a net loss of $(7.8) million, or $(0.77) diluted loss per share in Q3 2024[6] - Adjusted EBITDA rose to $1.4 million with an adjusted EBITDA margin of 7.0%, compared to (3.4)% in the prior year[7] - Adjusted EBITDA for the nine months ended September 30, 2025, was $575,000, a recovery from a loss of $4,139,000 in the same period of 2024[20] - Net income for the nine months ended September 30, 2025, was $1,906,000, compared to a net loss of $12,571,000 in 2024[19] - Operating loss from continuing operations improved to $(810,000) in Q3 2025 from $(1,961,000) in Q3 2024[18] - The company reported a net loss per common share from continuing operations of $(0.01) for Q3 2025, an improvement from $(0.77) in Q3 2024[18] Liquidity and Capital Structure - The company had $58.0 million in cash and cash equivalents as of September 30, 2025, with no debt outstanding under its revolving credit facilities[9] - Cash and cash equivalents at the end of the period increased to $58,042,000 from $8,547,000 in 2024, indicating strong liquidity[19] - Total assets decreased to $119.9 million from $147.3 million as of December 31, 2024[17] - Shareholders' equity decreased to $87.1 million from $93.5 million as of December 31, 2024[17] Strategic Initiatives - The company emphasized that the improvement in profitability is structural, driven by disciplined sourcing and operational rigor[3] - Ascent Industries Co. is focused on a Chemicals-as-a-Service model, which is expected to provide durable value despite a sluggish macroeconomic environment[3] - The company incurred acquisition costs of $665,000 for the nine months ended September 30, 2025, compared to $54,000 in 2024, reflecting increased strategic investments[20] Shareholder Actions - The company repurchased 64,782 shares at an average cost of $12.85 per share for approximately $0.8 million during the quarter[9] Segment Performance - Specialty Chemicals Adjusted EBITDA for the nine months ended September 30, 2025, was $7,669,000, up from $2,934,000 in 2024, showcasing strong segment performance[20] - Total interest expense for the nine months ended September 30, 2025, was $(347,000), compared to $323,000 in 2024, indicating reduced financing costs[20]