Ascent Industries (ACNT) investor relations material

Executive summary

• Net sales for Q2 2026 rose 37.6% year-over-year to $25.7 million, driven by higher volumes and pricing, with record highs for volume, net sales, gross profit, and adjusted EBITDA on a trailing 12-month basis.

• Adjusted EBITDA improved by $1.8 million year-over-year to $1.5 million (5.7% of sales), reversing a prior year loss.

• Net income from continuing operations was $0.7 million, compared to a loss of $2.4 million in Q2 2025.

• Midwest Graphic Sales acquisition contributed $1.9 million in net sales and was immediately accretive to adjusted EBITDA, with integration ahead of schedule.

• Legacy business delivered 28% growth year-over-year, outpacing the specialty chemicals market.

Financial highlights

• Gross profit increased 14% to $5.5 million, though gross margin declined to 21.6% from 26.1% year-over-year.

• SGA expenses were $5.5 million, down $900,000 year-over-year, improving to 21.5% of sales from 34.5%.

• Cash and cash equivalents at June 30, 2026 were $28.1 million, with no debt outstanding and $17.9 million available on the credit facility.

• Diluted EPS improved to $0.07 from a loss of $0.25 in the prior year.

• Current ratio was 4.3 at June 30, 2026, down from 6.7 at year-end 2025.

Outlook and guidance

• Optimization initiatives are on track to deliver $3–$5 million in annualized gross profit improvement by end of 2026.

• Management expects continued growth from the Midwest acquisition and ongoing margin expansion, with a focus on converting revenue growth into higher gross margin and consistent cash generation.

• Expect moderate contraction in gross margin in Q4 due to seasonality and program turnover, consistent with prior years.

• Cash expected to recover to mid $30 million range as operating cash use moderates and escrow proceeds are received.

• Capital spending for the remainder of 2026 is expected to be up to $3.0 million.