Ascent Industries Co. reported its financial results for the first quarter ended March 31, 2025, on May 12, 2025. Net sales from continuing operations were $24.7 million, an 11.8% decrease compared to $28.0 million in Q1 2024. This decline was attributed to lower volume in both segments, partially offset by increased pricing within specialty chemicals.
Despite the sales decrease, gross profit from continuing operations increased by 108.7% to $4.8 million, or 19.4% of net sales, compared to $2.3 million, or 8.2% of net sales, in Q1 2024. The company's net loss from continuing operations improved to $(1.0) million, or $(0.10) diluted loss per share, from $(5.5) million, or $(0.37) diluted loss per share, in the prior year period.
Adjusted EBITDA from continuing operations turned positive, reaching $0.8 million in Q1 2025, a $3.5 million turnaround from a loss of $(2.7) million in Q1 2024. The Adjusted EBITDA margin increased to 3.4% from -9.6%. These improvements were primarily driven by continued cost management, improved strategic sourcing, and product line optimization initiatives.
The Specialty Chemicals segment reported net sales of $17.8 million, down 12.3% year-over-year, but its Adjusted EBITDA increased significantly to $2.0 million from a loss of $(0.3) million in Q1 2024, with an 11.0% margin. The remaining Tubular segment (ASTI) also showed improved profitability, with Adjusted EBITDA rising to $1.3 million from $0.3 million in Q1 2024, achieving a 19.0% margin. As of March 31, 2025, Ascent had $14.3 million in cash and cash equivalents and no outstanding debt under its revolving credit facilities.
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