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Ascent Industries NASDAQ: ACNT President and CEO Bryan Kitchen said the company has completed a major portfolio shift and is now focused entirely on specialty chemicals after divesting its stainless steel-related assets.

Speaking at the East Coast IDEAS Conference hosted by Three Part Advisors, Kitchen described Ascent as a 75-year-old business that began as a U.S. specialty chemical manufacturer before adding stainless steel assets decades later. He said the company is now “a 100% pure play specialty chemicals business,” with management “laser focused” on profitable growth in the U.S. specialty chemicals market.

Kitchen said Ascent generated about $54 million of cash from the sale of its stainless steel-related assets and also exited a lease agreement that is expected to translate into a $2.1 million cash improvement this year. He said the company has been aggressive in repurchasing shares, buying back roughly 11% of outstanding shares from Jan. 1, 2025, through the first quarter of 2026.

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Shift Toward Higher-Margin Product Sales Kitchen said Ascent had about $75 million in revenue last year and operates three U.S. manufacturing sites in Tennessee, South Carolina and Virginia. The company serves roughly 170 customers and has about 200 employees. He also said approximately 95% of the raw materials used to make Ascent’s products are sourced domestically, which helped insulate the company from tariff-related disruption while also creating growth opportunities as customers looked to localize supply chains.

Ascent’s products and services support markets including personal care, agriculture, paints and coatings, pulp and paper, oil and gas, and water treatment. Kitchen said the company has narrowed its focus from participating in about 15 markets to areas including oil and gas, CASE — coatings, adhesives, sealants and elastomers — and infrastructure.

Kitchen said the company is intentionally shifting its business mix toward product sales, which he described as more predictable, more ratable and generally more margin accretive than custom manufacturing. In 2023, he said roughly 10% of sales were product sales and 90% were custom manufacturing. By 2024, product sales had risen to about 27% of sales, and last year the mix was approximately 70% custom manufacturing and 30% product sales.

“We continue to shift our mix intentionally towards product sales,” Kitchen said, adding that products generally involve solving a customer problem rather than “renting out capacity.”

Organic Growth and Customer Wins Kitchen highlighted several recent customer wins as examples of Ascent’s ability to move quickly. In one oil and gas example, he said a prospective customer contacted Ascent on Good Friday with a technical challenge and supply chain disruption. Ascent developed lab samples within days, the customer qualified the samples in the lab within a week and qualified the product in the field within a month. Kitchen said that led to $7 million of net new business at “really compelling EBITDA margins.”

He also described a larger win with a multinational customer that needed 15 products manufactured. Kitchen said Ascent scaled that business over roughly six months, resulting in $10 million of net new business. He said the business was won in the fourth quarter and reached full run-rate levels toward the end of the first quarter.

Kitchen said Ascent’s existing assets are “grossly underutilized,” with utilization at roughly 45%, but he framed that as an opportunity because the company has room to grow without significant capital spending. He said maintenance capital spending has averaged around $1.5 million per year over the past four years, which he said is sufficient to maintain safe and reliable operations based on the current product mix.

For 2025, Kitchen said Ascent had roughly 100 projects move through its selling project pipeline, with an average sales cycle of about three months and a conversion rate of 18%, which he described as slightly above the industry average but still an area for improvement.

Midwest Graphic Sales Acquisition Kitchen also discussed Ascent’s acquisition of Midwest Graphic Sales, which he said closed in early May. Midwest makes barrier coatings used in high-value packaging applications, including dog food bags, golf ball sleeves, paper plates, beverage packaging, printed materials and playing cards. Kitchen said Midwest makes the only coating approved for the World Series of Poker.

The purchase price was roughly $14 million, with about $1 million held back in escrow. Kitchen said Midwest generated $10.8 million in revenue and roughly $2 million of adjusted EBITDA last year. He said the deal was not underwritten using aggressive growth or cost-synergy assumptions, but Ascent sees opportunities to integrate Midwest product lines into its existing manufacturing infrastructure, pursue commercial expansion and cross-sell related products that Ascent already manufactures, such as defoamers and waxes.

Balance Sheet and Long-Term Targets Kitchen said Ascent ended the first quarter with roughly $39.2 million of cash, including proceeds being released from escrow, about $30 million of borrowing capacity and no debt. He said the company will continue to evaluate internal investments, share repurchases and mergers and acquisitions.

Asked about the company’s future capital structure, Kitchen said Ascent does not need acquisitions to build a successful company, but will pursue accretive deals when available. He said the company may take on debt or raise capital at some point, but added, “I don’t see that happening in the next 12 months.”

Kitchen said Ascent’s current asset base should be capable of supporting $120 million to $130 million of revenue without significant reinvestment. At that level, he said the company should be able to achieve gross margins of 30% to 35%, SG&A of about 15% of revenue and adjusted EBITDA margins of roughly 15% to 20%.

During the question-and-answer session, Kitchen said Ascent is moving from primarily being a toll manufacturer toward becoming an “application science-driven company” that works with customers to solve technical challenges. He said the company performs reaction-based chemistry ranging from complex, multi-step processes to products that can be made in about an hour.

Kitchen said the company’s technical sales and R&D teams work collaboratively with customers, and he attributed Ascent’s progress to the management team and employees. “It’s all about the people,” he said.

About Ascent Industries NASDAQ: ACNTAscent Industries Co an industrials company, produces and distributes stainless steel pipe and tube and specialty chemicals in the United States and internationally. The company operates through two segments, Tubular Products and Specialty Chemicals. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and ornamental stainless steel tubes for automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries.

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SCHAUMBURG, Ill.--(BUSINESS WIRE)--Ascent Industries Co. (“Ascent” or the “Company”), a specialty chemicals platform delivering differentiated, performance-driven chemical solutions, today announced the appointment of Carmen J. Giannantonio and Jeremy F. Rohen to its Board of Directors, effective April 1, 2026. These appointments reflect Ascent's continued transformation into a pure-play specialty chemicals company and its commitment to aligning Board composition with the Company's strategy. Ca.

SCHAUMBURG, Ill.--(BUSINESS WIRE)--Ascent Industries Co. (Nasdaq: ACNT) (“Ascent” or the “Company”), a specialty chemicals platform focused on the development, production, and distribution of tailored, performance-driven chemical solutions, will hold a conference call on Wednesday, May 6, 2026, at 5:00 p.m. Eastern time to discuss its financial results for the first quarter ended March 31, 2026. The results will be reported in a press release prior to the conference call. Ascent management will.

SCHAUMBURG, Ill.--(BUSINESS WIRE)--Ascent Industries Co. Completes Acquisition of Midwest Graphic Sales.