Ascent Industries Reports $13.6 Million Net Loss, Improved Gross Profit and Strategic Changes for Fiscal Year 2024

Ascent Industries Co. reported a net loss of $13.6 million for the fiscal year ending December 31, 2024, a significant improvement from a net loss of $26.6 million in the previous year. The company's total revenue decreased by 7.9% to $177.9 million, down from $193.2 million in 2023. This decline was primarily attributed to an 8.8% decrease in average selling prices and a 0.9% decrease in pounds shipped. However, gross profit from continuing operations saw a substantial increase, rising to $22.1 million, or 12.4% of sales, compared to just $1.5 million, or 0.8% of sales, in 2023. This improvement was largely driven by strategic sourcing initiatives that reduced raw material costs.

In terms of operational changes, Ascent Industries made significant strategic decisions during the year, including the permanent closure of its Munhall facility, which was effective August 31, 2023. This decision was part of a broader effort to consolidate manufacturing operations and enhance profitability. Additionally, the company divested its subsidiary, Specialty Pipe & Tube, Inc., for approximately $55 million in cash, which has been classified as a discontinued operation. The divestiture is expected to streamline operations and focus on core business segments.

The company’s workforce consisted of 452 employees as of December 31, 2024, with a voluntary turnover rate of approximately 22%. The Specialty Chemicals segment generated $80.8 million in sales, a decrease of 3.4% from the previous year, while the Tubular Products segment reported sales of $97.1 million, down 11.3%. Despite these declines, both segments showed improvements in operating income, with the Specialty Chemicals segment achieving $1.2 million in operating income compared to a loss of $12.6 million in 2023, and the Tubular Products segment reporting $2.6 million in operating income, up from a loss of $11.2 million.

Looking ahead, Ascent Industries has expressed optimism about its future, citing a strong cash position of $16.1 million and no outstanding debt as of December 31, 2024. The company also has $47.4 million of available capacity on its revolving line of credit, providing flexibility for future growth initiatives. However, management has acknowledged ongoing challenges, including material weaknesses in internal controls over financial reporting, particularly in information technology and inventory management. The company is actively working on remediation plans to address these weaknesses and improve operational efficiency.