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1. Company Snapshot

1.a. Company Description

Ascent Industries Co. an industrials company, focuses on the production and distribution of industrial tubular products and specialty chemicals in the United States and internationally.It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and galvanized carbon tubes, as well as related stainless pipe products.The company also manufactures ornamental stainless-steel tubes for supply to the automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries; provides fiberglass and steel storage tanks for the oil and gas, waste water treatment, and municipal water industries; and distributes hot finish, seamless, carbon steel pipes, and tubes for use in mechanical and high-pressure applications in the oil and gas, heavy industrial, construction equipment, and chemical and other industries.


In addition, it produces defoamers, surfactants, and lubricating agents for end users, including companies that supply agrochemical paper, metal working, coatings, water treatment, paint, mining, oil and gas, and janitorial and other applications.Further, the company provides contract manufacturing services, as well as operates as a multi-purpose plant to process various difficult to handle materials, including flammable solvents, viscous liquids, and granular solids.The company was formerly known as Synalloy Corporation and changed its name to Ascent Industries Co. in August 2022.


Ascent Industries Co. was founded in 1945 and is headquartered in Oak Brook, Illinois.

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1.b. Last Insights on ACNT

Ascent Industries Co.'s recent performance was driven by several key factors. The company successfully completed the sale of American Stainless Tubing for $16 million, marking a significant step in its transformation into a pure-play specialty chemicals platform. This strategic move allows Ascent to focus on its core business and reduce debt. Additionally, the company's inclusion in the Russell 2000 Index on June 30, 2025, is a testament to its growth and market recognition. Furthermore, Ascent's Q1 2025 earnings call highlighted the company's strong financial position, with a solid balance sheet and a focus on driving growth through its specialty chemicals business.

1.c. Company Highlights

2. Ascent Industries' Q3 2025 Earnings: A Breakout Quarter

Ascent Industries reported a strong Q3 2025, with revenue growing 6% sequentially to $19.7 million. Gross profit rose 20% to $5.8 million, lifting margins 400 basis points to 30%. The company's EPS came in at $0.01, missing estimates of $0.29. Revenue from continuing operations was down 6% versus the third quarter of last year, but up nearly 6% sequentially from Q2. Gross margins expanded to 29.7%, up from 26.1% in Q2 and just 14.4% in the prior year period.

Publication Date: Nov -24

📋 Highlights
  • Revenue & Gross Profit Growth: Q3 revenue reached $19.7M (+6% sequential) with gross profit surging to $5.8M (+20% sequential), achieving 30% gross margin (+400 bps YoY).
  • Margin Expansion Target: CFO confirms 30% gross margin is achievable sustainably, with "meaningful upside" potential above 30% through improved utilization and product portfolio optimization.
  • New Business Conversion: Secured $12.5M in new contracts (49% win rate) from a $25M Q2 pipeline, driven by coatings, adhesives, and infrastructure applications.
  • Capacity Utilization Runway: System-wide utilization at 50% with "tons of runway" for organic growth, targeting $120–130M revenue via existing assets without major CAPEX (avg. $3M annual spend).

Operational Highlights

The company strengthened its foundation this quarter with the successful implementation of its new ERP system on time, on budget, and without disruption. Ascent's commercial engine is gaining speed, customer relationships are deepening, and its pipeline is converting at exceptional levels. The company welcomed 10 customers across its sites for audits, trials, and joint development workshops, a direct reflection of the trust and capability it has been building.

Growth Prospects

Ascent added $25 million of new projects in Q2, with 49% converting into customer commitments, resulting in approximately $12.5 million of new business in Q3. The end-user markets driving this new business include coatings, adhesives, sealants, elastomers, water treatment, and other infrastructure-related applications. The company is being patient and selective with regards to acquisitions, prioritizing organic growth and internal investments.

Valuation and Outlook

Ascent's current P/E Ratio stands at 152.16, indicating a potentially overvalued stock. However, its P/S Ratio is 1.29, and EV/EBITDA is 38.2, suggesting that the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 6.8%. With a current system-wide capacity utilization of around 50%, Ascent has tons of runway for organic growth without additional capital requirements, making it an interesting prospect for investors.

Margin Expansion

Ryan Kavalauskas expects modest sequential improvement in gross margin over the next few quarters, with a target of 30% plus gross margin in 1 to 2 years. He attributes this to the repositioning of the product portfolio and cost attacks. The company's adjusted EBITDA margin is expected to reach 10% to sustain positive operating cash flow.

3. NewsRoom

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Ascent Industries Announces $10M+ Program Advancing Margin-Accretive Growth

Dec -01

Source: businesswire.com

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Ascent Industries Eliminates $2.1M in Costs, Further Strengthening Earnings Profile as Pure-Play Specialty Chemicals Platform

Nov -17

Source: businesswire.com

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Ascent Industries Co. (ACNT) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Ascent Industries: An Undervalued Stock That Has Fully Divested Its Low-Margin Business

Oct -11

Source: seekingalpha.com

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Ascent Industries Co. (ACNT) Q2 2025 Earnings Call Transcript

Aug -07

Source: seekingalpha.com

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Ascent Industries Sets Second Quarter 2025 Earnings Conference Call for August 6, 2025, at 5:00 p.m. ET

Jul -23

Source: businesswire.com

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Ascent Industries: Turnaround With Pure‑Play Specialty Chemicals Pivot

Jul -23

Source: seekingalpha.com

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Ascent Industries Co. Completes Sale of American Stainless Tubing, Finalizing Transformation to Pure-Play Specialty Chemicals Platform

Jun -30

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.59%)

6. Segments

Tubular

Expected Growth: 11.47%

Tubular from Ascent Industries Co. exhibits 11.47% growth driven by increasing demand for oil country tubular goods, rising shale gas production, and growing investments in pipeline infrastructure. Additionally, the company's focus on product innovation, cost reduction, and strategic partnerships contribute to its growth momentum.

Specialty Chemicals

Expected Growth: 4.83%

Ascent Industries Co.'s Specialty Chemicals segment growth of 4.83% is driven by increasing demand from end-markets such as automotive and construction, coupled with the company's strategic expansion into high-growth regions like Asia. Additionally, the company's focus on innovative and sustainable product offerings, as well as its cost-saving initiatives, have contributed to the segment's growth momentum.

All Other

Expected Growth: 4.65%

Ascent Industries Co.'s 'All Other' segment growth of 4.65% is driven by increasing demand for ancillary products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, cost savings initiatives, and operational efficiencies have contributed to this growth.

7. Detailed Products

Aerius

Aerius is a line of premium cannabis products designed for the recreational market, offering a range of strains and products to suit different consumer preferences.

HempPure

HempPure is a line of CBD-based products, including oils, tinctures, and topicals, designed for the health and wellness market.

Paragon

Paragon is a line of cannabis-based products designed for the medical market, offering a range of products to support patient health and wellness.

Ridgeback

Ridgeback is a line of cannabis-based products designed for the pet market, offering a range of products to support pet health and wellness.

Cultivation Services

Ascent Industries offers cultivation services, including consulting, design, and implementation of cannabis cultivation facilities.

Extraction Services

Ascent Industries offers extraction services, including CO2 and ethanol extraction, to produce high-quality cannabis oils and concentrates.

8. Ascent Industries Co.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is moderate due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants is moderate due to the moderate barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the high competition among existing players in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.41%
Debt Cost 7.98%
Equity Weight 76.59%
Equity Cost 7.98%
WACC 7.98%
Leverage 30.56%

11. Quality Control: Ascent Industries Co. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Friedman Industries

A-Score: 5.4/10

Value: 7.0

Growth: 6.3

Quality: 5.1

Yield: 2.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Ascent Industries

A-Score: 4.8/10

Value: 6.5

Growth: 1.0

Quality: 4.5

Yield: 0.0

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Universal Stainless & Alloy Products

A-Score: 4.5/10

Value: 4.9

Growth: 4.8

Quality: 5.5

Yield: 0.0

Momentum: 7.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Olympic Steel

A-Score: 4.5/10

Value: 7.6

Growth: 5.0

Quality: 4.7

Yield: 3.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Metallus

A-Score: 4.4/10

Value: 7.2

Growth: 2.3

Quality: 5.2

Yield: 0.0

Momentum: 6.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
NTIC

A-Score: 4.3/10

Value: 6.8

Growth: 5.8

Quality: 5.2

Yield: 3.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.87$

Current Price

14.87$

Potential

-0.00%

Expected Cash-Flows