Ascent Industries Co
NASDAQ:ACNT
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Ascent Industries Co
Synalloy Corp. engages in the production of stainless steel pipe, fabricator of stainless and carbon steel piping systems, and specialty chemicals. The company is headquartered in Oak Brook, Illinois and currently employs 638 full-time employees. The firm is focused on the production and distribution of industrial tubular products and specialty chemicals. The firm operates through two divisions: Ascent Tubular Products and Ascent Specialty Chemicals. Ascent Tubular division includes American Stainless Tubing, Bristol Tubular Products, and Specialty Pipe & Tube brands. Ascent Tubular division is engaged in manufacturing stainless steel and nickel alloy pipe, separation equipment, heavy wall seamless pipe and tubing. The company serves industries throughout the United States, Canada, Australia, Europe and others. Its Ascent Specialty Chemicals division produces specialty chemicals for the carpet, chemical, paper, metals, mining, agricultural, fiber, paint, textile, automotive, petroleum, cosmetics, mattress, furniture, janitorial and other industries.
Synalloy Corp. engages in the production of stainless steel pipe, fabricator of stainless and carbon steel piping systems, and specialty chemicals. The company is headquartered in Oak Brook, Illinois and currently employs 638 full-time employees. The firm is focused on the production and distribution of industrial tubular products and specialty chemicals. The firm operates through two divisions: Ascent Tubular Products and Ascent Specialty Chemicals. Ascent Tubular division includes American Stainless Tubing, Bristol Tubular Products, and Specialty Pipe & Tube brands. Ascent Tubular division is engaged in manufacturing stainless steel and nickel alloy pipe, separation equipment, heavy wall seamless pipe and tubing. The company serves industries throughout the United States, Canada, Australia, Europe and others. Its Ascent Specialty Chemicals division produces specialty chemicals for the carpet, chemical, paper, metals, mining, agricultural, fiber, paint, textile, automotive, petroleum, cosmetics, mattress, furniture, janitorial and other industries.
Strong Margins: Gross margin reached 29.7%, up from 26.1% in Q2 and 14.4% last year, with management now confident of sustaining 30%+ going forward.
Profit Turnaround: Adjusted EBITDA swung to $1.4 million, a $2.1 million increase year-over-year and a move from a modest loss to a 7% margin.
Revenue Growth: Revenue was $19.7 million, up 6% sequentially, though down 6% from the prior year due to volume softness.
Customer Wins: Nearly half (49%) of $25 million in new Q2 pipeline projects converted to customer commitments in Q3, mainly in custom manufacturing, coatings, infrastructure, and water treatment.
Organic Focus: Management is prioritizing organic growth and investing in R&D, with ample idle capacity (~50% utilization) and patient approach to M&A.
Balance Sheet Strength: The company ended the quarter with $58 million in cash, no debt, and $13.7 million available under its revolver.
SG&A Investments: SG&A rose to $6.3 million, reflecting foundation-building investments and some residual legacy costs, but is seen as underpinning future growth.
Guidance and Outlook: Management expects further, though more modest, gross margin improvements and believes the platform can support $120–130 million revenue with existing assets.
