Ascent Industries (ACNT) 16th Annual Midwest Ideas Conference summary

Transformation and Strategic Focus

• Underwent significant transformation since early 2024, divesting non-core and stainless steel assets to become a pure-play specialty chemical company and rebranding the business.

• Installed new CEO and CFO in early 2024, both with proven specialty chemical experience and turnaround success.

• Shifted business mix from 90% custom manufacturing to 75%/25% custom vs. product sales, improving margins and predictability.

• Recapitalized SG&A, built a new sales and marketing organization, and emphasized a customer-centric, integrated value chain and 'Chemicals-as-a-Service' model.

• Focused on four key segments: HI&I (cleaning), oil and gas, water treatment, and CASE (coatings, adhesives, sealants, elastomers), with expansion into agriculture.

Growth Strategy and Operational Model

• Operating model centers on 'chemicals as a service,' providing technical solutions and custom manufacturing for customer-specific needs.

• Underutilized manufacturing capacity (about 50%) offers significant upside as capacity is filled, providing a capital-light foundation for growth.

• Targeting organic growth by expanding current capabilities, increasing proprietary product sales, and enhancing commercial strategy.

• Pursuing accretive M&A to add complementary capabilities, geographies, and products, with disciplined deal selection and revenue targets of $5–150M for acquisitions.

• Actively optimizing portfolio by monetizing non-core assets and seeking partners for idled facilities.

Financial Performance and Targets

• Achieved a $19.9 million turnaround in adjusted EBITDA and $17 million in cash generation last year, with 2024 revenue reaching $80.8M and 95% of revenue supported by domestic raw materials.

• Delivered 11% annualized revenue growth and 150% annualized adjusted EBITDA growth in the first half of the year; 1H2025 saw a 24% reduction in COGS, a 77% increase in Adjusted EBITDA, and a 20% reduction in inventory.

• Gross profit increased by 1,349% YoY, and specialty chemicals Adjusted EBITDA margin rose to 13.6% in Q2 2025, up from 7.9% in Q2 2024.

• Selling project pipeline increased by 45% from Q1 to Q2 2025, now totaling $70 million.

• Targeting 35% gross margin, 15% SG&A, and 15% adjusted EBITDA by 2030, with $120–$130 million revenue potential from current assets and a long-term goal of $500 million in revenue by 2030.