WAYNE, Pa., Feb. 26, 2026 /PRNewswire/ -- Ecovyst Inc. $(ECVT)$ ("Ecovyst" or the "Company"), a leading integrated provider of virgin and regenerated sulfuric acid products and services, today reported results for the fourth quarter and full year ended December 31, 2025.

The financial results of the divested Advanced Materials & Catalysts business are reported in discontinued operations in the financial statements for all periods presented.

Fourth Quarter 2025 Results & Highlights from Continuing Operations

   -- Completed sale of Advanced Materials & Catalysts segment to Technip 
      Energies N.V. for a sale price of $556 million. 
 
   -- Sales of $199.4 million, compared to $148.9 million in the fourth quarter 
      of 2024 
 
   -- Net income of $9.2 million compared to $23.8 million in the fourth 
      quarter of 2024, with a net income margin of 4.6% and with diluted net 
      income per share of $0.08 
 
   -- Adjusted Net Income of $32.4 million, compared to $18.4 million in the 
      fourth quarter of 2024, with Adjusted Diluted Income per share of $0.28 
 
   -- Adjusted EBITDA of $51.3 million, up 7.5% compared to $47.7 million in 
      the fourth quarter of 2024, with an Adjusted EBITDA margin of 25.7% 
 
   -- Repurchased $20.0 million of common stock 
 
   -- Utilized $465 million of net proceeds from the Advanced Materials & 
      Catalysts divestiture to pay down Term Loan. Net debt leverage ratio at 
      year end was 1.2x 

Full Year 2025 Results & Highlights from Continuing Operations

   -- Sales of $723.5 million, compared to $598.3 million in 2024 
 
   -- Net income of $6.3 million. Net income margin of 0.9%, with diluted net 
      income per share of $0.05 
 
   -- Adjusted Net Income of $45.7 million, with Adjusted Diluted Income per 
      share of $0.39 
 
   -- Adjusted EBITDA of $172.0 million, with an Adjusted EBITDA margin of 
      23.8% 
 
   -- Net cash from operations of $118.1 million, Adjusted Free Cash Flow of 
      $78.1 million 
 
   -- Repurchased 5,752,285 shares of common stock for $47.4 million 
 
   -- Acquired Waggaman, Louisiana sulfuric acid production assets for total 
      price of $41 million 

"Ecovyst's actions and results for the fourth quarter of 2025 reflect continued progress in implementing our strategic initiatives, while delivering full-year 2025 Adjusted EBITDA above our guidance," said Kurt J. Bitting, Ecovyst's Chief Executive Officer. "2025 represented a transformational year for Ecovyst. In May, we acquired the Waggaman, Louisiana sulfuric acid production assets in a transaction that enhances our Gulf Coast network and provides capacity for future growth. At year-end we completed the divestiture of the Advanced Materials & Catalysts segment for a sales price of approximately $556 million, a key milestone in our ongoing portfolio transformation. We used $465 million of the proceeds of this divestiture to pay down our Term Loan, resulting in a Net Debt Leverage ratio of 1.2x at year-end. Ecovyst also prioritized a return of capital to stockholders with $47 million of share repurchases during 2025."

"In 2026, we expect high refinery utilization and positive alkylate economics to continue to support our regeneration services business, with anticipated year-over-year growth in volume, and we expect increased sales of virgin sulfuric acid, in part due to continued expected growth in mining demand," said Bitting. "Our focus in 2026 will remain on positioning Ecovyst for profitable long-term growth and delivering value for our stockholders. We enter the year with a strong balance sheet, substantial liquidity and a favorable historic cash generation profile that we believe provides for significant flexibility as we deploy incremental growth capital in 2026 on attractive projects that will translate into enhanced capability to service our customers. At the same time, we plan to continue pursuing compelling inorganic growth opportunities and the return of capital to our stockholders through an active share repurchase program."

Review of Business Results from Continuing Operations

Fourth quarter 2025 sales were $199.4 million, compared to $148.9 million in the fourth quarter of 2024. The increase in sales reflects higher sales volume for virgin sulfuric acid, including the contribution from the acquired Waggaman location, and favorable contractual pricing for regenerated sulfuric acid, partially offset by lower sales volume for regenerated sulfuric acid associated with unplanned and extended customer downtime. In addition, the pass-through effect of higher sulfur costs on sales was $28 million. Fourth quarter 2025 Adjusted EBITDA was $51.3 million, compared to $47.7 million in the fourth quarter of 2024. The increase reflects the favorable volume and pricing at the sales level, partially offset by higher manufacturing costs, including incremental costs of the acquired Waggaman assets.

For the year, sales were $723.5 million, compared to $598.3 million in 2024. The increase in sales reflects higher average selling prices driven by the pass-through effect of higher sulfur costs of approximately $77 million and favorable contract pricing for regenerated sulfuric acid, and higher sales volume. The sales volume increase was a result of higher sales of virgin sulfuric acid, including the contribution from the acquired Waggaman location, partially offset by lower regenerated sulfuric acid driven by unplanned and extended customer down-time and maintenance turnaround activity at our facilities. Adjusted EBITDA was $172.0 million, compared to $172.7 million in 2024, with the favorable volume and price impact at the sales level largely offset by higher manufacturing costs associated with general inflation, and higher maintenance and transportation costs.

Cash Flows and Balance Sheet

Cash flows from operating activities for continuing operations was $118.1 million for the year ended December 31, 2025, compared to $103.8 million for the year ended December 31, 2024. At December 31, 2025, the Company had cash and cash equivalents of $197.2 million, total gross debt of $397.1 million and availability under the ABL facility of $67.6 million, after giving effect to $3.2 million of outstanding letters of credit and no outstanding borrowings under the facility, for total available liquidity of $264.8 million. As of December 31, 2025, the net debt to net income ratio was 31.7x, and the net debt leverage ratio was 1.2x.

2026 Financial Outlook

For 2026 we currently anticipate demand fundamentals to remain positive for both our regeneration services business and for sales of virgin sulfuric acid. We expect that high refinery utilization, favorable alkylate economics and lower customer downtime, compared to 2025, will contribute to increased sales for regenerated sulfuric acid. For sales of virgin sulfuric acid, although we remain cautious about the near-term outlook for global macroeconomic activity and the potential for weakness in some industrial applications for virgin sulfuric acid and sales of oleum grades used in the production of nylon precursors. However, we expect strong demand in mining applications to contribute to year-over-year growth in sales for virgin sulfuric acid.

The Company's guidance for full year 2026 is as follows:

   -- Sales of $860 million to $940 million1, up 7% from 2025 at the mid-point 
      of the range, excluding the projected pass-through effect of higher 
      sulfur costs 
 
   -- Adjusted EBITDA2 of $175 million to $195 million, up 8% from 2025 at the 
      mid-point of the range 
 
   -- Adjusted Free Cash Flow2 of $35 million to $55 million 
 
   -- Capital expenditures of $80 million to $90 million 
 
   -- Interest expense of $18 million to $22 million 
 
   -- Depreciation & Amortization of $78 million to $82 million 
 
   -- Effective tax rate in the mid 20% range 
 
   -- Adjusted Net Income2 of $55 million to $75 million, with Adjusted Diluted 
      Income2 per share of $0.45 to $0.65 
 
(1)  Sales outlook for 2026 assumes higher average sulfur prices compared to 
     2025 and higher projected pass-through of sulfur costs of approximately 
     $125 million. 
(2)  In reliance upon the unreasonable efforts exemption provided under Item 
     10(e)(1)(i)$(B)$ of Regulation S-K, the Company is not able to provide a 
     reconciliation of its non-GAAP financial guidance to the corresponding 
     GAAP measures without unreasonable effort because of the inherent 
     difficulty in forecasting and quantifying certain amounts necessary for 
     such a reconciliation such as certain non-cash, nonrecurring or other 
     items that are included in net income and net cash provided by operating 
     activities as well as the related tax impacts of these items and asset 
     dispositions / acquisitions that are included in cash flow, due to the 
     uncertainty and variability of the nature and amount of these future 
     charges and costs. Because this information is uncertain, the Company is 
     unable to address the probable significance of the unavailable 
     information, which could be material to future results. 
 

Stock Repurchase

In April 2022, the Company's Board of Directors approved a stock repurchase program authorizing the repurchase of up to $450 million of the Company's outstanding common stock over the next four years. In October 2025, the Company's Board of Directors approved the removal of the expiration date of the stock repurchase program. As of December 31, 2025, $182.2 million was available for share repurchases under the program.

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February 26, 2026 06:00 ET (11:00 GMT)