Business
Ecovyst Reports Third Quarter 2025 Results and Updates Guidance
Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading provider of virgin sulfuric acid and sulfuric acid regeneration services, today reported results from continuing operations for the third quarter ended September 30, 2025.
About this update from Ecovyst Inc.
WAYNE, Pa. , Nov. 4, 2025 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading provider of virgin sulfuric acid and sulfuric acid regeneration services, today reported results from continuing operations for the third quarter ended September 30, 2025. Third Quarter 2025 Results & Highlights from Continuing Operations The financial results of the Advanced Materials & Catalysts business are reported in discontinued operations in the financial statements for all periods presented. "As a result of a comprehensive strategic review process, during the third quarter we announced the agreement to sell our Advanced Materials & Catalysts segment to Technip Energies for a purchase price of $556 million. The transaction is expected to close in the first quarter of 2026 and we anticipate using between $450 million and $500 million of the expected $530 million net proceeds to reduce our long-term debt, resulting in a projected net debt leverage ratio of below 1.5x," said Mike Feehan, Ecovyst's Chief Financial Officer. "The sale reflects our continued commitment to unlocking value for stockholders." "We believe this transaction will position Ecovyst to deliver on its long-term strategic plan for growth with a strong balance sheet, providing significant liquidity and bolstering the Company's free cash flow generation that will support our balanced and disciplined capital allocation framework. We will continue to strategically invest in our business both through organic growth as well as opportunistic acquisitions that are designed to expand our market presence and capabilities. Returning capital to stockholders through our stock repurchase program remains an additional important element of our capital allocation strategy and is further enhanced by our strengthened financial position," said Kurt Bitting, CEO of Ecovyst. "Underscoring this commitment, during the third quarter stock repurchases totaled $5.5 million, and we intend to repurchase up to $20 million of our common stock in the fourth quarter of 2025. Additionally, Ecovyst's Board of Directors has amended our existing $450 million stock repurchase plan, which has approximately $200 million remaining, to remove the April 2026 expiration date," said Bitting. "In terms of our continuing operations, third quarter demand fundamentals for Ecoservices remained strong, driving growth in virgin sulfuric acid sales. We continued to benefit from favorable contractual pricing in our regeneration services business, and while regeneration volume was temporarily impacted by unplanned and extended customer downtime, Ecoservices' third quarter Adjusted EBITDA reached $64 million, up 15% year-over-year, and within our guidance," said Bitting. Review of Business Results from Continuing Operations Third quarter 2025 sales were $204.9 million, compared to $153.9 million in the third quarter of 2024. The increase in sales reflects the pass-through effect of higher sulfur costs, favorable contractual pricing for regeneration services and higher sales volume for virgin sulfuric acid, including the sales contribution from the Waggaman sulfuric acid assets, partially offset by lower regeneration services volume associated with unplanned and extended customer downtime. Third quarter 2025 Adjusted EBITDA for Ecoservices was $63.6 million, compared to $55.1 million in the third quarter of 2024, with favorable contractual pricing for regeneration services, and higher sales volume for virgin sulfuric acid, partially offset by lower regeneration services volume due to unplanned and extended customer down time. Unallocated corporate costs in the third quarter of 2025 were $6.1 million, compared to $6.4 million in the third quarter of 2024. Cash Flows and Balance Sheet Cash flows from operating activities for continuing operations was $77.5 million for the nine months ended September 30, 2025, compared to $66.0 million for the nine months ended September 30, 2024. The increase was primarily driven by higher earnings exclusive of non-cash expenses and favorable changes in working capital. Cash flows from operating activities including discontinued operations was $98.5 million for the nine months ended September 30, 2025, compared to $106.4 million for the nine months ended September 30, 2024. At September 30, 2025, the Company had cash and cash equivalents of $99.1 million, including $82.0 million of cash and cash equivalents from continuing operations and $17.1 million of cash and cash equivalents from discontinued operations. Total gross debt was $864.3 million and availability under the ABL facility was $85.6 million, after giving effect to $3.3 million of outstanding letters of credit and with no revolving credit facility borrowings outstanding. Total cash and cash equivalents of $99.1 million plus the $85.6 million of availability under the ABL facility provided for total available liquidity of $184.7 million. 2025 Revised Financial Outlook for Continuing Operations As our previous guidance included anticipated results for our Advanced Materials & Catalysts segment, which is now reported as a discontinued operation, we are providing revised guidance for the Ecoservices business segment, reported as continuing operations. For the balance of the year we expect alkylate production economics to remain favorable. However, customer unplanned and extended maintenance has extended into the fourth quarter, and we expect this to temporarily result in lower regeneration volumes. We do anticipate a continuation of positive demand for virgin sulfuric acid sales, including in mining applications, supported by incremental demand associated with copper mine expansion projects in the fourth quarter. The Company's revised 2025 guidance for continuing operations is as follows: 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 September 30, 2025, $202.2 million was available for stock repurchases under the program. During the third quarter of 2025, the Company repurchased 610,212 shares of its common stock at an average price of $9.06 per share, for a total cost of $5.5 million. During the third quarter of 2024, the Company did not repurchase any shares of its common stock pursuant to the stock repurchase program. For possible future repurchases, the actual timing, number, and nature of shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions and may be conducted through negotiated transactions, open market repurchases or other means, including through Rule 10b-18 and Rule 10b5-1 trading plans or accelerated stock repurchases. The repurchase program does not obligate the Company to acquire any number of shares in any specific period, or at all, and the repurchase program may be amended, suspended or discontinued at any time at the Company's discretion. Conference Call and Webcast Details On Tuesday, November 4, 2025, Ecovyst management will review the third quarter 2025 results during a conference call and audio-only webcast scheduled for 11:00 a.m. Eastern Time. Conference Call: Investors may listen to the conference call live via telephone by dialing 1 (800) 245-3047 (domestic) or 1 (203) 518-9765 (international) and use the participant code ECVTQ325. Webcast: An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations. Investor Contact: Gene Shiels (484) 617-1225 [email protected] About Ecovyst Inc. Ecovyst Inc. and subsidiaries is a leading provider of virgin sulfuric acid and sulfuric acid regeneration services. We believe that our products and services contribute to improving the sustainability of the environment. We are a leading provider of sulfuric acid recycling to the North American refining industry for the production of alkylate, an essential gasoline component for lowering vapor pressure and increasing octane to meet stringent gasoline specifications and fuel efficiency standards. We are also a leading North American producer of high quality and high strength virgin sulfuric acid for industrial and mining applications. We also provide chemical waste handling and treatment services, as well as ex-situ catalyst activation services for the refining and petrochemical industry. For more information, see our website at https://www.ecovyst.com. Presentation of Non-GAAP Financial Measures In addition to the results provided in accordance with U.S. generally accepted accounting principles ("GAAP") throughout this press release, the Company has provided non-GAAP financial measures — Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Diluted Income per share and Net Debt Leverage Ratio (collectively, "Non-GAAP Financial Measures") — which present results on a basis adjusted for certain items. The Company uses these Non-GAAP Financial Measures for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that these Non-GAAP Financial Measures are useful financial metrics to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. These Non-GAAP Financial Measures are not intended to replace, and should not be considered superior to, the presentation of the Company's financial results in accordance with GAAP. The use of the Non-GAAP Financial Measures terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. These Non-GAAP Financial Measures are reconciled from the respective measures under GAAP in the attached appendix. Note on Forward-Looking Statements Some of the information contained in this press release constitutes "forward-looking statements." Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "projects" and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Examples of forward-looking statements include, but are not limited to, statements regarding our future results of operations, financial condition, capital expenditure projects, liquidity, prospects, growth, strategies, capital allocation program (including the stock repurchase program), product and service offerings, expected demand trends, the timing of and our ability to consummate the announced sale of our Advanced Materials & Catalysts segment and its impact on our expected debt and net debt leverage ratio, and our 2025 financial outlook. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against placing any undue reliance on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, regional, national or global political, economic, business, competitive, market and regulatory conditions, including the enactment, schedule and impact of tariffs and trade disputes, currency exchange rates, adverse effects from the U.S. government shutdown, the effects of inflation, the timing of and our ability to consummate the announced sale of our Advanced Materials & Catalysts segment, and other factors, including those described in the sections titled "Risk Factors" and "Management's Discussion & Analysis of Financial Condition and Results of Operations" in our filings with the SEC, which are available on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law. Appendix Table A-1: Reconciliation of Net Income (Loss) From Continuing Operations to Adjusted EBITDA Appendix Table A-2: Reconciliation of Net Income (Loss) From Continuing Operations and EPS to Adjusted Net Income and Adjusted EPS (1) The adjustments to net (loss) income from continuing operations are shown net of applicable tax rates of 25.6% and 25.1% for the nine months ended September 30, 2025 and 2024, respectively, except for equity-based compensation. The tax effect on equity-based compensation is derived by removing the tax effect of any equity-based compensation expense disallowed as a result of its inclusion within IRC Sec. 162(m), and adding the tax effect of equity-based stock compensation shortfall recorded as a discrete item. Appendix Table A-3: Adjusted Free Cash Flow Appendix Table A-4: Reconciliation of Expected Debt to Expected Net Debt (1) View original content to download multimedia: https://www.prnewswire.com/news-releases/ecovyst-reports-third-quarter-2025-results-and-updates-guidance-302603192.html