Financial Performance - Sales increased by $51.0 million to $204.9 million, driven by higher average selling prices and increased volume of virgin sulfuric acid [150]. - Gross profit rose by $7.0 million to $52.1 million, primarily due to higher average selling prices and sales volume [151]. - Operating income increased by $0.8 million to $28.3 million, reflecting higher gross profit offset by increased other operating expenses [152]. - Sales for the three months ended September 30, 2025, were $204.9 million, an increase of $51.0 million, or 33.1%, compared to $153.9 million for the same period in 2024 [154]. - Gross profit for the three months ended September 30, 2025, was $52.1 million, an increase of $7.0 million, or 15.5%, compared to $45.1 million for the same period in 2024 [156]. - Adjusted EBITDA for the three months ended September 30, 2025, was $57.5 million, an increase of $8.8 million, or 18.1%, compared to $48.7 million for the same period in 2024 [166]. - Adjusted Net Income for the three months ended September 30, 2025, was $28.6 million, compared to $22.3 million for the same period in 2024, reflecting an increase of $6.3 million [169]. - Sales for the nine months ended September 30, 2025, increased by $74.7 million, or 16.6%, to $524.1 million, driven by higher average selling prices and sales volume from the acquired Waggaman location [171][174]. - Gross profit for the nine months ended September 30, 2025, decreased by $9.0 million, or 7.5%, to $111.4 million, primarily due to higher manufacturing costs and lower regeneration services volume [172][176]. - Operating income for the nine months ended September 30, 2025, decreased by $19.6 million, or 31.3%, to $43.1 million, attributed to decreased gross profit and increased other operating expenses [173]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $120.7 million, a decrease of $4.2 million or 3.4% compared to $124.9 million for the same period in 2024 [191]. - Ecoservices segment reported an Adjusted EBITDA of $141.9 million for the nine months ended September 30, 2025, down $4.4 million or 3.0% from $146.3 million in 2024, primarily due to lower volumes and higher manufacturing costs [191]. Tax and Income - The effective tax rate for the three months ended September 30, 2025, was 98.2%, compared to 23.7% for the same period in 2024 [162]. - Net income from continuing operations was $0.4 million for the three months ended September 30, 2025, compared to $14.8 million for the same period in 2024 [165]. - The provision for income taxes for the nine months ended September 30, 2025, was $20.0 million, with an effective tax rate of 113.4%, compared to $8.0 million and 26.4% in 2024 [185]. - Net loss from continuing operations for the nine months ended September 30, 2025, was $2.4 million, compared to net income of $22.4 million for the same period in 2024, reflecting a significant decline [189]. - The company recorded a discrete tax expense of $15.6 million related to the revaluation of deferred tax assets and liabilities during the nine months ended September 30, 2025 [187]. Expenses and Costs - Other operating expense, net for the three months ended September 30, 2025, was $8.1 million, an increase of $5.7 million compared to $2.4 million for the same period in 2024 [159]. - Interest expense, net for the three months ended September 30, 2025, was $8.4 million, an increase of $0.5 million compared to $7.9 million for the same period in 2024 [160]. - Other operating expense, net for the nine months ended September 30, 2025, was $18.5 million, an increase of $10.6 million compared to $7.9 million in 2024, driven by losses on asset disposals and transaction costs [179]. - Interest expense, net for the nine months ended September 30, 2025, was $24.8 million, a decrease of $2.3 million from $27.1 million in 2024, due to lower variable rates and reduced outstanding debt [180]. - Higher manufacturing costs were driven by additional fixed costs from the Waggaman location, general inflation, and transportation [157]. Sales and Demand - Demand for virgin sulfuric acid remained favorable across various industrial applications, supporting high refinery utilization rates [143]. - The increase in sales volume was primarily related to the contribution from the Waggaman location and higher virgin sulfuric acid sales [155]. - The increase in sales volume was partially offset by lower regeneration services due to unplanned customer downtime and maintenance activities [175]. Cash Flow and Liquidity - Net cash provided by operating activities for continuing operations was $77.5 million for the nine months ended September 30, 2025, compared to $66.0 million in 2024 [203]. - Cash and cash equivalents at the end of the period were $99.1 million, including $82.0 million from continuing operations and $17.1 million from discontinued operations [196]. - Total available liquidity as of September 30, 2025, was $184.7 million, consisting of cash and cash equivalents and availability under the ABL Facility [196]. - Cash interest paid for the nine months ended September 30, 2025, was approximately $34.6 million, down from $37.0 million in 2024 [200]. - The company had no borrowings under its revolving credit facility as of September 30, 2025, and was in compliance with all covenants under its debt agreements [196]. - The company expects ongoing requirements for debt service and capital expenditures to be funded from cash flows from operations and existing cash balances [195]. - Net cash provided by operating activities increased to $77.5 million for the nine months ended September 30, 2025, up from $66.0 million in the same period of 2024, primarily due to higher earnings exclusive of non-cash expenses [204]. - Net cash used in investing activities rose significantly to $92.9 million for the nine months ended September 30, 2025, compared to $43.0 million during the same period in 2024, with $51.6 million allocated for capital expenditures in 2025 [206]. - Net cash used in financing activities increased to $35.1 million for the nine months ended September 30, 2025, compared to $12.7 million in the same period of 2024, primarily due to higher stock repurchases [207]. Capital Expenditures and Debt - Total debt as of September 30, 2025, was $864.3 million, a decrease from $870.8 million as of December 31, 2024, with net debt at $782.3 million after accounting for cash and cash equivalents of $82.0 million [208]. - Maintenance capital expenditures increased to $44.6 million for the nine months ended September 30, 2025, compared to $37.7 million in the same period of 2024, due to turnaround activities [210]. - Total capital expenditures for the nine months ended September 30, 2025, were $49.7 million, up from $42.5 million in 2024 [210]. Strategic Initiatives - The company entered into a definitive agreement to sell its Advanced Materials & Catalysts business for $556.0 million, expected to close in Q1 2026 [136]. - The stock repurchase program allows for the purchase of up to $450.0 million of common stock, with $202.2 million available as of September 30, 2025 [138]. - The company repurchased 3,536,364 shares at an average price of $7.74 per share for a total of $27.4 million during the nine months ended September 30, 2025 [138]. - The company may pursue strategic acquisition or divestiture opportunities, which could impact future cash requirements [196]. Accounting and Risk Management - The company did not identify any events that would likely reduce the fair value of its reporting units or intangible assets below their carrying values during the nine months ended September 30, 2025 [213]. - The company continues to evaluate its critical accounting estimates and has not identified any material changes in accounting policies from the previous year [212]. - There have been no material changes in market risk exposures, including foreign currency exchange rate risk and interest rate risk, as discussed in the previous annual report [216].

Financial Data and Key Metrics Changes - In Q3 2025, sales from continuing operations were $205 million, an increase of $51 million or 33% year-over-year, with adjusted EBITDA rising 18% to $58 million [12][14][19] - Adjusted free cash flow for the first nine months of the year was $42 million, with expectations for full-year 2025 adjusted free cash flow increased to a range of $75-$85 million [15][19] - The anticipated net debt leverage ratio post-divestiture of the advanced materials and catalysts segment is expected to be less than 1.5 times [4][16] Business Line Data and Key Metrics Changes - The eco-services segment reported adjusted EBITDA of $64 million, up 15%, driven by sales growth from both price and volume, particularly in virgin sulfuric acid [14][19] - Regeneration services experienced lower volumes due to unplanned customer downtime, impacting overall performance [5][13] - Virgin sulfuric acid sales were strong, particularly in the mining sector, which accounted for 20%-25% of sales [7][14] Market Data and Key Metrics Changes - Demand for virgin sulfuric acid is expected to remain strong due to rising global copper demand and mining activities [7][8] - The company anticipates a favorable long-term outlook for sulfuric acid demand driven by the mining and processing of critical minerals in the U.S. [8][54] - The company is positioned to benefit from onshoring trends, which may increase demand for sulfuric acid in various industrial applications [9][54] Company Strategy and Development Direction - The company plans to focus on organic growth initiatives and pursue attractive inorganic opportunities following the divestiture of its advanced materials and catalysts segment [4][22] - An active stock repurchase program is in place, with plans to repurchase up to $20 million of stock in Q4 2025 [5][23] - The company aims to strengthen its balance sheet and liquidity position to support growth initiatives and return capital to shareholders [16][22] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable demand fundamentals for the remainder of 2025 and into 2026, despite challenges from unplanned refinery outages [17][24] - The company expects to see increased regeneration volumes and contributions from positive contractual pricing in 2026 [17][24] - Management highlighted the resilience of the company in a challenging chemical industry environment, attributing it to strong customer relationships and critical product offerings [22][24] Other Important Information - The company has amended its stock repurchase plan to remove the April 2026 expiration date, allowing for continued repurchases [5] - The anticipated close of the divestiture is expected in Q1 2026, with net proceeds of approximately $530 million to be used primarily for debt reduction [4][16] Q&A Session Summary Question: Cash deployment and growth opportunities - Management indicated excitement around growth opportunities, particularly in mining, and mentioned ongoing storage and logistics expansion projects [27][28] Question: Pricing outlook for next year - Management expects continued upward pricing momentum, particularly in virgin sulfuric acid, supported by strong demand in the mining sector [29] Question: Waggaman integration and EBITDA lift - Management noted that both contract repricing and positive network effects from the Waggaman facility will contribute to EBITDA growth [32] Question: Long-term leverage targets - Management confirmed that the long-term target leverage remains at two to two and a half times, with flexibility to adjust based on capital allocation strategies [38][40] Question: Short-term demand outlook for nylon - Management expects stable demand for nylon in the near term, with confidence in long-term fundamentals [41] Question: Customer clarity on downtimes and inventory management - Management discussed the challenges of managing unexpected downtimes and emphasized the importance of ramping up virgin sulfuric acid volumes during such periods [45][46]

Forward-Looking Statements Some of the information contained in this presentation, the conference call during which this presentation is reviewed and any discussions that follow 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 b ...

Core Insights - Ecovyst reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.23 per share, but showing an improvement from $0.14 per share a year ago, resulting in an earnings surprise of -17.39% [1] - The company posted revenues of $204.9 million for the quarter ended September 2025, which was 10.49% below the Zacks Consensus Estimate and an increase from $179.2 million year-over-year [2] - Ecovyst has surpassed consensus EPS estimates three times over the last four quarters, but has not beaten consensus revenue estimates during the same period [2] Future Outlook - The sustainability of Ecovyst's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $226.85 million, and for the current fiscal year, it is $0.71 on revenues of $818.07 million [7] - The estimate revisions trend for Ecovyst was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Chemical - Specialty industry, to which Ecovyst belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Ecovyst's stock performance [5]

Financial Performance - Sales from continuing operations for Q3 2025 were $204.9 million, a 33.1% increase from $153.9 million in Q3 2024[7]. - Adjusted EBITDA for Ecoservices in Q3 2025 was $63.6 million, up 15% year-over-year, with an Adjusted EBITDA margin of 31.0%[6]. - Net income from continuing operations was $0.4 million, down from $14.8 million in the year-ago quarter, resulting in a net income margin of 0.2%[7]. - Adjusted EBITDA from continuing operations increased by 18.1% to $57.5 million in Q3 2025, compared to $48.7 million in Q3 2024[34]. - Adjusted Net Income for Q3 2025 was $28.6 million, compared to $22.0 million in Q3 2024, marking a 30% increase[38]. - Adjusted EBITDA from continuing operations for the nine months ended September 30, 2025, was $120.7 million, a decrease of 3.4% from $124.9 million in 2024[35]. - Total sales for the nine months ended September 30, 2025, were $524.1 million, reflecting a 16.6% increase from $449.4 million in 2024[35]. - The Adjusted EBITDA margin from continuing operations for Q3 2025 was 28.1%, down from 31.6% in Q3 2024[34]. - Ecoservices Adjusted EBITDA margin for Q3 2025 was 31.0%, a decrease from 35.8% in Q3 2024[34]. Cash Flow and Debt - Cash flows from operating activities for the nine months ended September 30, 2025, were $77.5 million, compared to $66.0 million for the same period in 2024[9]. - Adjusted Free Cash Flow for 2025 is expected to be between $75 million and $85 million[13]. - Total cash and cash equivalents as of September 30, 2025, were $99.1 million, with total gross debt of $864.3 million[10]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $98.5 million, down from $106.4 million in 2024[32]. - Free Cash Flow for the nine months ended September 30, 2025, was $31.4 million, down from $54.7 million in 2024, indicating a decrease of 42.5%[41]. - Cash and cash equivalents at the end of the period were $82.0 million, down from $131.4 million at the end of December 31, 2024[29]. - Total gross debt as of September 30, 2025, remained stable at $864 million, with expected net debt projected at $214 million[42]. - Expected Remaining Cash as of September 30, 2025, is $150 million, which includes cash and cash equivalents of $99 million and expected net cash generation of $21 million in Q4 2025[42]. - The Expected Net Debt Leverage Ratio is projected to be 1.3x, consistent with the previous year[42]. Sales and Market Outlook - The revised sales outlook for Ecoservices in 2025 is projected to be between $700 million and $740 million, reflecting higher average sulfur prices[13]. - The company anticipates a continuation of positive demand for virgin sulfuric acid sales, particularly in mining applications, supported by copper mine expansion projects[12]. - Sales for Q3 2025 reached $204.9 million, representing a 33.1% increase from $153.9 million in Q3 2024[34]. Investment Activities - The company repurchased $5.5 million of common stock during Q3 2025, with plans to repurchase up to $20 million in Q4 2025[5]. - The company reported a net cash used in investing activities of $(108.4) million for the nine months ended September 30, 2025, compared to $(56.2) million in 2024[32]. - Cash paid for costs related to the Waggaman acquisition amounted to $4.1 million, while cash paid for costs related to segment disposal was $5.9 million[41]. Assets and Liabilities - Total assets decreased to $1,734.8 million as of September 30, 2025, from $1,802.3 million as of December 31, 2024[29]. - Total liabilities increased to $1,127.0 million as of September 30, 2025, compared to $1,101.8 million at the end of 2024[29]. Taxation - The effective tax rate for the three months ended September 30, 2025, was 98.2%, significantly higher than 23.7% in the same period of 2024[27].

Core Insights - Ecovyst Inc. reported third-quarter results for 2025, highlighting a strategic decision to sell its Advanced Materials & Catalysts segment to Technip Energies for $556 million, expected to close in Q1 2026 [3][12] - The company aims to use $450 million to $500 million of the net proceeds to reduce long-term debt, projecting a net debt leverage ratio below 1.5x, which is part of its strategy to enhance shareholder value and strengthen its balance sheet [3][4] - The Ecoservices segment showed strong demand, with third-quarter Adjusted EBITDA reaching $64 million, a 15% increase year-over-year, driven by favorable pricing and higher sales volume of virgin sulfuric acid [5][6] Financial Performance - Third-quarter 2025 sales were $204.9 million, up 33.1% from $153.9 million in Q3 2024, attributed to higher sulfur costs and increased sales volume [6][12] - Adjusted EBITDA for Ecoservices was $63.6 million, compared to $55.1 million in the same quarter last year, reflecting a margin of 31.0% [6][31] - Net income from continuing operations was $0.4 million, a significant decrease from $14.8 million in the prior year, with a net income margin of 0.2% [12][25] Cash Flow and Balance Sheet - Cash flows from operating activities for continuing operations were $77.5 million for the nine months ended September 30, 2025, compared to $66.0 million for the same period in 2024 [7][29] - As of September 30, 2025, the company had cash and cash equivalents of $99.1 million, with total gross debt at $864.3 million [8][27] - The company amended its stock repurchase plan, removing the expiration date, with $202.2 million available for repurchases as of September 30, 2025 [4][15] Revised Financial Outlook - The company revised its 2025 guidance for continuing operations, expecting sales between $700 million and $740 million, with Adjusted EBITDA of approximately $170 million [13][11] - The outlook assumes higher average sulfur prices and a projected pass-through of sulfur costs of approximately $70 million [11][13] - Positive demand for virgin sulfuric acid is anticipated, particularly in mining applications, supported by copper mine expansion projects [10][11]

Core Viewpoint - Ecovyst Inc. will hold a conference call on November 4, 2025, to discuss its third quarter 2025 financial results [1]. Company Overview - Ecovyst Inc. is a global provider of advanced materials, specialty catalysts, and services, focusing on sustainability [3][8]. - The company operates two specialty businesses: Ecoservices, which provides sulfuric acid recycling and chemical waste handling, and Advanced Materials & Catalysts, which supplies silica catalysts and specialty zeolites [4]. Recent Developments - On September 11, 2025, Ecovyst announced a definitive agreement to sell its Advanced Materials & Catalysts segment to Technip Energies, with the sale expected to close in the first quarter of 2026, pending regulatory approvals [4].

Core Viewpoint - Citigroup downgraded Ecovyst Inc. to a Neutral rating, reflecting concerns about the company's market valuation despite its strong product offerings and market presence [1] Group 1: Company Developments - Ecovyst announced a definitive agreement to sell its Advanced Materials & Catalysts segment to Technip Energies for $556 million, representing a 9.8x EBITDA multiple based on the segment's adjusted EBITDA for 2024 [2] - The decision to sell this segment was influenced by the market's undervaluation of the business, allowing Ecovyst to focus on its core operations [3] Group 2: Stock Performance - ECVT's stock price increased by 1.30%, with a recent change of $0.12, fluctuating between $9.12 and $9.41 on the day [4] - Over the past year, ECVT reached a high of $9.69 and a low of $5.24, with a current market capitalization of approximately $1.07 billion and a trading volume of 1,822,943 shares [4]

Core Viewpoint - Technip Energies has announced the acquisition of Ecovyst's Advanced Materials & Catalysts business, indicating a strategic move to enhance its capabilities in the materials and catalysts sector [1] Group 1: Strategic Rationale - The CEO, Arnaud Pieton, will discuss the strategic rationale behind the acquisition, highlighting its importance for Technip Energies' growth and market positioning [1] Group 2: Business Overview - Chief Strategy and Sustainability Officer, Benjamin Lechuga, will provide a detailed overview of the Advanced Materials & Catalysts business, outlining its operations and potential synergies with Technip Energies [1] Group 3: Financials and Value Creation - CFO Bruno Vibert will discuss the financial implications of the acquisition, focusing on value creation and expected financial performance post-acquisition [1]

Core Viewpoint - Technip Energies has announced the acquisition of Ecovyst's Advanced Materials & Catalysts business, indicating a strategic move to enhance its capabilities in the materials and catalysts sector [1] Group 1: Strategic Rationale - The CEO, Arnaud Pieton, will discuss the strategic rationale behind the acquisition, highlighting its importance for Technip Energies' growth and market positioning [1] Group 2: Business Overview - Chief Strategy and Sustainability Officer, Benjamin Lechuga, will provide a detailed overview of the Advanced Materials & Catalysts business, outlining its operations and potential synergies with Technip Energies [1] Group 3: Financials and Value Creation - CFO, Bruno Vibert, will discuss the financial implications of the acquisition, focusing on value creation and expected financial performance post-acquisition [1]