Core Viewpoint - Technip Energies has entered into a definitive agreement to acquire the Advanced Materials & Catalysts business from Ecovyst Inc. for US$556 million, enhancing its capabilities in advanced catalysts and process technologies [1][2][4]. Group 1: Acquisition Details - The acquisition price of US$556 million represents an EBITDA multiple of approximately 9.8 [1]. - Advanced Materials & Catalysts generated total revenue of US$223 million with an EBITDA margin of around 25% for 2024 [3]. - The transaction is expected to close by the first quarter of 2026, subject to regulatory approvals [4]. Group 2: Strategic Benefits - This acquisition supports Technip Energies' strategy for disciplined growth in its Technology, Products & Services (TPS) segment, increasing TPS' contribution to Segment EBITDA from 39% to approximately 45% on a pro-forma basis for 2024 [2][4]. - The integration of Advanced Materials & Catalysts is anticipated to enhance recurring revenues tied to customer operating expenditures and improve long-term revenue visibility [2][4]. - The acquisition is expected to be immediately accretive to earnings and cash flow, providing identified value creation levers [4][6]. Group 3: Technological and Market Expansion - The acquisition will expand Technip Energies' catalyst capabilities and technology offerings, enhancing its development of integrated technology and catalyst solutions [4][6]. - Advanced Materials & Catalysts will secure leading positions in attractive growth markets, including sustainable fuels and advanced recycling [6]. - The deal will enhance R&D capabilities, bringing world-leading expertise in catalyst design and materials science [6]. Group 4: Leadership Comments - Arnaud Pieton, CEO of Technip Energies, emphasized that the acquisition aligns with the company's disciplined capital allocation strategy and enhances its technology platform [7]. - Kurt Bitting, CEO of Ecovyst, expressed confidence that Technip Energies is the ideal long-term partner for Advanced Materials & Catalysts [7]. - Paul Whittleston, President of Advanced Materials & Catalysts, highlighted the exciting opportunities for scaling technologies and accelerating innovation as part of Technip Energies [7].

Group 1 - Ecovyst (ECVT) has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to PPG Industries (PPG), which has a Zacks Rank of 3 (Hold) [3] - The Value category of the Style Scores system identifies undervalued companies using key metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - ECVT has a forward P/E ratio of 12.37 and a PEG ratio of 0.57, while PPG has a forward P/E of 14.23 and a PEG ratio of 2.32, suggesting ECVT is more undervalued [5] Group 2 - ECVT's P/B ratio is 1.48, compared to PPG's P/B of 3.27, further indicating ECVT's superior valuation metrics [6] - ECVT has earned a Value grade of B, while PPG has a Value grade of C, highlighting ECVT as the better value option [6][7] - The improving earnings outlook for ECVT makes it stand out in the Zacks Rank model, reinforcing its position as a superior value option [7]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents Ecovyst Inc.'s unaudited condensed consolidated financial statements for Q2 2025 and 2024, with detailed notes on accounting policies and segments [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Sales | $200,128 | $182,820 | $362,326 | $343,357 | | Gross profit | $49,722 | $53,663 | $75,338 | $92,886 | | Operating income | $17,809 | $27,848 | $16,899 | $41,802 | | Net income | $5,986 | $8,295 | $2,389 | $9,516 | | Basic income per share | $0.05 | $0.07 | $0.02 | $0.08 | | Diluted income per share | $0.05 | $0.07 | $0.02 | $0.08 | - For the three months ended June 30, 2025, sales **increased by $17.3 million (9.5%)** year-over-year, while net income **decreased by $2.3 million (27.7%)**[11](index=11&type=chunk) - For the six months ended June 30, 2025, sales **increased by $18.9 million (5.5%)** year-over-year, but net income **decreased significantly by $7.1 million (74.7%)**[11](index=11&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income | $5,986 | $8,295 | $2,389 | $9,516 | | Total other comprehensive income (loss) | $6,343 | $(1,224) | $6,569 | $950 | | Comprehensive income | $12,329 | $7,071 | $8,958 | $10,466 | - Total other comprehensive income (loss) **significantly improved** for the three months ended June 30, 2025, reaching **$6,343 thousand** compared to a loss of **$(1,224) thousand** in the prior year, primarily driven by foreign currency translation gains[13](index=13&type=chunk) - For the six months ended June 30, 2025, foreign currency translation contributed **$13,113 thousand** to other comprehensive income, a **substantial increase** from a loss of **$(2,363) thousand** in the prior year[13](index=13&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total current assets | $269,413 | $303,714 | | Total assets | $1,796,398 | $1,802,321 | | Total current liabilities | $119,687 | $115,126 | | Total liabilities | $1,104,011 | $1,101,861 | | Total equity | $692,387 | $700,460 | - Cash and cash equivalents **decreased from $146,013 thousand** at December 31, 2024, to **$69,597 thousand** at June 30, 2025[15](index=15&type=chunk) - Total assets **slightly decreased by $5,923 thousand**, while total liabilities **increased by $2,150 thousand** from December 31, 2024, to June 30, 2025[15](index=15&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) | Metric (in thousands) | Balance, December 31, 2024 | Balance, June 30, 2025 | | :-------------------- | :------------------------- | :--------------------- | | Total Equity | $700,460 | $692,387 | | Net income (Q2 2025) | N/A | $5,986 | | Repurchases of common shares (Q2 2025) | N/A | $(21,917) | - Total equity **decreased from $700,460 thousand** at December 31, 2024, to **$692,387 thousand** at June 30, 2025[16](index=16&type=chunk) - The company **repurchased $21,917 thousand of common shares** during the three months ended June 30, 2025[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $43,293 | $46,460 | | Net cash used in investing activities | $(90,840) | $(36,849) | | Net cash used in financing activities | $(29,385) | $(14,348) | | Net change in cash and cash equivalents | $(76,416) | $(5,047) | | Cash and cash equivalents at end of period | $69,597 | $83,318 | - Net cash provided by operating activities **decreased by $3,167 thousand** for the six months ended June 30, 2025, compared to the same period in 2024[18](index=18&type=chunk) - Net cash used in investing activities **significantly increased to $(90,840) thousand** in 2025 from **$(36,849) thousand** in 2024, primarily due to business combinations[18](index=18&type=chunk) - Net cash used in financing activities **increased to $(29,385) thousand** in 2025 from **$(14,348) thousand** in 2024, largely due to higher repurchases of common shares[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Background and Basis of Presentation](index=9&type=section&id=1.%20Background%20and%20Basis%20of%20Presentation) - Ecovyst Inc. is a global provider of advanced materials, specialty catalysts, virgin sulfuric acid, and sulfuric acid regeneration services, operating through two segments: **Ecoservices** and **Advanced Materials & Catalysts**[21](index=21&type=chunk)[22](index=22&type=chunk) - The Ecoservices segment experiences seasonal fluctuations with **higher demand and working capital requirements in the second and third quarters** due to increased gasoline product demand in summer months[23](index=23&type=chunk) [2. New Accounting Standards](index=9&type=section&id=2.%20New%20Accounting%20Standards) - The Company adopted new FASB guidance for joint ventures effective **January 1, 2025**, requiring initial measurement of contributed net assets and liabilities at fair value[25](index=25&type=chunk) - New FASB guidance on reportable segment disclosures was adopted effective **December 31, 2024**, requiring information on significant segment expenses and interim reporting of annual segment profit/loss disclosures[26](index=26&type=chunk) - The Company is evaluating the impact of new FASB guidance on income tax disclosures (effective **December 15, 2024**) and expense presentation (effective **December 15, 2026**)[27](index=27&type=chunk)[28](index=28&type=chunk) [3. Revenue from Contracts with Customers](index=10&type=section&id=3.%20Revenue%20from%20Contracts%20with%20Customers) | Segment/End Use (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | **Ecoservices** | | | | | | Clean fuels, emission control & other | $8,946 | $8,614 | $16,929 | $16,003 | | Regeneration and treatment services | $92,788 | $95,365 | $172,035 | $178,684 | | Industrial, mining & automotive | $74,331 | $49,979 | $130,211 | $100,873 | | **Advanced Materials & Catalysts** | | | | | | Polyethylene, polymers & engineered plastics | $24,063 | $28,862 | $43,151 | $47,797 | | **Total segment sales** | $200,128 | $182,820 | $362,326 | $343,357 | - Ecoservices segment sales **increased by $22,007 thousand (14.3%)** for the three months ended June 30, 2025, primarily driven by Industrial, mining & automotive applications[33](index=33&type=chunk) - Advanced Materials & Catalysts segment sales **decreased by $4,799 thousand (16.6%)** for the three months ended June 30, 2025, mainly in Polyethylene, polymers & engineered plastics[33](index=33&type=chunk) [4. Fair Value Measurements](index=12&type=section&id=4.%20Fair%20Value%20Measurements) | Derivative Type (in thousands) | June 30, 2025 (Level 2) | December 31, 2024 (Level 2) | | :----------------------------- | :---------------------- | :-------------------------- | | Derivative assets: Interest rate caps | $4,296 | $12,500 | | Derivative liabilities: Interest rate caps | $1,628 | $710 | - The Company's interest rate caps are fair valued using **Level 2 inputs**, reflecting observable market data[38](index=38&type=chunk)[41](index=41&type=chunk) - In July 2024, Ecovyst made a **$4,500 thousand minority equity investment** in Pajarito Powder LLC, recorded in other long-term assets[43](index=43&type=chunk)[44](index=44&type=chunk) [5. Stockholders' Equity](index=14&type=section&id=5.%20Stockholders%27%20Equity) | AOCI Component (in thousands) | Six months ended June 30, 2025 (After-tax) | Six months ended June 30, 2024 (After-tax) | | :---------------------------- | :----------------------------------------- | :----------------------------------------- | | Defined benefit and other postretirement plans, net | $170 | $524 | | Net (loss) gain from hedging activities | $(6,714) | $2,789 | | Foreign currency translation | $13,113 | $(2,363) | | Total other comprehensive income | $6,569 | $950 | - The Company **repurchased 2,926,152 shares for $21,859 thousand** during the six months ended June 30, 2025, under its **$450,000 thousand stock repurchase program**, with **$207,735 thousand remaining available**[50](index=50&type=chunk) - Tax withholdings on equity award vesting resulted in **189,446 shares delivered** to the Company for **$1,477 thousand** during the six months ended June 30, 2025[52](index=52&type=chunk) [6. Goodwill](index=17&type=section&id=6.%20Goodwill) | Segment (in thousands) | Balance as of December 31, 2024 | Goodwill recognized (Note 7) | Foreign exchange impact | Balance as of June 30, 2025 | | :--------------------- | :------------------------------ | :--------------------------- | :---------------------- | :-------------------------- | | Ecoservices | $326,589 | $363 | — | $326,952 | | Advanced Materials & Catalysts | $77,513 | — | $2,284 | $79,797 | | Total | $404,102 | $363 | $2,284 | $406,749 | - Goodwill **increased by $2,647 thousand to $406,749 thousand** as of June 30, 2025, primarily due to the Cornerstone acquisition (**$363 thousand**) and foreign exchange impact (**$2,284 thousand**) in the Advanced Materials & Catalysts segment[53](index=53&type=chunk) - No impairment events were identified during the six months ended June 30, 2025, but a prolonged unfavorable outcome of the strategic review for the Advanced Materials & Catalysts segment **could lead to future impairment charges**[54](index=54&type=chunk)[55](index=55&type=chunk) [7. Acquisition](index=18&type=section&id=7.%20Acquisition) - On May 6, 2025, Ecovyst **acquired sulfuric acid production assets** from Cornerstone Chemical Company LLC for **$41,315 thousand in cash**, including a **$35,000 thousand purchase price** and **$6,315 thousand in working capital adjustments**[58](index=58&type=chunk) | Acquired Asset (in thousands) | Preliminary Purchase Price Allocation | | :---------------------------- | :------------------------------------ | | Accounts receivable | $9,812 | | Inventories | $3,055 | | Property, plant and equipment | $25,000 | | Other intangible assets | $2,390 | | Other long-term assets | $695 | | Goodwill | $363 | | **Total assets acquired** | **$41,315** | - Acquisition and integration costs totaled **$2,755 thousand** for the six months ended June 30, 2025, recorded in other operating expense, net[63](index=63&type=chunk) [8. Other Operating Expense, Net](index=19&type=section&id=8.%20Other%20Operating%20Expense%20(Net)) | Expense Category (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Amortization expense | $2,655 | $2,644 | $5,298 | $5,289 | | Transaction and other related costs | $2,661 | $140 | $4,528 | $198 | | Restructuring, integration and business optimization costs | $1,030 | $159 | $1,167 | $385 | | Net loss (gain) on asset disposals | $250 | $(34) | $417 | $614 | | Other, net | $2,656 | $199 | $3,023 | $288 | | **Total other operating expense, net** | **$9,252** | **$3,108** | **$14,433** | **$6,774** | - Total other operating expense, net, **increased significantly by $6,144 thousand (197.7%)** for the three months ended June 30, 2025, and by **$7,659 thousand (113.1%)** for the six months ended June 30, 2025, primarily due to higher transaction costs, restructuring costs, and other expenses[65](index=65&type=chunk) [9. Inventories, Net](index=19&type=section&id=9.%20Inventories%2C%20Net) | Inventory Category (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Finished products and work in process | $60,466 | $54,124 | | Raw materials | $6,434 | $3,002 | | **Total inventories, net** | **$66,900** | **$57,126** | | Valued at lower of cost or market: LIFO basis | $38,702 | $31,650 | | Valued at lower of cost and net realizable value: FIFO or average cost basis | $28,198 | $25,476 | - Total inventories, net, **increased by $9,774 thousand (17.1%)** from December 31, 2024, to June 30, 2025, with significant increases in both finished products and raw materials[66](index=66&type=chunk) [10. Investments in Affiliated Companies](index=20&type=section&id=10.%20Investments%20in%20Affiliated%20Companies) - Ecovyst holds **50% ownership** in two equity method affiliated companies: **Zeolyst International (USA)** and **Zeolyst C.V. (Netherlands)**[68](index=68&type=chunk) | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Sales | $68,579 | $70,644 | $158,109 | $127,505 | | Net income | $5,076 | $4,665 | $23,727 | $12,010 | - The Company's share of net income from affiliated companies **increased by $0.5 million** for the three months ended June 30, 2025, and by **$7.3 million** for the six months ended June 30, 2025, primarily due to higher earnings from the Zeolyst Joint Venture[68](index=68&type=chunk)[161](index=161&type=chunk)[188](index=188&type=chunk) [11. Long-term Debt](index=21&type=section&id=11.%20Long-term%20Debt) | Debt Component (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | 2025 Term Loan Facility | $866,453 | $870,817 | | Total debt, net of original issue discount and deferred financing costs | $856,614 | $860,829 | | Total long-term debt, excluding current portion | $847,884 | $852,099 | - The Company amended its Term Loan Credit Agreement in January 2025, reducing the interest rate for SOFR term loans to **Term SOFR plus 2.00%** and for base rate term loans to the **alternate base rate plus 1.00%**[75](index=75&type=chunk) - The ABL Credit Agreement was amended in April 2025, extending the maturity to **April 10, 2030**, and reallocating European revolving loan commitments to the U.S[78](index=78&type=chunk) - The fair value of the Company's term loan facility was **$859,954 thousand** as of June 30, 2025, classified as **Level 2**[79](index=79&type=chunk) [12. Financial Instruments](index=22&type=section&id=12.%20Financial%20Instruments) - Ecovyst uses interest rate cap agreements to hedge exposure to changes in interest rates on its variable-rate debt, designating them as cash flow hedges[80](index=80&type=chunk)[83](index=83&type=chunk) | Financial Instrument | Number of instruments | Current notional amount (in thousands) | Annuitized premium (in thousands) | Cap rate in effect | | :------------------- | :-------------------- | :------------------------------------- | :-------------------------------- | :----------------- | | Interest rate caps | 4 | $625,000 | $35,285 | 1.00 % | - The fair value of derivative assets (interest rate caps) **decreased from $12,500 thousand** at December 31, 2024, to **$4,296 thousand** at June 30, 2025, while derivative liabilities **increased from $710 thousand to $1,628 thousand**[86](index=86&type=chunk) - An estimated **$4,137 thousand of net unrealized gains** in AOCI related to cash flow hedges is expected to be reclassified to income over the next twelve months[88](index=88&type=chunk) [13. Income Taxes](index=24&type=section&id=13.%20Income%20Taxes) | Period | Effective Income Tax Rate | | :-------------------- | :------------------------ | | Three months ended June 30, 2025 | 25.6% | | Three months ended June 30, 2024 | 27.1% | | Six months ended June 30, 2025 | 38.8% | | Six months ended June 30, 2024 | 30.9% | - The effective income tax rate for the six months ended June 30, 2025, **increased to 38.8% from 30.9%** in the prior year, primarily due to increased discrete tax impact relative to pre-tax book income from stock compensation shortfall, state tax law changes, and accrued penalties/interest on uncertain tax positions[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) - The Company is currently assessing the impact of the recently enacted H.R.1, the One Big Beautiful Bill Act (OBBBA), on its financial statements, with certain provisions effective in 2025 and others through 2027[92](index=92&type=chunk) [14. Benefit Plans](index=24&type=section&id=14.%20Benefit%20Plans) | Plan Type | Three months ended June 30, 2025 (Net periodic expense (benefit)) | Three months ended June 30, 2024 (Net periodic expense (benefit)) | Six months ended June 30, 2025 (Net periodic expense (benefit)) | Six months ended June 30, 2024 (Net periodic expense (benefit)) | | :-------------------- | :-------------------------------------------------------------- | :-------------------------------------------------------------- | :-------------------------------------------------------------- | :-------------------------------------------------------------- | | Defined Benefit Pension Plans | $11 | $(25) | $24 | $(44) | | Other Postretirement Benefit Plan | $6 | $(1) | $11 | $(4) | - Net periodic expense for Defined Benefit Pension Plans **shifted from a benefit of $(25) thousand** in Q2 2024 to an **expense of $11 thousand** in Q2 2025[93](index=93&type=chunk) - All components of net periodic expense (benefit) are presented within other expense, net, in the **condensed consolidated statements of income**[94](index=94&type=chunk) [15. Commitments and Contingent Liabilities](index=25&type=section&id=15.%20Commitments%20and%20Contingent%20Liabilities) - The Company is subject to **various legal claims and proceedings**, including personal injury, product liability, waste disposal, and chemical release matters[95](index=95&type=chunk) - Management believes that there will be **no material adverse effect** on its condensed consolidated financial position, results of operations, or liquidity from these matters[95](index=95&type=chunk) [16. Related Party Transactions](index=25&type=section&id=16.%20Related%20Party%20Transactions) - Ecovyst has a 50/50 joint venture, Zeolyst International (the "Partnership"), with Shell Catalysts & Technologies[97](index=97&type=chunk) - The Partnership leases land from Ecovyst, with rental payments of **$78 thousand** for both the three and six months ended June 30, 2025 and 2024, included in cost of goods sold[97](index=97&type=chunk) - Ecovyst charged the Partnership **$5,142 thousand** for raw materials and manufacturing costs for the three months ended June 30, 2025, and **$4,121 thousand** for administrative, marketing, engineering, management, and R&D services[98](index=98&type=chunk)[99](index=99&type=chunk) [17. Reportable Segments](index=26&type=section&id=17.%20Reportable%20Segments) | Segment (in thousands) | Three months ended June 30, 2025 (Sales) | Three months ended June 30, 2024 (Sales) | Six months ended June 30, 2025 (Sales) | Six months ended June 30, 2024 (Sales) | | :--------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Ecoservices | $176,065 | $153,958 | $319,175 | $295,560 | | Advanced Materials & Catalysts | $24,063 | $28,862 | $43,151 | $47,797 | | **Total Sales** | **$200,128** | **$182,820** | **$362,326** | **$343,357** | | | Three months ended June 30, 2025 (Adjusted EBITDA) | Three months ended June 30, 2024 (Adjusted EBITDA) | Six months ended June 30, 2025 (Adjusted EBITDA) | Six months ended June 30, 2024 (Adjusted EBITDA) | | Ecoservices | $49,772 | $49,709 | $78,296 | $91,203 | | Advanced Materials & Catalysts | $13,717 | $14,717 | $31,221 | $25,846 | | **Adjusted EBITDA from reportable segments** | **$63,489** | **$64,426** | **$109,517** | **$117,049** | - Ecoservices sales **increased by 14.4%** for the three months and **7.9%** for the six months ended June 30, 2025, driven by higher average selling prices from sulfur cost pass-through and favorable contractual pricing[103](index=103&type=chunk)[154](index=154&type=chunk)[181](index=181&type=chunk) - Advanced Materials & Catalysts sales **decreased by 16.6%** for the three months and **9.6%** for the six months ended June 30, 2025, primarily due to the timing of niche custom catalysts sales[103](index=103&type=chunk)[156](index=156&type=chunk)[183](index=183&type=chunk) - Adjusted EBITDA for Ecoservices **remained stable** in Q2 2025 but **decreased by 14.1%** for the six-month period due to lower volumes and higher manufacturing costs[103](index=103&type=chunk)[170](index=170&type=chunk)[200](index=200&type=chunk) - Adjusted EBITDA for Advanced Materials & Catalysts **decreased by 6.8%** in Q2 2025 but **increased by 20.9%** for the six-month period, driven by higher sales volume within the Zeolyst Joint Venture[103](index=103&type=chunk)[171](index=171&type=chunk)[201](index=201&type=chunk) [18. Stock-Based Compensation](index=29&type=section&id=18.%20Stock-Based%20Compensation) - Ecovyst granted **985,551 RSUs** and **508,109 PSUs (at target)** during the six months ended June 30, 2025, under its equity incentive plan[109](index=109&type=chunk)[110](index=110&type=chunk) - Stock-based compensation expense was **$3,395 thousand** for Q2 2025 and **$6,467 thousand** for the six months ended June 30, 2025[117](index=117&type=chunk)[118](index=118&type=chunk) - Unrecognized compensation cost as of June 30, 2025, was **$11,333 thousand** for RSUs (**1.81 years weighted-average period**) and **$7,264 thousand** for PSUs (**1.99 years weighted-average period**)[119](index=119&type=chunk) [19. Earnings per Share](index=31&type=section&id=19.%20Earnings%20per%20Share) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income | $5,986 | $8,295 | $2,389 | $9,516 | | Basic income per share | $0.05 | $0.07 | $0.02 | $0.08 | | Diluted income per share | $0.05 | $0.07 | $0.02 | $0.08 | - Basic and diluted EPS **decreased from $0.07 to $0.05** for the three months ended June 30, 2025, and **from $0.08 to $0.02** for the six months ended June 30, 2025[123](index=123&type=chunk) - Anti-dilutive RSUs, PSUs, and stock options totaling **1,535,776** for Q2 2025 and **1,158,741** for the six months ended June 30, 2025, were excluded from diluted EPS calculations[123](index=123&type=chunk) [20. Supplemental Cash Flow Information](index=32&type=section&id=20.%20Supplemental%20Cash%20Flow%20Information) | Cash Flow Item (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | | Cash paid for Income taxes, net of refunds | $8,837 | $16,439 | | Cash paid for Interest | $23,370 | $33,155 | | Capital expenditures acquired on account but unpaid | $2,135 | $784 | | Accrued excise tax on share repurchases | $151 | — | | Right-of-use assets obtained in exchange for new lease liabilities | $8,863 | $2,957 | - Cash paid for income taxes **decreased by $7,602 thousand**, and cash paid for interest **decreased by $9,785 thousand** for the six months ended June 30, 2025, compared to the prior year[125](index=125&type=chunk) [21. Subsequent Events](index=32&type=section&id=21.%20Subsequent%20Events) - The Company has evaluated subsequent events since the balance sheet date and determined that there are **no additional items to disclose**[126](index=126&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis of Ecovyst's financial condition and results, covering KPIs, liquidity, and accounting policies [Forward-looking Statements](index=33&type=section&id=Forward-looking%20Statements) - The report contains forward-looking statements regarding future events, financial results, business strategy, and liquidity, which are subject to **various risks and uncertainties**[128](index=128&type=chunk)[129](index=129&type=chunk) - Key risks include global business exposure, economic downturns, exchange rate fluctuations, competition, indebtedness, inflation, supply chain disruptions, and the outcome of the **strategic review for the Advanced Materials & Catalysts segment**[130](index=130&type=chunk)[135](index=135&type=chunk) [Overview](index=34&type=section&id=Overview) - Ecovyst is a global provider of advanced materials, specialty catalysts, virgin sulfuric acid, and sulfuric acid regeneration services, operating through two segments: **Ecoservices** and **Advanced Materials & Catalysts segments**[132](index=132&type=chunk) - **Ecoservices** is a leading provider of sulfuric acid recycling to the North American refining industry and a producer of virgin sulfuric acid for industrial and mining applications[133](index=133&type=chunk) - **Advanced Materials & Catalysts** supplies finished silica catalysts and functionalized silicas, and includes a **50% interest in the Zeolyst Joint Venture**, a supplier of specialty zeolites for sustainable fuels and emission control[134](index=134&type=chunk) [Stock Repurchase Program](index=34&type=section&id=Stock%20Repurchase%20Program) - The Board approved a **$450.0 million stock repurchase program** on April 27, 2022, over a four-year period[135](index=135&type=chunk) - For the six months ended June 30, 2025, the Company **repurchased 2,926,152 shares for $21.9 million** at an average price of **$7.47 per share**[135](index=135&type=chunk) - As of June 30, 2025, **$207.7 million remained available** for share repurchases under the program[136](index=136&type=chunk) [Key Performance Indicators](index=35&type=section&id=Key%20Performance%20Indicators) - Ecovyst uses non-GAAP financial measures like **Adjusted EBITDA**, **Adjusted Net Income**, and **Net Debt** to evaluate operating performance and for business planning[138](index=138&type=chunk) - Adjusted EBITDA excludes non-operating income/expense, non-cash/nonrecurring items, and includes depreciation, amortization, and interest from the **50% share of the Zeolyst Joint Venture**[138](index=138&type=chunk) [Key Factors and Trends Affecting Operating Results and Financial Condition](index=35&type=section&id=Key%20Factors%20and%20Trends%20Affecting%20Operating%20Results%20and%20Financial%20Condition) - Both **Ecoservices** and **Advanced Materials & Catalysts segments** benefited from positive demand trends, with strong demand for refined products supporting high refinery utilization and global polyethylene demand[141](index=141&type=chunk) - Approximately **90% of Ecoservices segment sales for FY2024** were under contracts with quarterly price adjustments, protecting against volatility in raw material, labor, and natural gas costs[144](index=144&type=chunk)[145](index=145&type=chunk) - The regeneration services product group in Ecoservices experiences seasonal fluctuations, with **higher sales and working capital requirements in the second and third quarters** due to increased summer gasoline demand[147](index=147&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) [Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024](index=36&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20the%20Three%20Months%20Ended%20June%2030%2C%202024) | Metric (in millions) | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :------------------- | :------ | :------ | :--------- | :--------- | | Sales | $200.1 | $182.8 | $17.3 | 9.5% | | Gross profit | $49.7 | $53.7 | $(4.0) | (7.4)% | | Operating income | $17.8 | $27.9 | $(10.1) | (36.2)% | | Net income | $6.0 | $8.3 | $(2.3) | (27.7)% | | Adjusted EBITDA | $55.7 | $56.9 | $(1.2) | (2.1)% | - Ecoservices sales **increased by $22.1 million (14.4%)** due to higher average selling prices from sulfur cost pass-through and favorable contractual pricing, partially offset by lower regeneration services volume[154](index=154&type=chunk)[155](index=155&type=chunk) - Advanced Materials & Catalysts sales **decreased by $4.8 million (16.6%)** due to the timing of event-driven, niche custom catalysts sales[156](index=156&type=chunk) - Gross profit **decreased by $4.0 million**, primarily due to lower sales volume/mix and higher manufacturing costs, despite higher average selling prices (excluding sulfur pass-through)[157](index=157&type=chunk) - Other operating expense, net, **increased by $6.1 million**, driven by higher litigation and tax charges, restructuring costs, and transaction costs[160](index=160&type=chunk) - Interest expense, net, **decreased by $1.8 million** due to lower variable rates and reduced spread from the 2025 Term Loan refinancing[162](index=162&type=chunk) [Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024](index=42&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20the%20Six%20Months%20Ended%20June%2030%2C%202024) | Metric (in millions) | H1 2025 | H1 2024 | Change ($) | Change (%) | | :------------------- | :------ | :------ | :--------- | :--------- | | Sales | $362.3 | $343.4 | $18.9 | 5.5% | | Gross profit | $75.3 | $92.9 | $(17.6) | (18.9)% |\ | Operating income | $16.9 | $41.8 | $(24.9) | (59.6)% | | Net income | $2.4 | $9.5 | $(7.1) | (74.7)% | | Adjusted EBITDA | $94.6 | $102.4 | $(7.8) | (7.6)% | - Ecoservices sales **increased by $23.5 million (7.9%)** due to higher average selling prices, including a **$27 million pass-through of sulfur costs**, partially offset by lower sales volume from customer downtime and maintenance[181](index=181&type=chunk)[182](index=182&type=chunk) - Advanced Materials & Catalysts sales **decreased by $4.6 million (9.6%)** due to timing of niche custom catalysts sales and lower sales of advanced silicas[183](index=183&type=chunk) - Gross profit **decreased by $17.6 million**, primarily from lower sales volume (**$10.2 million**) and higher manufacturing costs (**$12.7 million**, excluding sulfur pass-through)[184](index=184&type=chunk) - Equity in net income of affiliated companies **increased by $7.3 million**, driven by higher hydrocracking and specialty catalyst sales from the Zeolyst Joint Venture[188](index=188&type=chunk) - Debt modification and extinguishment costs **decreased by $3.6 million**, with **$1.0 million** recorded in H1 2025 for the January 2025 Term Loan amendment[190](index=190&type=chunk)[191](index=191&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=48&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, Ecovyst had **$69.6 million in cash and cash equivalents** and **$82.9 million available** under its ABL Facility, totaling **$152.5 million in liquidity**[207](index=207&type=chunk) - The Company was in compliance with **all debt covenants** under the 2025 Term Loan Facility and ABL Facility as of June 30, 2025[209](index=209&type=chunk) - Cash paid for interest **decreased to $23.4 million** for the six months ended June 30, 2025, from **$33.2 million** in the prior year[211](index=211&type=chunk) - Net cash used in investing activities **significantly increased to $90.8 million**, primarily due to the **$41.3 million acquisition** of Cornerstone's sulfuric acid production assets[216](index=216&type=chunk) - Net cash used in financing activities **increased to $29.4 million**, mainly driven by higher repurchases of common stock[217](index=217&type=chunk) [Capital Expenditures](index=50&type=section&id=Capital%20Expenditures) | Capital Expenditure Type (in millions) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | | Maintenance capital expenditures | $36.5 | $28.3 | | Growth capital expenditures | $9.4 | $5.2 | | **Total capital expenditures** | **$45.9** | **$33.5** | - Total capital expenditures **increased by $12.4 million** for the six months ended June 30, 2025, compared to the prior year[220](index=220&type=chunk) - Growth capital expenditures **increased** due to the planned expansion of the Kansas City, Kansas silica catalyst production facility and infrastructure upgrades at the West Orange, Texas facility[220](index=220&type=chunk) [Critical Accounting Policies and Estimates](index=50&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - The Company's critical accounting policies and estimates **remain consistent** with those described in its Annual Report on Form 10-K[221](index=221&type=chunk)[222](index=222&type=chunk) - No events or circumstances were identified during the six months ended June 30, 2025, that would **reduce the fair value of reporting units or intangible assets below their carrying values**[223](index=223&type=chunk) - The estimated fair value of the Advanced Materials & Catalysts reporting unit **exceeded its carrying value by over 15%** as of October 1, 2024, but a prolonged unfavorable strategic review **could lead to impairment charges**[224](index=224&type=chunk) [Accounting Standards Not Yet Adopted](index=50&type=section&id=Accounting%20Standards%20Not%20Yet%20Adopted) - Refer to Note 2 of the condensed consolidated financial statements for a discussion of **recently issued accounting standards** and their potential effect[225](index=225&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Addresses Ecovyst's exposure to market risks, including foreign currency, interest rate, and credit risk, with no material changes reported - Ecovyst's primary market risk exposures are **foreign currency exchange rate risk**, **interest rate risk**, and **credit risk**[226](index=226&type=chunk) - The Company does not use financial instruments for speculative purposes and limits hedging activity to **underlying economic exposure**[226](index=226&type=chunk) - **No material changes** in market risks were reported compared to the Annual Report on Form 10-K[227](index=227&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were not effective due to a material weakness in accounting for the Zeolyst Joint Venture, with a remediation plan underway - Ecovyst's disclosure controls and procedures were deemed **not effective** as of June 30, 2025, due to a **material weakness in internal control over financial reporting**[229](index=229&type=chunk) - The material weakness relates to **insufficient controls** to ensure complete, accurate, and timely recording of the proportionate share of earnings from the **Zeolyst Joint Venture**[232](index=232&type=chunk) - Despite the material weakness, the CEO and CFO believe the unaudited condensed consolidated financial statements are **fairly stated in all material respects**[230](index=230&type=chunk) - A plan is being developed to **remediate the material weakness** by designing and implementing appropriate controls for Zeolyst Joint Venture earnings[233](index=233&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) Ecovyst is subject to various legal claims, but management believes no pending litigation will materially affect its financial position or operations - The Company is subject to **various legal claims and proceedings**, including personal injury, product liability, waste disposal, and chemical release matters[235](index=235&type=chunk) - Management believes **no pending litigation is likely to have a material adverse effect** on the business[235](index=235&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) Refers to risk factors from the Annual Report on Form 10-K, with no material changes to these risks - There have been **no material changes** from the risk factors described in the Company's Annual Report on Form 10-K[236](index=236&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Ecovyst repurchased 2,926,152 shares for $21.9 million under its stock repurchase program in Q2 2025, with $207.7 million remaining | Period (2025) | Total shares purchased | Average price paid per share | Total shares purchased under plan | Max. dollar value remaining (in thousands) | | :------------ | :--------------------- | :--------------------------- | :-------------------------------- | :----------------------------------------- | | April | — | $— | — | $229,594 | | May | 1,982,470 | $7.28 | 1,982,470 | $215,154 | | June | 943,682 | $7.86 | 943,682 | $207,735 | | **Total** | **2,926,152** | | | | - The Company **repurchased 2,926,152 shares for $21.9 million** during Q2 2025 under its **$450 million stock repurchase program**[237](index=237&type=chunk)[239](index=239&type=chunk) - As of June 30, 2025, **$207.7 million was still available** for repurchases under the program[237](index=237&type=chunk)[239](index=239&type=chunk) [Item 5. Other Information](index=52&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted, modified, or terminated trading arrangements during the quarter - **No directors or executive officers adopted, modified, or terminated** Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[238](index=238&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) Lists exhibits filed as part of the Quarterly Report, including amendment agreements, CEO/CFO certifications, and Inline XBRL financial statements - Exhibits include the **Fifth Amendment Agreement** to the ABL Credit Agreement (Exhibit 10.1), **CEO and CFO certifications** (Exhibits 31.1, 31.2, 32.1, 32.2), and **Inline XBRL formatted financial statements** (Exhibit 101, 104)[240](index=240&type=chunk)

Financial Data and Key Metrics Changes - In Q2 2025, adjusted EBITDA was just under $56 million, exceeding the high end of guidance range [12] - Adjusted free cash flow was a use of $2 million compared to a use of $14 million in 2024, with guidance raised to $70 million to $80 million for the year [17][21] - Net debt leverage ratio rose to 3.5 times from 3.2 times at the end of the prior quarter, primarily due to the acquisition and share repurchases [18][19] Business Line Data and Key Metrics Changes - Ecoservices sales increased by 14% compared to 2024, driven by favorable pricing and the addition of the Wagaman site [5] - Eco Services sales were $176 million, up $22 million year-over-year, with adjusted EBITDA for Eco Services at $49.8 million, unchanged from 2024 [14][15] - Advanced Silicas sales decreased to $24 million from $29 million in the prior year, primarily due to lower custom catalyst sales [15][16] Market Data and Key Metrics Changes - Demand fundamentals for Eco Services remained stable, with high refinery utilization supporting regeneration services [7] - The outlook for virgin sulfuric acid demand remains positive, with expectations for stronger sales in the mining sector as expansion projects come online [7][26] - Sales in the Zeolyst joint venture were projected to be strong, with expectations for hydrocracking catalyst sales to surpass 2024 levels [9][21] Company Strategy and Development Direction - The company closed the acquisition of the sulfuric acid production assets of Cornerstone Chemical Company, with ongoing integration expected to yield meaningful synergies [6] - Focus on emerging technologies for growth opportunities, including advanced silicas for biocatalysis and carbon capture applications [8][26] - The company is taking an opportunistic approach to share repurchases while targeting a long-term leverage ratio of 2 to 2.5 times [19][49] Management's Comments on Operating Environment and Future Outlook - The operating environment remains challenging due to global production overcapacity and pricing pressures, but the company has demonstrated resilience [25] - Anticipated strong sales performance for hydrocracking catalysts in 2025, supported by a substantial order book [26] - The company expects stable demand fundamentals across most end uses for the remainder of the year, with some caution regarding polyethylene sales due to trade uncertainties [20][33] Other Important Information - The company repurchased 2.9 million shares of common stock for approximately $22 million during the quarter [6] - The Kansas City expansion project is expected to support growth in customer demand as expansion projects come online in 2026 and 2027 [8] - The strategic review of the Advanced Materials and Catalysts segment is ongoing, with updates expected in the near future [27] Q&A Session Summary Question: Initial indications from customers regarding new EPA guidelines for renewable fuel volume - Management is encouraged by the new requirements but noted it is still early as the guidelines are draft [30][32] Question: Outlook for polyethylene sales amid trade uncertainty - Management acknowledged global polyethylene utilization rates have been impacted but still expects year-over-year sales growth [33] Question: Update on synergies from the Cornerstone acquisition - Management believes the acquisition will provide additional opportunities and integration is progressing well [37][38] Question: Sensitivity of the business to proposed RVO changes - Management indicated that increased RVO will drive utilization and lead to more frequent catalyst changeouts, translating into growth [52] Question: Visibility on nylon and mining demand - Management expects year-over-year growth in virgin sulfuric acid sales, with strong momentum in mining due to new projects [54][56] Question: Timeline for Wagaman to contribute to free cash flow - Management does not expect significant free cash flow from Wagaman this year but anticipates positive contributions in 2026 [59] Question: Order timing implications for 2026 - Management expects order timing shifts will not materially impact 2026 [64]

Financial Performance - Q2 2025 - GAAP Sales reached $200 million[9] - Adjusted EBITDA was $56 million[9] - Adjusted EBITDA Margin was 24%, including a proportionate 50% share of sales from the Zeolyst Joint Venture of $28 million[9, 10] - Adjusted Free Cash Flow was negative $(2) million[9] - Net Debt Leverage Ratio was 35x[9] Segment Performance - Q2 2025 - Ecoservices sales increased by 144% due to favorable contractual pricing and pass-through of higher sulfur costs, reaching $176 million[7, 18] - Advanced Silicas sales decreased by 166% due to timing of sales for niche custom catalysts, amounting to $241 million[7, 20] - Zeolyst Joint Venture sales decreased slightly by 21% due to timing of sales for hydrocracking and custom catalysts, totaling $284 million[7, 20] Cash Flow and Capital Allocation - The company repurchased 29 million shares totaling approximately $22 million[7] - Available liquidity was $152 million, including $69 million in cash and cash equivalents and $83 million availability on the revolving ABL facility[9, 10] 2025 Outlook - Revised sales outlook is $795 million - $835 million[32] - Revised Adjusted EBITDA outlook is $242 million - $254 million[32] - Revised Adjusted Free Cash Flow outlook is $70 million - $80 million[32]

Core Insights - Ecovyst (ECVT) reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, with an earnings surprise of +9.09% [1] - The company posted revenues of $200.1 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.31%, compared to year-ago revenues of $182.8 million [2] - Ecovyst shares have increased approximately 9.8% year-to-date, outperforming the S&P 500's gain of 7.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $214.81 million, and for the current fiscal year, it is $0.66 on revenues of $810.56 million [7] - The estimate revisions trend for Ecovyst was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Chemical - Specialty industry, to which Ecovyst belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Ecovyst reported Q2 2025 sales growth and strong Adjusted EBITDA, alongside strategic acquisitions, share repurchases, and an ongoing segment review [Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) Ecovyst reported Q2 2025 results with sales increasing by 9.5% year-over-year to $200.1 million, driven by demand fundamentals. Adjusted EBITDA reached $55.7 million, at the high end of guidance, though slightly down from the prior year. Net income decreased, while Adjusted Net Income showed resilience - Ecovyst delivered **Adjusted EBITDA of $55.7 million**, at the high end of its guidance range, with demand fundamentals generally in line with expectations[4](index=4&type=chunk) Q2 2025 and YTD 2025 Financial Performance | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | YTD 2025 (Millions) | YTD 2024 (Millions) | YTD Change | | :-------------------------------- | :------------------- | :------------------- | :--------- | :------------------ | :------------------ | :--------- | | Sales | $200.1 | $182.8 | 9.5% | $362.3 | $343.4 | 5.5% | | Net Income | $6.0 | $8.3 | (27.7)% | $2.4 | $9.5 | (74.7)% | | Diluted Net Income per share | $0.05 | $0.07 | - | $0.02 | $0.08 | - | | Adjusted Net Income | $13.7 | $14.1 | (2.8)% | $15.2 | $19.2 | (20.8)% | | Adjusted Diluted Income per share | $0.12 | $0.12 | 0% | $0.13 | $0.16 | (18.8)% | | Adjusted EBITDA | $55.7 | $56.9 | (2.1)% | $94.6 | $102.4 | (7.6)% | | Adjusted EBITDA Margin | 24.4% | 26.8% | (2.4) pp | 22.1% | 25.9% | (3.8) pp | | Cash flows from operating activities (YTD) | $43.3 | $46.4 | (6.7)% | - | - | - | | Adjusted Free Cash Flow (YTD) | $(2.4) | $14.4 | (116.7)% | - | - | - | [Strategic Initiatives and Capital Allocation](index=1&type=section&id=Strategic%20Initiatives%20and%20Capital%20Allocation) Ecovyst completed the acquisition of Waggaman, Louisiana sulfuric acid production assets for $35.0 million, expecting future benefits and synergies. The company also repurchased 2.9 million shares of common stock for approximately $22 million during the quarter, continuing its capital allocation program. A strategic review of the Advanced Materials & Catalysts segment is ongoing - Completed the acquisition of the Waggaman, Louisiana sulfuric acid production assets from Cornerstone Chemical Company for **$35.0 million** and customary working capital adjustments of **$6.3 million**[5](index=5&type=chunk)[6](index=6&type=chunk) - Repurchased **2.9 million shares** of common stock totaling approximately **$22 million** during the quarter, with **$207.7 million** remaining available under the **$450 million** stock repurchase program[5](index=5&type=chunk)[6](index=6&type=chunk)[14](index=14&type=chunk) - Steady progress is being made on the strategic review of the Advanced Materials & Catalysts segment, with an update anticipated in the near future[5](index=5&type=chunk) [Segment Performance Review](index=2&type=section&id=Segment%20Performance%20Review) Ecoservices sales increased due to higher sulfur costs and pricing, while Advanced Materials & Catalysts sales decreased due to timing of niche custom catalyst sales [Ecoservices Segment](index=2&type=section&id=Ecoservices%20Segment) The Ecoservices segment experienced a 14.4% increase in Q2 2025 sales to $176.0 million, primarily due to higher sulfur costs pass-through, favorable contractual pricing for regeneration services, strong virgin sulfuric acid pricing, and the Waggaman acquisition. Adjusted EBITDA remained flat at $49.8 million, as lower regeneration services volume and higher manufacturing costs offset pricing gains and reduced turnaround costs Ecoservices Segment Performance | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :----------------- | :------------------- | :------------------- | :--------- | | Sales | $176.0 | $153.9 | 14.4% | | Adjusted EBITDA | $49.8 | $49.7 | 0.2% | | Adjusted EBITDA Margin | 28.3% | 32.3% | (4.0) pp | - Sales increase driven by pass-through of higher sulfur costs, favorable contractual pricing for regeneration services, strong virgin sulfuric acid pricing, and sales contribution from the Waggaman acquisition[7](index=7&type=chunk) - Adjusted EBITDA was largely offset by lower regeneration services volume due to unplanned customer downtime and higher anticipated manufacturing costs from general inflation[7](index=7&type=chunk) [Advanced Materials & Catalysts Segment](index=2&type=section&id=Advanced%20Materials%20%26%20Catalysts%20Segment) The Advanced Materials & Catalysts segment saw a 16.6% decrease in Q2 2025 sales to $24.1 million, mainly due to the timing of niche custom catalyst sales. The Zeolyst Joint Venture's proportionate sales also slightly decreased by 2.1% to $28.4 million, reflecting lower hydrocracking and custom catalyst sales, partially offset by sustainable fuels and other specialty catalysts. Segment Adjusted EBITDA declined by 6.8% to $13.7 million, primarily due to lower sales volume and mix Advanced Materials & Catalysts Segment Performance | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :-------------------------------- | :------------------- | :------------------- | :--------- | | Advanced Silicas Sales | $24.1 | $28.9 | (16.6)% | | Zeolyst Joint Venture Sales (50% share) | $28.4 | $29.0 | (2.1)% | | Adjusted EBITDA | $13.7 | $14.7 | (6.8)% | | Adjusted EBITDA Margin | 26.1% | 25.4% | 0.7 pp | - Decrease in Advanced Silicas sales primarily resulted from lower event-driven niche custom catalyst sales related to order timing[8](index=8&type=chunk) - Zeolyst Joint Venture sales reduction reflects lower hydrocracking and custom catalysts sales, partially offset by higher sales of catalysts for sustainable fuels and other specialty catalysts[8](index=8&type=chunk) [Financial Position & Cash Flows](index=2&type=section&id=Financial%20Position%20%26%20Cash%20Flows) Operating cash flows decreased year-over-year, while the company maintained substantial liquidity and managed its debt position [Cash Flows and Balance Sheet](index=2&type=section&id=Cash%20Flows%20and%20Balance%20Sheet) Cash flows from operating activities for the six months ended June 30, 2025, decreased to $43.3 million from $46.4 million in the prior year, mainly due to dividend timing from the Zeolyst Joint Venture and lower earnings. The company maintained total available liquidity of $152.5 million, with cash and cash equivalents of $69.6 million and total gross debt of $866.5 million Cash Flows and Balance Sheet Metrics | Metric | June 30, 2025 (Millions) | June 30, 2024 (Millions) | YoY Change | | :-------------------------------- | :----------------------- | :----------------------- | :--------- | | Cash flows from operating activities (YTD) | $43.3 | $46.4 | (6.7)% | | Cash and cash equivalents | $69.6 | $83.3 | (16.4)% | | Total gross debt | $866.5 | $873.0 | (0.7)% | | Availability under ABL facility | $82.9 | - | - | | Total available liquidity | $152.5 | - | - | | Net Debt Leverage Ratio (TTM) | 3.5x | 3.3x | 0.2x | - Decrease in operating cash flow primarily driven by the timing of dividends received from the Zeolyst Joint Venture and lower earnings, partially offset by changes in working capital[9](index=9&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Ecovyst updated its full-year 2025 guidance, tightening Adjusted EBITDA and increasing sales expectations, while providing Q3 guidance and assessing tariff impacts [Full-Year 2025 Guidance](index=2&type=section&id=Full-Year%202025%20Guidance) Ecovyst maintained the midpoint of its full-year 2025 Adjusted EBITDA guidance while tightening the range to $242 million to $254 million. Sales guidance was increased to $795 million to $835 million, reflecting the Waggaman acquisition and anticipated higher sulfur prices. The company expects continued strong performance in Ecoservices and year-over-year growth in Advanced Silicas' polyethylene catalyst sales and Zeolyst Joint Venture sales - Maintaining the midpoint of full-year 2025 Adjusted EBITDA guidance range while tightening the range to reflect first half results and expectations for the balance of the year[4](index=4&type=chunk)[10](index=10&type=chunk) Full-Year 2025 Guidance Metrics | Metric | Full-Year 2025 Guidance (New) | Full-Year 2025 Guidance (Prior) | | :-------------------------------- | :---------------------------- | :---------------------------- | | Sales | $795 million to $835 million | $785 million to $845 million | | Zeolyst Joint Venture Sales (50% share) | $125 million to $140 million | $115 million to $130 million | | Adjusted EBITDA | $242 million to $254 million | $238 million to $258 million | | Adjusted Free Cash Flow | $70 million to $80 million | $60 million to $80 million | | Capital expenditures | $80 million to $90 million | - | | Interest expense | $46 million to $50 million | $47 million to $53 million | | Depreciation & Amortization (Ecovyst) | $92 million to $98 million | $87 million to $93 million | | Depreciation & Amortization (Zeolyst J.V.) | $12 million to $14 million | - | | Effective tax rate | Mid 20% range | - | | Adjusted Net Income | $60 million to $80 million | $58 million to $85 million | | Adjusted Diluted Income per share | $0.52 to $0.68 | $0.50 to $0.70 | - Ecoservices is expected to benefit from higher sales volumes for regeneration services and virgin sulfuric acid in the second half of 2025, along with continued favorable pricing, driven by high refinery utilization and growth in sulfuric acid demand[10](index=10&type=chunk) [Third Quarter 2025 Guidance](index=3&type=section&id=Third%20Quarter%202025%20Guidance) Ecovyst provided guidance for the third quarter of 2025, projecting Adjusted EBITDA to be between $62 million and $72 million Q3 2025 Guidance | Metric | Q3 2025 Guidance | | :-------------- | :--------------- | | Adjusted EBITDA | $62 million to $72 million | [Tariffs Impact](index=2&type=section&id=Tariffs%20Impact) Ecovyst anticipates a limited direct impact of current tariffs, estimated at approximately $2 million to $3 million in 2025, primarily within its Advanced Materials & Catalysts segment. The full-year outlook does not incorporate significant macroeconomic impacts or demand fluctuations from prolonged tariff uncertainty - The direct impact of current tariffs is limited to approximately **$2 million to $3 million** in 2025 within Ecovyst's Advanced Materials & Catalysts segment[11](index=11&type=chunk) - Full-year guidance does not incorporate the effect of any significant macroeconomic impacts or related demand fluctuations that could result from prolonged tariff uncertainty[12](index=12&type=chunk) [Corporate Information](index=4&type=section&id=Corporate%20Information) Ecovyst is a global provider of advanced materials and sulfuric acid services, utilizing non-GAAP measures for performance assessment and providing forward-looking statement disclaimers [About Ecovyst](index=4&type=section&id=About%20Ecovyst) Ecovyst Inc. is a global provider of advanced materials, specialty catalysts, virgin sulfuric acid, and sulfuric acid regeneration services, supporting customers through a network of manufacturing facilities. The company operates two specialty businesses: Ecoservices, focusing on sulfuric acid recycling and virgin sulfuric acid for refining, industrial, and mining applications; and Advanced Materials & Catalysts, which includes Advanced Silicas for high-performing plastics and sustainable chemistry, and the Zeolyst Joint Venture for specialty zeolites in sustainable fuels, emissions reduction, and refining/petrochemical processes - Ecovyst Inc. is a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid, and sulfuric acid regeneration services[20](index=20&type=chunk) - Ecoservices provides sulfuric acid recycling to the North American refining industry, high-quality virgin sulfuric acid for industrial and mining applications, and chemical waste handling/treatment services[21](index=21&type=chunk) - Advanced Materials & Catalysts, through Advanced Silicas, provides catalysts, supports, and functionalized silicas for plastics and sustainable chemistry, and through Zeolyst Joint Venture, supplies specialty zeolites for sustainable fuels, diesel emissions, and refining/petrochemical processes[21](index=21&type=chunk) [Presentation of Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) Ecovyst utilizes several non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, and Adjusted Free Cash Flow, to assess operating performance and facilitate period-to-period comparisons by excluding items not representative of its core business. These measures are not intended to replace GAAP results and may not be comparable to similarly titled measures from other companies. The company also details its accounting treatment for the Zeolyst Joint Venture, an equity method investment, where its proportionate share of earnings is included in Adjusted EBITDA calculations - Non-GAAP financial measures (Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Diluted Income per share, Net Debt to Net Income ratio, and Net Debt Leverage Ratio) are used for business planning and performance measurement, excluding items not representative of core business[22](index=22&type=chunk) - The Zeolyst Joint Venture is accounted for as an equity method investment; its proportionate **50% share of sales** is not consolidated as revenue, but its **50% portion of earnings** is reflected in the Advanced Materials & Catalysts segment's Adjusted EBITDA[23](index=23&type=chunk) [Note on Forward-Looking Statements](index=5&type=section&id=Note%20on%20Forward-Looking%20Statements) The press release contains forward-looking statements regarding future results, financial condition, strategies, and outlook, which are based on current expectations and assumptions. These statements are subject to inherent uncertainties, risks, and changes in circumstances, including economic, competitive, and regulatory conditions, and the impact of tariffs. Actual results may differ materially, and the company cautions against undue reliance on these statements, undertaking no obligation to update them except as required by law - Forward-looking statements relate to future periods and are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict[24](index=24&type=chunk) - Important factors that could cause actual results to differ materially include political, economic, business, competitive, market, and regulatory conditions, currency exchange rates, inflation, and the timing/outcome of the strategic review process[24](index=24&type=chunk) - The company undertakes 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[24](index=24&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Ecovyst's condensed consolidated statements of income, balance sheets, and cash flows, detailing financial performance and position [Condensed Consolidated Statements of Income](index=6&type=section&id=Statements%20of%20Income) Ecovyst's Q2 2025 consolidated statements of income show a 9.5% increase in sales to $200.1 million, but a 27.7% decrease in net income to $6.0 million compared to Q2 2024. Year-to-date, sales grew by 5.5% to $362.3 million, while net income significantly declined by 74.7% to $2.4 million Condensed Consolidated Statements of Income | Metric | Three months ended June 30, 2025 (Millions) | Three months ended June 30, 2024 (Millions) | % Change | Six months ended June 30, 2025 (Millions) | Six months ended June 30, 2024 (Millions) | % Change | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :------- | :---------------------------------------- | :---------------------------------------- | :------- | | Sales | $200.1 | $182.8 | 9.5% | $362.3 | $343.4 | 5.5% | | Cost of goods sold | $150.4 | $129.1 | 16.5% | $287.0 | $250.5 | 14.6% | | Gross profit | $49.7 | $53.7 | (7.4)% | $75.3 | $92.9 | (18.9)% | | Operating income | $17.8 | $27.9 | (36.2)% | $16.9 | $41.8 | (59.6)% | | Net income | $6.0 | $8.3 | (27.7)% | $2.4 | $9.5 | (74.7)% | | Diluted earnings per share | $0.05 | $0.07 | - | $0.02 | $0.08 | - | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Balance%20Sheets) As of June 30, 2025, Ecovyst's total assets were $1,796.4 million, a slight decrease from $1,802.3 million at December 31, 2024. Cash and cash equivalents decreased to $69.6 million from $146.0 million, while total liabilities remained stable at $1,104.0 million. Total equity decreased to $692.4 million from $700.5 million Condensed Consolidated Balance Sheets | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------- | :----------------------- | :--------------------------- | | Cash and cash equivalents | $69.6 | $146.0 | | Accounts receivable, net | $103.5 | $77.9 | | Inventories, net | $66.9 | $57.1 | | Total current assets | $269.4 | $303.6 | | Total assets | $1,796.4 | $1,802.3 | | Total current liabilities | $119.6 | $115.1 | | Long-term debt, excluding current portion | $847.9 | $852.1 | | Total liabilities | $1,104.0 | $1,101.8 | | Total equity | $692.4 | $700.5 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was $43.3 million, down from $46.4 million in the prior year. Net cash used in investing activities significantly increased to $90.8 million, primarily due to business combinations (Waggaman acquisition) and higher purchases of property, plant and equipment. Net cash used in financing activities was $29.4 million, including $21.9 million for common stock repurchases Condensed Consolidated Statements of Cash Flows | Metric | Six months ended June 30, 2025 (Millions) | Six months ended June 30, 2024 (Millions) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net cash provided by operating activities | $43.3 | $46.4 | | Net cash used in investing activities | $(90.8) | $(36.8) | | Net cash used in financing activities | $(29.4) | $(14.4) | | Net change in cash and cash equivalents | $(76.4) | $(5.1) | | Cash and cash equivalents at end of period | $69.6 | $83.3 | - Business combinations (Waggaman acquisition) contributed **$41.3 million** to cash used in investing activities[31](index=31&type=chunk) - Repurchases of common shares amounted to **$21.9 million** in the first six months of 2025[31](index=31&type=chunk) [Non-GAAP Reconciliations & Supplemental Data](index=9&type=section&id=Non-GAAP%20Reconciliations%20%26%20Supplemental%20Data) This section provides detailed reconciliations for non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, segment performance, Adjusted Free Cash Flow, and Net Debt Leverage Ratio [Appendix Table A-1: Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=9&type=section&id=Adjusted%20EBITDA%20Reconciliation) This section provides a reconciliation of Net Income (Loss) to Adjusted EBITDA for both the three and six months ended June 30, 2025 and 2024, along with trailing twelve months. Key adjustments include depreciation and amortization, joint venture related items, debt modification costs, transaction costs, and equity-based compensation, which are detailed in the accompanying descriptions Reconciliation of Net Income (Loss) to Adjusted EBITDA | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YTD 2025 (Millions) | YTD 2024 (Millions) | TTM 2025 (Millions) | TTM 2024 (Millions) | | :------------------------------------------ | :------------------- | :------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Net income (loss) | $6.0 | $8.3 | $2.4 | $9.5 | $(13.8) | $56.1 | | EBITDA | $43.0 | $45.9 | $73.1 | $83.7 | $122.9 | $200.4 | | Joint venture D&A and interest | $3.2 | $3.2 | $6.3 | $6.5 | $13.2 | $13.1 | | Amortization of investment in affiliate step-up | $0.6 | $0.9 | $1.2 | $2.5 | $2.4 | $5.7 | | Debt modification and extinguishment costs | — | $4.6 | $1.0 | $4.6 | $1.0 | $4.6 | | Transaction and other related costs | $2.7 | $0.1 | $4.5 | $0.2 | $4.8 | $0.6 | | Equity-based compensation | $3.4 | $3.8 | $6.5 | $7.5 | $13.0 | $14.4 | | Adjusted EBITDA | $55.7 | $56.9 | $94.6 | $102.4 | $230.3 | $240.1 | - Adjustments to Net Income for Adjusted EBITDA include the proportionate share of depreciation, amortization, and interest expense from the Zeolyst Joint Venture, amortization of affiliate investment step-up, and non-recurring costs like debt modification and transaction expenses[32](index=32&type=chunk)[34](index=34&type=chunk) [Appendix Table A-2: Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS](index=11&type=section&id=Adjusted%20Net%20Income%20and%20EPS%20Reconciliation) This table reconciles GAAP Net Income and EPS to Adjusted Net Income and Adjusted EPS for the three and six months ended June 30, 2025 and 2024. Adjustments are made for non-operating income/expense and certain non-cash or non-recurring items, such as amortization of affiliate investment step-up, debt modification costs, transaction costs, and equity-based compensation, to provide a clearer view of ongoing operating performance Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS | Metric | Q2 2025 After-tax (Millions) | Q2 2025 Diluted EPS | Q2 2024 After-tax (Millions) | Q2 2024 Diluted EPS | YTD 2025 After-tax (Millions) | YTD 2025 Diluted EPS | YTD 2024 After-tax (Millions) | YTD 2024 Diluted EPS | | :------------------------------------------ | :--------------------------- | :------------------ | :--------------------------- | :------------------ | :---------------------------- | :------------------- | :---------------------------- | :------------------- | | Net income | $6.0 | $0.05 | $8.3 | $0.07 | $2.4 | $0.02 | $9.5 | $0.08 | | Amortization of investment in affiliate step-up | $0.5 | — | $0.7 | $0.01 | $0.9 | $0.01 | $1.9 | $0.02 | | Debt modification and extinguishment costs | — | — | $3.4 | $0.03 | $0.8 | $0.01 | $3.4 | $0.03 | | Transaction and other related costs | $2.1 | $0.02 | $0.1 | — | $3.4 | $0.03 | $0.1 | — | | Equity-based compensation | $3.0 | $0.03 | $2.9 | $0.02 | $6.2 | $0.05 | $6.1 | $0.05 | | Adjusted Net Income | $13.7 | $0.12 | $14.1 | $0.12 | $15.2 | $0.13 | $19.2 | $0.16 | - Adjusted Net Income is defined as net income adjusted for non-operating income or expense and the impact of certain non-cash or other items not indicative of ongoing operating performance, enhancing understanding of results and financial condition[37](index=37&type=chunk) [Appendix Table A-3: Sales and Adjusted EBITDA by Business Segment](index=13&type=section&id=Sales%20and%20Adjusted%20EBITDA%20by%20Business%20Segment) This table presents sales and Adjusted EBITDA broken down by Ecovyst's two business segments, Ecoservices and Advanced Materials & Catalysts, for the three and six months ended June 30, 2025 and 2024. It also includes Zeolyst Joint Venture sales and segment-specific Adjusted EBITDA margins, highlighting the performance contribution of each segment Sales and Adjusted EBITDA by Business Segment | Segment | Q2 2025 Sales (Millions) | Q2 2024 Sales (Millions) | % Change | YTD 2025 Sales (Millions) | YTD 2024 Sales (Millions) | % Change | | :----------------------------- | :----------------------- | :----------------------- | :------- | :------------------------ | :------------------------ | :------- | | Ecoservices Sales | $176.0 | $153.9 | 14.4% | $319.1 | $295.6 | 7.9% | | Advanced Materials & Catalysts Sales | $24.1 | $28.9 | (16.6)% | $43.2 | $47.8 | (9.6)% | | Zeolyst Joint Venture Sales | $28.4 | $29.0 | (2.1)% | $66.2 | $52.5 | 26.1% | | | | | | | | | | Segment | Q2 2025 Adj. EBITDA (Millions) | Q2 2024 Adj. EBITDA (Millions) | % Change | YTD 2025 Adj. EBITDA (Millions) | YTD 2024 Adj. EBITDA (Millions) | % Change | | :----------------------------- | :----------------------------- | :----------------------------- | :------- | :------------------------------ | :------------------------------ | :------- | | Ecoservices Adj. EBITDA | $49.8 | $49.7 | 0.2% | $78.3 | $91.2 | (14.1)% | | Advanced Materials & Catalysts Adj. EBITDA | $13.7 | $14.7 | (6.8)% | $31.2 | $25.8 | 20.9% | | Unallocated corporate expenses | $(7.8) | $(7.5) | (4.0)% | $(14.9) | $(14.6) | (2.1)% | | Total Adjusted EBITDA | $55.7 | $56.9 | (2.1)% | $94.6 | $102.4 | (7.6)% | | | | | | | | | | Segment | Q2 2025 Adj. EBITDA Margin | Q2 2024 Adj. EBITDA Margin | YTD 2025 Adj. EBITDA Margin | YTD 2024 Adj. EBITDA Margin | | :----------------------------- | :------------------------- | :------------------------- | :-------------------------- | :-------------------------- | | Ecoservices Adj. EBITDA Margin | 28.3% | 32.3% | 24.5% | 30.9% | | Advanced Materials & Catalysts Adj. EBITDA Margin | 26.1% | 25.4% | 28.5% | 25.7% | | Total Adjusted EBITDA Margin | 24.4% | 26.8% | 22.1% | 25.9% | [Appendix Table A-4: Adjusted Free Cash Flow](index=14&type=section&id=Adjusted%20Free%20Cash%20Flow) This table reconciles net cash provided by operating activities to Free Cash Flow and Adjusted Free Cash Flow for the six months ended June 30, 2025 and 2024. Adjusted Free Cash Flow was $(2.4) million for YTD 2025, down from $14.4 million in YTD 2024, after accounting for purchases of property, plant and equipment and specific adjustments like cash paid for debt financing costs and Waggaman acquisition-related costs Adjusted Free Cash Flow | Metric | Six months ended June 30, 2025 (Millions) | Six months ended June 30, 2024 (Millions) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net cash provided by operating activities | $43.3 | $46.4 | | Less: Purchases of property, plant and equipment | $(49.5) | $(36.6) | | Free Cash Flow | $(6.2) | $9.8 | | Adjustments to free cash flow: | | | | Cash paid for debt financing costs | $1.0 | $4.6 | | Cash paid for costs related to the Waggaman acquisition | $2.8 | — | | Adjusted Free Cash Flow | $(2.4) | $14.4 | - Adjusted Free Cash Flow is a non-GAAP measure used to evaluate the ability to generate additional cash from operations, adjusted for unusual or infrequent cash flows not related to core business[40](index=40&type=chunk) [Appendix Table A-5: Net Debt Leverage Ratio](index=15&type=section&id=Net%20Debt%20Leverage%20Ratio) This table presents the calculation of Net Debt and the Net Debt Leverage Ratio as of June 30, 2025 and 2024. As of June 30, 2025, total debt was $866.5 million, leading to a Net Debt of $796.9 million. The Net Debt Leverage Ratio for the trailing twelve months increased to 3.5x from 3.3x in the prior year Net Debt Leverage Ratio | Metric | June 30, 2025 (Millions) | June 30, 2024 (Millions) | | :-------------------------- | :----------------------- | :----------------------- | | Total debt | $866.5 | $873.0 | | Less: Cash and cash equivalents | $69.6 | $83.3 | | Net debt | $796.9 | $789.7 | | Trailing twelve months: | | | | Adjusted EBITDA | $230.3 | $240.1 | | Net Debt Leverage ratio | 3.5x | 3.3x | - The Net Debt to Net Income ratio for the trailing twelve months was not meaningful as of June 30, 2025, due to a net loss[9](index=9&type=chunk)[41](index=41&type=chunk)

WAYNE, Pa., Aug. 7, 2025 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid and sulfuric acid regeneration services, today reported results for the second quarter ended June 30, 2025. Second Quarter 2025 Results & Highlights "We are pleased with our results for the second quarter of 2025. With demand fundamentals generally in line with our expectations, we delivered Adjus ...

Company Overview - Ecovyst Inc. is a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid, and sulfuric acid regeneration services [3][4] - The company supports customers globally through a strategically located network of manufacturing facilities, contributing to environmental sustainability [3] Business Segments - Ecoservices, one of the company's specialty businesses, provides sulfuric acid recycling to the North American refining industry and high-quality virgin sulfuric acid for industrial and mining applications [4] - Ecoservices also offers chemical waste handling and treatment services, along with ex-situ catalyst activation services for the refining and petrochemical industry [4] - The Advanced Materials & Catalysts segment includes the Advanced Silicas business, which supplies finished silica catalysts and functionalized silicas for high-performing plastics and sustainable chemistry [4] - The Zeolyst Joint Venture innovates and supplies specialty zeolites used in catalysts for sustainable fuel production and emission reduction from diesel engines [4] Upcoming Events - Ecovyst Inc. will conduct a conference call and audio-only webcast on August 7, 2025, at 11:00 a.m. Eastern Time to review its second quarter 2025 financial results [1] - Investors can access the live conference call via telephone or through an audio-only live webcast [2]

Company Overview - Ecovyst (ECVT) shares increased by 9.2% to close at $8.3, supported by high trading volume compared to normal sessions [1] - The stock had previously shown no significant movement over the past four weeks [1] Analyst Insights - A Citi analyst raised Ecovyst's price target from $7.50 to $10.00 while maintaining a Buy rating [2] - The analyst also revised EBITDA estimates for the second quarter of 2025 and full-year 2025, increasing them by 2% and 1% respectively [2] - The positive outlook is attributed to improved refinery utilization, stabilizing industrial production, and reduced tariff concerns [2] Earnings Expectations - Ecovyst is projected to report quarterly earnings of $0.12 per share, unchanged from the same quarter last year [3] - Expected revenues are $204.83 million, reflecting a 12.1% increase year-over-year [3] - The consensus EPS estimate has remained stable over the last 30 days, indicating a lack of upward revisions which typically correlate with stock price movements [4] Industry Context - Ecovyst operates within the Zacks Chemical - Specialty industry, which includes other companies like Daqo New Energy (DQ) [4] - Daqo's stock rose by 15.8% to $17.71, with a 12.8% return over the past month [4] - Daqo's consensus EPS estimate for the upcoming report is -$1.16, representing a 35.9% change compared to the previous year [5]