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]

Core Insights - Ecovyst Inc. released its 2024 Sustainability Report, highlighting progress towards sustainability goals and key metrics related to greenhouse gas emissions, energy, water, and waste [1][2] - The company emphasizes its commitment to developing cleaner technologies and supporting sustainable industries through its products and services, including sulfuric acid and catalysts [2][4] - Ecovyst aims to achieve specific sustainability goals by 2025 and 2030, with a focus on maintaining a zero OSHA recordables injury rate [2] Company Overview - Ecovyst Inc. is a global provider of advanced materials, specialty catalysts, virgin sulfuric acid, and sulfuric acid regeneration services, contributing to environmental sustainability [3][4] - The company operates two specialty businesses: Ecoservices, which provides sulfuric acid recycling and chemical waste handling, and Advanced Materials & Catalysts, which focuses on silica catalysts and zeolites for sustainable applications [4]

Core Viewpoint - Ecovyst Inc. has successfully acquired the sulfuric acid production assets from Cornerstone Chemical Company, enhancing its capacity and supply reliability in the sulfuric acid market [1][2]. Company Overview - Ecovyst Inc. is a global provider of advanced materials, specialty catalysts, virgin sulfuric acid, and sulfuric acid regeneration services, with a focus on sustainability [3]. - The company operates through two main business segments: Ecoservices, which provides sulfuric acid recycling and high-quality virgin sulfuric acid, and Advanced Materials & Catalysts, which offers finished silica catalysts and specialty zeolites [4]. Acquisition Details - The acquisition of the Waggaman, Louisiana assets is expected to increase network flexibility and supply reliability, addressing future growth in demand for virgin sulfuric acid and regeneration services [2]. - The integration of Cornerstone's assets is anticipated to enhance Ecovyst's operational capabilities and customer service [2].

PART I FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Q1 2025 report a net loss of $3.6 million, a decrease from $1.2 million net income in Q1 2024, driven by lower gross profit, with total assets at $1.79 billion and operating cash flow at $10.3 million [Condensed Consolidated Statements of (Loss) Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20(Loss)%20Income) Q1 2025 saw a net loss of $3.6 million ($0.03 per share) compared to $1.2 million net income in Q1 2024, primarily due to a decrease in gross profit from $39.2 million to $25.6 million Condensed Consolidated Statements of (Loss) Income (in thousands) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Sales** | $162,197 | $160,537 | | **Gross profit** | $25,615 | $39,223 | | **Operating (loss) income** | $(912) | $13,953 | | **Net (loss) income** | $(3,597) | $1,221 | | **Diluted (loss) income per share** | $(0.03) | $0.01 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets slightly decreased to $1.787 billion from $1.802 billion, with total liabilities at $1.088 billion and cash at $127.5 million Balance Sheet Highlights (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $291,963 | $303,714 | | **Total assets** | $1,786,922 | $1,802,321 | | **Total current liabilities** | $104,033 | $115,126 | | **Total liabilities** | $1,088,238 | $1,101,861 | | **Total equity** | $698,684 | $700,460 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 net cash from operations significantly decreased to $10.3 million from $36.5 million, with net cash used in investing at $24.3 million, resulting in an $18.5 million net decrease in cash Cash Flow Summary (in thousands) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $10,256 | $36,503 | | **Net cash used in investing activities** | $(24,253) | $(17,372) | | **Net cash used in financing activities** | $(4,451) | $(4,183) | | **Net change in cash and cash equivalents** | $(18,535) | $14,771 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail business segments, revenue recognition, debt structure, and segment performance, highlighting the Zeolyst Joint Venture's growth, debt modification, and a pending asset acquisition - The company operates through two main segments: Ecoservices (sulfuric acid recycling and virgin sulfuric acid) and Advanced Materials & Catalysts (silica and zeolite catalysts)[25](index=25&type=chunk) Disaggregated Revenue by Segment (Q1 2025, in thousands) | Segment | Sales | | :--- | :--- | | Ecoservices | $143,109 | | Advanced Materials & Catalysts | $19,088 | | **Total** | **$162,197** | - In January 2025, the company amended its Term Loan Credit Agreement, reducing the applicable interest rate on SOFR term loans to Term SOFR plus **2.00%**, resulting in a **$960 thousand** debt modification cost[68](index=68&type=chunk)[69](index=69&type=chunk) - The Zeolyst Joint Venture, a 50% owned affiliate, showed significant growth, with sales increasing to **$89.5 million** in Q1 2025 from **$56.9 million** in Q1 2024[62](index=62&type=chunk) - Subsequent to the quarter end, the company entered an agreement to acquire sulfuric acid production assets for **$35 million**, expected to close in Q2 2025[117](index=117&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2025 sales growth to Ecoservices pricing, despite a 34.7% gross profit decline due to maintenance costs, with Adjusted EBITDA decreasing 14.5% to $38.9 million, while liquidity remains strong at $201.1 million [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q1 2025 sales increased to $162.2 million, but gross profit fell by $13.6 million to $25.6 million, leading to an operating loss of $0.9 million, partially offset by $8.9 million in equity income Financial Performance Summary (in millions) | | Q1 2025 | Q1 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $162.2 | $160.5 | $1.7 | 1.1% | | **Gross Profit** | $25.6 | $39.2 | $(13.6) | (34.7)% | | **Operating (Loss) Income** | $(0.9) | $13.9 | $(14.8) | (106.5)% | | **Equity in net income** | $8.9 | $2.1 | $6.8 | 323.8% | | **Net (Loss) Income** | $(3.6) | $1.2 | $(4.8) | NM | - Ecoservices sales increased **1.1%** to **$143.1 million**, driven by higher average selling prices from the pass-through of higher sulfur costs, offset by lower sales volume due to maintenance turnarounds[147](index=147&type=chunk)[148](index=148&type=chunk) - Equity in net income from affiliated companies, primarily the Zeolyst Joint Venture, increased by **$6.8 million** due to higher sales volume of hydrocracking and specialty catalysts[146](index=146&type=chunk)[154](index=154&type=chunk) [Adjusted EBITDA](index=35&type=section&id=Adjusted%20EBITDA) Total Adjusted EBITDA decreased 14.5% to $38.9 million in Q1 2025, with Ecoservices' EBITDA falling 31.3% to $28.5 million, partially offset by a 57.7% increase in Advanced Materials & Catalysts' EBITDA to $17.5 million Adjusted EBITDA by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Ecoservices | $28.5 | $41.5 | $(13.0) | (31.3)% | | Advanced Materials & Catalysts | $17.5 | $11.1 | $6.4 | 57.7% | | Unallocated corporate expenses | $(7.1) | $(7.1) | $— | —% | | **Total** | **$38.9** | **$45.5** | **$(6.6)** | **(14.5)%** | - The decrease in Ecoservices' Adjusted EBITDA was driven by approximately **$8 million** in higher manufacturing costs from planned maintenance, **$3 million** from lower volume, and **$2 million** from unfavorable net pricing[164](index=164&type=chunk) - The increase in Advanced Materials & Catalysts' Adjusted EBITDA was primarily due to higher sales volume within the Zeolyst Joint Venture[165](index=165&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=38&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity for the next twelve months, with $201.1 million available as of March 31, 2025, and total debt at $868.6 million, while Q1 capital expenditures increased to $20.4 million - As of March 31, 2025, the company had total available liquidity of **$201.1 million**, with no borrowings under its ABL revolving credit facility[170](index=170&type=chunk) Debt Summary (in millions) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total debt | $868.6 | $870.8 | | Less: Cash and cash equivalents | $127.5 | $146.0 | | **Net Debt** | **$741.1** | **$724.8** | - Capital expenditures increased to **$20.4 million** in Q1 2025 from **$14.4 million** in Q1 2024, driven by higher maintenance spending (**$16.6 million**) and growth projects (**$3.8 million**)[184](index=184&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's market risk exposures, which include foreign currency, interest rate, and credit risks, managed through non-speculative derivative instruments - There have been no material changes in the company's primary market risks, which include foreign currency exchange, interest rate, and credit risk[191](index=191&type=chunk) - The company utilizes financial instruments for hedging purposes only, not for speculation, to mitigate underlying economic exposures[190](index=190&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of March 31, 2025, due to a material weakness in accounting for the Zeolyst Joint Venture, with a remediation plan underway - Management concluded that disclosure controls and procedures were **not effective** as of March 31, 2025[193](index=193&type=chunk) - A material weakness related to the controls over the accounting of the Zeolyst Joint Venture, identified as of December 31, 2024, continues to exist[196](index=196&type=chunk) - The company is developing a remediation plan to design and implement appropriate controls to address the material weakness[197](index=197&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company believes no pending legal proceedings are likely to have a material adverse effect on its business - The company states that it does not believe any currently pending litigation will have a material adverse effect on its business[199](index=199&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred from the risk factors described in the Annual Report on Form 10-K - No material changes have occurred from the risk factors described in the Annual Report on Form 10-K[200](index=200&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock in Q1 2025, with $229.6 million remaining available under its repurchase program - No common stock was repurchased during Q1 2025[201](index=201&type=chunk) - As of March 31, 2025, **$229.6 million** was still available for share repurchases under the authorized program[201](index=201&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted, modified, or terminated Rule 10b5-1 trading arrangements during Q1 2025 - No directors or executive officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement in Q1 2025[202](index=202&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including credit agreement amendments and CEO/CFO certifications