Financial Data and Key Metrics Changes - The company reported full year 2025 Adjusted EBITDA of $172 million, exceeding previous guidance, with fourth quarter Adjusted EBITDA of $51 million, an 8% increase year-over-year [11][12] - Fourth quarter sales reached $199 million, up $51 million or 34%, with a 15% increase when excluding the $28 million impact of higher sulfur costs [12][13] - The net debt leverage ratio improved to 1.2 times at year-end, following the repayment of $465 million of term loans from the divestiture proceeds [5][16] Business Line Data and Key Metrics Changes - Sales of virgin sulfuric acid increased significantly, driven by the acquisition of Waggaman assets and favorable pricing, while regeneration services faced challenges due to unplanned customer downtime [5][12][24] - The company expects higher sales volume for both virgin and regenerated sulfuric acid in 2026, with stable pricing for virgin sulfuric acid and favorable contractual pricing for regenerated sulfuric acid [7][17] Market Data and Key Metrics Changes - The demand outlook for 2026 remains positive, particularly in the mining sector, which accounts for 20%-25% of sulfuric acid sales [8][9] - The company anticipates higher sales of virgin sulfuric acid in 2026, supported by increased mining demand and the integration of the Waggaman assets [9][10] Company Strategy and Development Direction - The divestiture of the Advanced Materials & Catalysts segment marks a transformative shift, allowing the company to focus on sulfur solutions for clean fuels and critical materials [6][25] - The company plans to invest approximately $20 million in growth capital for projects aimed at increasing storage capacity and improving logistics in the Gulf Coast region [10][19] - Future growth will be supported by organic initiatives and potential accretive acquisitions, with a disciplined approach to capital allocation [25][60] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the near-term outlook for nylon applications and some industrial sectors, while remaining optimistic about overall demand growth [8][40] - The company expects to face higher sulfur costs in 2026, with an estimated pass-through impact of approximately $125 million compared to 2025 [18][20] Other Important Information - The company repurchased approximately $50 million in common stock in 2025 and plans to continue this strategy in 2026 with additional repurchases [25][26] - The integration of the Waggaman sulfuric acid production assets has enhanced the supply network, allowing the company to meet anticipated growth in demand [9][30] Q&A Session Summary Question: Can you help us think about the capacity freed up by Waggaman and the growth potential? - The Waggaman assets added roughly 10% volume to the overall network and enhanced the supply chain's flexibility, allowing for better service to customers [30] Question: What should we expect regarding regeneration contract pricing in 2026? - The company anticipates a similar lift in regeneration contract pricing as seen in 2025, with annual agreements typically rolling off between 15% and 20% [33] Question: What factors are contributing to caution in industrial applications, particularly nylon? - Management noted a general sense of caution due to diverse industrial applications and potential macroeconomic impacts, but does not foresee significant degradation in nylon demand [40] Question: How does the company view its M&A opportunities in the sulfuric acid market? - The company is interested in a broad range of sulfuric acid assets and is open to acquisitions that enhance service capabilities and market reach [69]