Financial Data and Key Metrics Changes - The first quarter total sales were $200 million, up nearly 9% year-over-year, with Eco Services and Advanced Silicas each up 1%, and sales for the Zeolyst joint venture up 60% [23][30] - Adjusted EBITDA for the first quarter was $39 million, primarily driven by higher volume in the Zeolyst joint venture, but lower earnings in Eco Services due to higher planned turnaround costs [23][26] - Adjusted free cash flow for the first quarter was a use of $13 million, with expectations to generate adjusted free cash flow of $60 million to $80 million for the full year [28][30] Business Line Data and Key Metrics Changes - Eco Services sales were $143 million, up 1% compared to the prior year, with adjusted EBITDA of $29 million, down from $42 million due to higher manufacturing costs and lower sales volume related to turnaround activity [26][27] - Advanced Silicas sales were $19 million, with higher sales of niche custom catalysts offset by lower sales of advanced silicas used in polyethylene production [27] - The Zeolyst joint venture saw a significant increase in sales, contributing to the overall sales growth for the quarter [23][27] Market Data and Key Metrics Changes - The Ecoservices segment accounts for approximately 75% of total sales, with less than 5% representing sales to Mexico and Canada, indicating a U.S.-centric business model [10][11] - The company anticipates higher sales of virgin sulfuric acid in the second half of the year due to increased mining demand driven by high global copper demand [15][16] - The company expects stable gasoline demand and high refinery utilization to support regeneration services [14] Company Strategy and Development Direction - The company is focused on opportunistic share repurchases, believing that the current valuation does not reflect the intrinsic value of the business [8][9] - The acquisition of Cornerstone sulfuric acid assets is expected to enhance the Ecoservices network and provide significant capacity additions [39][40] - The company is maintaining a flexible capital allocation strategy while prioritizing leverage reduction [9][29] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential weaker demand in industrial end uses due to macroeconomic conditions and tariff impacts [30][38] - The company maintains a positive long-term outlook for demand fundamentals across most end uses, despite short-term uncertainties [36][38] - The guidance for full-year adjusted EBITDA remains unchanged, expected to be in the range of $238 million to $258 million [31][38] Other Important Information - The company expects to close the acquisition of Cornerstone in the second quarter, with incremental adjusted EBITDA contributions expected to be more material beginning in 2026 [33][40] - The company has observed strong demand for hydrocracking catalysts, which may offset any softer sales in advanced silicas [20][38] Q&A Session Summary Question: Have you seen a slowdown tied to tariffs in polyethylene catalysts? - Management indicated that there has been no observed slowdown related to tariffs or macroeconomic confusion to date [45][46] Question: What are the expectations for sulfuric pricing going forward? - Management noted that sulfur prices are being driven by U.S. refining turnaround work, and the Eco Services business is largely contracted, allowing for price pass-throughs [53][54] Question: What are the synergy potentials from the Cornerstone acquisition? - Management highlighted networking synergies and operational expertise that would enhance the sulfuric acid network, expecting to capture these synergies quickly [67][68] Question: Are there revenue synergies expected from the acquisition? - Management stated that while there are no direct revenue synergies, there will be marketing and networking synergies that could enhance service to existing customers [71][72]