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]

Core Insights - Ecovyst Inc. reported strong second quarter results for 2025, achieving Adjusted EBITDA of $55.7 million, which is at the high end of the guidance range, driven by sustained demand in the Ecoservices segment and a solid pipeline for hydrocracking catalysts [3][4][9] - The company completed the acquisition of sulfuric acid production assets in Waggaman, Louisiana, which is expected to yield future benefits and synergies [4][9] - The company has repurchased 2.9 million shares of common stock for approximately $22 million, reflecting a commitment to delivering value to shareholders [4][9] Ecoservices Segment - Sales for the Ecoservices segment increased to $176.0 million in Q2 2025 from $153.9 million in Q2 2024, attributed to higher sulfur costs, favorable pricing, and contributions from the Waggaman acquisition [5] - Adjusted EBITDA for Ecoservices was $49.8 million, slightly up from $49.7 million in the same quarter last year, despite lower sales volume due to customer downtime [5] Advanced Materials & Catalysts Segment - Advanced Silicas sales decreased to $24.1 million in Q2 2025 from $28.9 million in Q2 2024, primarily due to lower custom catalyst sales [6] - The proportionate share of sales from the Zeolyst Joint Venture was $28.4 million, a slight decrease from $29.0 million in the previous year, reflecting lower hydrocracking catalyst sales [6] Financial Performance - Total sales for Q2 2025 were $200.1 million, compared to $182.8 million in Q2 2024, marking a 9.5% increase [9][26] - Net income for Q2 2025 was $6.0 million, down from $8.3 million in the prior year, with an Adjusted Net Income of $13.7 million [9][26] - Cash flows from operating activities for the first half of 2025 were $43.3 million, down from $46.4 million in the same period of 2024 [7][9] Guidance and Outlook - The company is maintaining the midpoint of its full-year 2025 Adjusted EBITDA guidance while tightening the range based on first-half results [8] - Sales guidance for 2025 has been increased to reflect the acquisition of the Waggaman assets, although costs related to integration and upgrades are anticipated [8][20] - The company expects continued high refinery utilization and growth in sulfuric acid demand, particularly in mining applications, to drive sales in the second half of 2025 [8][20]

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]