Financial Data and Key Metrics Changes - In Q3 2025, sales from continuing operations were $205 million, an increase of $51 million or 33% year-over-year, with adjusted EBITDA rising 18% to $58 million [12][14][19] - Adjusted free cash flow for the first nine months of the year was $42 million, with expectations for full-year 2025 adjusted free cash flow increased to a range of $75-$85 million [15][19] - The anticipated net debt leverage ratio post-divestiture of the advanced materials and catalysts segment is expected to be less than 1.5 times [4][16] Business Line Data and Key Metrics Changes - The eco-services segment reported adjusted EBITDA of $64 million, up 15%, driven by sales growth from both price and volume, particularly in virgin sulfuric acid [14][19] - Regeneration services experienced lower volumes due to unplanned customer downtime, impacting overall performance [5][13] - Virgin sulfuric acid sales were strong, particularly in the mining sector, which accounted for 20%-25% of sales [7][14] Market Data and Key Metrics Changes - Demand for virgin sulfuric acid is expected to remain strong due to rising global copper demand and mining activities [7][8] - The company anticipates a favorable long-term outlook for sulfuric acid demand driven by the mining and processing of critical minerals in the U.S. [8][54] - The company is positioned to benefit from onshoring trends, which may increase demand for sulfuric acid in various industrial applications [9][54] Company Strategy and Development Direction - The company plans to focus on organic growth initiatives and pursue attractive inorganic opportunities following the divestiture of its advanced materials and catalysts segment [4][22] - An active stock repurchase program is in place, with plans to repurchase up to $20 million of stock in Q4 2025 [5][23] - The company aims to strengthen its balance sheet and liquidity position to support growth initiatives and return capital to shareholders [16][22] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable demand fundamentals for the remainder of 2025 and into 2026, despite challenges from unplanned refinery outages [17][24] - The company expects to see increased regeneration volumes and contributions from positive contractual pricing in 2026 [17][24] - Management highlighted the resilience of the company in a challenging chemical industry environment, attributing it to strong customer relationships and critical product offerings [22][24] Other Important Information - The company has amended its stock repurchase plan to remove the April 2026 expiration date, allowing for continued repurchases [5] - The anticipated close of the divestiture is expected in Q1 2026, with net proceeds of approximately $530 million to be used primarily for debt reduction [4][16] Q&A Session Summary Question: Cash deployment and growth opportunities - Management indicated excitement around growth opportunities, particularly in mining, and mentioned ongoing storage and logistics expansion projects [27][28] Question: Pricing outlook for next year - Management expects continued upward pricing momentum, particularly in virgin sulfuric acid, supported by strong demand in the mining sector [29] Question: Waggaman integration and EBITDA lift - Management noted that both contract repricing and positive network effects from the Waggaman facility will contribute to EBITDA growth [32] Question: Long-term leverage targets - Management confirmed that the long-term target leverage remains at two to two and a half times, with flexibility to adjust based on capital allocation strategies [38][40] Question: Short-term demand outlook for nylon - Management expects stable demand for nylon in the near term, with confidence in long-term fundamentals [41] Question: Customer clarity on downtimes and inventory management - Management discussed the challenges of managing unexpected downtimes and emphasized the importance of ramping up virgin sulfuric acid volumes during such periods [45][46]

Core Insights - Ecovyst Inc. reported third-quarter results for 2025, highlighting a strategic decision to sell its Advanced Materials & Catalysts segment to Technip Energies for $556 million, expected to close in Q1 2026 [3][12] - The company aims to use $450 million to $500 million of the net proceeds to reduce long-term debt, projecting a net debt leverage ratio below 1.5x, which is part of its strategy to enhance shareholder value and strengthen its balance sheet [3][4] - The Ecoservices segment showed strong demand, with third-quarter Adjusted EBITDA reaching $64 million, a 15% increase year-over-year, driven by favorable pricing and higher sales volume of virgin sulfuric acid [5][6] Financial Performance - Third-quarter 2025 sales were $204.9 million, up 33.1% from $153.9 million in Q3 2024, attributed to higher sulfur costs and increased sales volume [6][12] - Adjusted EBITDA for Ecoservices was $63.6 million, compared to $55.1 million in the same quarter last year, reflecting a margin of 31.0% [6][31] - Net income from continuing operations was $0.4 million, a significant decrease from $14.8 million in the prior year, with a net income margin of 0.2% [12][25] Cash Flow and Balance Sheet - Cash flows from operating activities for continuing operations were $77.5 million for the nine months ended September 30, 2025, compared to $66.0 million for the same period in 2024 [7][29] - As of September 30, 2025, the company had cash and cash equivalents of $99.1 million, with total gross debt at $864.3 million [8][27] - The company amended its stock repurchase plan, removing the expiration date, with $202.2 million available for repurchases as of September 30, 2025 [4][15] Revised Financial Outlook - The company revised its 2025 guidance for continuing operations, expecting sales between $700 million and $740 million, with Adjusted EBITDA of approximately $170 million [13][11] - The outlook assumes higher average sulfur prices and a projected pass-through of sulfur costs of approximately $70 million [11][13] - Positive demand for virgin sulfuric acid is anticipated, particularly in mining applications, supported by copper mine expansion projects [10][11]

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].

Core Insights - Ecovyst Inc. reported resilient business performance in Q1 2025, with stronger-than-expected results in the Advanced Materials & Catalysts segment, while the Ecoservices segment met expectations despite challenges [3][4] - The company anticipates increased activity in its regeneration services business due to high refinery utilization and seasonal gasoline demand starting in Q2 2025 [3][4] - Ecovyst announced an agreement to acquire Cornerstone Chemical's sulfuric acid assets for $35 million, expected to close in Q2 2025, which will enhance its Gulf Coast network and capacity [3][9] Financial Performance - Q1 2025 sales were $162.2 million, a 1.1% increase from $160.5 million in Q1 2024 [9][23] - Adjusted EBITDA for Q1 2025 was $38.9 million, down from $45.5 million in Q1 2024, reflecting a decrease in the Ecoservices segment [9][32] - The Ecoservices segment reported sales of $143.1 million, up from $141.6 million in the previous year, while Adjusted EBITDA decreased to $28.5 million from $41.5 million [4][32] Segment Analysis - Advanced Materials & Catalysts segment saw sales of $19.1 million, slightly up from $18.9 million in Q1 2024, with a significant increase in Zeolyst Joint Venture sales to $37.7 million from $23.5 million [5][32] - Adjusted EBITDA for Advanced Materials & Catalysts increased to $17.5 million from $11.1 million, driven by higher sales volume in the Zeolyst Joint Venture [5][32] Cash Flow and Balance Sheet - Cash flows from operating activities were $10.3 million in Q1 2025, down from $36.5 million in Q1 2024, primarily due to timing of dividends from the Zeolyst Joint Venture [6][9] - As of March 31, 2025, the company had cash and cash equivalents of $127.5 million and total gross debt of $868.6 million, resulting in total available liquidity of $201.1 million [6][24] 2025 Financial Outlook - The company reaffirmed its full-year Adjusted EBITDA guidance and increased sales guidance due to anticipated higher sulfur costs [7][10] - Ecoservices is expected to benefit from higher sales volumes for regeneration services and virgin sulfuric acid in the second quarter and throughout 2025 [7][10] - The company anticipates significant year-over-year sales growth in the Zeolyst Joint Venture, driven by positive momentum in hydrocracking catalyst sales [7][10]