WAYNE, Pa., Aug. 5, 2026 /PRNewswire/ -- Ecovyst Inc. $(ECVT)$ ("Ecovyst" or the "Company"), a leading provider of regenerated sulfuric acid, virgin sulfuric acid, and sulfur dioxide and related derivatives, today reported results for the second quarter ended June 30, 2026.
On December 31, 2025, the Company completed the sale of its Advanced Materials & Catalysts business, which includes the Company's investment in affiliated companies, Zeolyst International and Zeolyst C.V. Financial results of the divested Advanced Materials & Catalysts business are reported in discontinued operations in the financial statements for all periods presented.
Second Quarter 2026 Results & Highlights from Continuing Operations
-- Sales grew 42% to $250.0 million, an increase of $73.9 million, from
$176.1 million in the second quarter of 2025
-- Net income of $10.7 million, compared to $5.0 million in the year-ago
quarter, with a net income margin of 4.3% and diluted net income per
share of $0.10
-- Adjusted Net Income was $23.4 million, compared to $11.4 million in the
year-ago quarter, with Adjusted Diluted Income per share of $0.21
-- Adjusted EBITDA grew 27% to $53.1 million, an increase of $11.2 million
from $41.9 million in the second quarter of 2025
-- Cash flow from operating activities was $55.2 million for the six months
ended June 30, 2026, compared to $25.3 million for the six months ended
June 30, 2025. Adjusted Free Cash Flow was $12.8 million for the six
months ended June 30, 2026, compared to $(2.4) million for the six months
ended June 30, 2025
-- Completed the strategic acquisition of the Calabrian sulfur dioxide and
related derivatives business from INEOS Enterprises on June 30, 2026
"In the second quarter of 2026 Ecovyst continued to deliver on its financial and long-term strategic objectives. As anticipated, high refinery utilization and positive alkylate economics contributed to increased volume of regenerated sulfuric acid, while virgin sulfuric acid volume increased double digits, reflecting positive demand fundamentals and the contribution from the Waggaman sulfuric acid plant we acquired in May 2025. As a result, we delivered second quarter 2026 Adjusted EBITDA of $53 million, within our guidance range, and up 27% compared to the year ago quarter," said Kurt J. Bitting, Ecovyst's Chief Executive Officer.
"We remain focused on creating long-term stockholder value by delivering differentiated growth by capitalizing on favorable trends in our end-use segments and pursuing synergistic acquisitions that expand our ability to serve those attractive industries," said Bitting. "In Q2 2026, we completed our acquisition of the Calabrian sulfur dioxide and related derivatives business. This transaction broadens Ecovyst's platform of leading sulfur-based solutions, expands our presence in core applications such as mining and water treatment, and provides us with attractive growth opportunities in adjacent industry applications such as food processing and pharmaceuticals. As we begin the integration of Calabrian into Ecovyst, we expect to realize meaningful synergies that we believe will create additional value for our stockholders," said Bitting. "Based upon our favorable results for the first six months of the year, and to reflect the anticipated financial contribution of Calabrian in the second half of the year, we are raising our guidance for full-year Adjusted EBITDA to a range of $195 million to $207 million, " added Bitting.
Review of Business Results
Second quarter 2026 sales were $250.0 million, up $73.9 million or 42%, compared to $176.1 million in the second quarter of 2025. The increase in sales reflects higher sales volume and pricing compared to the prior year quarter. Average selling prices were higher primarily due to the pass-through effect of higher sulfur costs of approximately $55 million and favorable contractual pricing for regenerated sulfuric acid. The increase in sales volume was driven by higher sales of regenerated sulfuric acid from strong demand and less customer downtime, along with higher sales of virgin sulfuric acid due to increased customer demand and the contribution of sales volume from the Waggaman location, compared to the prior year quarter. Second quarter 2026 Adjusted EBITDA was $53.1 million, up $11.2 million or 27%, compared to $41.9 million in the second quarter of 2025, with the increase primarily driven by higher sales volume and favorable net pricing, partially offset by higher manufacturing costs, general inflation and higher transportation costs.
Cash Flows and Balance Sheet
Cash flows from operating activities for continuing operations were $55.2 million for the six months ended June 30, 2026, compared to $25.3 million for the six months ended June 30, 2025. The increase was primarily driven by higher earnings exclusive of non-cash expenses.
As of June 30, 2026, the Company had cash and cash equivalents of $87.8 million. Total gross debt was $497.1 million and availability under the Asset-Based Lending ("ABL") facility was $88.5 million, after giving effect to $2.2 million of outstanding letters of credit and with no revolving credit facility borrowings outstanding. Total cash and cash equivalents of $87.8 million plus the $88.5 million of availability under the ABL facility provided for total available liquidity of $176.3 million.
As of June 30, 2026, the net debt to net income ratio was 15.9x and the net debt leverage ratio was 2.0x. The increase in the net debt leverage ratio from 1.2x at December 31, 2025 is due to the $100 million increase in the term loan associated with the acquisition of the Calabrian business with no associated Adjusted EBITDA in the trailing twelve-month period related to the Calabrian business.
Revised 2026 Financial Outlook
For the second half of 2026 our outlook for demand for regenerated and virgin sulfuric acid remains positive. We expect strong demand for regenerated acid to support alkylate production and lower customer downtime, compared to the second half of 2025. However, and consistent with our previous guidance, we expect lower sales of virgin sulfuric acid in the third and fourth quarters, compared to 2025, primarily reflecting lower expected spot sales opportunities. We remain cautious about the potential for softer demand in some industrial applications for virgin sulfuric acid.
In light of the acquisition of the Calabrian sulfur dioxide and related derivatives business on June 30, 2026, we are revising our consolidated full-year 2026 guidance to reflect our expectations for Calabrian's contributions in the third and fourth quarters of 2026.
The Company's revised 2026 guidance is as follows:
-- Sales1 of $1,020 million to $1,060 million (change from $890 million to
$970 million)
-- Adjusted EBITDA2 of approximately $195 million to $207 million (change
from $180 million to $195 million), including an impact from Calabrian in
the second half of 2026 of $10 million to $12 million
-- Adjusted Free Cash Flow2 of $45 million to $55 million (change from $40
million to $55 million)
-- Capital expenditures of $85 million to $95 million (change from $80
million to $90 million)
-- Interest expense of $18 million to $22 million
-- Depreciation & Amortization of $80 million to $84 million (change from
$78 million to $82 million)
-- Effective tax rate in the mid 20% range
-- Adjusted Net Income2 of $65 million to $85 million (change from $55
million to $75 million), with Adjusted Diluted Income per share2 of $0.58
to $0.72 (change from $0.50 to $0.65)
(1) Sales outlook for 2026 assumes higher average sulfur prices compared to
2025 and higher projected pass-through of sulfur costs of approximately $220
million (change from approximately $155 million).
(2) In reliance upon the unreasonable efforts exemption provided under Item
10(e)(1)(i)$(B)$ of Regulation S-K, the Company is not able to provide a
reconciliation of its non-GAAP financial guidance to the corresponding GAAP
measures without unreasonable effort because of the inherent difficulty in
forecasting and quantifying certain amounts necessary for such a
reconciliation such as certain non-cash, nonrecurring or other items that are
included in net income and net cash provided by operating activities as well
as the related tax impacts of these items and asset dispositions /
acquisitions and changes in foreign currency exchange rates that are included
in cash flow, due to the uncertainty and variability of the nature and amount
of these future charges and costs. Because this information is uncertain, the
Company is unable to address the probable significance of the unavailable
information, which could be material to future results.
Stock Repurchase
In April 2022, the Company's Board of Directors approved a stock repurchase program authorizing the repurchase of up to $450 million of the Company's outstanding common stock. In October 2025, the Company's Board of Directors approved the removal of the expiration date of the stock repurchase program. As of June 30, 2026, $146.5 million was available for stock repurchases under the program.
During the second quarter of 2026, the Company did not repurchase any shares of its common stock pursuant to the stock repurchase program. For the six months ended June 30, 2026, the Company repurchased 3,226,461 shares of its common stock on the open market at an average price of $11.07 per share, for a total cost of $35.7 million.
During the second quarter of 2025, the Company repurchased 2,926,152 shares of its common stock on the open market at an average price of $7.47 per share, for a total cost of $21.9 million.
For possible future repurchases, the actual timing, number, and nature of shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions and may be conducted through negotiated transactions, open market repurchases or other means, including through Rule 10b-18 and Rule 10b5-1 trading plans or accelerated stock repurchases. The repurchase program does not obligate the Company to acquire any number of shares in any specific period, or at all, and the repurchase program may be amended, suspended or discontinued at any time at the Company's discretion.
Conference Call and Webcast Details
On Wednesday, August 5, 2026, Ecovyst management will review the second quarter 2026 results during a conference call and audio-only webcast scheduled for 11:00 a.m. Eastern Time.
Conference Call: Investors may listen to the conference call live via telephone by dialing 1 (800) 245-3047 (domestic) or 1 (203) 518-9765 (international) and use the participant code ECVTQ226.
Webcast: An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations.
Investor Contact:
Gene Shiels
(484) 617-1225
gene.shiels@ecovyst.com
About Ecovyst Inc.
Ecovyst Inc. and subsidiaries is a leading provider of regenerated sulfuric acid, virgin sulfuric acid and sulfur dioxide and related derivatives, which we believe are essential to our customers' operations and processes.
Our family of virgin sulfuric acid products, regenerated sulfuric acid and related derivatives serve a wide range of industrial applications. We are a leading provider of regenerated sulfuric acid to the North American refining industry for the production of alkylate, an essential gasoline component for lowering vapor pressure and increasing octane to meet stringent gasoline specifications and fuel efficiency standards. We are a leading North American producer of high quality and high strength virgin sulfuric acid for industrial and mining applications. Through our Calabrian business, we are also a leading producer of sulfur dioxide and related derivatives in North America, serving key end uses including mining, water treatment and specialty chemical production. We also provide chemical waste handling and treatment services, as well as ex-situ catalyst activation services for the refining and petrochemical industry.
For more information, see our website at https://www.ecovyst.com.
Presentation of Non-GAAP Financial Measures
In addition to the results provided in accordance with U.S. generally accepted accounting principles ("GAAP") throughout this press release, the Company has provided non-GAAP financial measures -- Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Diluted Income per share, Net Debt, Net Debt to Net Income Ratio and Net Debt Leverage Ratio (collectively, "Non-GAAP Financial Measures") -- which present results on a basis adjusted for certain items. The Company uses these Non-GAAP Financial Measures for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that these Non-GAAP Financial Measures are useful financial metrics to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. These Non-GAAP Financial Measures are not intended to replace, and should not be considered superior to, the presentation of the Company's financial results in accordance with GAAP. The use of the Non-GAAP Financial Measures terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. These Non-GAAP Financial Measures are reconciled from the respective measures under GAAP in the attached appendix.
Note on Forward-Looking Statements
Some of the information contained in this press release constitutes "forward-looking statements." Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "projects" and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Examples of forward-looking statements include, but are not limited to, statements regarding our future results of operations, financial condition, capital expenditure projects, liquidity, prospects, growth, strategies, capital allocation program (including the stock repurchase program), product and service offerings, expected demand trends, the integration of our recently-acquired Calabrian business and the expected financial contributions relating to such acquisition and our 2026 financial outlook. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against placing any undue reliance on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, regional, national or global political, economic, business, competitive, market and regulatory conditions, including the enactment, schedule and impact of tariffs and trade disputes, currency exchange rates, military conflicts, the effects of inflation, our ability to successfully integrate the Calabrian sulfur dioxide and sulfur derivatives business into our business and realize the benefits of that acquisition and other factors, including those described in the sections titled "Risk Factors" and "Management's Discussion & Analysis of Financial Condition and Results of Operations" in our filings with the SEC, which are available on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake 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.
ECOVYST INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except share and per share amounts)
Three months ended Six months ended
June 30, June 30,
2026 2025 % Change 2026 2025 % Change
----------- ----------- --------- ----------- ----------- ---------
Sales $ 250.0 $ 176.1 42.0 % $ 464.9 $ 319.2 45.6 %
Cost of goods
sold 200.2 135.9 47.3 % 378.6 259.9 45.7 %
----------- ----------- --------- ----------- ----------- ---------
Gross profit 49.8 40.2 23.9 % 86.3 59.3 45.5 %
Selling, general
and
administrative
expenses 17.4 17.6 (1.1) % 36.5 34.1 7.0 %
Other operating
expense, net 13.0 6.8 91.2 % 17.9 10.4 72.1 %
----------- ----------- --------- ----------- ----------- ---------
Operating
income 19.4 15.8 22.8 % 31.9 14.8 115.5 %
Interest
expense, net 3.5 8.5 (58.8) % 6.6 16.8 (60.7) %
Debt
modification
and
extinguishment
costs 1.0 -- NM 1.0 1.0 -- %
Other expense,
net -- 0.3 (100.0) % 0.1 0.3 (66.7) %
----------- ----------- --------- ----------- ----------- ---------
Income (loss)
from
continuing
operations
before income
taxes 14.9 7.0 112.9 % 24.2 (3.3) 833.3 %
Provision
(benefit) for
income taxes 4.2 2.0 110.0 % 7.8 (0.2) NM
Effective tax
rate 28.2 % 28.7 % 32.1 % 6.6 %
----------- ----------- --------- ----------- ----------- ---------
Net income
(loss) from
continuing
operations 10.7 5.0 114.0 % 16.4 (3.1) 629.0 %
Net (loss)
income from
discontinued
operations,
net of tax (2.8) 1.0 (380.0) % (4.2) 5.5 (176.4) %
----------- ----------- --------- ----------- ----------- ---------
Net income $ 7.9 $ 6.0 31.7 % $ 12.2 $ 2.4 408.3 %
=========== =========== ========= =========== =========== =========
Earnings per
share:
Basic income
(loss) per
share -
continuing
operations $ 0.10 $ 0.04 $ 0.15 $ (0.03)
Diluted income
(loss) per
share -
continuing
operations $ 0.10 $ 0.04 $ 0.15 $ (0.03)
Basic (loss)
income per
share -
discontinued
operations $ (0.03) $ 0.01 $ (0.04) $ 0.05
Diluted (loss)
income per
share -
discontinued
operations $ (0.03) $ 0.01 $ (0.04) $ 0.05
Basic (loss)
income per
share $ 0.07 $ 0.05 $ 0.11 $ 0.02
Diluted (loss)
income per
share $ 0.07 $ 0.05 $ 0.11 $ 0.02
Weighted
average shares
outstanding:
Basic 109,456,944 116,232,528 110,072,051 116,745,476
Diluted 110,839,894 116,535,060 111,312,917 116,745,476
____________________
NM - Not meaningful
ECOVYST INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share and per share amounts)
June 30, December 31,
2026 2025
-------------- -----------------
ASSETS
Cash and cash equivalents $ 87.8 $ 197.2
Accounts receivable, net 112.9 85.3
Inventories, net 40.0 26.8
Derivative assets 1.9 1.3
Prepaid and other current assets 18.7 8.8
-------------- -----------------
Total current assets 261.3 319.4
-------------- -----------------
Property, plant and equipment, net 534.0 481.2
Goodwill 398.3 326.7
Other intangible assets, net 135.5 59.3
Right-of-use lease assets 53.1 37.9
Other long-term assets 38.5 36.5
-------------- -----------------
Total assets $ 1,420.7 $ 1,261.0
============== =================
LIABILITIES
Accounts payable $ 74.0 $ 48.0
Operating lease liabilities--current 13.2 9.5
Accrued liabilities 66.3 63.3
-------------- -----------------
Total current liabilities 153.5 120.8
-------------- -----------------
Long-term debt 493.0 392.6
Deferred income taxes 146.0 113.3
Operating lease liabilities--noncurrent 40.2 28.7
Other long-term liabilities 1.1 2.1
-------------- -----------------
Total liabilities 833.8 657.5
-------------- -----------------
Commitments and contingencies
EQUITY
Common stock ($0.01 par); authorized
shares 450,000,000; issued shares
140,872,846 and 140,872,846 on June 30,
2026 and December 31, 2025,
respectively; outstanding shares
109,468,398 and 111,805,102 on June 30,
2026 and December 31, 2025,
respectively 1.4 1.4
Preferred stock ($0.01 par); authorized
shares 50,000,000; no shares issued or
outstanding on June 30, 2026 and December
31, 2025 -- --
Additional paid-in capital 1,105.8 1,108.5
Accumulated deficit (236.5) (248.6)
Treasury stock, at cost; shares
31,404,448 and 29,067,744 on June 30,
2026 and December 31, 2025,
respectively (289.3) (261.1)
Accumulated other comprehensive income 5.5 3.3
-------------- -----------------
Total equity 586.9 603.5
-------------- -----------------
Total liabilities and equity $ 1,420.7 $ 1,261.0
============== =================
ECOVYST INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended
June 30,
----------------------
2026 2025
---------- ----------
Cash flows from operating activities: (in millions)
Net income $ 12.2 $ 2.4
Net loss (income) from discontinued operations 4.2 (5.5)
---------- ----------
Net income (loss) from continuing
operations 16.4 (3.1)
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 34.7 32.0
Amortization 5.4 5.3
Amortization of deferred financing costs and
original issue discount 0.4 0.6
Deferred income tax provision 2.6 1.7
Net loss on asset disposals 2.6 0.4
Stock compensation 5.9 5.3
Other, net (3.1) (0.6)
Working capital changes that provided (used)
cash:
Receivables (13.6) (19.3)
Inventories (10.7) 0.4
Prepaids and other current assets (3.2) (1.1)
Accounts payable 20.0 8.8
Accrued liabilities (2.2) (5.1)
---------- ----------
Net cash provided by operating
activities, continuing operations 55.2 25.3
Net cash (used in) provided by
operating activities, discontinued
operations (3.9) 18.0
---------- ----------
Net cash provided by operating
activities 51.3 43.3
---------- ----------
Cash flows from investing activities:
Purchases of property, plant and equipment (44.8) (39.1)
Business combinations (178.5) (41.3)
---------- ----------
Net cash used in investing
activities, continuing operations (223.3) (80.4)
Net cash used in investing
activities, discontinued
operations -- (10.4)
---------- ----------
Net cash used in investing
activities (223.3) (90.8)
---------- ----------
Cash flows from financing activities:
Issuance of long-term debt, net of original
issue discount and financing fees 100.0 870.8
Repayments of long-term debt -- (875.2)
Repurchases of common shares (36.3) (21.9)
Tax withholdings on equity award vesting (1.3) (1.5)
Other, net 0.2 0.1
---------- ----------
Net cash provided by (used in)
financing activities, continuing
operations 62.6 (27.7)
Net cash used in financing
activities, discontinued
operations -- (1.7)
---------- ----------
Net cash provided by (used in)
financing activities 62.6 (29.4)
---------- ----------
Effect of exchange rate changes on cash and cash
equivalents -- 0.5
---------- ----------
Net change in cash and cash equivalents (109.4) (76.4)
Cash and cash equivalents at beginning of period 197.2 146.0
---------- ----------
Cash and cash equivalents at end of period 87.8 69.6
Less: cash, cash equivalents, and restricted cash of
discontinued operations -- (14.4)
---------- ----------
Cash, cash equivalents and restricted cash at end of
period of continuing operations $ 87.8 $ 55.2
========== ==========
Appendix Table A-1: Reconciliation of Net Income (Loss) From Continuing Operations to Adjusted EBITDA from Continuing Operations
Three months ended Six months ended
June 30, June 30,
--------------------- ---------------------
2026 2025 % Change 2026 2025 % Change
--------- ---------- -------- --------- ---------- --------
(in millions)
Reconciliation
of net income
(loss) from
continuing
operations to
Adjusted EBITDA
from continuing
operations
Net income
(loss) from
continuing
operations $ 10.7 $ 5.0 $ 16.4 $ (3.1)
Provision
(benefit) for
income taxes 4.2 2.0 7.8 (0.2)
Interest
expense, net 3.5 8.5 6.6 16.8
Depreciation and
amortization 19.6 19.0 40.1 37.3
--------- ---------- --------- ----------
EBITDA 38.0 34.5 70.9 50.8
Debt
modification
and
extinguishment
costs 1.0 -- 1.0 1.0
Net loss on
asset
disposals(a) 2.3 0.3 2.6 0.4
Transaction and
other related
costs(b) 8.1 1.5 9.4 2.3
Equity-based
compensation 2.5 2.8 5.9 5.3
Restructuring,
integration and
business
optimization
expenses(c) 0.4 1.0 1.2 1.2
Other(d) 0.8 1.8 1.9 2.2
--------- ---------- --------- ----------
Adjusted
EBITDA from
continuing
operations 53.1 41.9 26.7 % 92.9 63.2 47.0 %
Sales 250.0 176.1 42.0 % 464.9 319.2 45.6 %
Adjusted
EBITDA from
continuing
operations
margin 21.2 % 23.8 % 20.0 % 19.8 %
Twelve months ended
-----------------------
June 30, December 31,
2026 2025 % Change
--------- ------------ --------
Reconciliation of net income from
continuing operations to Adjusted
EBITDA from continuing operations
Net income from continuing
operations $ 25.8 $ 6.3
Provision for income taxes 27.5 19.5
Interest expense, net 24.1 34.2
Depreciation and amortization 81.5 78.6
--------- ------------
EBITDA 158.9 138.6
Debt modification and extinguishment
costs 5.6 5.5
Net loss on asset disposals(a) 7.7 5.4
Transaction and other related
costs(b) 10.5 3.4
Equity-based compensation 10.3 9.7
Restructuring, integration and
business optimization expenses(c) 4.8 4.7
Other(d) 3.9 4.7
--------- ------------
Adjusted EBITDA from continuing
operations 201.7 172.0 17.3 %
Sales 795.4 723.5 9.9 %
Adjusted EBITDA from continuing
operations margin 25.4 % 23.8 %
Descriptions to Ecovyst Non-GAAP Reconciliations
(a) When asset disposals occur, we remove the impact of net gain/loss of the
disposed asset because such impact primarily reflects the non-cash
write-off of long-lived assets no longer in use.
(b) Relates to certain transaction costs, including debt financing, due
diligence and other costs related to transactions that are completed,
pending or abandoned, that we believe are not representative of our
ongoing business operations.
(c) Includes the impact of restructuring, integration and business
optimization expenses, which are incremental costs that are not
representative of our ongoing business operations.
(d) Other consists of adjustments for items that are not core to our ongoing
business operations. These adjustments include environmental remediation
and other legal costs, expenses for capital and franchise taxes, and
defined benefit pension and postretirement plan (benefits) costs, for
which our obligations relate to plans that are frozen. Included in this
line-item are rounding discrepancies that may arise from rounding from
dollars (in thousands) to dollars (in millions).
Appendix Table A-2: Reconciliation of Net Income (Loss) From Continuing Operations and EPS to Adjusted Net Income and Adjusted Diluted Income per share(1)
Three months ended June 30,
--------------------------------------------------------------------------------------------------------------------
2026 2025
------------------------------------------------------- -----------------------------------------------------------
Tax Tax
Pre-tax expense After-tax Per share, Per share, Pre-tax expense After-tax Per share, Per share,
amount (benefit) amount basic diluted amount (benefit) amount basic diluted
------- --------- --------- ----------- ----------- -------- --------- ---------- ------------ ------------
(in millions, except share and per share amounts)
Net income from
continuing
operations $ 14.9 $ 4.2 $ 10.7 $ 0.10 $ 0.10 $ 7.0 $ 2.0 $ 5.0 $ 0.04 $ 0.04
Debt
modification
and
extinguishment
costs 1.0 0.2 0.8 0.01 0.01 -- -- -- -- --
Net loss on
asset
disposals(a) 2.3 0.6 1.7 0.01 0.01 0.3 0.1 0.2 -- --
Transaction and
other related
costs(b) 8.1 0.6 7.5 0.07 0.07 1.5 0.3 1.2 0.01 0.01
Equity-based
compensation 2.5 0.7 1.8 0.02 0.02 2.8 (0.1) 2.9 0.02 0.02
Restructuring,
integration
and business
optimization
expenses(c) 0.4 0.1 0.3 -- -- 1.0 0.3 0.7 0.01 0.01
Other(d) 0.8 0.2 0.6 -- -- 1.8 0.4 1.4 0.02 0.02
------- --------- --------- ----------- ----------- -------- --------- ---------- ------------ ------------
Adjusted Net
Income(1) $ 30.0 $ 6.6 $ 23.4 $ 0.21 $ 0.21 $ 14.4 $ 3.0 $ 11.4 $ 0.10 $ 0.10
======= ========= ========= =========== =========== ======== ========= ========== ============ ============
Weighted average
shares
outstanding 109,456,944 110,839,894 116,232,528 116,535,060
Six months ended June 30,
--------------------------------------------------------------------------------------------------------------------
2026 2025
Tax Tax
Pre-tax expense After-tax Per share, Per share, Pre-tax expense After-tax Per share, Per share,
amount (benefit) amount basic diluted amount (benefit) amount basic diluted
------- --------- --------- ----------- ----------- -------- --------- ---------- ------------ ------------
(in millions, except share and per share amounts)
Net income
(loss) from
continuing
operations $ 24.2 $ 7.8 $ 16.4 $ 0.15 $ 0.15 $ (3.3) $ (0.2) $ (3.1) $ (0.03) $ (0.03)
Debt
modification
and
extinguishment
costs 1.0 0.3 0.7 0.01 0.01 1.0 0.2 0.8 0.01 0.01
Net loss on
asset
disposals(a) 2.6 0.7 1.9 0.01 0.01 0.4 0.1 0.3 -- --
Transaction and
other related
costs(b) 9.4 0.9 8.5 0.08 0.08 2.3 0.5 1.8 0.01 0.01
Equity-based
compensation 5.9 0.2 5.7 0.05 0.05 5.3 0.2 5.1 0.04 0.04
Restructuring,
integration
and business
optimization
expenses(c) 1.2 0.3 0.9 0.01 0.01 1.2 0.3 0.9 0.01 0.01
Other(d) 1.9 0.4 1.5 0.01 0.01 2.2 0.5 1.7 0.02 0.02
------- --------- --------- ----------- ----------- -------- --------- ---------- ------------ ------------
Adjusted Net
Income(1) $ 46.2 $ 10.6 $ 35.6 $ 0.32 $ 0.32 $ 9.1 $ 1.6 $ 7.5 $ 0.06 $ 0.06
======= ========= ========= =========== =========== ======== ========= ========== ============ ============
Weighted average
shares
outstanding 110,072,051 111,312,917 116,745,476 117,044,461
See Appendix Table A-1 for Descriptions to Ecovyst Non-GAAP Reconciliations in
the table above.
(1) We define Adjusted Net Income as net income (loss) from continuing
operations adjusted for non-operating income or expense and the impact of
certain non-cash or other items that are included in net income (loss)
from continuing operations that we do not consider indicative of our
ongoing operating performance. Adjusted Net Income is presented as a key
performance indicator as we believe it will enhance a prospective
investor's understanding of our results of operations and financial
condition. Adjusted Net Income may not be comparable with net income
(loss) from continuing operations or Adjusted Net Income as defined by
other companies.
The adjustments to net income (loss) from continuing operations are shown net of applicable tax rates of 25.8% and 23.9% for the six months ended June 30, 2026 and 2025, respectively, except for equity-based compensation and transaction and other related costs. The tax effect of equity-based compensation is derived by removing the tax effect of any equity-based compensation expense disallowed as a result of its inclusion within Section 162(m) of the Internal Revenue Code of 1986, as amended, and adjusting for the tax effect of equity-based compensation windfalls and shortfalls recorded as discrete items. The tax effect of transaction and other related costs is derived by excluding the tax impact of non-deductible transaction costs associated with the Calabrian Acquisition, which are reflected as discrete items within the income tax provision.
Appendix Table A-3: Adjusted Free Cash Flow
Six months ended
June 30,
--------------------------
2026 2025
------------ ------------
(in millions)
Net cash provided by operating activities $ 51.3 $ 43.3
Less:
Purchases of property, plant and
equipment(1) (44.8) (49.5)
------------ ------------
Free Cash Flow(2) $ 6.5 $ (6.2)
------------ ------------
Adjustments to free cash flow:
Cash paid for debt financing costs 1.0 1.0
Cash paid for costs related to
acquisitions 4.2 2.8
Cash paid for costs related to the
segment disposal 1.1 --
------------ ------------
Adjusted Free Cash Flow(2) $ 12.8 $ (2.4)
============ ============
Net cash used in investing activities(3) $ (223.3) $ (90.8)
Net cash used in financing activities $ 62.6 $ (29.4)
(1) Includes purchases of property, plant and equipment reported in
discontinued operations for the six months ended June 30, 2025.
(2) We define Adjusted Free Cash Flow as net cash provided by operating
activities less purchases of property, plant and equipment, including
purchases of property, plant and equipment reported in discontinued
operations in 2025, adjusted for cash flows that are unusual in nature
and/or infrequent in occurrence that neither relate to our core business
nor reflect the liquidity of our underlying business. Historically these
adjustments include proceeds from the sale of assets, net interest
proceeds on swaps designated as net investment hedges, the cash paid for
segment disposals and cash paid for debt financing costs included in cash
from operating activities. Adjusted Free Cash Flow is a non-GAAP
financial measure that we believe will enhance a prospective investor's
understanding of our ability to generate additional cash from operations
and is an important financial measure for use in evaluating our financial
performance. Our presentation of Adjusted Free Cash Flow is not intended
to replace, and should not be considered superior to, the presentation of
our net cash provided by operating activities determined in accordance
with GAAP. Additionally, our definition of Adjusted Free Cash Flow is
limited, in that it does not represent residual cash flows available for
discretionary expenditures, due to the fact that the measure does not
deduct the payments required for debt service and other contractual
obligations or payments made for business acquisitions. Therefore, we
believe it is important to view Adjusted Free Cash Flow as a measure that
provides supplemental information to our condensed consolidated
statements of cash flows. You should not consider Adjusted Free Cash Flow
in isolation or as an alternative to the presentation of our financial
results in accordance with GAAP. The presentation of Adjusted Free Cash
Flow may differ from similar measures reported by other companies and may
not be comparable to other similarly titled measures.
(3) Net cash used in investing activities includes purchases of property,
plant and equipment, which is also included in our computation of
Adjusted Free Cash Flow.
Appendix Table A-4: Net Debt Leverage Ratio
June 30, 2026 December 31, 2025
---------------- -----------------
(in millions, except ratios)
Total debt $ 497.1 $ 397.1
Less:
Cash and cash equivalents 87.8 197.2
---------------- -----------------
Net debt $ 409.3 $ 199.9
================ =================
Trailing twelve months:
Net income from continuing operations $ 25.8 $ 6.3
Adjusted EBITDA from continuing
operations (1) $ 201.7 $ 172.0
Net Debt to Net Income Ratio 15.9x 31.7x
Net Debt Leverage Ratio 2.0x 1.2x
____________________
(1) Refer to Appendix Table A-1: Reconciliation of Net Income (Loss) from
Continuing Operations to Adjusted EBITDA from Continuing Operations for
the reconciliation to the most comparable GAAP financial measure.
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SOURCE Ecovyst Inc.
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