Ecovyst Reports First Quarter 2026 Results and Revises 2026 Outlook

WAYNE, Pa., May 5, 2026 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading provider of virgin sulfuric acid and regenerated sulfuric acid products and services, today reported results for the first quarter ended March 31, 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.

First Quarter 2026 Results & Highlights from Continuing Operations

"Ecovyst delivered an excellent start to 2026, reinforcing our positive outlook for the year ahead. Regeneration services sales grew at a double digit pace, driven by high refinery utilization, favorable alkylate economics and lower customer downtime as compared to last year, and favorable contractual pricing, while virgin sulfuric acid volumes rose more than thirty percent, reflecting continued solid demand and the contribution of our Waggaman assets," said Kurt J. Bitting, Ecovyst's Chief Executive Officer.  "Even as the geopolitical and global macroeconomic landscape continues to evolve, our position as a leading U.S.-based supplier of critical sulfur products and services gives us confidence in our ability to continue building on this growth in 2026, and as such we are revising our full-year Adjusted EBITDA guidance."

"The year-end divestiture of our Advanced Materials & Catalysts segment significantly strengthened our balance sheet and provides meaningful flexibility to accelerate growth through both organic investments and accretive inorganic opportunities," said Bitting. "In 2026, we are investing approximately $20 million in two projects to better serve our growing virgin sulfuric acid customer base. We also returned approximately $36 million to stockholders through share repurchases in the first quarter, and we will continue to prioritize capital allocation options that maximize long-term value for our stockholders."

Review of Business Results

First quarter 2026 sales were $215.0 million, up $71.9 million or 50%, compared to $143.1 million in the first quarter of 2025. The increase in sales reflects higher selling prices and higher sales volume compared to the prior year quarter.  Average selling prices were higher primarily due to the pass-through effect of higher sulfur costs of approximately $33 million, higher virgin sulfuric acid pricing, and favorable contract pricing for regenerated sulfuric acid. Sales volume increase was a result of the contribution of sales volume from the Waggaman location, higher virgin sulfuric acid demand, and higher regeneration services driven by less customer downtime compared to the prior year quarter.  First quarter 2026 Adjusted EBITDA was $39.8 million, up $18.5 million or 87%, compared to $21.3 million in the first quarter of 2025, with the increase primarily driven by higher sales volume and favorable pricing, partially offset by higher manufacturing costs driven by higher turnaround costs, along with general inflation and higher transportation costs.

Cash Flows and Balance Sheet

Cash flows from operating activities for continuing operations was $19.6 million for the three months ended March 31, 2026, compared to $6.7 million for the three months ended March 31, 2025. The increase was primarily driven by higher earnings exclusive of non-cash expenses.

As of March 31, 2026, the Company had cash and cash equivalents of $162.6 million.  Total gross debt was $397.1 million and availability under the ABL facility was $74.3 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 $162.6 million plus the $74.3 million of availability under the ABL facility provided for total available liquidity of $236.9 million.

As of March 31, 2026, the net debt to net income ratio was 11.7x and the net debt leverage ratio was 1.2x.

2026 Financial Outlook

We continue to project positive demand in 2026 for sales of both regenerated and virgin sulfuric acid.  For regeneration services, we anticipate that high refinery utilization, favorable alkylate economics and lower customer downtime, compared to 2025, will contribute to increased sales for regenerated sulfuric acid. We also expect higher sales of virgin sulfuric acid in 2026, reflecting increased sales into mining applications and including the contribution from the Waggaman sulfuric acid assets acquired in 2025. However, we remain cautious about the potential for softer demand in some industrial applications for virgin sulfuric acid.

The Company's revised 2026 guidance is as follows:

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 March 31, 2026, $146.5 million was available for stock repurchases under the program.

During the first quarter of 2026, the Company repurchased 3,226,461 shares of its common stock at an average price of $11.07 per share, for a total cost of $35.7 million.

During the first quarter of 2025, the Company did not repurchase any shares of its common stock pursuant to the stock repurchase program.

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 Tuesday, May 5, 2026, Ecovyst management will review the first 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 ECVTQ126.

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 virgin sulfuric acid and regenerated sulfuric acid products and services. We believe that our products and services contribute to improving the sustainability of the environment.

We are a leading provider of sulfuric acid recycling 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 also a leading North American producer of high quality and high strength virgin sulfuric acid for industrial and mining applications. 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 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, 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, 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.

March 31,

ECOVYST INC. AND SUBSIDIARIES

March 31,

Appendix Table A-1: Reconciliation of Net Income (Loss) From Continuing Operations to Adjusted EBITDA from Continuing Operations

March 31,

(a)

Appendix Table A-2: Reconciliation of Net Income (Loss) From Continuing Operations and EPS to Adjusted Net Income and Adjusted EPS⁽¹⁾

The adjustments to net income (loss) from continuing operations are shown net of applicable tax rates of 25.4% and 25.0% for the three months ended March 31, 2026 and 2025, respectively, except for equity-based compensation. The tax effect on equity-based compensation is derived by removing the tax effect of any equity-based compensation expense disallowed as a result of its inclusion within IRC Sec. 162(m), and adding the tax effect of equity-based stock compensation shortfall recorded as a discrete item.

Appendix Table A-3: Adjusted Free Cash Flow

March 31,

Appendix Table A-4: Net Debt Leverage Ratio

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SOURCE Ecovyst Inc.