ECVT · Ecovyst Inc.

Ecovyst Inc. delivered strong Q1 2026 results from continuing operations following the December 31, 2025 divestiture of its Advanced Materials & Catalysts business, reported as discontinued operations. Sales surged 50% to $215.0 million, propelled by higher average selling prices from $33 million in sulfur cost pass-throughs, elevated virgin sulfuric acid pricing, and favorable regeneration contracts, alongside volume gains from the 2025-acquired Waggaman assets, robust virgin acid demand, and improved regeneration services due to high refinery utilization, favorable alkylate economics, and reduced customer downtime. Adjusted EBITDA rose 87% to $39.8 million, bolstered by these factors despite offsets from elevated turnaround, inflation, and transportation costs. GAAP net income flipped to $5.7 million ($0.05/share) from a $8.1 million loss, with Adjusted Net Income at $12.2 million ($0.11/share). Operating cash flow strengthened to $19.6 million, supporting $35.7 million in share repurchases (3.226M shares at $11.07 average). Balance sheet remains solid with $162.6 million cash, $397.1 million debt, and 1.2x net leverage, providing $236.9 million liquidity. Management raised full-year 2026 guidance, citing sustained demand: Sales to $890-970 million (prior $860-940M, assuming $155M sulfur pass-through vs. prior $125M), Adjusted EBITDA to $180-195 million (prior $175-195M), reflecting confidence in U.S.-centric sulfur products amid evolving macro conditions. CEO Bitting highlighted organic investments (~$20M in virgin acid projects) and capital flexibility post-divestiture for growth and returns, with $146.5 million buyback capacity remaining under the extended $450 million program.