Ecovyst — Third Quarter 2026 Earnings Summary

Financial Performance

• Sales for the third quarter of 2026 reached $308.6 million, a 51% increase from $204.9 million in the third quarter of 2025.
• Net income from continuing operations was $18.4 million for the quarter, compared to $0.2 million in the prior year period, resulting in a net income margin of 6.0% and diluted net income per share of $0.17.
• Adjusted Net Income was $25.3 million for the quarter, up from $21.5 million in the year-ago quarter, with Adjusted Diluted Income per share of $0.23.
• Adjusted EBITDA was $61.2 million for the quarter, an increase of 6% ($3.7 million) compared to $57.5 million in the third quarter of 2025.
• Cash flow from operating activities for the nine months ended September 30, 2026, was $80.7 million, compared to $77.0 million for the same period in 2025.
• Adjusted Free Cash Flow for the nine months ended September 30, 2026, was $32.4 million, down from $42.4 million in the prior year period.
• Total gross debt was $497.1 million as of September 30, 2026, up from $397.1 million as of December 31, 2025.
• Net Debt Leverage Ratio was 2.1x as of September 30, 2026, compared to 1.2x at December 31, 2025.
• Net Debt to Net Income Ratio was 9.7x as of September 30, 2026.
• Cash and cash equivalents were $71.2 million as of September 30, 2026, with $95.8 million available under the Asset-Based Lending facility, providing total liquidity of $167.0 million.

Guidance and Future Outlook

• Full-year 2026 Sales guidance was raised to a range of $1,050 million to $1,070 million (previously $1,020 million to $1,060 million).
• Full-year 2026 Adjusted EBITDA guidance was raised to a range of $208 million to $212 million (previously $195 million to $207 million), including an estimated $5 million to $6 million impact from Calabrian in the fourth quarter.
• Full-year 2026 Adjusted Free Cash Flow guidance was raised to a range of $50 million to $60 million (previously $45 million to $55 million).
• Full-year 2026 Capital expenditures guidance was raised to a range of $90 million to $95 million (previously $85 million to $95 million).
• Full-year 2026 Interest expense guidance was raised to a range of $19 million to $21 million (previously $18 million to $22 million).
• Full-year 2026 Depreciation & Amortization guidance was raised to a range of $84 million to $88 million (previously $80 million to $84 million).
• Full-year 2026 Adjusted Net Income guidance was raised to a range of $70 million to $85 million (previously $65 million to $85 million), with Adjusted Diluted Income per share guidance of $0.63 to $0.77 (previously $0.58 to $0.72).
• The effective tax rate for 2026 is expected to be in the mid-20% range.
• Management anticipates high refinery utilization through year-end and healthy demand across the portfolio for the remainder of the year.
• Demand for regenerated sulfuric acid is expected to be supported by high refinery utilization and strong alkylate demand.
• Demand for virgin sulfuric acid is expected to benefit from ongoing growth in copper mining applications.
• Sales of sulfur dioxide in the Calabrian business are expected to be supported by high operating rates for Canadian gold mines in the fourth quarter.
• Management notes caution regarding potential unplanned outages with refining customers and the risk of customer destocking if sulfur prices decrease significantly.

Business Segments and Product Lines

• The Calabrian sulfur dioxide and related derivatives business, acquired on June 30, 2026, contributed to third-quarter sales and performance, with results consistent with the investment thesis.
• Regenerated sulfuric acid sales volumes increased due to strong demand, less customer downtime, and higher average selling prices driven by sulfur cost pass-throughs of approximately $67 million.
• Virgin sulfuric acid sales increased, benefiting from solid mining demand, stable industrial demand, and positive pricing fundamentals.
• The Advanced Materials & Catalysts business, including investments in Zeolyst International and Zeolyst C.V., was sold on December 31, 2025, and results are reported in discontinued operations.
• Manufacturing costs, general inflation, and higher transportation costs partially offset the increase in Adjusted EBITDA.

Market and Competitive Landscape

• Ecovyst is a leading provider of regenerated sulfuric acid to the North American refining industry for alkylate production.
• The company is a leading North American producer of high-quality virgin sulfuric acid for industrial and mining applications.
• Through the Calabrian business, Ecovyst is a leading producer of sulfur dioxide and related derivatives in North America for mining, water treatment, and specialty chemical production.
• Strong refining margins and increased export demand drove year-over-year growth in regenerated sulfuric acid volumes.

Risks and Challenges

• Potential for unplanned outages with refining customers could impact demand.
• A significant decrease in sulfur prices could drive short-term customer destocking.
• Integration of the Calabrian business and realization of anticipated synergies present execution risks.
• Forward-looking statements are subject to uncertainties including political, economic, regulatory conditions, currency exchange rates, military conflicts, inflation, and the ability to successfully integrate the Calabrian business.

Management Commentary and Tone

• CEO Kurt J. Bitting described the quarter as "strong," noting Adjusted EBITDA was above the high end of the guidance range.
• Management highlighted that strong refining margins and increased export demand drove growth in regenerated sulfuric acid volumes and sales.
• Bitting stated that Calabrian's integration is underway and the company remains on track to capture anticipated synergies.
• Management expressed confidence in high refinery utilization and healthy demand for the rest of the year.
• Capital allocation remains flexible, prioritizing stockholder value through organic and inorganic growth opportunities and share repurchases.

Other Key Points

• The Company repurchased 263,719 shares of common stock in the third quarter of 2026 for a total cost of $2.7 million at an average price of $10.25 per share.
• The Company intends to repurchase up to a total of $20 million of common stock in the second half of 2026.
• As of September 30, 2026, $143.8 million remained available for stock repurchases under the existing program.
• The Board of Directors removed the expiration date of the stock repurchase program in October 2025.
• The increase in the Net Debt Leverage Ratio from 1.2x to 2.1x was due to a $100 million increase in the term loan associated with the Calabrian acquisition, offset by only one quarter of Calabrian-related Adjusted EBITDA in the trailing twelve-month period.
• The Company is unable to provide a reconciliation of its non-GAAP financial guidance to corresponding GAAP measures without unreasonable effort due to the difficulty in forecasting certain non-cash, nonrecurring, or other items.
• Conference call and webcast details were provided for November 5, 2026, at 11:00 a.m. Eastern Time.