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, with a net income margin of 6.0%.
• Diluted net income per share from continuing operations was $0.17 for the quarter.
• Adjusted Net Income was $25.3 million for the quarter, up from $21.5 million in the prior year, resulting in Adjusted Diluted Income per share of $0.23.
• Adjusted EBITDA was $61.2 million for the quarter, an increase of 6% compared to $57.5 million in the prior year.
• Cash flow from operating activities for the nine months ended September 30, 2026, was $80.7 million, compared to $77.0 million in the same period of 2025.
• Adjusted Free Cash Flow was $32.4 million for the nine months ended September 30, 2026, down from $42.4 million in the prior year.
• 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 as of December 31, 2025.
• Net Debt to Net Income Ratio was 9.7x as of September 30, 2026, compared to 31.7x as of December 31, 2025.
• Cash and cash equivalents were $71.2 million as of September 30, 2026, down from $197.2 million as of December 31, 2025.
• Availability under the Asset-Based Lending facility was $95.8 million as of September 30, 2026.

Guidance and Future Outlook:

• Full-year 2026 Sales guidance was raised to $1,050 million to $1,070 million (previously $1,020 million to $1,060 million).
• Full-year 2026 Adjusted EBITDA guidance was raised to $208 million to $212 million (previously $195 million to $207 million), including an impact from Calabrian in the fourth quarter of $5 million to $6 million.
• Full-year 2026 Adjusted Free Cash Flow guidance was raised to $50 million to $60 million (previously $45 million to $55 million).
• Full-year 2026 Capital expenditures guidance was raised to $90 million to $95 million (previously $85 million to $95 million).
• Full-year 2026 Interest expense guidance was raised to $19 million to $21 million (previously $18 million to $22 million).
• Full-year 2026 Depreciation & Amortization guidance was raised to $84 million to $88 million (previously $80 million to $84 million).
• Full-year 2026 Adjusted Net Income guidance was raised to $70 million to $85 million (previously $65 million to $85 million).
• Full-year 2026 Adjusted Diluted Income per share guidance was raised to $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 virgin sulfuric acid is expected to continue growing due to copper mining applications.
• Sales of sulfur dioxide in the Calabrian business are expected to benefit from high operating rates for Canadian gold mines in the fourth quarter.

Business Segments and Product Lines:

• Sales growth was driven by higher sales volume and pricing, including a pass-through effect of higher sulfur costs of approximately $67 million in the quarter.
• Regenerated sulfuric acid volumes increased due to strong demand and less customer downtime.
• Virgin sulfuric acid sales increased, benefiting from solid mining demand, stable industrial demand, and positive pricing fundamentals.
• Results include the first full quarter of ownership for the Calabrian sulfur dioxide and related derivatives business, acquired on June 30, 2026.
• Calabrian's third-quarter performance was consistent with the investment thesis, and integration is underway.
• The Advanced Materials & Catalysts business was sold on December 31, 2025, and its results are reported in discontinued operations.

Market and Competitive Landscape:

• Strong refining margins and increased export demand drove year-over-year growth in regenerated sulfuric acid volumes.
• The company remains a leading provider of regenerated sulfuric acid to the North American refining industry and a leading North American producer of high-quality virgin sulfuric acid.
• Through Calabrian, the company is a leading producer of sulfur dioxide and related derivatives in North America.

Risks and Challenges:

• Management remains cautious about the potential for unplanned outages with refining customers.
• A significant decrease in the price of sulfur could drive short-term customer destocking.
• Forward-looking statements are subject to uncertainties including regional, national, or global political, economic, and business conditions, tariffs, trade disputes, currency exchange rates, and military conflicts.
• Risks include the ability to successfully integrate the Calabrian business and realize anticipated synergies.

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 expressed confidence in the integration of Calabrian and the capture of anticipated synergies.
• The tone regarding capital allocation was described as flexible, prioritizing stockholder value through organic/inorganic growth and share repurchases.

Other Key Points:

• The Company repurchased $2.7 million of common stock in the third quarter of 2026 (263,719 shares 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 program authorized in April 2022.
• The Board of Directors removed the expiration date of the stock repurchase program in October 2025.
• A $100 million increase in the term loan was associated with the acquisition of the Calabrian business.
• The Company reported a Net loss from discontinued operations of $0.2 million for the third quarter of 2026, compared to a loss of $79.5 million in the prior year.
• Total assets were $1,417.5 million as of September 30, 2026, compared to $1,261.0 million as of December 31, 2025.
• Goodwill increased to $399.5 million as of September 30, 2026, from $326.7 million as of December 31, 2025.