en.Wedoany.com Reported - Ecovyst Inc. (NYSE: ECVT) reported its second-quarter results for the period ended June 30, 2026, on August 5. Sales from continuing operations increased 42% year-over-year to $250 million, while adjusted EBITDA rose 27% year-over-year to $53.1 million. The company also raised its full-year 2026 adjusted EBITDA guidance to a range of $195 million to $207 million.
The company completed the sale of its Advanced Materials & Catalysts business on December 31, 2025, which included its investments in affiliates Zeolyst International and Zeolyst C.V., and the related financial results have been classified as discontinued operations for all periods presented. On June 30, 2026, Ecovyst completed the acquisition of Calabrian, a sulfur dioxide and related derivatives business of INEOS Enterprises.
Ecovyst CEO Kurt J. Bitting stated that the company continued to achieve its financial and long-term strategic goals in the second quarter. High refinery utilization rates and favorable alkylate economics drove increased volumes of regenerated sulfuric acid, while virgin sulfuric acid volumes achieved double-digit growth, reflecting positive demand fundamentals and the contribution of the Waggaman sulfuric acid plant acquired in May 2025. He noted that adjusted EBITDA for the quarter was approximately $53 million, within the company's guidance range, up 27% from the prior-year period.
Bitting said the Calabrian acquisition broadens Ecovyst's sulfur-based solutions platform, expands the company's presence in core applications such as mining and water treatment, and provides growth opportunities in adjacent industries such as food processing and pharmaceuticals. As integration progresses, the company expects to realize meaningful synergies. Based on performance in the first six months of the year and the expected financial contribution of Calabrian in the second half, the company raised its full-year adjusted EBITDA guidance to a range of $195 million to $207 million.
Financial data show that second-quarter net income was $10.7 million, compared with $5.0 million in the prior-year period, with a net margin of 4.3% and diluted earnings per share of $0.10; adjusted net income was $23.4 million, compared with $11.4 million in the prior-year period, with adjusted diluted earnings per share of $0.21. Adjusted EBITDA was $53.1 million, an increase of $11.2 million, or 27%, from $41.9 million in the second quarter of 2025. In the first half, cash flows from operating activities of continuing operations were $55.2 million, compared with $25.3 million in the prior-year period; adjusted free cash flow was $12.8 million, compared with negative $2.4 million in the prior-year period.
Sales increased 42% to $250 million, up $73.9 million from $176.1 million in the second quarter of 2025, driven by higher sales volumes and pricing. The increase in average selling prices was primarily driven by the pass-through effect of higher sulfur costs (approximately $55 million) and favorable contract pricing for regenerated sulfuric acid; volume growth came from both regenerated and virgin sulfuric acid—regenerated sulfuric acid benefited from strong demand and reduced customer downtime, while virgin sulfuric acid benefited from increased customer demand and volume contributions from the Waggaman plant. Adjusted EBITDA growth was driven by higher sales volumes and favorable net pricing, partially offset by higher manufacturing costs, overall inflation, and increased transportation costs.
As of June 30, 2026, the company held cash and cash equivalents of $87.8 million, total gross debt of $497.1 million, and available capacity of $88.5 million under its asset-based lending (ABL) facility (after considering $2.2 million in outstanding letters of credit and with no revolving credit borrowings outstanding), for total available liquidity of $176.3 million. The ratio of net debt to net income was 15.9 times, and the net debt leverage ratio was 2.0 times, up from 1.2 times as of December 31, 2025, due to the addition of a $100 million term loan to fund the Calabrian acquisition, which had no corresponding adjusted EBITDA in the trailing twelve-month period.
The company expects a favorable demand outlook for regenerated and virgin sulfuric acid in the second half of 2026. Compared with the second half of 2025, strong demand for regenerated sulfuric acid is expected to support alkylate production and reduce customer downtime; however, virgin sulfuric acid sales volumes in the third and fourth quarters are expected to be lower than in 2025, primarily reflecting anticipated reductions in spot sales opportunities. The company remains cautious about potential softening in demand for virgin sulfuric acid in certain industrial applications.
Under the revised full-year 2026 guidance, the company expects sales of $1.02 billion to $1.06 billion (previously $890 million to $970 million), with the outlook assuming average sulfur prices higher than 2025 and sulfur cost pass-through expected to increase by approximately $220 million (previously approximately $155 million). Adjusted EBITDA is expected to be approximately $195 million to $207 million (previously $180 million to $195 million), including a contribution of $10 million to $12 million from Calabrian in the second half of 2026. Adjusted free cash flow is expected to be $45 million to $55 million (previously $40 million to $55 million), capital expenditures of $85 million to $95 million (previously $80 million to $90 million), interest expense of $18 million to $22 million, depreciation and amortization of $80 million to $84 million (previously $78 million to $82 million), and an effective tax rate in the mid-20s percent range. Adjusted net income is expected to be $65 million to $85 million (previously $55 million to $75 million), with adjusted diluted earnings per share of $0.58 to $0.72 (previously $0.50 to $0.65).
Regarding share repurchases, Ecovyst's board of directors approved a share repurchase program of up to $450 million in April 2022, and in October 2025 the board eliminated the program's expiration date. As of June 30, 2026, $146.5 million remained available for repurchases under the program. The company did not repurchase any common shares in the second quarter; in the first half, the company repurchased 3,226,461 shares in the open market at an average price of $11.07 per share, for a total cost of $35.7 million. In the prior-year second quarter, the company repurchased 2,926,152 shares at an average price of $7.47 per share, for a total cost of $21.9 million. The company stated that the actual timing, amount, and manner of repurchases will depend on factors such as share price, trading volume, and general business and market conditions.
Ecovyst Inc. and its subsidiaries are suppliers of regenerated sulfuric acid, virgin sulfuric acid, sulfur dioxide, and related derivatives. The company is a leading supplier of regenerated sulfuric acid to the North American refining industry, used to produce alkylate, a component that lowers vapor pressure and increases octane to meet stringent gasoline specifications and fuel efficiency standards; the company is also a leading North American producer of high-quality, high-strength virgin sulfuric acid serving industrial and mining applications. Through the Calabrian business, the company is also a leading North American producer of sulfur dioxide and related derivatives, serving end uses such as mining, water treatment, and specialty chemical production. The company also provides chemical waste treatment services and off-site catalyst activation services to the refining and petrochemical industries.
