Ecovyst (ECVT) investor relations material

Executive summary

• Announced agreement to divest Advanced Materials & Catalysts segment for $556 million, with expected net proceeds of $530 million and closing in Q1 2026; results now reported as discontinued operations.

• Proceeds of $450–$500 million will be used to reduce long-term debt, targeting a net debt leverage ratio below 1.5x.

• Focus shifting to Ecoservices segment, with strong demand for virgin sulfuric acid and favorable pricing in regeneration services.

• Amended stock repurchase program, removing expiration; $202.2 million remains available, with $5.5 million repurchased in Q3 and up to $20 million planned for Q4.

• Completed acquisition of Cornerstone Chemical's sulfuric acid assets for $41.3 million to expand capacity.

Financial highlights

• Q3 2025 sales from continuing operations were $204.9 million, up 33% year-over-year, driven by higher prices and volumes.

• Adjusted EBITDA for Q3 2025 was $57.5 million (margin 28.1%), up 18% year-over-year.

• Net income from continuing operations was $0.4 million (net margin 0.2%), down from $14.8 million a year ago; adjusted net income was $21.9 million, up from $16.7 million.

• Adjusted free cash flow for the nine months was $42.4 million; full-year 2025 guidance raised to $75–$85 million.

• Available liquidity at quarter end was $185 million, including $99 million in cash.

Outlook and guidance

• 2025 full-year sales expected between $700–$740 million, including higher sulfur prices and increased mining demand.

• 2025 adjusted EBITDA from continuing operations expected at ~$170 million; Ecoservices segment at ~$200 million.

• Adjusted free cash flow guidance for 2025 is $75–$85 million.

• CapEx for 2025 projected at $60–$70 million; interest expense at $32–$34 million; effective tax rate in the mid-20% range.

• Management expects sufficient liquidity for at least the next twelve months, with $184.7 million in available liquidity as of September 30, 2025.