Ecovyst Reports Fourth Quarter and Full Year 2025 Results
Rhea-AI Summary
Ecovyst (NYSE: ECVT) reported fourth-quarter 2025 continuing operations: sales $199.4M, net income $9.2M, Adjusted EBITDA $51.3M and Adjusted Net Income $32.4M. Full-year 2025 sales were $723.5M, Adjusted EBITDA $172.0M, Adjusted Free Cash Flow $78.1M and cash from operations $118.1M.
Notable actions: completed sale of Advanced Materials & Catalysts for $556M, used $465M to pay down term loan (net debt leverage 1.2x), repurchased $47.4M of shares, and acquired Waggaman assets for $41M. 2026 guidance: sales $860M–$940M; Adjusted EBITDA $175M–$195M; Adjusted Net Income $55M–$75M.
AI-generated analysis. Not financial advice.
Positive
- Divestiture proceeds of $556 million used to reduce leverage
- Net debt leverage lowered to 1.2x at year-end
- Full-year Adjusted EBITDA of $172.0 million
- Repurchases of $47.4 million of common stock in 2025
- 2026 guidance: mid-point sales growth ~7% (ex-sulfur pass-through)
Negative
- Net income fell to $6.3 million for full-year 2025 (0.9% margin)
- Higher manufacturing and maintenance costs reduced EBITDA benefits
- Pass-through of higher sulfur costs increased sales by approximately $77M in 2025
- Adjusted Free Cash Flow guidance $35M–$55M, lower than 2025 actual FCF
News Market Reaction – ECVT
On the day this news was published, ECVT gained 1.15%, reflecting a mild positive market reaction. Argus tracked a peak move of +4.1% during that session. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $16M to the company's valuation, bringing the market cap to $1.40B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
ECVT is down 2.33% while key peers are mixed: SCL (-3.14%) and KRO (-2%) are weaker, but ODC (+0.54%), MATV (+1.01%) and CLMT (+0.37%) are higher, suggesting a company-specific reaction rather than a broad specialty chemicals move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 04 | Q3 2025 earnings | Positive | -5.2% | Reported Q3 2025 results and announced $556M segment divestiture with leverage targets. |
| Aug 07 | Q2 2025 earnings | Neutral | -2.3% | Q2 2025 results with higher sales, lower net income and tightened full-year guidance. |
| May 01 | Q1 2025 earnings | Negative | +3.5% | Q1 2025 loss, lower Adjusted EBITDA, and acquisition of sulfuric acid assets. |
| Feb 27 | FY 2024 earnings | Negative | -14.4% | Q4 and full-year 2024 results with net loss and large non-cash impairment. |
| Oct 31 | Q3 2024 earnings | Neutral | +4.5% | Q3 2024 results with modest sales growth but lower net income and EBITDA. |
Earnings headlines have historically skewed negative for ECVT, with an average move of -2.77% following prior earnings announcements and several instances where the stock fell despite operational or guidance positives.
Recent earnings releases for Ecovyst show a mix of top-line growth and volatile profitability. In Q3 2025, the company reported $204.9M in sales and announced the $556M Advanced Materials & Catalysts divestiture, yet shares fell 5.2%. Earlier in 2025, Q2 and Q1 earnings also combined higher sales with weaker net income or EBITDA and produced mixed price reactions. The 2024 full-year report included a net loss and impairment, driving a -14.44% move. Against this backdrop, the latest 2025 full-year and 2026 outlook fits an ongoing transition story following portfolio reshaping and guidance resets.
Historical Comparison
In the past five earnings releases, ECVT averaged a -2.77% move, often selling off even when sales grew or guidance held. Today’s reaction sits against that backdrop of cautious earnings sentiment.
Across 2024–2025 earnings, Ecovyst showed steady sales growth while reshaping its portfolio through sulfuric acid asset acquisitions and the Advanced Materials & Catalysts divestiture, with guidance repeatedly adjusted to reflect the new, more focused business mix.
Market Pulse Summary
This announcement details a transition year where Ecovyst grew 2025 sales to $723.5M, generated $172.0M in Adjusted EBITDA, completed the $556M Advanced Materials & Catalysts sale, and acquired sulfuric acid assets to expand capacity. The 2026 outlook targets $860M–$940M of sales and $175M–$195M of Adjusted EBITDA, supported by refinery and mining demand. Investors may track execution on cost control, capital spending of $80M–$90M, and the pace of share repurchases under the remaining authorization.
Key Terms
adjusted ebitda financial
adjusted free cash flow financial
net debt leverage ratio financial
term loan financial
regulation s-k regulatory
rule 10b-18 regulatory
rule 10b5-1 regulatory
advanced materials & catalysts technical
AI-generated analysis. Not financial advice.
The financial results of the divested Advanced Materials & Catalysts business are reported in discontinued operations in the financial statements for all periods presented.
Fourth Quarter 2025 Results & Highlights from Continuing Operations
- Completed sale of Advanced Materials & Catalysts segment to Technip Energies N.V. for a sale price of
$556 million - Sales of
$199.4 million $148.9 million - Net income of
$9.2 million $23.8 million 4.6% and with diluted net income per share of$0.08 - Adjusted Net Income of
$32.4 million $18.4 million $0.28 - Adjusted EBITDA of
$51.3 million 7.5% compared to$47.7 million 25.7% - Repurchased
$20.0 million - Utilized
$465 million
Full Year 2025 Results & Highlights from Continuing Operations
- Sales of
$723.5 million $598.3 million - Net income of
$6.3 million 0.9% , with diluted net income per share of$0.05 - Adjusted Net Income of
$45.7 million $0.39 - Adjusted EBITDA of
$172.0 million 23.8% - Net cash from operations of
$118.1 million $78.1 million - Repurchased 5,752,285 shares of common stock for
$47.4 million - Acquired Waggaman,
Louisiana sulfuric acid production assets for total price of$41 million
"Ecovyst's actions and results for the fourth quarter of 2025 reflect continued progress in implementing our strategic initiatives, while delivering full-year 2025 Adjusted EBITDA above our guidance," said Kurt J. Bitting, Ecovyst's Chief Executive Officer. "2025 represented a transformational year for Ecovyst. In May, we acquired the Waggaman,
"In 2026, we expect high refinery utilization and positive alkylate economics to continue to support our regeneration services business, with anticipated year-over-year growth in volume, and we expect increased sales of virgin sulfuric acid, in part due to continued expected growth in mining demand," said Bitting. "Our focus in 2026 will remain on positioning Ecovyst for profitable long-term growth and delivering value for our stockholders. We enter the year with a strong balance sheet, substantial liquidity and a favorable historic cash generation profile that we believe provides for significant flexibility as we deploy incremental growth capital in 2026 on attractive projects that will translate into enhanced capability to service our customers. At the same time, we plan to continue pursuing compelling inorganic growth opportunities and the return of capital to our stockholders through an active share repurchase program."
Review of Business Results from Continuing Operations
Fourth quarter 2025 sales were
For the year, sales were
Cash Flows and Balance Sheet
Cash flows from operating activities for continuing operations was
2026 Financial Outlook
For 2026 we currently anticipate demand fundamentals to remain positive for both our regeneration services business and for sales of virgin sulfuric acid. We expect that high refinery utilization, favorable alkylate economics and lower customer downtime, compared to 2025, will contribute to increased sales for regenerated sulfuric acid. For sales of virgin sulfuric acid, although we remain cautious about the near-term outlook for global macroeconomic activity and the potential for weakness in some industrial applications for virgin sulfuric acid and sales of oleum grades used in the production of nylon precursors. However, we expect strong demand in mining applications to contribute to year-over-year growth in sales for virgin sulfuric acid.
The Company's guidance for full year 2026 is as follows:
- Sales of
$860 million $940 million 7% from 2025 at the mid-point of the range, excluding the projected pass-through effect of higher sulfur costs - Adjusted EBITDA2 of
$175 million $195 million 8% from 2025 at the mid-point of the range - Adjusted Free Cash Flow2 of
$35 million $55 million - Capital expenditures of
$80 million $90 million - Interest expense of
$18 million $22 million - Depreciation & Amortization of
$78 million $82 million - Effective tax rate in the mid
20% range - Adjusted Net Income2 of
$55 million $75 million $0.45 $0.65
1 | Sales outlook for 2026 assumes higher average sulfur prices compared to 2025 and higher projected pass-through of sulfur costs of approximately |
2 | In reliance upon the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K, the Company is not able to provide a reconciliation of its non-GAAP financial guidance to the corresponding GAAP measures without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation such as certain non-cash, nonrecurring or other items that are included in net income and net cash provided by operating activities as well as the related tax impacts of these items and asset dispositions / acquisitions that are included in cash flow, due to the uncertainty and variability of the nature and amount of these future charges and costs. Because this information is uncertain, the Company is unable to address the probable significance of the unavailable information, which could be material to future results. |
Stock Repurchase
In April 2022, the Company's Board of Directors approved a stock repurchase program authorizing the repurchase of up to
During the quarter ended December 31, 2025, the Company repurchased 2,215,921 shares of its common stock on the open market at an average price of
For possible future repurchases, the actual timing, number, and nature of shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions and may be conducted through negotiated transactions, open market repurchases or other means, including through Rule 10b-18 and Rule 10b5-1 trading plans or accelerated stock repurchases. The repurchase program does not obligate the Company to acquire any number of shares in any specific period, or at all, and the repurchase program may be amended, suspended or discontinued at any time at the Company's discretion.
Conference Call and Webcast Details
On Thursday, February 26, 2026, Ecovyst management will review the fourth quarter results during a conference call and audio-only webcast scheduled for 11:00 a.m. Eastern Time.
Conference Call: Investors may listen to the conference call live via telephone by dialing 1 (800) 245-3047 (domestic) or 1 (203) 518-9765 (international) and use the participant code ECVTQ425.
Webcast: An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations.
Investor Contact:
Gene Shiels
(484) 617-1225
gene.shiels@ecovyst.com
About Ecovyst Inc.
Ecovyst Inc. and subsidiaries is a leading provider of virgin and regenerated sulfuric acid products and services. We believe that our products and services contribute to improving the sustainability of the environment.
We are a leading provider of sulfuric acid recycling to the North American refining industry for the production of alkylate, an essential gasoline component for lowering vapor pressure and increasing octane to meet stringent gasoline specifications and fuel efficiency standards. We are also a leading North American producer of high quality and high strength virgin sulfuric acid for industrial and mining applications. We also provide chemical waste handling and treatment services, as well as ex-situ catalyst activation services for the refining and petrochemical industry.
For more information, see our website at https://www.ecovyst.com.
Presentation of Non-GAAP Financial Measures
In addition to the results provided in accordance with
Note on Forward-Looking Statements
Some of the information contained in this press release constitutes "forward-looking statements." Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "projects" and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Examples of forward-looking statements include, but are not limited to, statements regarding our future results of operations, financial condition, capital expenditure projects, liquidity, prospects, growth, strategies, capital allocation program (including the stock repurchase program), product and service offerings, expected demand trends and our 2026 financial outlook. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against placing any undue reliance on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, regional, national or global political, economic, business, competitive, market and regulatory conditions, including the enactment, schedule and impact of tariffs and trade disputes, currency exchange rates, adverse effects from the
ECOVYST INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in millions, except share and per share amounts) | ||||||||||||
Three months ended December 31, | % | Years ended December 31, | % | |||||||||
2025 | 2024 | Change | 2025 | 2024 | Change | |||||||
Sales | $ 199.4 | $ 148.9 | 33.9 % | $ 723.5 | $ 598.3 | 20.9 % | ||||||
Cost of goods sold | 152.6 | 105.9 | 44.1 % | 565.4 | 434.9 | 30.0 % | ||||||
Gross profit | 46.8 | 43.0 | 8.8 % | 158.1 | 163.4 | (3.2) % | ||||||
Selling, general and administrative expenses | 16.2 | 15.6 | 3.8 % | 66.0 | 65.4 | 0.9 % | ||||||
Other operating expense, net | 8.8 | 5.0 | 76.0 % | 27.2 | 12.9 | 110.9 % | ||||||
Operating income | 21.8 | 22.4 | (2.7) % | 64.9 | 85.1 | (23.7) % | ||||||
Interest expense, net | 8.8 | 8.7 | 1.1 % | 34.2 | 36.5 | (6.3) % | ||||||
Debt modification and extinguishment costs | 4.6 | — | NM | 5.5 | 4.6 | 19.6 % | ||||||
Other income, net | (0.3) | (1.8) | (83.3) % | (0.6) | (1.2) | (50.0) % | ||||||
Income from continuing operations before income taxes | 8.7 | 15.5 | (43.9) % | 25.8 | 45.2 | (42.9) % | ||||||
(Benefit) provision for income taxes | (0.5) | (8.3) | (94.0) % | 19.5 | (0.3) | (6600.0) % | ||||||
Effective tax rate | (5.7) % | (53.5) % | 75.6 % | (0.7) % | ||||||||
Net income from continuing operations | 9.2 | 23.8 | (61.3) % | 6.3 | 45.5 | (86.2) % | ||||||
Net loss from discontinued operations, net of tax | (3.4) | (54.3) | (93.7) % | (77.4) | (52.2) | 48.3 % | ||||||
Net income (loss) | $ 5.8 | $ (30.5) | (119.0) % | $ (71.1) | $ (6.7) | 961.2 % | ||||||
Earnings per share: | ||||||||||||
Basic income per share—continuing operations | $ 0.08 | $ 0.20 | $ 0.05 | $ 0.39 | ||||||||
Diluted income per share—continuing operations | $ 0.08 | $ 0.20 | $ 0.05 | $ 0.39 | ||||||||
Basic income (loss) per share—discontinued operations | $ (0.03) | $ (0.47) | $ (0.67) | $ (0.45) | ||||||||
Diluted income (loss) per share—discontinued operations | $ (0.03) | $ (0.46) | $ (0.67) | $ (0.44) | ||||||||
Basic income (loss) per share | $ 0.05 | $ (0.26) | $ (0.62) | $ (0.06) | ||||||||
Diluted income (loss) per share | $ 0.05 | $ (0.26) | $ (0.61) | $ (0.06) | ||||||||
Weighted average shares outstanding: | ||||||||||||
Basic | 113,357,158 | 116,518,933 | 115,291,879 | 116,719,437 | ||||||||
Diluted | 114,454,479 | 117,515,453 | 115,957,562 | 117,447,438 | ||||||||
ECOVYST INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts) | |||
December 31, | |||
2025 | 2024 | ||
ASSETS | |||
Cash and cash equivalents | $ 197.2 | $ 131.4 | |
Accounts receivable, net | 85.3 | 53.2 | |
Inventories, net | 26.8 | 18.0 | |
Derivative assets | 1.3 | 6.5 | |
Prepaid and other current assets | 8.8 | 10.9 | |
Current assets held for sale | — | 83.7 | |
Total current assets | 319.4 | 303.7 | |
Property, plant and equipment, net | 481.2 | 458.7 | |
Goodwill | 326.7 | 326.6 | |
Other intangible assets, net | 59.3 | 67.7 | |
Right-of-use lease assets | 37.9 | 33.1 | |
Other long-term assets | 36.5 | 37.3 | |
Long-term assets held for sale | — | 575.2 | |
Total assets | $ 1,261.0 | $ 1,802.3 | |
LIABILITIES | |||
Current maturities of long-term debt | $ — | $ 8.7 | |
Accounts payable | 48.0 | 32.9 | |
Operating lease liabilities—current | 9.5 | 9.1 | |
Accrued liabilities | 63.3 | 39.8 | |
Current liabilities held for sale | — | 24.6 | |
Total current liabilities | 120.8 | 115.1 | |
Long-term debt, excluding current portion | 392.6 | 852.1 | |
Deferred income taxes | 113.3 | 105.4 | |
Operating lease liabilities—noncurrent | 28.7 | 23.9 | |
Other long-term liabilities | 2.1 | 3.1 | |
Long-term liabilities held for sale | — | 2.2 | |
Total liabilities | 657.5 | 1,101.8 | |
Commitments and contingencies | |||
EQUITY | |||
Common stock ( | 1.4 | 1.4 | |
Preferred stock ( | — | — | |
Additional paid-in capital | 1,108.5 | 1,106.8 | |
Accumulated deficit | (248.6) | (177.5) | |
Treasury stock, at cost; shares 29,067,744 and 24,338,043 on December 31, 2025 and 2024, respectively | (261.1) | (222.8) | |
Accumulated other comprehensive income (loss) | 3.3 | (7.4) | |
Total equity | 603.5 | 700.5 | |
Total liabilities and equity | $ 1,261.0 | $ 1,802.3 | |
ECOVYST INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
Years ended December 31, | ||||
2025 | 2024 | |||
Cash flows from operating activities: | (in millions) | |||
Net income | $ (71.1) | $ (6.7) | ||
Net income (loss) from discontinued operations | 77.4 | 52.2 | ||
Net income from continuing operations | 6.3 | 45.5 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 67.8 | 59.9 | ||
Amortization | 10.8 | 10.7 | ||
Amortization of deferred financing costs and original issue discount | 1.2 | 1.4 | ||
Debt extinguishment costs | 4.6 | 0.1 | ||
Deferred income tax benefit | 32.2 | (5.0) | ||
Net loss on asset disposals | 5.4 | 2.3 | ||
Stock compensation | 9.7 | 11.1 | ||
Other, net | (5.3) | (13.1) | ||
Working capital changes that provided (used) cash: | ||||
Receivables | (22.1) | 6.2 | ||
Inventories | (5.6) | (4.5) | ||
Prepaids and other current assets | (1.0) | 2.8 | ||
Accounts payable | 15.5 | 1.2 | ||
Accrued liabilities | (1.4) | (14.8) | ||
Net cash provided by operating activities, continuing operations | 118.1 | 103.8 | ||
Net cash provided by operating activities, discontinued operations | 22.2 | 46.1 | ||
Net cash provided by operating activities | 140.3 | 149.9 | ||
Cash flows from investing activities: | ||||
Purchases of property, plant and equipment | (70.4) | (55.6) | ||
Proceeds from business divestitures, net of cash transferred | 568.4 | — | ||
Business combinations | (41.5) | — | ||
Net cash provided by (used in) investing activities, continuing operations | 456.5 | (55.6) | ||
Net cash used in investing activities, discontinued operations | (21.1) | (17.9) | ||
Net cash provided by (used in) investing activities | 435.4 | (73.5) | ||
Cash flows from financing activities: | ||||
Issuance of long-term debt, net of original issue discount and financing fees | 870.8 | 870.8 | ||
Repayments of long-term debt | (1,344.5) | (879.7) | ||
Repurchases of common shares | (46.9) | (5.0) | ||
Tax withholdings on equity award vesting | (1.5) | (1.2) | ||
Other, net | 0.4 | 0.2 | ||
Net cash used in financing activities, continuing operations | (521.7) | (14.9) | ||
Net cash used in financing activities, discontinued operations | (3.3) | (3.0) | ||
Net cash used in financing activities | (525.0) | (17.9) | ||
Effect of exchange rate changes on cash and cash equivalents | 0.5 | (0.9) | ||
Net change in cash and cash equivalents | 51.2 | 57.6 | ||
Cash and cash equivalents at beginning of period | 146.0 | 88.4 | ||
Cash and cash equivalents at end of period | 197.2 | 146.0 | ||
Less: cash and cash equivalents of discontinued operations | — | (14.6) | ||
Cash and cash equivalents at end of period of continuing operations | $ 197.2 | $ 131.4 | ||
Appendix Table A-1: Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA from Continuing Operations
Three months ended December 31, | Years ended December 31, | |||||||||||
2025 | 2024 | % Change | 2025 | 2024 | % Change | |||||||
(in millions) | (in millions) | |||||||||||
Reconciliation of net income from continuing | ||||||||||||
Net income from continuing operations | $ 9.2 | $ 23.8 | $ 6.3 | $ 45.5 | ||||||||
(Benefit) provision for income taxes | (0.5) | (8.3) | 19.5 | (0.3) | ||||||||
Interest expense, net | 8.8 | 8.7 | 34.2 | 36.5 | ||||||||
Depreciation and amortization | 20.7 | 18.0 | 78.6 | 70.5 | ||||||||
EBITDA | 38.2 | 42.2 | 138.6 | 152.2 | ||||||||
Debt modification and extinguishment costs | 4.6 | — | 5.5 | 4.6 | ||||||||
Net loss on asset disposals(a) | 1.4 | 1.4 | 5.4 | 2.3 | ||||||||
Transaction and other related costs(b) | 0.6 | 0.3 | 3.4 | 0.4 | ||||||||
Equity-based and other non-cash compensation | 2.1 | 2.8 | 9.7 | 11.1 | ||||||||
Restructuring, integration and business optimization | 1.8 | — | 4.7 | 0.3 | ||||||||
Other(d) | 2.6 | 1.0 | 4.7 | 1.8 | ||||||||
Adjusted EBITDA from continuing operations | $ 51.3 | $ 47.7 | 7.5 % | 172.0 | 172.7 | (0.4) % | ||||||
Sales | 199.4 | 148.9 | 33.9 % | 723.5 | 598.3 | 20.9 % | ||||||
Adjusted EBITDA from continuing operations margin | 25.7 % | 32.0 % | 23.8 % | 28.9 % | ||||||||
Descriptions to Ecovyst Non-GAAP Reconciliations | |
(a) | When asset disposals occur, we remove the impact of net gain/loss of the disposed asset because such impact primarily reflects the non-cash write-off of long-lived assets no longer in use. |
(b) | Relates to certain transaction costs, including debt financing, due diligence and other costs related to transactions that are completed, pending or abandoned, that we believe are not representative of our ongoing business operations. |
(c) | Includes the impact of restructuring, integration and business optimization expenses, which are incremental costs that are not representative of our ongoing business operations. |
(d) | Other consists of adjustments for items that are not core to our ongoing business operations. These adjustments include environmental remediation and other legal costs, expenses for capital and franchise taxes, and defined benefit pension and postretirement plan (benefits) costs, for which our obligations are under plans that are frozen. |
Appendix Table A-2: Reconciliation of Net Income from Continuing Operations and EPS to Adjusted Net Income and Adjusted EPS(1)(2)
Three months ended December 31, | |||||||||||
2025 | 2024 | ||||||||||
Pre-tax | Tax | After- | Per share, | Per share, | Pre-tax | Tax | After- | Per share, | Per share, | ||
(in millions, except share and per share amounts) | |||||||||||
Net income from continuing operations | $ 8.7 | $ (0.5) | $ 9.2 | $ 0.08 | $ 0.08 | $ 15.5 | $ (8.3) | $ 23.8 | $ 0.20 | $ 0.20 | |
Debt modification and | 4.6 | 1.1 | 3.5 | 0.03 | 0.03 | — | — | — | — | — | |
Net loss on asset disposals(a) | 1.4 | 0.3 | 1.1 | 0.01 | 0.01 | 1.4 | 0.4 | 1.0 | 0.01 | 0.01 | |
Transaction and other related costs(b) | 0.6 | 0.1 | 0.5 | — | — | 0.3 | 0.1 | 0.2 | — | — | |
Equity-based compensation | 2.1 | 0.5 | 1.6 | 0.02 | 0.01 | 2.8 | 0.8 | 2.0 | 0.02 | 0.02 | |
Restructuring, integration and | 1.8 | 0.4 | 1.4 | 0.01 | 0.01 | — | — | — | — | — | |
Other(d) | 2.6 | 0.7 | 1.9 | 0.02 | 0.02 | 1.0 | 0.2 | 0.8 | 0.01 | 0.01 | |
Adjusted Net Income, including impact | 21.8 | 2.6 | 19.2 | 0.17 | 0.16 | 21.0 | (6.8) | 27.8 | 0.24 | 0.24 | |
Impact of valuation allowance | — | (13.3) | 13.3 | 0.12 | 0.12 | — | — | — | — | — | |
Changes in uncertain tax positions | — | 0.1 | (0.1) | — | — | — | 9.4 | (9.4) | (0.08) | (0.08) | |
Adjusted Net Income(1) | $ 21.8 | $ (10.6) | $ 32.4 | $ 0.29 | $ 0.28 | $ 21.0 | $ 2.6 | $ 18.4 | $ 0.16 | $ 0.16 | |
Weighted average shares outstanding | 113,357,158 | 114,454,479 | 116,518,933 | 117,515,453 | |||||||
Years ended December 31, | |||||||||||
2025 | 2024 | ||||||||||
Pre-tax | Tax | After- | Per share, | Per share, | Pre-tax | Tax | After- | Per share, | Per share, | ||
(in millions, except share and per share amounts) | |||||||||||
Net income from continuing operations | $ 25.8 | $ 19.5 | $ 6.3 | $ 0.05 | $ 0.05 | $ 45.2 | $ (0.3) | $ 45.5 | $ 0.39 | $ 0.39 | |
Debt modification and | 5.5 | 1.4 | 4.1 | 0.04 | 0.04 | 4.6 | 1.2 | 3.4 | 0.03 | 0.03 | |
Net loss on asset disposals(a) | 5.4 | 1.3 | 4.1 | 0.04 | 0.04 | 2.3 | 0.6 | 1.7 | 0.01 | 0.01 | |
Transaction and other related | 3.4 | 0.9 | 2.5 | 0.02 | 0.02 | 0.4 | 0.1 | 0.3 | — | — | |
Equity-based compensation | 9.7 | 1.3 | 8.4 | 0.07 | 0.07 | 11.1 | 2.4 | 8.7 | 0.07 | 0.07 | |
Restructuring, integration and | 4.7 | 1.2 | 3.5 | 0.03 | 0.03 | 0.3 | 0.1 | 0.2 | — | — | |
Other(d) | 4.7 | 1.1 | 3.6 | 0.03 | 0.03 | 1.8 | 0.5 | 1.3 | 0.02 | 0.02 | |
Adjusted Net Income, including impact | 59.2 | 26.7 | 32.5 | 0.28 | 0.28 | 65.7 | 4.6 | 61.1 | 0.52 | 0.52 | |
Impact of valuation allowance | — | (13.3) | 13.3 | 0.12 | 0.11 | — | — | — | — | — | |
Changes in uncertain tax | — | 0.1 | (0.1) | — | — | — | 9.4 | (9.4) | (0.08) | (0.08) | |
Adjusted Net Income(1) | $ 59.2 | $ 13.5 | $ 45.7 | $ 0.40 | $ 0.39 | $ 65.7 | $ 14.0 | $ 51.7 | $ 0.44 | $ 0.44 | |
Weighted average shares outstanding | 115,291,879 | 115,957,562 | 116,719,437 | 117,447,438 | |||||||
(1) | We define Adjusted Net Income as net income from continuing operations adjusted for non-operating income or expense and the impact of certain non-cash or other items that are included in net income from continuing operations that we do not consider indicative of our ongoing operating performance. Adjusted Net Income is presented as a key performance indicator as we believe it will enhance a prospective investor's understanding of our results of operations and financial condition. Adjusted Net Income may not be comparable with net income from continuing operations or Adjusted Net Income as defined by other companies. |
(2) | See Appendix Table A-1 for Descriptions to Ecovyst Non-GAAP Reconciliations in the table above. |
(3) | Represents the tax impact of the state tax credit valuation allowance increase. Item is not expected to be recurring. |
(4) | Represents the tax impact of previously net unrecognized tax benefits, excluding interest and penalties, primarily due to the expiration of statutes of limitations. |
The adjustments to net income from continuing operations are shown net of applicable tax rates of
Appendix Table A-3: Adjusted Free Cash Flow
Years ended December 31, | ||||
2025 | 2024 | |||
Net cash provided by operating activities | $ 140.3 | $ 149.9 | ||
Less: | ||||
Purchases of property, plant and equipment(1) | (91.5) | (69.0) | ||
Free Cash Flow(2) | 48.8 | 80.9 | ||
Adjustments to Free Cash Flow: | ||||
Cash paid for debt financing costs | 1.0 | 4.6 | ||
Cash paid for costs related to the | 6.1 | — | ||
Cash paid for costs related to the segment disposal | 17.6 | — | ||
Interest paid with debt prepayment | 4.6 | — | ||
Adjusted Free Cash Flow(2) | $ 78.1 | $ 85.5 | ||
Net cash provided by (used in) investing activities(3) | $ 435.4 | $ (73.5) | ||
Net cash used in financing activities | $ (525.0) | $ (17.9) | ||
(1) | Includes purchases of property, plant and equipment reported in discontinued operations |
(2) | We define Adjusted Free Cash Flow as net cash provided by operating activities less purchases of property, plant and equipment, including purchases of property, plant and equipment reported in discontinued operations, adjusted for cash flows that are unusual in nature and/or infrequent in occurrence that neither relate to our core business nor reflect the liquidity of our underlying business. Historically these adjustments include proceeds from the sale of assets, net interest proceeds on swaps designated as net investment hedges, the cash paid for segment disposals and cash paid for debt financing costs included in cash from operating activities. Adjusted Free Cash Flow is a non-GAAP financial measure that we believe will enhance a prospective investor's understanding of our ability to generate additional cash from operations, and is an important financial measure for use in evaluating our financial performance. Our presentation of Adjusted Free Cash Flow is not intended to replace, and should not be considered superior to, the presentation of our net cash provided by operating activities determined in accordance with GAAP. Additionally, our definition of Adjusted Free Cash Flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view Adjusted Free Cash Flow as a measure that provides supplemental information to our consolidated statements of cash flows. You should not consider Adjusted Free Cash Flow in isolation or as an alternative to the presentation of our financial results in accordance with GAAP. The presentation of Adjusted Free Cash Flow may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. |
(3) | Net cash used in investing activities includes purchases of property, plant and equipment, which is also included in our computation of Adjusted Free Cash Flow. |
Appendix Table A-5: Net Debt Leverage Ratio
December 31, | |||
2025 | 2024 | ||
(in millions, except ratios) | |||
Total debt | $ 397.1 | $ 870.8 | |
Less: | |||
Cash and cash equivalents | 197.2 | 131.4 | |
Net debt | $ 199.9 | $ 739.4 | |
Net income from continuing operations | $ 6.3 | $ 45.5 | |
Adjusted EBITDA from continuing operations (1) | $ 172.0 | $ 172.7 | |
Net Debt to Net Income Ratio | 31.7x | 16.3x | |
Net Debt Leverage Ratio | 1.2x | 4.3x | |
(1) | Refer to Appendix Table A-1: Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA from Continuing Operations for the reconciliation to the most comparable GAAP financial measure. |
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SOURCE Ecovyst Inc.