Ecovyst (NYSE:ECVT) executives said strong fourth-quarter performance and a major portfolio move set the company up for a new strategic focus heading into 2026, highlighted by higher expected volumes in both virgin and regenerated sulfuric acid, stable-to-favorable pricing trends, and a strengthened balance sheet following the sale of its Advanced Materials & Catalysts (AM&C) segment.
Fourth-quarter and full-year results
CEO Kurt Bitting said the company was “very pleased” with fourth-quarter execution, citing strong sales volume for virgin sulfuric acid and favorable contractual pricing for regeneration services. He noted that full-year 2025 adjusted EBITDA came in above prior guidance despite “unplanned and extended customer downtime” that pressured regeneration volumes during the quarter.
Feehan attributed the quarter’s performance to sales growth in both volume and pricing. Regeneration services volumes were again impacted by customer downtime, but he said that was more than offset by higher virgin sulfuric acid sales (including contributions from the Waggaman assets acquired in 2025) and favorable contractual pricing in regeneration services.
Adjusted EBITDA margin declined 630 basis points year over year, which Feehan said primarily reflected the rise in sulfur costs. The pass-through effect accounted for roughly 500 basis points of the margin decline and had “no material impact” on adjusted EBITDA.
Portfolio transformation and balance sheet actions
Bitting emphasized that the fourth quarter also marked a “significant” step in Ecovyst’s portfolio transformation. The company completed the divestiture of the AM&C segment earlier than expected for $556 million. Ecovyst used $465 million of net proceeds to pay down its term loan, ending the year with a 1.2x net debt leverage ratio.
Feehan said the company ended the year with outstanding debt of $397 million and net debt of roughly $200 million, along with $265 million of available liquidity.
Management also highlighted capital allocation activity in 2025, including the acquisition of the Waggaman sulfuric acid assets for approximately $40 million (Feehan cited $41 million) and share repurchases totaling about $47 million to $50 million for the year. The company said it has approximately $183 million remaining under its repurchase authorization.
Demand trends and operating priorities
Looking ahead, Bitting said the company’s 2026 demand outlook remains positive, supporting anticipated volume growth in both virgin and regenerated sulfuric acid. He said Ecovyst expects favorable contractual pricing for regenerated sulfuric acid and stable pricing for virgin sulfuric acid.
Bitting noted that U.S. refineries underwent extensive maintenance in 2025, including Ecovyst customers, and said the company expects refining customers to operate at high utilization in 2026. With less planned customer downtime than in 2025, Ecovyst anticipates higher regeneration service sales volume.
On the virgin sulfuric acid side, Bitting said the company expects higher sales in 2026 driven by growing demand in mining, which management said accounts for 20% to 25% of sulfuric acid sales, plus incremental contribution from the Waggaman assets. He added that the company remains cautious on near-term outlook in nylon and some industrial applications. Nylon accounts for 20% to 25% of virgin sulfuric acid sales, and management expects nylon-related sales to be “relatively flat” in 2026 versus 2025.
During the Q&A session, Bitting said the company’s industrial end-use exposure spans a “very wide spectrum,” and that caution reflects broad macro uncertainty, including potential impacts from global factors such as tariffs and chemical end-market downturns, rather than a single specific application. He reiterated that the company is not projecting degradation in nylon volumes versus 2025.
Waggaman integration and mining investments
On Waggaman, management described network and logistics benefits beyond the additional production. In response to questions from BMO Capital Markets, Bitting said the Waggaman assets added roughly 10% of volume to the network and came with their own customer base. He characterized the addition as a “force multiplier” for Ecovyst’s Gulf Coast network, enabling sites to back each other up during turnarounds and pursue opportunities that may otherwise be constrained.
Bitting also highlighted that Waggaman is the company’s only site with a deep-water vessel dock, noting that Ecovyst exported a ship of sulfuric acid from the site. He said the asset allows the company to serve more Gulf Coast demand from Waggaman while focusing Houston production more to the west as mining demand rises.
When asked about whether investments at Waggaman are complete, Bitting said integration has been going well but additional investments remain, including a maintenance outage in the current quarter with planned investment, and further investments intended to improve operating rates.
Management tied much of its growth focus to mining—particularly copper. Bitting said Ecovyst expects mining demand for sulfuric acid to increase to support energy infrastructure and data center development, and that solvent extraction and electrowinning processes could become more prevalent as higher-grade ores are depleted.
To support that expected growth, Bitting said Ecovyst is investing roughly $20 million in growth capital in the Gulf Coast region to increase storage capacity and improve rail logistics. He said those projects are scheduled for completion in the first half of 2027.
In response to KeyBanc, Bitting said the company has long-term relationships with mining customers and sees forward demand, describing incremental demand as a mix of increased needs from existing mines and new projects coming online. He characterized the merchant acid market as “balanced” and reiterated management’s view that pricing is stable.
2026 guidance: sales, EBITDA, cash flow, and turnarounds
Feehan provided 2026 guidance and key drivers:
- Sales: expected in a range of $860 million to $940 million, including an estimated $125 million pass-through impact from higher sulfur costs versus 2025.
- Adjusted EBITDA: expected in a range of $175 million to $195 million, reflecting higher volume and continued favorable regeneration pricing, partially offset by higher manufacturing and transportation costs and higher turnaround expense.
- Turnaround costs: expected to be higher by approximately $80 million in 2026 due to increased turnaround activity, including the addition of the Waggaman assets.
- Capital expenditures: expected at $80 million to $90 million, about $20 million higher than prior levels as the company funds debottlenecking and logistics projects.
- Adjusted free cash flow: expected at $35 million to $55 million, reflecting higher capex and an expected $10 million working capital increase driven by higher sulfur costs.
- Interest expense: expected at $18 million to $22 million following the term loan paydown.
For quarterly direction, Feehan said Ecovyst expects first-quarter 2026 adjusted EBITDA to be up $8 million to $13 million versus the first quarter of 2025, aided by favorable pricing and higher virgin acid volumes, despite an active turnaround schedule. He said the second and third quarters are expected to be “peak quarters” for adjusted EBITDA, consistent with historical patterns tied to summer driving season demand and regeneration activity.
In closing remarks, Bitting said the company plans additional share repurchases of $25 million to $40 million during the first quarter of 2026, while continuing a disciplined approach to organic investments and “accretive bolt-on” acquisitions. In response to Deutsche Bank, he said upside to guidance would likely come from higher virgin sulfuric acid pricing or additional spot volume opportunities, while the low end could result from unplanned customer outages or a macroeconomic event that pressures virgin pricing or volumes.
About Ecovyst (NYSE:ECVT)
Ecovyst Inc is a global specialty chemicals company that develops, manufactures and markets performance-enhancing products for industrial applications. The company’s core offerings include catalysts, phosphorus-based additives and barium carbonate materials, all designed to improve process efficiency, product quality and environmental performance. Ecovyst serves a diverse customer base in the energy, refining, chemical, polymer, food and consumer goods industries.
The company’s Catalysts segment supplies fluid catalytic cracking (FCC) and hydroprocessing catalysts that help petroleum refiners maximize fuel yield, reduce sulfur emissions and meet increasingly stringent environmental standards.
