Ecovyst Reports Third Quarter 2025 Results and Updates Guidance
Ecovyst Inc., a leading provider of virgin sulfuric acid and sulfuric acid regeneration services, has released its financial results for the third quarter ended September 30, 2025. The company has also updated its guidance for the remainder of the year.
Financial Highlights
For the third quarter of 2025, Ecovyst reported sales from continuing operations of $204.9 million, a significant increase from $153.9 million in the same period last year. However, net income from continuing operations dropped to $0.4 million from $14.8 million in the third quarter of 2024. Adjusted net income from continuing operations was $21.9 million, up from $16.7 million in the previous year. Adjusted EBITDA also saw an increase, reaching $57.5 million compared to $48.7 million in the third quarter of 2024.
Business and Operational Highlights
The company announced an agreement to divest its Advanced Materials & Catalysts segment for $556 million, with expected net proceeds of approximately $530 million. This transaction is anticipated to close in the first quarter of 2026. The Ecoservices segment reported an adjusted EBITDA of $63.6 million, up from $55.1 million in the third quarter of 2024. Cash flows from operating activities for continuing operations were $77.5 million for the nine months ended September 30, 2025, compared to $66.0 million for the same period in 2024.
Strategic Initiatives and Corporate Developments
Ecovyst's Board of Directors has amended its existing $450 million share repurchase plan to remove the April 2026 expiration date. As of September 30, 2025, $202.2 million was available for stock repurchases under the program. During the third quarter, the company repurchased $5.5 million of common stock. The company plans to use between $450 million and $500 million of the expected net proceeds from the divestiture to reduce long-term debt, aiming for a projected net debt leverage ratio of below 1.5x.
Management's Perspective
Mike Feehan, Ecovyst’s Chief Financial Officer, stated, "The sale reflects our continued commitment to unlocking value for stockholders." CEO Kurt Bitting added, "We believe this transaction will position Ecovyst to deliver on its long-term strategic plan for growth with a strong balance sheet, providing significant liquidity and bolstering the company’s free cash flow generation."
Future Outlook
The company has revised its 2025 guidance for continuing operations. Sales for the Ecoservices segment are expected to be between $700 million and $740 million. Adjusted EBITDA from continuing operations is projected to be approximately $170 million, with an adjusted free cash flow of $75 million to $85 million. Capital expenditures for Ecoservices are expected to be between $60 million and $70 million.
Original SEC Filing: Ecovyst Inc. [ ECVT ] - 8-K - Nov. 04, 2025