WAYNE, PA — Ecovyst Inc. (NYSE: ECVT) raised its 2026 earnings and sales forecasts after second-quarter adjusted EBITDA climbed 27%, incorporating the expected contribution from its newly acquired Calabrian sulfur dioxide business as demand for regenerated sulfuric acid remained strong.
The specialty chemicals company now expects full-year sales of $1.02 billion to $1.06 billion, up from its previous forecast of $890 million to $970 million. Adjusted EBITDA is projected at $195 million to $207 million, compared with the prior range of $180 million to $195 million.
The revised EBITDA forecast includes an expected $10 million to $12 million contribution from Calabrian during the second half. Ecovyst completed its acquisition of the sulfur dioxide and related derivatives business from INEOS Enterprises on June 30.
Second-quarter sales from continuing operations rose 42% to $250 million from $176.1 million a year earlier. Higher volumes and pricing drove the increase, including about $55 million from the pass-through of higher sulfur costs.
Net income more than doubled to $10.7 million from $5 million, with diluted earnings of 10 cents per share. Adjusted net income increased to $23.4 million from $11.4 million, while adjusted diluted earnings rose to 21 cents per share.
Adjusted EBITDA increased to $53.1 million from $41.9 million. Higher sales volumes and favorable net pricing were partially offset by increased manufacturing and transportation costs and broader inflation.
Chief Executive Officer Kurt J. Bitting attributed stronger regenerated sulfuric acid volumes to high refinery utilization, favorable alkylate economics and reduced customer downtime. Virgin sulfuric acid volumes increased by double digits, supported by customer demand and production from the Waggaman sulfuric acid plant acquired in May 2025.
The Calabrian acquisition expands Ecovyst’s sulfur-based products into applications including mining and water treatment, as well as food processing and pharmaceuticals. The company increased its term loan by $100 million in connection with the transaction.
That borrowing contributed to an increase in Ecovyst’s net debt leverage ratio to 2.0 times at June 30 from 1.2 times at the end of 2025. The company reported a net debt-to-net income ratio of 15.9 times.
Ecovyst ended the quarter with $87.8 million in cash and cash equivalents and $497.1 million of gross debt. Available capacity under its asset-based lending facility was $88.5 million, giving the company total liquidity of $176.3 million.
Operating cash flow from continuing operations reached $55.2 million for the first six months of 2026, up from $25.3 million a year earlier. Adjusted free cash flow improved to $12.8 million from negative $2.4 million.
The company raised its full-year adjusted free cash flow forecast to $45 million to $55 million from $40 million to $55 million. Its capital spending projection increased to $85 million to $95 million from $80 million to $90 million.
Adjusted net income is now expected to range from $65 million to $85 million, compared with the previous $55 million to $75 million forecast. Adjusted diluted earnings are projected at 58 cents to 72 cents per share, up from the prior range of 50 cents to 65 cents.
Ecovyst expects regenerated sulfuric acid demand to remain strong during the second half as refinery customers support alkylate production and experience less downtime than a year earlier. The company expects lower year-over-year virgin sulfuric acid sales during the third and fourth quarters because of fewer anticipated spot-market opportunities and remains cautious about softer demand in some industrial applications.
The company also expects full-year interest expense of $18 million to $22 million, depreciation and amortization of $80 million to $84 million and an effective tax rate in the mid-20% range.
Ecovyst repurchased 3.2 million shares for $35.7 million during the first six months of 2026, paying an average $11.07 per share. It made no repurchases during the second quarter.
The company had $146.5 million remaining under its $450 million share-repurchase authorization as of June 30.
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