WAYNE, PA — Ecovyst Inc. (NYSE: ECVT) raised its full-year earnings forecast after third-quarter revenue surged 51% to $308.6 million, driven by stronger sulfuric acid demand, higher selling prices and its acquisition of Calabrian, as favorable refinery economics supported the specialty chemicals company’s operations.
The Wayne-based company reported net income of $18.4 million, or 17 cents per diluted share, for the quarter ended Sept. 30, compared with $200,000 a year earlier.
Adjusted earnings before interest, taxes, depreciation and amortization rose 6% to $61.2 million from $57.5 million, exceeding the company’s previous guidance.
Ecovyst now expects full-year adjusted EBITDA of $208 million to $212 million, up from its earlier forecast of $195 million to $207 million. The revision reflects stronger performance through September and the postponement of a planned maintenance turnaround from the fourth quarter into early 2027.
The company also increased its 2026 revenue forecast to $1.05 billion to $1.07 billion, compared with its previous projection of $1.02 billion to $1.06 billion.
The improved outlook comes as Ecovyst benefits from stronger demand for regenerated sulfuric acid used in petroleum refining and virgin sulfuric acid used in mining and industrial applications.
“Strong refining margins and increased export demand drove year-over-year growth in regenerated sulfuric acid volumes and sales,” Chief Executive Officer Kurt J. Bitting said.
Bitting said virgin sulfuric acid sales also increased, supported by mining demand, stable industrial consumption and favorable pricing.
Third-quarter revenue increased $103.7 million from $204.9 million a year earlier, although approximately $67 million of the increase reflected higher sulfur costs passed through to customers.
The revenue gain also included contributions from Calabrian, the sulfur dioxide and derivatives business Ecovyst acquired June 30.
The quarter marked Ecovyst’s first full reporting period with Calabrian, which expands the company’s product portfolio beyond sulfuric acid into sulfur dioxide and related chemicals.
Bitting said Calabrian’s performance was consistent with expectations and integration efforts were progressing toward anticipated cost and operating benefits.
Ecovyst expects Calabrian to contribute $5 million to $6 million in adjusted EBITDA during the fourth quarter.
Higher sales volumes and favorable net pricing supported third-quarter earnings, partially offset by increased manufacturing expenses, inflation and transportation costs.
Adjusted net income rose to $25.3 million from $21.5 million, while adjusted diluted earnings increased to 23 cents per share.
The company expects refinery utilization to remain elevated through year-end, supporting demand for regenerated sulfuric acid used in producing high-octane gasoline components.
Demand from copper mining operations is expected to support virgin sulfuric acid sales, while high operating rates at Canadian gold mines are expected to sustain demand for Calabrian’s sulfur dioxide products.
Ecovyst cautioned that unplanned refinery shutdowns could affect sales and that a substantial decline in sulfur prices could prompt customers to temporarily reduce inventories.
The company’s revised annual forecast assumes approximately $220 million in higher sulfur cost pass-throughs compared with 2025.
Ecovyst also raised its adjusted free cash flow forecast to $50 million to $60 million from $45 million to $55 million.
Projected capital expenditures increased to $90 million to $95 million, compared with the previous range of $85 million to $95 million.
The company now expects adjusted net income of $70 million to $85 million, compared with its earlier forecast of $65 million to $85 million. Adjusted diluted earnings are projected at 63 cents to 77 cents per share, up from 58 cents to 72 cents.
Interest expense is forecast at $19 million to $21 million, while depreciation and amortization are expected to total $84 million to $88 million. The effective tax rate is projected to remain in the mid-20% range.
Ecovyst generated $80.7 million in operating cash flow from continuing operations during the first nine months of 2026, compared with $77 million during the same period last year.
However, adjusted free cash flow declined to $32.4 million from $42.4 million over the nine-month period.
At Sept. 30, Ecovyst held $71.2 million in cash and cash equivalents and reported $497.1 million in gross debt.
The company had another $95.8 million available under its asset-based lending facility, bringing total available liquidity to $167 million.
Its net debt leverage ratio increased to 2.1 times from 1.2 times at the end of 2025, reflecting a $100 million increase in term debt associated with the Calabrian acquisition.
The leverage calculation included only one quarter of Calabrian’s adjusted EBITDA, contributing to the increase in the ratio.
Ecovyst also continued repurchasing shares under its existing $450 million authorization.
During the third quarter, the company bought back 263,719 shares at an average price of $10.25, spending approximately $2.7 million.
That compared with 610,212 shares repurchased for $5.5 million during the third quarter of 2025.
Ecovyst had $143.8 million remaining under its repurchase authorization at the end of September. The company’s board removed the program’s expiration date in October 2025.
Bitting said Ecovyst intends to repurchase up to $20 million in shares during the second half of 2026 while continuing to evaluate internal investment and acquisition opportunities.
The company’s financial results reflect its restructuring following the Dec. 31, 2025, sale of its Advanced Materials & Catalysts business, including interests in Zeolyst International and Zeolyst C.V.
Results from that divested business are classified as discontinued operations, while the reported third-quarter figures reflect Ecovyst’s continuing operations, including Calabrian.
The revised outlook positions Ecovyst for stronger full-year profitability as refinery demand, mining activity and its expanded chemicals portfolio contribute to earnings growth.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.