Ecovyst Lifts 2026 EBITDA Outlook as Q3 Sales Rise 51%

Ecovyst Inc. (NYSE: ECVT) increased the midpoint of its 2026 adjusted EBITDA guidance by about $9 million after third-quarter earnings benefited from higher sulfuric acid sales volumes, favorable contractual pricing and a contribution from the acquired Calabrian business. The specialty chemicals company reported a 6.4% increase in adjusted EBITDA even as higher sulfur-cost pass-through revenue diluted its margin.

Third-quarter sales from continuing operations rose 50.6% to $308.6 million from $204.9 million a year earlier. About $67 million of the increase reflected the pass-through of higher sulfur costs, while volume contributed $31.1 million and price excluding sulfur pass-through added $5.6 million.

Net income from continuing operations was $18.4 million, compared with $0.2 million in the prior-year quarter, and net income margin increased to 6.0% from 0.1%. Adjusted net income was $25.3 million, or $0.23 per diluted share, versus $21.5 million, or $0.19 per diluted share, a year earlier.

Adjusted EBITDA increased to $61.2 million from $57.5 million. Higher volume, favorable net pricing and Calabrian’s contribution more than offset higher manufacturing expenses, general inflation and turnaround costs. Adjusted EBITDA margin fell 830 basis points to 19.8%, largely reflecting the effect of sulfur-cost pass-through revenue. Ecovyst said the margin would have been approximately 550 basis points higher if that pass-through effect were excluded.

The results are presented on a continuing-operations basis and exclude the Advanced Materials & Catalysts business, which was sold effective Dec. 31, 2025.

Sulfuric acid volumes and Calabrian integration

High refinery utilization and increased customer exports supported higher regenerated sulfuric acid volume during the quarter. Virgin sulfuric acid volume declined modestly from a strong third quarter of 2025, although year-to-date volume was 11% higher than in the comparable 2025 period.

Management said integration of Calabrian, a sulfur dioxide and sulfur derivatives business, was underway and expected synergies remained on track. The revised annual outlook includes Calabrian’s projected contributions for the third and fourth quarters, with the business expected to add $5 million to $6 million of adjusted EBITDA in the fourth quarter.

2026 outlook moves higher

Ecovyst now expects 2026 adjusted EBITDA of $208 million to $212 million, compared with its previous range of $195 million to $207 million. The company attributed the higher midpoint to confidence in its outlook and the deferral of approximately $3 million of turnaround spending into early 2027.

The company revised its net sales forecast to $1.05 billion to $1.07 billion from $1.02 billion to $1.06 billion. The outlook assumes average sulfur prices above 2025 levels and approximately $220 million of sulfur-cost pass-through revenue.

Adjusted free cash flow is projected at $50 million to $60 million, up from the prior $45 million to $55 million range. Ecovyst expects adjusted net income of $70 million to $85 million, or $0.63 to $0.77 per diluted share. Capital expenditures are forecast at $90 million to $95 million.

For the fourth quarter, management expects higher regenerated sulfuric acid volume and favorable contractual pricing compared with the prior-year period, partly offset by lower virgin sulfuric acid volume. The company anticipates adjusted EBITDA of $54 million to $58 million and no material turnaround costs, similar to the fourth quarter of 2025.

Cash flow, leverage and capital allocation

Adjusted free cash flow totaled $32.4 million for the first nine months of 2026, down from $42.4 million a year earlier. Ecovyst repurchased $38.4 million of shares during the period and had $144 million remaining under its authorization. It is targeting up to $20 million of repurchases during the second half of 2026 as part of what management described as a balanced capital-allocation strategy.

At Sept. 30, the company had $497 million of gross debt, $71 million of cash and cash equivalents, and $426 million of net debt. Its net debt leverage ratio was 2.1 times, compared with 1.2 times at the end of 2025. Available liquidity was $167 million, including $96 million under its revolving asset-based lending facility.

Ecovyst cautioned that its outlook remains subject to demand conditions, inflation, sulfur prices, tariffs and trade disputes, currency movements, military conflicts and other economic or regulatory developments. The company also identified the successful integration of Calabrian and realization of expected acquisition benefits and synergies as key uncertainties.