Ecovyst (ECVT) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales rose 50.2% year-over-year to $215 million, driven by higher prices and volumes in regeneration services and virgin sulfuric acid, including contributions from the Waggaman asset acquisition.

• Adjusted EBITDA increased 87% year-over-year to $39.8 million, reflecting strong demand, improved pricing, and higher volumes, partially offset by increased manufacturing and transportation costs.

• Net income from continuing operations was $5.7 million, reversing a loss of $8.1 million in Q1 2025.

• $36 million in share repurchases executed in Q1 2026, with $146 million remaining under authorization.

• The divestiture of the Advanced Materials & Catalysts business at year-end 2025 strengthened the balance sheet and enabled greater capital flexibility.

Financial highlights

• Sales increased by $71.9 million (50.2%) year-over-year, with volume and price/mix as key drivers.

• Adjusted EBITDA margin improved to 18.5%, up 360 basis points from Q1 2025.

• Adjusted Free Cash Flow improved to $4.2 million from a $13 million use in Q1 2025.

• Net debt leverage ratio at quarter end was 1.2x, unchanged from year-end.

• Liquidity stood at $237 million as of March 31, 2026.

Outlook and guidance

• Full-year 2026 sales guidance raised to $890–$970 million, reflecting higher sulfur cost pass-through.

• Adjusted EBITDA guidance raised to $180–$195 million; adjusted free cash flow to $40–$55 million.

• Q2 and Q3 2026 adjusted EBITDA expected at $50–$55 million per quarter; Q4 at $40–$45 million.

• Guidance assumes higher sulfur prices and increased pass-through costs; excludes Calabrian acquisition impact.

• Calabrian acquisition expected to close by end of Q2 2026, with pro-forma net debt leverage ratio projected at ~2x.