Ecovyst Q2 Earnings Call Highlights

Ecovyst reported $250 million in sales and $53 million in adjusted EBITDA, up 27% year over year, driven by higher sulfuric acid volumes, favorable pricing and strong refinery utilization. The newly acquired sulfur dioxide business was immediately accretive, with management targeting $3 million to $4 million in cost and revenue synergies and $10 million to $12 million of second-half adjusted EBITDA contribution. Ecovyst now expects 2026 sales of $1.02 billion to $1.06 billion and adjusted EBITDA of $195 million to $207 million, while sulfur-cost pass-through is projected to add approximately $220 million to sales versus 2025. Ecovyst NYSE: ECVT reported second-quarter 2026 sales of $250 million and adjusted EBITDA of $53 million, with the company citing higher sulfuric acid volumes, favorable net pricing and elevated refinery utilization. Adjusted EBITDA increased 27% from the second quarter of 2025 and fell within the company’s guidance range. Chief Executive Officer Kurt Bitting said strong refinery activity and favorable alkylate economics supported sales volumes for regenerated sulfuric acid during the quarter. Virgin sulfuric acid volume also rose by a double-digit percentage from a year earlier, aided by demand and the contribution from the Waggaman facility acquired in May 2025. “This volume growth, along with favorable net pricing, resulted in Adjusted EBITDA of $53 million,” Bitting said. On June 30, Ecovyst closed its acquisition of the Calabrian sulfur dioxide and related derivatives business. Bitting described the deal as the company’s third bolt-on acquisition under its strategy of adding sulfur chemistries adjacent to its existing operations. The acquisition follows Ecovyst’s 2021 purchase of Chem32, which provides ex situ catalyst activation using sulfur-based sulfiding technology, and the 2025 Waggaman acquisition, which added sulfuric acid capacity in the company’s Gulf Coast network. According to Bitting, Calabrian broadens Ecovyst’s product offering by adding sulfur dioxide and derivative chemistries, while bringing overlap in customers and end markets. He said the business was accretive from its first day under Ecovyst ownership. Management said integration was proceeding according to plan one month after closing, with no customer disruptions and retained leadership. Bitting said the company expects to generate both cost and revenue synergies of approximately $3 million to $4 million. He said those synergies would reduce the acquisition multiple from roughly eight times to about seven times. Chief Financial Officer Mike Feehan said Calabrian is expected to be cash-flow positive, though Ecovyst will incur some upfront integration costs, capital spending, taxes and interest expense associated with acquisition financing. Feehan said the business is less capital-intensive than Ecovyst’s legacy acid operations and has a somewhat higher EBITDA margin percentage. Feehan said second-quarter sales increased by $74 million from the prior-year quarter. The increase reflected approximately $55 million of sulfur-cost pass-through, as well as favorable net pricing and higher demand for regenerated and virgin sulfuric acid. Excluding the sulfur pass-through, sales rose nearly 11%, according to the company. Higher volume, including the Waggaman facility’s contribution, accounted for nearly $7 million of adjusted EBITDA improvement. Favorable contractual pricing and the...