Ecovyst (ECVT) Q2 2026 Earnings Report

The call emphasized strong operational execution and financial performance: Q2 sales and adjusted EBITDA grew materially (sales up $74M; EBITDA up 27%), management closed an accretive bolt-on acquisition (Calabrian) with immediate contribution and synergies, raised full-year guidance for revenue, adjusted EBITDA and free cash flow, and maintained liquidity and a disciplined capital allocation plan. Offsetting risks include elevated sulfur costs that increase working capital and a $100M acquisition-related debt add-on that raised leverage to 2.0x, near-term higher turnaround and manufacturing costs, and potential demand sensitivity if sulfur prices remain elevated. Overall, the positive operational results, accretive M&A and upgraded guidance outweigh the manageable near-term cost and market risks.

Ecovyst updated 2026 guidance, raising full‑year sales to $1.02–$1.06B (prior $890–$970M) with an expected full‑year sulfur cost pass‑through of ≈$220M (Q2 pass‑through ≈$55M); legacy adjusted EBITDA was raised to $185–$195M, Calabrian is expected to contribute $10–$12M in H2, and consolidated adjusted EBITDA is now $195–$207M; adjusted free cash flow is guided to $45–$55M (up from $40–$55M) after H1 adjusted FCF of $13M; interest expense is unchanged at $18–$22M; capital expenditures $85–$95M (up from $80–$90M) with ~$20M of planned Gulf Coast organic investment, depreciation & amortization $80–$84M, and an effective tax rate in the mid‑20% range; adjusted net income is $65–$85M with adjusted diluted EPS $0.58–$0.72; quarterly directionality calls for Q3 adjusted EBITDA (incl. Calabrian) of $54–$59M and Q4 of $48–$55M, while the company finished Q2 with net debt leverage ~2.0x (up from 1.2x), available liquidity $176M ($88M cash, $88M ABL) and a long‑term leverage target of 2–2.5x.