Ecovyst (ECVT) Q3 2026 Earnings Report

The call was strongly positive overall. Highlights significantly outweighed the lowlights, with third-quarter adjusted EBITDA above guidance, higher sales, raised full-year sales and EBITDA outlooks, improved free cash flow guidance, favorable demand trends, strong liquidity, successful Calabrian integration, and planned share repurchases. The main challenges were lower reported EBITDA margin due to sulfur-cost pass-through, higher operating and turnaround costs, potential unplanned outages from deferred maintenance, lower fourth-quarter virgin sulfuric acid volume, and year-end destocking caution.

Ecovyst raised full year 2026 sales guidance to $1.05 billion to $1.07 billion, compared with previous guidance of $1.02 billion to $1.06 billion; adjusted EBITDA guidance to $208 million to $212 million, compared with prior guidance of $195 million to $207 million; adjusted free cash flow guidance to $50 million to $60 million, up from $45 million to $55 million; interest expense to $19 million to $21 million; capital expenditures to $90 million to $95 million, compared with $85 million to $95 million; depreciation and amortization to $84 million to $88 million, compared with $80 million to $84 million; adjusted net income to $70 million to $85 million; and adjusted diluted net income per share to $0.63 to $0.77, up from $0.58 to $0.72. The company continues to expect its full year 2026 effective tax rate to be in the mid-20% range and the full year pass-through effect of sulfur costs on sales to be approximately $220 million. Fourth quarter adjusted EBITDA is expected to land in the range of $54 million to $58 million, with regenerated sulfuric acid volume up compared to the year-ago quarter and virgin sulfuric acid volume lower than in the fourth quarter of 2025; a turnaround with a projected cost of approximately $3 million is deferred into early 2027, when the company expects to execute 6 turnarounds at its sulfuric acid plants.