Ecovyst Inc. Q1 FY2026 earnings call

• CEO Kurt J. Bitting stated that the first quarter results provided an excellent start to 2026, with strong growth in the regeneration services business and virgin sulfuric acid. • The company repurchased approximately $36 million worth of its outstanding shares during the first quarter. • There was an announcement of acquiring the Calabrian sulfur dioxide and sulfur derivatives business, which aligns strategically, operationally, and commercially, leverages core competencies, expands the product portfolio, and has a compelling financial profile. • CFO Michael P. Feehan reported that sales were up 50% compared to the first quarter of the previous year, adjusted EBITDA was $40 million, an increase of $19 million compared to the prior - year first quarter, adjusted free cash flow was $4 million, and the net debt leverage ratio at quarter end was 1.2x. • For 2026, the sales range was revised to $890 million to $970 million, adjusted EBITDA range to $180 million to $195 million, and adjusted free cash flow range to $40 million to $55 million. Directional guidance by quarter: Second quarter 2026 adjusted EBITDA is projected to be in the range of $50 million to $55 million, third quarter in the range of $50 million to $55 million, and fourth quarter in the range of $40 million to $45 million. • CEO highlighted the strong start to the year, progress on strategic implementation, the disposition of the Advanced Materials and Catalyst segment, share repurchases, investment in Gulf Coast storage and logistics, benefits from the Wagaman acquisition, and excitement about the Calabrian acquisition.

Regeneration Services: Sales saw double-digit percentage growth compared to 2025, driven by high refinery utilization, favorable alkylation economics, and lower planned customer downtime. Virgin sulfuric acid: First quarter sales were significantly up, benefiting from increased mining demand and the Wagaman sulfuric acid assets acquired last May. Adjusted EBITDA for the quarter was $40 million, which is an 87% increase compared to 2025. Revenue contribution: For Calabrian's 2025 sales, nearly one-third was to the mining sector, roughly a quarter to water treatment, approximately 15% to specialty chemical applications, and the balance to food preservatives and other applications.

• The 2026 sales guidance was revised to a range of $890 million to $970 million. • Adjusted EBITDA guidance was tightened to $180 million to $195 million. • Adjusted free cash flow guidance was tightened to $40 million to $55 million. • Second quarter 2026 adjusted EBITDA is projected to be between $50 million and $55 million. • Third quarter 2026 adjusted EBITDA is projected to be between $50 million and $55 million. • Fourth quarter 2026 adjusted EBITDA is anticipated to be between $40 million and $45 million. • The company intends to finance the Calabrian acquisition through cash on hand and a new debt offering, and expects cash interest to increase by $4 million to $5 million annually.

• The dynamic geopolitical and global macroeconomic environment could impact actual results. • Sulfur price spikes are a factor, although the company has the ability to pass through sulfur costs to customers. • Timing of working capital and other operational factors can affect cash flow. • Challenges in integrating acquisitions like Calabrian may impact expected synergies and performance.

Q: Inquire about the changes since the last guide, virgin acid markets, sulfur scarcity, U.S. refining strength and how it is woven into the guide.

A: There were some positive changes such as strength in Regeneration Services, but it was tempered by macroeconomic factors, and the guide was adjusted with an increased bottom end.

Q: Seek color on Calabrian's growth in the past few years and the longer - term outlook.

A: Calabrian has been in its current form since the 1980s, built a site in Timmins, Ontario in 2017, has grown from mining, pharma, food, etc., and is expected to have GDP to GDP - plus growth.

Q: Regarding stronger adjusted EBITDA margins, discuss net price - cost dynamics.

A: The pass - through of sulfur cost is neutral to EBITDA, overall pricing and volume contributed to higher margins, and the price - to - cost ratio is expected to remain positive.

Q: Ask for details on the Calabrian acquisition contract structure and forward sales visibility.

A: It is similar to the Eco Services asset business with long - term agreements with blue - chip customers, a high pass - through component, and steady offtake with good visibility.

Q: Question about structural reset in sulfur prices and its impact on the business.

A: Sulfur is at an all - time high, but the company can pass through sulfur costs to customers as it is a small component of their overall cost.

Q: Inquire about synergies from the Calabrian acquisition, whether they are mainly supply chain and procurement or production and revenue.

A: There are both cost - based (procurement) and revenue synergy upsides, such as leveraging the sales force across sulfur products.

Q: Ask about the Canadian mining relationships related to the acquisition.

A: Calabrian brings new mining relationships for selling sulfur dioxide to Canadian mines, while Ecovyst Inc.'s mining relationships are mainly in the southwestern U.S.

Q: Inquire about refinery activity increase, whether it is about the current environment or normalization.

A: It is both, with healthy refinery utilization expected due to less maintenance and the current environment providing a tailwind.