Ecovyst (NYSE:ECVT) reported stronger-than-expected second-quarter results and raised its financial outlook for 2026, helping the specialty chemicals company’s shares gain around 2.4% in pre-market trading on Wednesday.
The producer of sulfuric acid and sulfur dioxide posted adjusted earnings of $0.21 per share, exceeding the Wall Street consensus estimate of $0.19. Revenue increased 42% year over year to $250 million, ahead of analyst expectations of $237.48 million.
Acquisition strengthens growth profile
During the quarter, Ecovyst completed the acquisition of the Calabrian sulfur dioxide and related derivatives business from INEOS Enterprises, with the transaction closing on 30 June 2026.
The acquisition contributed to the company’s improved outlook and expanded its position in the specialty chemicals market.
Company raises 2026 guidance
Following the strong quarterly performance, Ecovyst increased its full-year adjusted EBITDA guidance to between $195 million and $207 million, compared with its previous forecast of $180 million to $195 million.
The company also lifted its revenue outlook to a range of $1.02 billion to $1.06 billion, up from earlier guidance of $890 million to $970 million. The midpoint of the new forecast exceeds the analyst consensus estimate of $975.2 million.
Adjusted earnings per share are now expected to range from $0.58 to $0.72 for the year. While the midpoint of $0.65 sits slightly below the Wall Street consensus of $0.68, investors focused on the stronger revenue and EBITDA outlook.
Higher volumes and pricing support earnings
Chief Executive Officer Kurt J. Bitting said the company continued to execute successfully against both its financial and strategic objectives.
“In the second quarter of 2026 Ecovyst continued to deliver on its financial and long-term strategic objectives,” Bitting said. “As anticipated, high refinery utilization and positive alkylate economics contributed to increased volume of regenerated sulfuric acid, while virgin sulfuric acid volume increased double digits.”
Revenue growth was supported by higher sales volumes and stronger pricing compared with the prior-year period. The company said average selling prices benefited from the pass-through of approximately $55 million in higher sulfur costs as well as favourable contractual pricing for regenerated sulfuric acid.
Adjusted EBITDA increased 27% year over year to $53.1 million from $41.9 million.
Profit and cash flow improve
Net income from continuing operations rose to $10.7 million, or $0.10 per diluted share, compared with $5.0 million in the second quarter of 2025.
Cash generated from operating activities during the first six months of 2026 also improved significantly, increasing to $55.2 million from $25.3 million in the corresponding period last year.