Ecovyst Inc. (NYSE:ECVT) posted third-quarter 2025 earnings above expectations, though revenue came in below analyst estimates despite strong year-over-year growth. Shares dipped 0.18% after the results were released.
The sulfuric acid and regeneration services company reported adjusted earnings of $0.19 per share, exceeding the consensus estimate of $0.17. Revenue totaled $204.9 million, up 33.1% year-over-year from $153.9 million, but short of forecasts of $215.04 million.
The company’s Ecoservices segment, which represents its continuing operations, delivered Adjusted EBITDA of $63.6 million, a 15.4% increase from the prior year’s $55.1 million, with an EBITDA margin of 31%.
“Third quarter demand fundamentals for Ecoservices remained strong, driving growth in virgin sulfuric acid sales,” said Kurt Bitting, CEO of Ecovyst. “We continued to benefit from favorable contractual pricing in our regeneration services business, and while regeneration volume was temporarily impacted by unplanned and extended customer downtime, Ecoservices’ third quarter Adjusted EBITDA reached $64 million, up 15% year-over-year, and within our guidance.”
In a major strategic move, Ecovyst announced the sale of its Advanced Materials & Catalysts segment for $556 million, with the deal expected to close in the first quarter of 2026. The company plans to use $450–$500 million of the expected $530 million in net proceeds to reduce long-term debt.
“We believe this transaction will position Ecovyst to deliver on its long-term strategic plan for growth with a strong balance sheet, providing significant liquidity and bolstering the Company’s free cash flow generation,” Bitting added.
For full-year 2025, Ecovyst now expects sales between $700 million and $740 million and Adjusted EBITDA of around $170 million. Adjusted free cash flow is projected between $75 million and $85 million.
During the quarter, Ecovyst repurchased 610,212 shares of its common stock at an average price of $9.06 per share, totaling $5.5 million. The Board of Directors also amended the company’s $450 million share repurchase program by removing the April 2026 expiration date, providing additional flexibility for future buybacks.