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Review of Segment Results and Business Trends

Ecoservices

First quarter 2025 sales were $143.1 million, compared to $141.6 million in the first quarter of 2024. The increase in sales reflects pass-through of higher sulfur costs and favorable contractual pricing for regeneration services, partially offset by lower sales volume for regeneration services and for virgin sulfuric acid. First quarter 2025 Adjusted EBITDA was $28.5 million, compared to $41.5 million in the first quarter of 2024. The decrease reflects higher manufacturing costs, including costs associated with planned turnaround activity, less favorable absorption of fixed costs associated with inventory timing, and general inflation as well as lower sales volume arising from turnaround activity at Ecoservices sites and at customer facilities.

Advanced Materials & Catalysts

During the first quarter of 2025, Advanced Silicas sales were $19.1 million, compared to $18.9 million in the first quarter of 2024. The modest increase in sales resulted from higher sales of niche custom catalyst sales associated with order timing, partially offset by lower sales of advanced silicas used for the production of polyethylene. Our proportionate 50% share of first quarter sales for the Zeolyst Joint Venture was $37.7 million, compared to $23.5 million in the first quarter of 2024. The increase in Zeolyst Joint Venture sales reflects higher sales of hydrocracking catalysts and specialty catalysts associated with customer-driven sales timing. First quarter 2025 Adjusted EBITDA for Advanced Materials & Catalysts, which includes our 50% proportionate share of earnings from the Zeolyst Joint Venture, was $17.5 million, compared to $11.1 million in the first quarter of 2024, with the increase largely driven by higher sales volume within the Zeolyst Joint Venture.

Cash Flows and Balance Sheet

Cash flows from operating activities was $10.3 million for the three months ended March 31, 2025, compared to $36.5 million for the three months ended March 31, 2024. The decrease was primarily driven by the timing of dividends received from the Zeolyst Joint Venture. At March 31, 2025, the Company had cash and cash equivalents of $127.5 million, total gross debt of $868.6 million and availability under the ABL facility of $73.6 million, after giving effect to $3.3 million of outstanding letters of credit and no revolving credit facility borrowings outstanding, for total available liquidity of $201.1 million. The net debt to net income ratio was not meaningful as of March 31, 2025 and the net debt leverage ratio was 3.2x as of March 31, 2025.

2025 Financial Outlook

We are reaffirming our full year Adjusted EBITDA guidance and increasing our guidance range for sales to reflect the expected pass-through impact of higher anticipated sulfur costs. Having completed major turnaround activities in the first quarter, and in anticipation of high refinery utilization and growing sulfuric acid demand in mining applications, we expect Ecoservices to benefit from higher sales volumes for regeneration services and for virgin sulfuric acid in the second quarter and for the remainder of 2025.  We believe that favorable order timing within the Zeolyst Joint Venture in the first quarter provides a strong start to our full-year expectations for our Advanced Materials & Catalysts segment. For Advanced Silicas, we entered the year with an expectation that our polyethylene catalyst sales would continue to outpace global demand growth.  However, as global demand for polyethylene may be impacted due to the uncertainty around the economic impact of tariffs, we remain cautious as to the impact on our sales for 2025. Within the Zeolyst Joint Venture, we anticipate significant year-over-year sales growth in 2025, compared to 2024, driven by positive momentum in hydrocracking catalyst sales.  We continue to expect the supply and demand imbalance in renewable fuels to challenge near-term sales of our catalyst materials, resulting in an expectation for flat to slightly up year-over-year sales of catalysts used in sustainable fuel production.

"We currently believe Ecovyst has minimal direct exposure to the existing tariffs.  At this time, we do not expect any first order impact in our Ecoservices segment due to its high U.S. production and sales concentration.  For our Advanced Materials & Catalysts segment, we currently anticipate a limited impact on full-year 2025 Adjusted EBITDA of approximately $2 million to $3 million, under the assumption that the existing tariff schedule remains unchanged.  Our current full-year outlook does not account for any significant macroeconomic impacts or related demand fluctuations that could result from prolonged tariff uncertainty," said Bitting.

The Company's current guidance for full year 2025 is as follows:

• Sales of $785 million to $845 million¹ (change from $755 million to $815 million)

• Sales of $115 million to $130 million for proportionate 50% share of Zeolyst Joint Venture, which is excluded from GAAP Sales

• Adjusted EBITDA² of $238 million to $258 million

• Adjusted Free Cash Flow² of $60 million to $80 million

• Capital expenditures of $80 million to $90 million

• Interest expense of $47 million to $53 million

• Depreciation & Amortization

  • Ecovyst - $87 million to $93 million

  • Zeolyst J.V. - $12 million to $14 million

• Effective tax rate in the mid 20% range

• Adjusted Net Income² of $58 million to $85 million, with Adjusted Diluted Income per share of $0.50 to $0.70.

The Company's guidance for the second quarter of 2025 is as follows:

• Adjusted EBITDA² of $45 million to $55 million

¹Sales outlook for 2025 assumes higher average sulfur prices compared to 2024 and higher projected pass-through of sulfur costs of approximately $65 million.

²In reliance upon the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K, the Company is not able to provide a reconciliation of its non-GAAP financial guidance to the corresponding GAAP measures without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation such as certain non-cash, nonrecurring or other items that are included in net (loss) income and net cash provided by operating activities as well as the related tax impacts of these items and asset dispositions / acquisitions and changes in foreign currency exchange rates that are included in cash flow, due to the uncertainty and variability of the nature and amount of these future charges and costs. Because this information is uncertain, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Stock Repurchase Authorization

In April 2022, the Company's Board of Directors approved a stock repurchase program authorizing the repurchase of up to $450 million of the Company's outstanding common stock over the next four years. As of March 31, 2025, $229.6 million was available for share repurchases under the program.

For possible future repurchases, the actual timing, number, and nature of shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions and may be conducted through negotiated transactions, open market repurchases or other means, including through Rule 10b-18 trading plans or accelerated share repurchases. The repurchase program does not obligate the Company to acquire any number of shares in any specific period, or at all, and the repurchase program may be amended, suspended or discontinued at any time at the Company's discretion.

Conference Call and Webcast Details

On Thursday, May 1, 2025, Ecovyst management will review the first quarter 2025 results during a conference call and audio-only webcast scheduled for 11:00 a.m. Eastern Time.

Conference Call: Investors may listen to the conference call live via telephone by dialing 1 (800) 225-9448 (domestic) or 1 (203) 518-9708 (international) and use the participant code ECVTQ125.

Webcast: An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations.

Investor Contact:

Gene Shiels
(484) 617-1225
gene.shiels@ecovyst.com

About Ecovyst Inc.

Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid and sulfuric acid regeneration services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products and services contribute to improving the sustainability of the environment.

We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides high quality and high strength virgin sulfuric acid for industrial and mining applications. Ecoservices also provides chemical waste handling and treatment services, as well as ex-situ catalyst activation services for the refining and petrochemical industry. Advanced Materials & Catalysts, through its Advanced Silicas business, provides finished silica catalysts, catalyst supports and functionalized silicas necessary to produce high performing plastics and to enable sustainable chemistry, and through its Zeolyst Joint Venture, innovates and supplies specialty zeolites used in catalysts that support the production of sustainable fuels, remove nitrogen oxides from diesel engine emissions and that are broadly applied in refining and petrochemical processes. For more information, see our website at https://www.ecovyst.com.

Presentation of Non-GAAP Financial Measures

In addition to the results provided in accordance with U.S. generally accepted accounting principles ("GAAP") throughout this press release, the Company has provided non-GAAP financial measures — Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Diluted Income per share, Net Debt to Net Income ratio and Net Debt Leverage Ratio (collectively, "Non-GAAP Financial Measures") — which present results on a basis adjusted for certain items. The Company uses these Non-GAAP Financial Measures for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that these Non-GAAP Financial Measures are useful financial metrics to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. These Non-GAAP Financial Measures are not intended to replace, and should not be considered superior to, the presentation of the Company's financial results in accordance with GAAP. The use of the Non-GAAP Financial Measures terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. These Non-GAAP Financial Measures are reconciled from the respective measures under GAAP in the attached appendix.

Zeolyst Joint Venture

The Company's zeolite catalysts product group operates through its Zeolyst Joint Venture, which is accounted for as an equity method investment in accordance with GAAP. The presentation of the Zeolyst Joint Venture's sales represents 50% of the sales of the Zeolyst Joint Venture. The Company does not record its proportionate share of sales from the Zeolyst Joint Venture accounted for using the equity method as revenue and such sales are not consolidated within its results of operations. However, Adjusted EBITDA for the Company's Advanced Materials & Catalysts segment reflects the Company's 50% portion of the earnings from the Zeolyst Joint Venture that have been recorded as equity in net income in the Company's condensed consolidated statements of (loss) income for such periods and includes Zeolyst Joint Venture adjustments on a proportionate basis based on the Company's 50% ownership interest. Accordingly, the Company's Adjusted EBITDA margins are calculated including 50% of the sales of the Zeolyst Joint Venture for the relevant periods in the denominator.

Note on Forward-Looking Statements

Some of the information contained in this press release constitutes "forward-looking statements." Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "projects" and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Examples of forward-looking statements include, but are not limited to, statements regarding our future results of operations, financial condition, capital expenditure projects, liquidity, prospects, growth, strategies, capital allocation program (including the stock repurchase program), product and service offerings, expected demand trends, the timing and outcome, if any, of our strategic review process for our Advanced Materials & Catalysts segment, the closing of our acquisition of the sulfuric acid assets of Cornerstone Chemical Company, the effect of tariffs on our business and results and our second quarter and full year 2025 financial outlook. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, regional, national or global political, economic, business, competitive, market and regulatory conditions, including the enactment, schedule and impact of tariffs and trade disputes, currency exchange rates, the effects of inflation and other factors, including those described in the sections titled "Risk Factors" and "Management's Discussion & Analysis of Financial Condition and Results of Operations" in our filings with the SEC, which are available on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

The adjustments to net (loss) income are shown net of applicable tax rates of 23.8% and 24.6% for the three months ended March 31, 2025 and 2024, respectively, except for equity-based compensation. The tax effect on equity-based compensation is derived by removing the tax effect of any equity-based compensation expense disallowed as a result of its inclusion within IRC Sec. 162(m), and adding the tax effect of equity-based stock compensation shortfall recorded as a discrete item.

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SOURCE Ecovyst Inc.