Ecovyst Inc.

Income statement — fully populated series: notes and sources

Sources: Q4 FY2021 release (sales $611.2 m; Adj. EBITDA $227.6 m); Q4 FY2022 release (sales $820.2 m; NI $69.8 m, +$68.0 m YoY ⇒ FY2021 NI ≈$1.8 m, analyst-derived; leverage 2.8x vs 3.3x); FY2023 release; FY2024 release (as originally reported, incl. $65 m Zeolyst impairment); FY2025 release (continuing). The FY2021–FY2024 "Adj. EBITDA / GAAP sales" ratio is overstated relative to company-reported margins because pre-2025 EBITDA included Zeolyst JV earnings while GAAP sales excluded JV sales.

Income statement — detailed lines, FY2023–FY2025

Basis: FY2023 as originally reported (consolidated incl. AM&C, equity income from Zeolyst below operating income); FY2024 and FY2025 continuing operations per the FY2025 release. FY2025 effective tax rate was 75.6%, inflated by a $13.3 m state tax credit valuation allowance increase and deferred-tax revaluation linked to the divestiture (FY2025 release; Q3 FY2025 release).

FY2024 continuing EPS ($0.39) and Adjusted EPS ($0.44) are restated continuing-ops figures from the FY2025 release; FY2024 as originally reported was -$0.06 GAAP and $0.58 adjusted. FY2021 diluted EPS: n/d (Q4 FY2021 alone was $0.06). FY2021 included a dividend with ex-date 11 Aug 2021 (amount n/d).

Margins (%)

FY2023 consolidated; FY2024–FY2025 continuing. Analyst-derived except Adjusted EBITDA margins (company-reported).

Revenue CAGR (analyst-derived): FY2021→FY2025 as reported: +4.3% p.a.; current perimeter (Ecoservices 500.5 → 723.5): +9.6% p.a. Excluding sulfur pass-through, FY2025 sales were ≈$646 m (723.5 − ~77), implying underlying growth of roughly 8% vs FY2024 (FY2024 had ~$7 m lower pass-through effect; analyst estimate, directional only).

Interim FY2026 performance: notes and sources

Sources: Q1 FY2026 and Q2 FY2026 releases. H1 FY2026: sales $464.9 m (+45.6%), gross profit $86.3 m, operating income $31.9 m, Adjusted EBITDA $92.9 m (+47.0%). TTM to 30 Jun 2026: sales $795.4 m, Adjusted EBITDA $201.7 m (25.4% margin), net income from continuing operations $25.8 m. Q2 FY2026 included ~$55 m sulfur pass-through and $8.1 m transaction costs (Calabrian).

Balance sheet

FY2023–FY2024 as originally reported (consolidated, incl. AM&C and $349.3 m Zeolyst investment in FY2024); FY2025 and Q2 FY2026 post-divestiture. FY2021–FY2022 balance sheets not captured (n/d in this table). Goodwill and intangibles rose by $71.6 m and $76.2 m respectively in H1 2026 on the Calabrian purchase price allocation.

Cash flow

FY2022: operating cash flow $186.6 m, Adjusted FCF $145.8 m, buybacks $136.7 m (Q4 FY2022 release). FY2021 cash flows n/d. FY2025 Adjusted FCF adds back $17.6 m segment-disposal costs, $6.1 m Waggaman costs, $4.6 m interest paid with debt prepayment and $1.0 m financing costs.

Ratios (analyst-derived from reported figures)

Notes: FY2023 ROE/ROA use ending balances (FY2022 balance sheet not captured). FY2024 ROE/ROA use total net loss (−$6.7 m) on consolidated balance sheet; FY2024 interest coverage uses continuing operating income ($85.1 m) over continuing interest ($36.5 m) for the operating basis and consolidated Adj. EBITDA/interest ($238.2 m / $49.4 m) for the EBITDA basis; FY2024 ROIC uses continuing operating income on consolidated invested capital (understates). FY2024 restated continuing leverage was 4.3x (FY2025 release) versus 3.0x as originally reported. FY2025 CCC: DSO 43.0 + DIO 17.3 − DPO 31.0 days; FY2024 continuing: DSO 32.5 + DIO 15.1 − DPO 27.6. FY2023 CCC not computed (0 = n/d).

Commentary on trends, inflections and drivers

Revenue. Reported sales are dominated by sulfur pass-through and portfolio moves. The FY2022 peak ($820.2 m) reflected elevated sulfur prices and strong regeneration demand; FY2023's 16% decline was mostly an ~$86 m lower sulfur pass-through plus the Dominguez outage and weaker polyethylene catalysts (FY2023 release). On the current perimeter, sales rebounded 20.9% in FY2025 (≈$77 m pass-through, Waggaman volume, favorable regen pricing) and are guided to $1.02–1.06 bn in FY2026, of which ≈$220 m is expected sulfur pass-through and roughly half a year of Calabrian.

Profitability. Adjusted EBITDA on the current perimeter has been remarkably stable—$177.2 m (FY2023), $172.7 m (FY2024), $172.0 m (FY2025)—despite large revenue swings, confirming pass-through economics. The flat FY2025 outcome masked offsetting forces: positive contract pricing and virgin-acid volume versus unplanned customer downtime, turnarounds, transport inflation and incremental Waggaman costs. The inflection came in FY2026: Q1 Adjusted EBITDA +87% (against a turnaround-depressed Q1 2025) and Q2 +27%, taking TTM Adjusted EBITDA to $201.7 m. GAAP earnings have been weak: FY2025 net income from continuing operations was only $6.3 m due to $27.2 m other operating expense, $5.5 m debt costs and a 75.6% tax rate; the total net loss of $71.1 m reflects the loss on AM&C in discontinued operations.

Balance sheet. The AM&C sale transformed the capital structure: gross debt fell from $870.8 m to $397.1 m and leverage from ~3.0x (4.3x on a continuing basis) to 1.2x. The Calabrian deal re-levered the company to 2.0x (gross debt $497.1 m; cash $87.8 m) with liquidity of $176.3 m at 30 Jun 2026. Pro forma for Calabrian's ~$23.7 m TTM EBITDA (not yet in TTM), leverage would be ≈1.8x (analyst-derived).

Cash flow. Operating cash flow on the continuing perimeter rose to $118.1 m in FY2025 (from $103.8 m), but higher capex ($91.5 m incl. discontinued) compressed reported FCF to $48.8 m. FY2026 guidance of $45–55 m Adjusted FCF with $85–95 m capex implies a deliberate growth-capex year; interest expense guidance falls to $18–22 m (from $34.2 m), a meaningful tailwind to FCF conversion going forward.

Management guidance (5 Aug 2026)

FY2026: sales $1,020–1,060 m; Adjusted EBITDA $195–207 m (incl. $10–12 m Calabrian in H2); Adjusted FCF $45–55 m; capex $85–95 m; interest $18–22 m; D&A $80–84 m; ETR mid-20s%; Adjusted EPS $0.58–0.72. Q3 FY2026 Adjusted EBITDA $54–59 m. Implied Q4 FY2026 Adjusted EBITDA (analyst): ~$43–60 m (midpoint ~$52 m vs $51.3 m in Q4 FY2025).

Consensus growth expectations

Consensus beat on Q1 and Q2 FY2026 sales and EPS (Investing.com). Forward P/E of ~14x implies consensus Adjusted EPS roughly in the upper half of guidance (inference).

Bull case

1. Earnings power reset higher: TTM Adjusted EBITDA reached $201.7 m (vs $172.0 m FY2025), and adding a full year of Calabrian (~$23.7 m TTM at signing) points to ~$220 m+ run-rate before synergies.

2. Deleveraging + buyback flywheel: interest expense roughly halves in FY2026; with ~$50 m+ FCF after growth capex and $146.5 m authorization, leverage can return toward ~1.5x while shrinking the share count (already −6% since FY2024).

3. Valuation arbitrage evidenced: management sold AM&C at ~9.8x and bought Calabrian at ~8.0x (to <7.0x), while the stock trades at ~7.5x EBITDA—room for re-rating if execution continues.

Bear case

1. Organic momentum fading in H2 2026: Q3 guide of $54–59 m vs $57.5 m in Q3 2025 implies flat-to-down organic EBITDA once ~$5–6 m quarterly Calabrian is excluded, on lower virgin-acid spot volume.

2. Weak GAAP quality and margin dilution: FY2025 GAAP net margin 0.9%; heavy adjustments (transaction, restructuring, equity comp) and pass-through-driven margin compression (21.2% in Q2 FY2026) cloud quality of earnings.

3. Structural end-market risk and concentration: a single-platform, refining-centric business exposed to long-run gasoline decline, California refinery closures, and alternative alkylation technology, now with re-levered balance sheet (2.0x) and a new CFO.

Catalysts and monitorables (next 12 months)

• Q3 FY2026 results (~3–5 Nov 2026): delivery vs $54–59 m guide; Calabrian contribution; CFO Bergman's first call.

• FY2027 guidance (late Feb 2027): first full year with Calabrian; synergy quantification.

• Turnaround schedule and customer downtime trends; virgin-acid spot pricing and mining demand.

• Sulfur price trajectory (sales optics) and pass-through lag effects.

• Buyback cadence (none in Q2 2026) vs debt reduction priority.

• Further bolt-on M&A in sulfur derivatives; any refinery closure announcements affecting regen customers.

• Expiry/renewal of Performance Chemicals contract-manufacturing arrangement (~2026) and Technip Energies TSA wind-down.

Concluding analyst verdict

Ecovyst has completed one of the cleaner portfolio transformations in U.S. small-cap chemicals. In fifteen months it bought Gulf Coast acid capacity (Waggaman, $41.5 m), sold its catalyst arm at roughly 9.8x EBITDA ($556 m), cut gross debt by more than half, retired ~9 m shares, and redeployed capital into Calabrian at ~8x EBITDA with identified synergies. The resulting company is a focused, contract-backed sulfur-chemistry platform whose underlying EBITDA has been unusually resilient (≈$172–177 m on the current perimeter for three years) and is now inflecting (TTM $201.7 m; FY2026 guidance $195–207 m).

Valuation looks undemanding at ~7.5x EV/EBITDA and ~15–16x guided Adjusted EPS, particularly given lower interest costs and an open-ended buyback. However, the investment case has become narrower and more operationally sensitive. GAAP profitability remains thin, reported margins are optically diluted by sulfur pass-through, and the Q3 outlook suggests organic growth is slowing as virgin-acid spot opportunities fade. The August 2026 de-rating (−16% in the month) reflects legitimate concerns: leverage back at 2.0x, a CFO change, and a business now almost entirely tied to North American refining and mining cycles, with long-dated structural questions around gasoline demand and California refining.

On balance, the evidence supports a constructive but execution-dependent view. The stock offers asymmetric upside if management delivers Calabrian synergies, keeps turnarounds on schedule, and converts the lower interest burden into free cash flow and buybacks—conditions under which consensus targets in the mid-teens appear achievable. The key tests are the Q3 FY2026 print and the FY2027 guide: sustained organic EBITDA growth ex-Calabrian would validate a re-rating; another flat year would confirm the market's view of Ecovyst as a stable but ex-growth regional utility of sulfur chemistry. Investors should size positions accordingly and monitor refinery utilization, turnaround timing, and capital-allocation discipline closely.

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Analyst-derived figures are computed from reported filings and labelled. Aggregator data (price, ownership, consensus) may differ by source and date.