Strategic Divestiture Announcement
Ecovyst announced an agreement to sell its advanced materials and catalysts segment to Technip Energies for $556 million, with anticipated net proceeds of $530 million. This transaction is expected to close in the first quarter of 2026 and significantly reduce the company's net debt leverage ratio to less than 1.5x.
Positive Financial Performance
Third-quarter sales from continuing operations increased by 33% to $205 million, and adjusted EBITDA rose by 18%. The company generated over $40 million in adjusted free cash flow during the quarter.
Strong Demand for Virgin Sulfuric Acid
There is robust demand for virgin sulfuric acid, particularly in the mining sector, which accounts for 20% to 25% of sales. Expansion projects with existing customers have come online, contributing to increased sales volumes.
Stock Repurchase Program
The company repurchased $5.5 million of its common stock in the third quarter and plans to repurchase up to $20 million in the fourth quarter, with further repurchases anticipated in 2026.