Ecovyst Reports 9.5% Revenue Growth in Q2 2025, Net Income Declines by 27.7%

Ecovyst Inc. reported its financial results for the second quarter and first half of 2025, revealing a revenue increase of 9.5% to $200.1 million for the three months ended June 30, 2025, compared to $182.8 million in the same period of 2024. For the first half of 2025, total sales reached $362.3 million, up from $343.4 million in the prior year. However, net income for the second quarter decreased by 27.7% to $6.0 million, down from $8.3 million a year earlier, while net income for the first half fell to $2.4 million from $9.5 million in 2024. The decline in profitability was attributed to lower sales volumes and increased manufacturing costs, despite higher average selling prices driven by the pass-through of rising sulfur costs.

The company's Ecoservices segment saw a notable sales increase of 14.4%, reaching $176.0 million, primarily due to higher average selling prices and favorable contractual pricing for regeneration services. Conversely, the Advanced Materials & Catalysts segment experienced a 16.6% decline in sales to $24.1 million, largely due to the timing of niche custom catalyst sales. Gross profit for the second quarter decreased to $49.7 million, reflecting a gross profit margin of 24.8%, down from 29.4% in the previous year. The decrease was primarily due to lower sales volume and higher manufacturing costs, which were partially offset by increased selling prices.

Ecovyst's operational expenses also reflected significant changes, with selling, general, and administrative expenses remaining stable at $22.7 million. However, other operating expenses surged to $9.2 million, up from $3.1 million in the prior year, driven by litigation and restructuring costs. The company reported equity in net income from affiliated companies of $1.9 million, an increase from $1.4 million in the previous year, attributed to improved earnings from the Zeolyst Joint Venture.

In terms of strategic developments, Ecovyst completed the acquisition of sulfuric acid production assets from Cornerstone Chemical Company for $41.3 million, which is expected to enhance its capacity for virgin sulfuric acid and regeneration services. The company also continued its stock repurchase program, buying back 2.9 million shares at an average price of $7.47 per share during the first half of 2025, with $207.7 million remaining available for future repurchases.

Looking ahead, Ecovyst anticipates that its existing cash and cash equivalents, along with cash flows from operations and available credit, will be sufficient to meet its liquidity needs for at least the next twelve months. The company remains focused on managing its operational costs and capital expenditures while navigating the challenges posed by market conditions and inflationary pressures.