Slides
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Second Quarter 2025 August 7, 2025 — 11 a.m. ET
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SECOND QUARTER EARNINGS 2025 / 2 Legal Discussion Forward-Looking Statements Some of the information contained in this presentation, the conference call during which this presentation is reviewed and any discussions that follow 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 and facility turnaround schedule, the timing and outcome, if any, of our strategic review process for our Advanced Materials & Catalysts segment, the effect of tariffs on our business and results and our quarterly 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, the timing and outcome, if any, of our strategic review process for our Advanced Materials & Catalysts segment, 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. Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Diluted Income per share and Net Debt Leverage Ratio, which are provided to assist in an understanding of our business and its performance. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Non-GAAP financial measures should be read only in conjunction with consolidated financials prepared in accordance with GAAP. Reconciliations of non-GAAP measures to the relevant GAAP measures are provided in the appendix of this presentation. In 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 the Company’s 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 EBITDA 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.
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SECOND QUARTER EARNINGS 2025 / 3 Legal Discussion Supply Share and Industry Information Certain statistical information used in this presentation is based on independent industry publications, reports by research firms or other published independent sources. Some statistical information is also based on our good faith estimates which are derived from management’s knowledge of our industry and such independent sources referred to above. Certain supply share statistics, ranking and industry information included in this presentation, including the size of certain markets and our estimated supply share position and the supply share positions of our competitors, are based on management estimates. These estimates have been derived from our management’s knowledge and experience in the industry and end uses into which we sell our products, as well as information obtained from surveys, reports by research firms, our customers, distributors, suppliers trade and business organizations and other contacts in the industries into which we sell our products. We believe these data to be accurate as of the date of this presentation. However, this information may prove to be inaccurate because this information cannot always be verified with complete certainty due to the limitations on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties. Unless otherwise noted, all of our supply share position and industry information presented in this presentation herein is an approximation based on management’s knowledge and is based on our, or, in the case of supply share position information, excludes volume attributable to manufacturers who produce primarily for their own consumption. In addition, references to various end uses into which we sell our products are based on how we define the end uses for our products. Zeolyst Joint Venture Zeolyst International and Zeolyst C.V. (our 50% owned joint ventures that we refer to collectively as the “Zeolyst Joint Venture”), are accounted for as an equity method investment in accordance with GAAP. The presentation of the Zeolyst Joint Venture’s sales in this presentation represents 50% of the sales of the Zeolyst Joint Venture. We do not record sales from the Zeolyst Joint Venture as revenue and such sales are not consolidated within our 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 our condensed consolidated statements of (loss) income for such periods and includes Zeolyst Joint Venture adjustments on a proportionate basis based on our 50% ownership interest. Accordingly, our Adjusted EBITDA Margins are calculated including 50% of the sales of the Zeolyst Joint Venture for the relevant periods in the denominator.
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SECOND QUARTER EARNINGS 2025 / 4 Key Messages - Second Quarter 2025 2 1 3 Ecoservices sales up 14%, on favorable contractual pricing and pass-through of higher sulfur costs, partially offset by lower regeneration volume arising from unplanned and extended customer downtime Sales for Advanced Silicas lower on timing of sales for niche custom catalysts, with sales of polyethylene catalysts and supports unchanged compared to Q2 2024 Sales for proportionate 50% share of Zeolyst Joint Venture slightly lower on timing of sales for hydrocracking and custom catalysts, partially offset by higher sales of sustainable fuels and specialty catalysts 5 Completed the acquisition of the Waggaman sulfuric acid production assets with total proceeds, including working capital adjustments, of $41 million 4 Repurchased 2.9 million shares totaling approximately $22 million5
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SECOND QUARTER EARNINGS 2025 / 5 Key Highlights Q2 2025 Key Highlights $200 Mln GAAP Sales Q2 2025 $56 Mln Adj. EBITDA Q2 20251 24% Adj. EBITDA Margin Q2 20251,2 3.5x Net Debt Leverage Ratio1,4 $(2) Mln Adjusted Free Cash Flow 1,3 $152 Mln Liquidity5 1. See Appendix for reconciliations of Non-GAAP financial measures 2. Adjusted EBITDA Margin calculation includes proportionate 50% share of sales from the Zeolyst Joint Venture of $28 million 3. Adjusted Free Cash Flow = operating net cash less PPE plus cash paid for debt financing costs for the six months ended June 30, 2025 4. Net Debt Leverage Ratio = (Total debt – Cash and cash equivalents) / Adjusted EBITDA 5. Liquidity = $69 million of Cash and Cash equivalents + Availability on revolving ABL facility of $83 million
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SECOND QUARTER EARNINGS 2025 / 6 Demand Trends and Outlook
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Second Quarter 2025 Financial Performance
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SECOND QUARTER EARNINGS 2025 / 8 Financial Performance - Q2 2025 ($ in millions) Second Quarter 2025 Second Quarter 2024 $ Change % Change Ecovyst Sales 200.1 182.8 17.3 9.5 Zeolyst Joint Venture Sales 28.4 29.0 (0.6) (2.1) Net Income 6.0 8.3 (2.3) (27.7) Net Income Margin (%) 3.0 4.5 (150 bps) Adjusted EBITDA1 55.7 56.9 (1.2) (2.1) Adjusted EBITDA Margin1,2 (%) 24.4 26.8 (240 bps) ($ in millions) $ Change % Change Sales Change Factors3 17.3 9.5 Volume (9.0) (4.9) Price (ex sulfur pass-through) 6.3 3.4 Price impact of sulfur pass-through 20 10.9 1. See Appendix for reconciliations of non-GAAP measures 2. Adjusted EBITDA Margin calculation includes proportionate 50% share of sales from the Zeolyst Joint Venture 3. Sales Change Factors for Ecovyst Sales only (not including Zeolyst Joint Venture Sales) Second Quarter Financial Results
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SECOND QUARTER EARNINGS 2025 / 9 Adjusted EBITDA Bridge - Q2 2025 Change in Adjusted EBITDA reflects lower regeneration volume in Ecoservices and lower sales volume in Advanced Materials & Catalysts associated with order timing, largely offset by positive pricing in Ecoservices and lower manufacturing and turnaround costs 1. See Appendix for reconciliations of non-GAAP measures 2. Adjusted EBITDA Margin calculation includes proportionate 50% share of sales from the Zeolyst Joint Venture Positive price-cost 26.8%1,2 24.4%1,2
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SECOND QUARTER EARNINGS 2025 / 10 Ecoservices - Q2 2025 Financial Performance ($ in millions) Second Quarter 2025 Second Quarter 2024 $ Change % Change Sales 176.0 153.9 22.1 14.4 Adjusted EBITDA1 49.8 49.7 0.1 0.2 Adjusted EBITDA Margin1 (%) 28.3 32.3 (400 bps) YTD Capital Expenditures2 37.2 29.3 Highlights • Change in sales reflects pass-through of higher sulfur costs, favorable contractual pricing for regeneration services, strong pricing in virgin sulfuric acid and sales contribution from the acquired sulfuric acid assets at our Waggaman location, partially offset by lower regeneration services volume arising from unplanned and extended customer downtime • Change in Adjusted EBITDA reflects favorable contractual pricing for regeneration services, strong pricing in virgin sulfuric acid and lower turnaround costs, largely offset by by lower regeneration services volume and higher anticipated manufacturing costs driven by general inflation • Adjusted EBITDA margin of 28.3%, down 400 basis points, primarily reflecting the unfavorable effect of higher sulfur cost pass-through on sales 1. See Appendix for reconciliations of non-GAAP measures 2. Represents capital expenditures for the six months ended June 30, 2025 and 2024, respectively
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SECOND QUARTER EARNINGS 2025 / 11 Advanced Materials & Catalysts - Q2 2025 Financial Performance ($ in millions) Second Quarter 2025 Second Quarter 2024 $ Change % Change Advanced Silicas Sales 24.1 28.9 (4.8) (16.6) Zeolyst Joint Venture Sales 28.4 29.0 (0.6) (2.1) Adjusted EBITDA1 13.7 14.7 (1.0) (6.8) Adjusted EBITDA Margin1,2 (%) 26.1 25.4 70 bps Advanced Silicas YTD Capital Expenditures3 7.7 4.2 Highlights • The change in Advanced Silicas sales was primarily the result of lower event-driven niche custom catalyst sales related to order timing • The change in our proportionate 50% share of sales for the Zeolyst Joint Venture reflects lower sales of hydrocracking and custom catalysts, due to order timing, partially offset by higher sales of catalysts used in the production of sustainable fuels and other specialty catalysts • The decrease in Adjusted EBITDA was largely driven by lower sales volume and less favorable mix associated with timing of niche custom catalyst sales within Advanced Silicas 1. See Appendix for reconciliations of non-GAAP measures 2. Adjusted EBITDA Margin calculation includes proportionate 50% share of sales from the Zeolyst Joint Venture 3. Represents capital expenditures for the six months ended June 30, 2025 and 2024, respectively
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SECOND QUARTER EARNINGS 2025 / 12 Cash & Leverage Adjusted Free Cash Flow $85.5 $14.4 $80.0 $(2.4) 2024 June YTD 2024 June YTD 2025 2025 Guidance Net Debt Leverage Ratio 3.3x 3.2x 3.0x 3.2x 3.5x Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 4 1. Adjusted Free Cash Flow = operating net cash less PPE plus cash paid for debt financing costs. See Appendix for reconciliations of non- GAAP measures 2. Guidance range for Adjusted Free Cash Flow is $70 million to $80 million 3. Liquidity = $69 million of Cash and Cash equivalents + Availability on revolving ABL facility of $83 million 4. Net Debt Leverage Ratio = (Total debt – Cash and cash equivalents) / Adjusted EBITDA. See Appendix for reconciliations of non-GAAP measures Cash Generation • Year-to-date Adjusted Free Cash Flow at June 30, 2025 reflects ◦ Q2'25 acquisition of Waggaman sulfuric acid production assets for total proceeds of $41 million ◦ Aggregate share repurchases during Q2'25 of $22 million. • Available liquidity of $152 million 3 at June 30, 2025 1 Leverage Ratio and Debt Profile • No significant debt maturities until 2031 • No maintenance covenants on leverage • Interest rate caps limit rate exposure • Repriced TLB in Q1'25, further reducing the interest rate by 25 bps • Amended ABL facility in April, extending maturity to April 2030 $70.0 2
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SECOND QUARTER EARNINGS 2025 / 13 Ecovyst 2025 Outlook ($ in millions, except per share) 2024 Actual Prior 2025 Outlook Revised 2025 Outlook Sales1 $705 $785 - $845 $795 - $835 Zeolyst Joint Venture Sales $117 $115 - $130 $125 - $140 Adjusted EBITDA2 $238 $238 - $258 $242 - $254 Adjusted Free Cash Flow2 $86 $60 - $80 $70 - $80 Capital Expenditures $69 $80 - $90 No Change Interest Expense $49 $47 - $53 $46 - $50 Depreciation & Amortization Ecovyst $89 $87 - $93 $92 - $98 Zeolyst Joint Venture $13 $12 - $14 No Change Effective Tax Rate mid 20% range No Change Adjusted Net Income3 $58 to $85 $60 - $80 Adjusted Diluted Income per share4 $0.50 to $0.70 $0.52 - $0.68 • Relative to 2024, the pass-through effect of changes in sulfur costs on 2025 Sales is now expected to be approximately $65 million. 1. GAAP sales only; Excludes proportionate 50% share of sales from the Zeolyst Joint Venture 2. See Appendix for reconciliations of non-GAAP measures 3. Adjusted Net Income consists of net (loss) income adjusted for (i) non-operating income or expense and (ii) the impact of certain non-cash, nonrecurring or other items included in net (loss) income that we do not consider indicative of our ongoing operating performance 4. Adjusted Net Income on a diluted per share basis Adjusted EBITDA2 ($ in millions) Full Year 2025 Range Ecoservices $205 - $215 Advanced Materials & Catalysts $67 - $71 Unallocated Corporate Costs $30 - $32 Total $242 - $254 Q3 2025 Range Ecoservices $63 - $69 Advanced Materials & Catalysts $7 - $11 Unallocated Corporate Costs ~$8 Total $62 - $72
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SECOND QUARTER EARNINGS 2025 / 14 Ecovyst 2025 Outlook Q4 Directional Guidance Ecoservices • Expect stable year-over-year regen and virgin volume • Foresee strong contractual regen pricing and virgin sulfuric acid pricing • Lower expected turnaround costs compared to Q4 2024 • Estimate Adjusted EBITDA to be up ~$8 million to $12 million vs. Q4 2024 Advanced Materials & Catalysts • Expect strong sales quarter for polyethylene • Strong quarter expected for hydrocracking, specialty and custom catalyst sales, partially offset lower sales of sustainable fuel catalysts in the Zeolyst Joint Venture • Estimate Adjusted EBITDA expected in line with Q4 2024 Ecoservices Anticipated Turnaround Schedule Q1 2024 Q2 2024 Q3 2024 Q4 2024 2 2 0 1 Q1 2025 Q2 20251 Q3 20251 Q4 20251 2 2 0 1 Q1 20261 Q2 20261 Q3 20261 Q4 20261 4 1 1 1 1 Reflects expected timing for future turnarounds, subject to change
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SECOND QUARTER EARNINGS 2025 / 15 Expect high refinery utilization, incremental demand for virgin sulfuric acid in mining applications and favorable pricing to benefit Ecoservices over the balance of 2025 2 3 4 Positive cash generation expected in the second half of 2025 should provide for flexibility in capital allocation options, including additional share repurchases Summary 1 5 Expect to provide an update on the strategic review of Advanced Materials & Catalysts in the near future For Advanced Materials & Catalysts, continue to expect sales of hydrocracking and polyethylene catalysts to be up in 2025 and sales of sustainable fuel catalysts flat to up vs. 2024 Maintaining the midpoint of our guidance range for Adjusted EBITDA
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APPENDIX
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SECOND QUARTER EARNINGS 2025 / 17 Annual Segment Sales, Adjusted EBITDA and Margins Trailing Twelve Months Ended (TTM) Year Ended December 31, ($ in millions, except %) June 30, 2025 2024 2023 2022 2021 Sales: Ecoservices 621.9 598.3 584.8 702.5 500.5 Advanced Materials & Catalysts1 101.6 106.2 106.3 117.7 110.7 Total sales 723.5 704.5 691.1 820.2 611.2 Zeolyst Joint Venture sales 130.1 116.5 156.5 132.6 131.3 Adjusted EBITDA2: Ecoservices 187.4 200.3 200.0 227.8 177.7 Advanced Materials & Catalysts 70.0 64.7 81.9 78.0 88.0 Unallocated corporate expenses (27.1) (26.8) (22.0) (29.0) (38.1) Total Adjusted EBITDA 230.3 238.2 259.9 276.8 227.6 Adjusted EBITDA Margin3: Ecoservices 30.1% 33.5% 34.2% 32.4% 35.5% Advanced Materials & Catalysts 30.2% 29.1% 31.2% 31.2% 36.4% Total Adjusted EBITDA Margin2,3 27.0% 29.0% 30.7% 29.0% 30.7% 1. Represents GAAP sales for the Advanced Silicas business; Excludes our proportionate 50% share of sales from the Zeolyst Joint Venture 2. See Appendix for reconciliations of non-GAAP measures 3. Totals include corporate costs * Rounding discrepancies may arise when rounding results from dollars (in thousands) to dollars (in millions)
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SECOND QUARTER EARNINGS 2025 / 18 Quarterly Segment Sales, Adjusted EBITDA and Margins Three Months Ended Six Months Ended Three Months Ended Six Months Ended ($ in millions, except %) March 31, 2025 June 30, 2025 June 30, 2025 March 31, 2024 June 30, 2024 June 30, 2024 Sales: Ecoservices 143.1 176.0 319.1 141.6 153.9 295.6 Advanced Materials & Catalysts1 19.1 24.1 43.2 18.9 28.9 47.8 Total sales 162.2 200.1 362.3 160.5 182.8 343.4 Zeolyst Joint Venture sales 37.7 28.4 66.2 23.5 29.0 52.5 Adjusted EBITDA2: Ecoservices 28.5 49.8 78.3 41.5 49.7 91.2 Advanced Materials & Catalysts 17.5 13.7 31.2 11.1 14.7 25.8 Unallocated corporate expenses (7.1) (7.8) (14.9) (7.1) (7.5) (14.6) Total Adjusted EBITDA 38.9 55.7 94.6 45.5 56.9 102.4 Adjusted EBITDA Margin2: Ecoservices 19.9% 28.3% 24.5% 29.3% 32.3% 30.9% Advanced Materials & Catalysts 30.8% 26.1% 28.5% 26.2% 25.4% 25.7% Total Adjusted EBITDA Margin2,3 19.5% 24.4% 22.1% 24.7% 26.8% 25.9% 1. Represents GAAP sales for the Advanced Silicas business; Excludes our proportionate 50% share of sales from the Zeolyst Joint Venture 2. See Appendix for reconciliations of non-GAAP measures 3. Totals include corporate costs * Rounding discrepancies may arise when rounding results from dollars (in thousands) to dollars (in millions)
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SECOND QUARTER EARNINGS 2025 / 19 Sales and Adjusted EBITDA Major Change Factors Sales (in $ millions and %) Three Months Ended June 30, 2025 Ecovyst Ecoservices Advanced Materials & Catalysts Sales: $ % $ % $ % Volume (9.0) (4.9) (4.2) (2.7) (4.8) (16.6) Price/Mix 26.3 14.4 26.3 17.1 — — Sales Change 17.3 9.5 22.1 14.4 (4.8) (16.6) Adj. EBITDA (in $ millions and %) Three Months Ended June 30, 2025 Ecovyst Ecoservices Advanced Materials & Catalysts Adj EBITDA: $ % $ % $ % Volume/Mix (9.3) (16.3) (4.4) (8.9) (4.9) (33.3) Price1 6.3 11.1 6.3 12.7 — — Variable Cost1 5.4 9.5 3.0 6.0 2.4 16.3 Currency (0.1) (0.2) — — (0.1) (0.7) Other (3.5) (6.2) (4.8) (9.6) 1.6 10.9 Adj EBITDA Change (1.2) (2.1) 0.1 0.2 (1.0) (6.8) Adjusted EBITDA Sales Six Months Ended June 30, 2025 Ecovyst Ecoservices Advanced Materials & Catalysts $ % $ % $ % (13.4) (3.9) (8.8) (3.0) (4.6) (9.6) 32.3 9.4 32.3 10.9 — — 18.9 5.5 23.5 7.9 (4.6) (9.6) Six Months Ended June 30, 2025 Ecovyst Ecoservices Advanced Materials & Catalysts $ % $ % $ % (5.1) (5.0) (7.6) (8.3) 2.5 9.7 5.3 5.2 5.3 5.8 — — 4.3 4.2 1.9 2.1 2.4 9.3 — — — — — — (12.3) (12.0) (12.5) (13.7) 0.5 1.9 (7.8) (7.6) (12.9) (14.1) 5.4 20.9 1. Excludes the sulfur cost pass-through impact reflected in price and the associated sulfur cost reflected in variable cost; $20 million for the three months ended and $27 million for the six months ended June 30, 2025
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SECOND QUARTER EARNINGS 2025 / 20 Reconciliation of Net Income (Loss) to Adjusted EBITDA Three Months Ended TTM Year Ended ($ in millions, except %) June 30, 2025 June 30, 2025 December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 Reconciliation of net income (loss) to Adjusted EBITDA Net income (loss) 6.0 (13.8) (6.7) 71.2 69.8 1.8 Provision (benefit) for income taxes 2.0 (1.3) 1.6 10.8 24.9 12.1 Interest expense, net 11.1 45.2 49.4 44.7 37.2 37.0 Depreciation and amortization 23.9 92.8 89.4 84.6 79.2 79.7 EBITDA 43.0 122.9 133.7 211.3 211.1 130.6 Joint venture depreciation, amortization and interest(a) 3.2 13.2 13.3 13.4 16.0 15.6 Amortization of investment in affiliate step-up(b) 0.6 2.4 3.8 6.4 6.4 6.5 Impairment of investment in affiliated companies(c) — 65.0 65.0 — — — Intangible asset impairment charge — 3.9 3.9 — — — Debt modification and extinguishment costs — 1.0 4.6 — — 26.9 Net loss on asset disposals(d) 0.3 2.3 2.4 4.1 3.6 5.7 Foreign currency exchange (gain) loss(e) — (0.2) (0.2) (1.3) 1.4 4.7 LIFO (benefit) expense(f) (0.4) (0.8) (2.2) 3.5 (0.2) (1.9) Transaction and other related costs(g) 2.7 4.8 0.4 3.0 7.0 2.0 Equity-based compensation 3.4 13.0 14.0 16.0 20.6 31.8 Restructuring, integration and business optimization expenses(h) 1.0 1.7 1.0 2.7 11.6 3.0 Other(i) 1.9 1.1 (1.5) 0.8 (0.7) 2.7 Adjusted EBITDA1 55.7 230.3 238.2 259.9 276.8 227.6 1. For additional information with respect to each adjustment, see appendix "Descriptions for reconciliation of Non-GAAP financial measures" * Rounding discrepancies may arise when rounding results from dollars (in thousands) to dollars (in millions)
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SECOND QUARTER EARNINGS 2025 / 21 Reconciliation of Net (Loss) Income to Adjusted EBITDA Three Months Ended TTM Three Months Ended Twelve Months Ended ($ in millions, except %) March 31, 2025 June 30, 2025 June 30, 2025 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 December 31, 2024 Reconciliation of net (loss) income to Adjusted EBITDA Net (loss) income (3.6) 6.0 (13.8) 1.2 8.3 14.3 (30.5) (6.7) (Benefit) provision for income taxes (0.6) 2.0 (1.3) 1.2 3.1 4.5 (7.2) 1.6 Interest expense, net 11.0 11.1 45.2 13.4 12.9 11.3 11.8 49.4 Depreciation and amortization 23.1 23.9 92.8 21.9 21.6 23.2 22.6 89.4 EBITDA 29.9 43.0 122.9 37.7 45.9 53.3 (3.3) 133.7 Joint venture depreciation, amortization and interest(a) 3.2 3.2 13.2 3.3 3.2 3.6 3.2 13.3 Amortization of investment in affiliate step-up(b) 0.6 0.6 2.4 1.6 0.9 0.6 0.6 3.8 Impairment of investment in affiliated companies(c) — — 65.0 — — — 65.0 65.0 Intangible asset impairment charge — — 3.9 — — — 3.9 3.9 Debt modification and extinguishment costs 1.0 — 1.0 — 4.6 — — 4.6 Net loss on asset disposals(d) 0.2 0.3 2.3 0.6 — 0.2 1.6 2.4 Foreign currency exchange loss (gain)(e) 0.1 — (0.2) 0.2 (0.1) — (0.3) (0.2) LIFO (benefit) expense(f) (0.8) (0.4) (0.8) (1.1) (1.5) (0.6) 1.0 (2.2) Transaction and other related costs(g) 1.9 2.7 4.8 0.1 0.1 — 0.2 0.4 Equity-based compensation 3.1 3.4 13.0 3.7 3.8 3.0 3.5 14.0 Restructuring, integration and business optimization expenses(h) 0.1 1.0 1.7 0.2 0.2 0.5 0.1 1.0 Other(i) (0.4) 1.9 1.1 (0.8) (0.2) (0.8) 0.4 (1.5) Adjusted EBITDA1 38.9 55.7 230.3 45.5 56.9 59.8 75.9 238.2 EBITDA Adjustments by Line Item EBITDA 29.9 43.0 122.9 37.7 45.9 53.3 (3.3) 133.7 Cost of goods sold (1.6) (1.2) (3.9) (1.9) (2.3) (1.4) 0.3 (5.4) Selling, general and administrative expenses 3.1 3.4 13.0 3.7 3.8 2.9 3.6 14.0 Other operating expense, net 2.5 6.4 16.5 1.0 0.5 0.7 6.9 9.1 Equity in net (income) from affiliated companies 0.6 0.6 2.4 1.6 0.9 0.6 0.6 3.8 Other expense (income), net 2 1.2 0.3 1.2 0.2 4.9 0.1 (0.4) 4.7 Joint venture depreciation, amortization and interest(a) 3.2 3.2 13.2 3.2 3.2 3.6 3.2 13.3 Impairment of investment in affiliated companies(c) — — 65.0 — — — 65.0 65.0 Adjusted EBITDA 38.9 55.7 230.3 45.5 56.9 59.8 75.9 238.2 1. For additional information with respect to each adjustment, see appendix "Descriptions for reconciliation of Non-GAAP financial measures" 2. Other expense (income), net includes debt modification and extinguishment costs * Rounding discrepancies may arise when rounding results from dollars (in thousands) to dollars (in millions)
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SECOND QUARTER EARNINGS 2025 / 22 Descriptions for reconciliation of Non-GAAP financial measures (a) We use Adjusted EBITDA as a performance measure to evaluate our financial results. Because our Advanced Materials & Catalysts segment reflects our 50% portion of the earnings from the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate share of depreciation, amortization and interest expense of the Zeolyst Joint Venture. (b) Represents the amortization of the fair value adjustments associated with the equity affiliate investment in the Zeolyst Joint Venture as a result of the combination of the businesses of PQ Holdings Inc. and Eco Services Operations LLC in May 2016. We determined the fair value of the equity affiliate investment and the fair value step-up was then attributed to the underlying assets of the Zeolyst Joint Venture. Amortization is primarily related to the fair value adjustments associated with intangible assets, including customer relationships and technical know-how. (c) Represents fair value impairments associated with the equity affiliate investment in the Zeolyst Joint Venture. During the year ended December 31, 2024, we recognized an impairment charge on our investment in the Zeolyst Joint Venture to reduce the carrying value of our investment to its estimated fair value. This impairment was a partial reduction to the goodwill and trade name components of the purchase accounting fair value adjustments recorded as a result of the combination of the businesses of PQ Holdings Inc. and Eco Services Operations LLC in May 2016. (d) When asset disposals occur, we remove the impact of net gain/loss of the disposed asset because such impact primarily reflects the non-cash write-off of long-lived assets no longer in use. (e) Reflects the exclusion of the foreign currency transaction gains and losses in the condensed consolidated statements of income related to the remeasurement effects of monetary assets and liabilities, including non-permanent intercompany debt, denominated in foreign currency. (f) Represents non-cash adjustments to the Company’s LIFO reserves for certain inventories in the U.S. that are valued using the LIFO method, effectively reflecting the results as if these inventories were valued using the FIFO method, which we believe provides a means of comparison to other companies that may not use the same basis of accounting for inventories. (g) Relates to certain transaction costs, including debt financing, due diligence and other costs related to transactions that are completed, pending or abandoned, that we believe are not representative of our ongoing business operations. (h) Includes the impact of restructuring, integration and business optimization expenses, which are incremental costs that are not representative of our ongoing business operations. (i) Other consists of adjustments for items that are not core to our ongoing business operations. These adjustments include environmental remediation and other legal costs, expenses for capital and franchise taxes, and defined benefit pension and postretirement plan (benefits) costs, for which our obligations are under plans that are frozen. Also included in this amount are adjustments to eliminate the benefit realized in cost of goods sold of the allocation of a portion of the contract manufacturing payments under the five-year agreement with the buyer of the Performance Chemicals business to the financing obligation under the failed sale-leaseback. Included in this line-item are rounding discrepancies that may arise from rounding from dollars (in thousands) to dollars (in millions).
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SECOND QUARTER EARNINGS 2025 / 23 Adjusted Free Cash Flow ($ in millions) Six months ended June 30, 2024 Full Year 2024 Six months ended June 30, 2025 Net cash provided by operating activities 46.4 149.9 43.3 Less: Purchases of property, plant and equipment1 36.6 69.0 49.5 Free Cash Flow 9.8 80.9 (6.2) Cash paid for debt financing costs 4.6 4.6 1.0 Cash paid for costs related to the Waggaman acquisition — — 2.8 Adjusted Free Cash Flow 14.4 85.5 (2.4) 1. Excludes the Company’s proportionate 50% share of capital expenditures from the Zeolyst Joint Venture 2. Shown net of capitalized interest and includes the cash received or paid on interest rate cap agreements * Rounding discrepancies may arise when rounding results from dollars (in thousands) to dollars (in millions) ($ in millions) Six months ended June 30, 2024 Full Year 2024 Six months ended June 30, 2025 Included in net cash provided by operating activities are the following supplemental cash items: Cash paid for taxes 16.4 26.3 8.8 Cash paid for interest2 33.2 49.0 23.4
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SECOND QUARTER EARNINGS 2025 / 24 Net Debt Leverage Ratio ($ in millions, except %) June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Total debt 873.0 873.0 870.8 868.6 866.5 Less: Cash and cash equivalents 83.3 123.5 146.0 127.5 69.6 Net debt 789.7 749.5 724.8 741.1 796.9 TTM Net income (loss) 56.1 53.8 (6.7) (11.5) (13.8) TTM Adjusted EBITDA 240.1 232.0 238.2 231.5 230.3 Net Debt to Net Income Ratio 14.1x 13.9x NM NM NM Net Debt Leverage Ratio 3.3x 3.2x 3.0x 3.2x 3.5x