Q2 2025 Ecovyst Inc Earnings Call
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Good morning. My name is Nikki and I will be your conference operator today.
Welcome to the egoist second quarter, 2025 earnings call and webcast.
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I would now like to hand the conference over to Chin Shields director of investor relations.
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Thank you operator. Good morning and welcome to ecoist second quarter 2025 earnings call with me on the call this morning or Kurt bidding, ecoist chief executive officer and Mike vien ecoist Chief Financial Officer.
Following our prepared remarks, we'll take your questions.
Please note that some of the information we will share today is forward-looking information, including information about the company's financial and operating performance strategies. Our anticipated. End use demand Trends and our 2025 Financial Outlook.
This information is subject to risks and uncertainties that could cause the actual results and the implementation of the company's plans to vary materially.
Any forward-looking information shared today, speaks only as of this date?
These risks are discussed in the company's filings with the SEC.
Reconciliation of non-gaap financial measures. Mentioned in today's call with their corresponding Gap, measures can be found in our earnings release and in presentation materials posted in the investor section of our website at ecos.com.
I'll now turn the call over to Kurt.
Thank you, Gene, and good morning.
The second quarter of 2025 was another quarter of solid performance. For ecoist, we achieved our financial objectives and we delivered on key initiatives that position us for future growth and unlock value for our stockholders.
During the quarter demand, fundamentals across the majority of the end uses. We serve remain stable. Ecoservices sales were up 14% compared to the second quarter of 2024 with favorable pricing and the addition of the wagon site contributing to the increase.
Results for our Advanced Materials and Catalyst segment came in favorable to our expectations and our guidance range.
Reflecting favorable sales timing and mix.
In terms of strategic objectives during the quarter, we closed the acquisition of the sulfuric acid production assets of Cornerstone Chemical Company.
integration of the wagon Louisiana site is ongoing and we expect to realize meaningful synergies and benefits upon full integration of the site into our existing Network
The wagon site, positions us well to meet the growth needs of our customers. And I want to publicly welcome the enthusiastic and engaged wagon team to ecoist.
Additionally with our focus on delivering value for our stockholders. During the second quarter, we also repurchased 2.9 Million shares of our common stock totaling approximately 22 million.
As is our usual practice on slide 6, we provide our latest views on demand Trends and our short and longer-term Outlook.
As I noted earlier demand fundamentals over the course of the second. Quarter were stable and we continue to expect relative stability over the balance of the year.
For ecoservices, high Refinery, utilization and positive alkaline. Economics. Continue to underpin demand for our regeneration Services business.
We believe the outlook for Virgin sulfuric acid demand also remains positive. We continue to expect a stronger second half for sales into the nylon and use and we expect second half sales into the mining sector to benefit as expansion projects come online.
For advanced silica's business. While there is some uncertainty regarding the effects of ongoing. Global macroeconomic challenges on the demand for polyethylene. We expect that our sales of polyethylene catalysts will increase this year compared to 2024
The city Expansion Project later this year.
This expansion will support growth and C customer demand as their expansion projects come online in 2026 and 2027.
In addition, as we look to emerging Technologies to provide meaningful growth opportunities, such as advanced silicas for biocatalysis and carbon capture applications. Customer engagement remains high with a number of trial programs underway and we expect these to translate into further sales growth in 2026.
Within the zealous joint venture, current orders. Indicate that 2025 is projected to be a strong year for hydrocracking Catalyst sales.
We anticipate that sales of hydrocracking, catalyst will surpass 2024 levels?
Regarding our Catalyst Technologies utilized in the production of sustainable fuels. We anticipate that sales this year will remain in line with the prior year or show a slight increase. However, the longer term Outlook is encouraging.
The recently proposed rvo targets are expected to increase renewable diesel consumption in the United States from 3.3 billion gal in 2025 to 5.6 billion gallons in 2026.
Achieving the proposed. 67% increase in renewable, diesel usage will require the industry to operate at high utilization rates.
We project that future growth in our sustainable fuels, Catalyst materials will be driven by increased utilization of existing capacity, new capacity, expansions, and the continual replacement cycle for Catalyst materials.
With our Advanced Catalyst Technologies. We believe we are well positioned to support the rising demand for both renewable Diesel and sustainable aviation fuel.
I'll now turn the call over to Mike, who will review our second-quarter results in more detail.
Thank you, Kurt, good morning as a follow-up to our stronger than anticipated results. In the first quarter. We exceeded our financial targets for the second quarter, providing for strong momentum as we move into the second half of the year.
Our second quarter adjusted Eva was just under 56 million coming in above the high end of our guidance range.
Although unplanned and extended customer outages in the second quarter, adversely affected sales volume for regeneration services.
ecoservices landed, within the midpoint of our segments, guidance range,
For our Advanced Materials and Catalyst segment.
Favorable sales, timing and mix help drive, more favorable results in the quarter compared to our initial guidance.
As we look to slide 9, I'll highlight the major components of the period. Over period change and adjusted ibida.
Pricing excluding the pass through of higher. Sulfur costs, increased quarter over quarter reflecting favorable contractual pricing for regeneration services and strong pricing for Virgin sulfuric acid.
The pass through effect of higher average. Sulfur costs on sales was approximately 20 million with the pass through resulting in no material impact to adjusted ibida.
Variable costs were favorable on product mix.
Vol and customer, mix were unfavorable during the quarter driven by lower event-driven Niche. Custom Catalyst sales in advanced silicas along with unplanned and extended customer downtime Within ecoservices.
Partially all set by the sales, volume contribution from the wagon and sulfuric acid assets.
The remaining other component primarily represents higher manufacturing costs in ecoservices driven by general inflation, and additional costs associated with the wagon acquisition, partially offset by lower turnaround costs.
as we turn to our segment results on page 10,
I'll begin with the summary of the second quarter results for ecoservices.
Ecoservices sales were 176 million up 22 million compared to the prior year.
The higher sales, reflect the 20 million pass through effect of higher sulfur costs.
Along with favorable, contractual pricing for regeneration services.
Strong pricing for virgin sulfuric acid and the incremental sales contribution from the wagon sulfuric acid assets acquired during the second quarter.
Adjusted IBA for ecoservices was 49.8 Million. Essentially unchanged compared to the second quarter of 2024.
With favorable pricing and lower relative turnaround costs.
Largely offset by lower regeneration Services volume and higher anticipated. Manufacturing costs driven by General inflation.
Turning to Advanced Materials and Catalyst on slide 11.
Second quarter sales for advanced silicas for 24 million compared to 29 million in the year ago quarter.
With the change, largely driven by lower event-driven custom Catalyst sales.
Sales sales of advanced silica is used in the production of polyethylene. We're essentially flat quarter over quarter.
Our proportionate 50% share of second quarter sales for the zealous joint venture.
Was 28 million compared to 29 million in the prior year?
With lower sales of hydrocracking and custom catalysts associated with order timing.
partially all set by higher sales of catalyst, materials used in the production of sustainable fuels and other specialty catalysts,
Second quarter adjusted debe for the Advanced Materials and Catalyst segment was 13.7 million above. Our guidance range and down slightly compared to the 14.7 million. In the year ago, quarter with the decrease largely due to lower sales. Volume of event-driven Niche custom Catalyst within advanced silicas
Turning to cash and leverage on slide 12.
Through the first six months, due to the timing of dividends from our zealous joint venture and higher planned capital expenditures, our adjusted free cash flow was a use of $2 million.
Compared to 14 million in 2024.
In light of our expectations for the second half of the year. We have raised our guidance range for adjusted free cash flow to arrange of 70 to 80 million.
Quarter of 2025 was a quarter of unusually high cash deployment.
As noted we closed, the acquisition of the wagon, sulfuric acid assets.
with a total cash, outlay of 41 million including the 35 million purchase price, plus the customary working capital adjustments,
And we repurchase 22 million of common stock during the quarter.
As a result, we close the second quarter with cash on hand of 69 million.
Down from 128 million.
as of March, 31st 2025
Considering the lower cash balance. At the end of the second quarter. Our net debt leverage ratio rows to 3.5 times compared to the 3.2 times at the end of the prior quarter.
Excluding the cash impact of the acquisition and the share repurchases. Our ratio would have been 3.2 times.
Total liquidity at quarter end, including availability, under our abl facility of approximately 83, million was a healthy 152 million.
As we discussed on our last call, considering our current share price and Associated valuation.
We continue to believe that opportunistic share repurchases are a prudent and value enhancing use of capital.
And while taking a more opportunistic approach to share repurchases will likely defer near-term achievement of our target leverage ratio of 2 to 2.5 times, we anticipate ending 2025 with the leverage ratio consistent with the end of the prior year, of around 3 times.
I will now turn to our outlook for the remainder of 2025.
We've had a solid start to the year with a just a debit of the first and second quarters coming in at the high end of our expectations.
Primarily due to favorable shifts in sales timing and mix within the amnc business.
As we look at the balance of the year, we expect demand fundamentals across the majority of the end uses that we serve to remain stable.
However, we remain mindful that demand conditions in certain industrial end. Uses could change.
With potential areas of soft Demand. Being our sales of advanced materials used in the production of polyethylene or sales of Virgin sulfuric acid into nylon or other industrial end uses.
In terms of overall guidance.
With the exception of revisions and quarterly guidance associated with shifts in order timing.
Our expectations for the balance of the Year. Remain largely unchanged.
That said, we now expect that Consolidated sales will be 795 to 835 million up from our previous guidance range.
With the increase, reflecting the incremental sales associate with the acquisition of the wagon sulfuric acid assets.
Partially offset by lower expected sales of polyethylene, catalyst within advanced silicas.
While our updated expectations are for lower than originally planned sales of polyethylene Catalyst, we continue to expect that our Advanced Materials used in the production of polyethylene will continue to outpace growth in global demand.
with the expected sales in 2025 reflecting year-over-year, growth compared to 2024
With the Zeus joint venture sales in the first half of 2025, or higher than originally anticipated due to positive shifts and sales timing. And we expect further positivity in the sales of hydrocracking catalyst
We are raising our guidance range for our 50% share of sales and the zealous joint venture to a range of 125 to 140 million.
Providing for additional upside to our current forecast.
And offsetting the softer sales of polyethylene catalyst in advanced silicas.
For Consolidated, adjusted ibida. We are maintaining the midpoint of our previous guidance range.
With some minor shifts among the segments in corporate, we are now narrowing the range to $242 million to $254 million to reflect our first half results and our expectations for the second half of 2025.
This guidance does not reflect any material contribution from the wagon and sulfuric acid assets. As we still anticipate that the sales contribution from Wagman will largely be offset by incremental costs including costs for integration and upgrading the facility in 2025.
As mentioned earlier, we have also revised our expectations for adjusted free cash flow narrowing. The range to 70 to 800 million and raising the midpoint by 5 million to 75 million.
You also note minor revisions and guidance for other modeling items. We have tightened and lowered the midpoint of our guidance for interest expense, which is now expected to be in the range of $46 million to $50 million.
We have also increased our projections of depreciation and amortization expense primarily related to ecoservices, considering the addition of the wagon assets.
Lastly.
We have revised our expectations for adjusted net income, and adjusted diluted income per share. While maintaining the per share, midpoint of our previous guidance range.
I'll now turn to specific guidance for the third quarter.
We expect third quarter adjusted Eva for ecoservices to fall in the range of 63 to 69 million.
For Advanced Materials and Catalyst, taking into account changes in order timing, we expect third quarter adjusted EBITDA to be in the range of $7 million to $11 million.
with the assumption that unallocated corporate expenses will be approximately 8 million dollars in the third quarter. We expect Consolidated adjusted for the third quarter to be in the range of 62 to 72 million.
On slide 14, we provide directional guidance for the fourth quarter.
For ecoservices stable demand, fundamentals, and favorable pricing are expected to continue in the fourth quarter.
With the higher anticipated sales and lower expected turnaround costs, we expect segment adjusted EBITDA to be up on the order of $8 million to $12 million compared to the year-ago quarter.
For Advanced Materials and Catalyst due to shifts in sales timing between quarters. We now expect adjusted evida to be in line with the fourth quarter of 2024
Comparing to the prior year. We expect strong sales of polyethylene cat and advanced silicas.
along with higher sales of hydrocracking specialty and custom Catalyst partially all set by lower sales of sustainable fuel Catalyst within the Zeus joint venture,
Turn around previously planned for the third quarter of this year is now scheduled for the first quarter of 2026. Along with an expected turnaround, in the fourth quarter related to the wagon facility,
I will now turn the call back to Kurt for some closing remarks. Thank you, Mike.
2025 continues to provide a challenging operating environment for our industry.
With companies in our sector facing issues that include Global Production, over capacity, pricing and margin pressures and disruption related to the evolving tariff landscape.
In this environment Eco, this has demonstrated consistent performance.
Our strong results in the first half of 2025 underscore the resilience of our distinctive businesses, which we attribute to our leading Supply positions. Long-standing customer relationships diverse, Geographic footprint. And a portfolio of technologies that are highly valued by our customers.
As we continue to move into the second half of the year, we have good momentum that we believe positions us. Well to deliver on our full year Financial objectives. We expect High Refinery utilization will continue to benefit our regeneration Services business and that tailwind and incremental demand. In the mining sector will provide support for Virgin sulfuric acid sales for the balance of the year.
Within our Advanced Materials and Catalyst segment.
We anticipate strong sales performance for hydrocracking Catalyst in 20125, with projected sales exceeding, those of 2024
This positive outlook is underpinned by a substantial order book and confirmed orders. We also continue to expect growth in our sales of polyethylene, Catalyst and supports. And we expect sales of catalyst to use for sustainable fuel production, to be flat to slightly up in 2025,
Looking ahead ecoist is well positioned to benefit from prevailing Trends such as the onshoring of manufacturing, The increased need for clean fuels and growing mining operations for metals and minerals. We believe that our differentiated customer relationships and technological capabilities will enable us to translate the positive long-term sector momentum into steady growth.
Ecovis robust cash flow and resilient business model. Also enable us to further create value for our shareholders through growth Investments such as the recent acquisition of the wagon plant as well as by returning Capital via share repurchases.
Lastly, we acknowledge the significant interest in the Strategic review of our Advanced Materials and Catalyst segment.
As communicated previously, we anticipate the process may extend through mid-year 2025.
We are making steady progress and expect to remain on this timeline.
We anticipate providing additional updates in the near future.
At this time, I will ask the operator to open the line for questions.
Thank you at this time. If you would like to ask a question, please press star and 1 on your telephone keypad.
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We'll take our first question from Patrick. Coningham with City. Please go ahead. Your line is open.
Uh, good morning Curt and Mike.
Just with the new EPA guidelines for, you know, increase Renewable Fuel Volume. Have you already seen initial indications from customers coming back with additional activity here, I guess any early indications or visibility into what this might mean for the volumes in 2026.
Hey, good morning Patrick thanks. Thank you for the question. So you know at this point it's still early and those are I would say they're they're draft um it's a draft rvo so it has to be fully adopted but we are certainly encouraged um by the new requirements that were said I mean it's a you know as I said in my comments up you know 67% increase year-over-year from 25 to 26
We feel that really is going to drive utilization. There's, you know, 1 of the issues that's uh that industry has had in the last 12 months or so has been underutilization just with the low rent credits and the uncertainty around the rvo. So start pushing that rvo up should drive higher utilizations in 2026, which then, you know, should lead to higher utilization of catalyst more change outs and you know, eventually uh additional capacity but being put online. So we're we're pretty positive in terms of the direction that it's headed.
Outlook for polyethylene sales here, it seemed to have a mixed view with you know, strong sales expectation but there's some incremental caution on the trade uncertainty that's how much of your year-on-year growth is tied to startups. And have you heard any noise on, you know, potential delays in production or pressure on operating rates as a result of the current trade environment?
No. I mean you know, clearly polyethylene utilization rates have been, you know, impacted across the globe with, you know, the Tariff uncertainty and, you know, the I say the the the lackluster global macroeconomic environment, you know, and some of that is and there's some over capacity in China that, you know, still weighs on the polyethylene industry. We still expect our sales to be up year-over-year. Um, albeit, it's probably falling short of what we had thought earlier this year. And, you know, obviously in our AMAC segment as we mentioned, that's, you know, being overcompensated by stronger, hydrocracking and Specialty, uh, specialty, Catalyst sales, so we're cautious. Um, you know, I I I wouldn't say our our sales this year aren't necessarily for new units, just, you know, addition, you know, just our, our run rate of our existing customers. We are, uh, continuing with our Kansas City expansion. Um, that, you know, we're expecting those customers that are going to take the offtake of that plant or, or that plant, uh, expansion.
2026.
Very helpful. Thank you so much.
Thank you.
Our next question comes from John magnoli with BMO Capital markets, please go ahead, your line is open
Yeah good morning. Thanks for taking my question. Um so now that you've you've finalized or settled on the cornerstone business. I guess any update in terms of how you're thinking about some of these synergies come through and the earnings opportunities say in 2026, I know this year, you know, there's some integration and some costs of upgrading Etc. But I guess how do you think about the contribution as we look out a year?
Yeah, John thanks. Uh, thanks for the question. Um, you know, as we mentioned, you know, this year, you know, we believe that we are going to, you know, see additional sales, of course, coming out of the acquisition. Um, albeit, you know, kind of offset with some additional costs, uh, that were incurring. You know, really to get that business up, uh, up and running into into our level of, um, of operations, you know, for next year. Um, we're not going to give directional, or, or specific guidance yet, but, you know, we do believe that. Is it. It is a very good acquisition for us, uh, allowing for, um, additional opportunities within the Gulf Coast, uh, among the other plants that we serve to help serve some of our customers along with the new customers that we see, uh, the integration, um, of the plant is going very well. Uh, we see
Opportunities, uh, both at the plant locations, um, to improve. You know what we see there, along with, you know, looking at opportunities at our other plants as well.
Um we also do see um additional opportunities, you know from from a spot standpoint um within the Virgin sulfuric acid. Uh that'll help us uh in next year as well.
Got it. Okay. Fair enough. Um, and then, I guess you would mentioned early on that, you know, you've got some new areas where you're doing some trials and it looks like some of that may materialize as you look into 2026, um, I guess, can you can you give us a little bit of color as to what those trials or their Pi? Those pilot programs are are really focused on at this point. I know you had a bunch kind of in the hopper.
Yeah. That's uh you know primarily I'd say in the AMAC segment we talked about uh biocatalysis there's been a lot of interest in that area, that's obviously um, you know growing very rapidly and and the interest in, you know,
Using silicas as a, you know a carrier for the enzymes is continues to be um uh draw a lot of interest. So you know we've been working with a lot of customers, you know, signing uh joint development agreements and and so forth working with them to to get those products inspected and I would point to Advanced recycling also, um, their customer taking pilot samples of our catalysts that are obviously used in advanced recycling that you know, help lower the energy, intensity of that process. And
Uh, Pi oil product. So there's been good interest around that as well.
Got it. Thanks very much for the caller.
Thank you.
Our next question comes from David Becklighter with Duty Bank. Please go ahead. Your line is open.
Thank you. Good morning uh, curtain. Mike saw this strategic review to remind us what you the process. You're going through what you're looking at and what are the various options on the table for this uh for this business and these assets. Thank you.
Is the board. Thank you David, for the question as we stated, uh, last year, the review is really looking at a, you know, a full spectrum of options to deliver. Really, what I think, we think is the, the most value for our shareholders in relations to the AMAC business, which, you know, that could be, you know, a whole bunch of different, you know, whole bunch of different types of options, you know, like we said on the call that Pro, you know, we're happy with where the progress is at. We're still moving, you know, we're still moving forward with it and we should have, uh, some further details on it in in the near future.
Got it. And just on leverage, given the uptick in a quarter, when would we expect to get to your leverage target? Assuming no, you know, M&A or other, you know?
Asset dispositions. Thank you.
Yeah, no, we, uh, we definitely saw an uptick on The Leverage uh, up to 3.5 times. But you know, that was, you know, primarily due to the acquisition of the wagon location along with some of the share repurchase activities, right? But if you look at our free cash flow Target for the rest of the year, our expectations uh, for the remainder of the year, the um, the leverage ratio, you know, will come down, um, you know, clearly into the range that, uh, we expected for the year, you know, likely in around a 3 times, leverage, um, we're still targeting, uh, you know, long-term to be in the 2-2 and a half times a range. However, you know, we do want to ensure that we take every dollar that we're making, put it back.
Organic growth opportunities. And then with the, the level of where our stock price is trading in the intrinsic value and long-term growth potential of the business. We still see share repurchase as as an opportunistic way to create shareholder value in the future. And then, you know, with the acquisition of uh the wagon location. You know, we continue to see if there's options for additional bolts on opportunities in the future.
Thank you.
Thank you.
All right, our next question comes from LXC, from KeyBank Capital Markets. Please go ahead; your line is open.
Thanks, uh, good morning everyone. Um, just wanted to follow up on, on the bio fuels, uh assuming uh, the car proposal was approved and its current shape, right? So about 67%, as you said rvo growth next year, how should we think about sensitivity of your business to that growth? I mean, you're over time should be your Catalyst business also grow in that same range, uh, by, I don't know, 60, 70% or, uh, or or should be some smaller or larger number?
Yeah, thanks for the question, I think. Um, the way I would look at the rvo is really um, you know, the proposed rvo changes is really, um, re injecting momentum back into, uh, the renewable fuels, which is, you know, has stepped back. I would say over the last 12 months with really over capacity and lower rent prices. So we, we believe that that increased rvo was going to drive up the utilization which will eventually lead to, you know, more frequent Catalyst, change outs and additional capacity coming online. I don't, I don't think the 67% is going to be a year-over-year step change for our business. You know, already we've seen the business. You know, we believe that we're going to be flat to slightly up for this year. So we've seen, I would say a stabilization of that, but we do think long term with that additional uh, that additional rvo will um,
you know, create some momentum and and, you know, clearly translate into growth in that segment for us, you know, but not, you know, I wouldn't look at the instantaneous year-over-year and try to apply that to, you know, our growth rate, uh,
For any, you know, short period of time.
uh, thanks and uh,
On, uh, on soft acid. I think you're baking in some pickup in nylon later this year and, you know, and over bold and burned on maybe getting a little too.
Messy there. So why why include this cautious ability? Do you have? And and also any outlook for sort of mining nylon these industrial uses next year and for Virgin sulfuric acid
Sure. It's just a nylon and I I, you know,
We asked the question, if I don't answer it, you broke up a little bit on the first part of the nylon segment. But, you know, our view on nylon this year I think is.
It remains uh, remains over. Supplied, you know, where we're positioned, where our customers are positioned particularly in the Gulf Coast, they've got some, you know, obviously some advantages over the rest of the world on a cost basis. So I think they benefit a little bit from that. So for us in our virgin sulfuric we believe it it's going to be up year-over-year, albeit. Not, you know, not certainly not a, a bumper year or anything along those lines for mining. Uh, there's tremendous momentum in mining. There is you know, new copper projects coming online this year which we're going to participate in, you know, all the mines and I'm sure you've read the headlines. There's, you know, multiple new minds being approved and that's really being driven by the, you know. Not, I wouldn't point to the tariffs but the, um, need for copper for, you know, data transmission for electrical conductivity all related to the, you know, the data center, um, data centers that are being built and all the the needs for electrification and, you know, Green energy and so forth. So,
we view long term mining, uh, remains very very, very positive. And, you know, we expect to, you know, have a stronger second half in mining, uh, as some of those new projects come online.
Thank you.
Thank you. And as a reminder, it is start and 1 on your telephone keypad. If you would like to join the queue,
We will move next with Hamed corset with PWS Financial. Please go ahead. Your line is open.
Hi, about Waggaman. It sounds like you're still putting some investments in there. Do you have a timeline as to when it would actually contribute to free cash flow?
Yeah, hi good. Uh good morning humid. Um yeah the I mean the free cash flow generation you know will follow um, the the earnings, right? So, you know, we don't expect uh, significant amount of free cash flow to be generated this year. However, you know, certainly with the synergies and the acquisition in the size of it, we expect it to to generate positively in 2026.
Okay. And then are you, do you have any pricing power at all in the sulfuric acid for mining?
Are you talking about?
Yeah, I think you know the our mining agreements had are generally, you know, they're not uh, they're not spot in nature. They're you know long, you know, longer term not super long term but you know, there are pricing mechanisms and those were, you know, as demand goes up actually the pricing can can go up as uh as as well. So I would just say the overall momentum
In mining in the demand for the sulfuric acid that's coming from that sector rising and Rising is just kind of, you know, the the tide that's lifting all boats. So it is it's creating positive momentum, you know, across the industry for, uh, sulfuric acid pricing.
Okay, thank you.
Thank you.
And our next question comes from Lauren. Alexander with Qwaser. Please go ahead. Your line is open
Good morning. Could you give a
Issues and what that might imply for the rhythm of 2026.
and then, secondly, can you talk a little bit about um,
The polyethylene capital of capacity shuts in Europe, and as you get newer plants built in Asia, is there any change in your revenue per ton of capacity? Is one better for you than the other?
Thanks.
Yeah, thanks. Uh, thanks for the question. Um, on the first one, um, from an order timing standpoint, um, the order timing that we saw, uh, earlier in the year, uh, is expected to just shift, um, from, you know, part of the latter part of the year. Uh, so we don't expect that to be materially different for next year. Uh, we do see higher expected sales of hydrocracking catalyst this year. Um, you know, and that's.
Just so you know, it’s demand-driven. The timing we’ve been discussing for the first half of the year is just between the second half and the first half, so there’s no impact on 2026.
Yeah, and I thank you for the question. Lawrence, you know, really a polyethylene.
Revenue per ton or anything. It's just more of the volumetric uh demand coming from those new. Um, coming from those new sites, it's going to be going to pull up our sales and and volume of sales into polyethylene Catalyst and supports.
Thank you.
Thank you.
And we have no further questions in queue. At this time,
this does conclude the ecoist second quarter, 2025 earnings call and webcast.
Thank you for your participation, and you may disconnect at any time.