Adjusted EBITDA margin was 10.2% in the quarter, a significant improvement from a negative $8.6 million adjusted EBITDA in the prior year.
Clearwater Paper delivered $40 million of adjusted EBITDA in Q2 2025, in the middle of the guidance range of $35 million to $45 million.
Consolidated net income from continuing operations was $4 million or $0.22 per diluted share.
Net sales were $392 million, up 14% year-over-year primarily due to the Augusta acquisition, and up 4% sequentially driven by increased shipments in the food service business.
Operating cash flow was approximately $30 million in Q2, largely offset by capital expenditures as part of the $80 million to $90 million annual CapEx guidance.
Pricing was stable sequentially but down approximately 3% year-over-year reflecting broader market trends.
SG&A expenses decreased nearly 14% year-over-year to 6.7% of net sales, within the target range of 6% to 7%, driven by cost reduction initiatives and Augusta integration completion.
Share repurchases totaled $4 million in Q2 and $18 million year-to-date against a $100 million authorization.
Ecovyst exceeded guidance with adjusted EBITDA just under $56 million in Q2 2025, above the high end of guidance.
The company’s free cash flow was a use of $2 million in the first half, impacted by acquisition costs and share repurchases.
Guidance for 2025 free cash flow was raised to a range of $70 million to $80 million, with expectations of leverage ratio approaching 3x by year-end, aligning with long-term targets.
Celanese reported a second quarter 2025 EPS run rate target of $2 per share, with Q3 guidance midpoint at $1.25.
Free cash flow guidance remains strong at $700 million to $800 million for 2025, driven primarily by operations despite $650 million to $700 million in interest expense.
Inventory reduction efforts in Engineered Materials caused a sequential $25 million negative earnings impact in Q3, offset by a prior Q2 benefit.
The company experienced volume weakness in China automotive orders, European demand in Engineered Materials, and the Western Hemisphere Acetyl Chain.
Volumes in the Western Hemisphere acetyl demand are at the lowest levels in 20 years, with Engineered Materials volumes down 5-6% year-over-year.
Dafinchi