Adjusted EBITDA for Ecoservices was $49.8 million, flat compared to Q2 2024, with pricing gains offset by lower volume and higher manufacturing costs.
Adjusted free cash flow was a use of $2 million in the first half of 2025, impacted by timing of dividends, higher capital expenditures, the Waggaman acquisition ($41 million cash outlay), and $22 million in share repurchases.
Advanced Materials and Catalysts segment sales declined slightly due to lower event-driven custom catalyst sales, with adjusted EBITDA at $13.7 million, above guidance but down from prior year.
Ecoservices sales increased 14% year-over-year to $176 million, driven by favorable pricing, the Waggaman acquisition, and higher sulfur costs pass-through.
Ecovyst reported adjusted EBITDA of just under $56 million for Q2 2025, exceeding the high end of guidance.
Net debt leverage rose to 3.5x at quarter-end, primarily due to acquisition and share repurchases, with pro forma leverage at 3.2x.
Total liquidity remained healthy at $152 million, including $83 million available under the ABL facility.
Zeolyst joint venture sales were $28 million, slightly below prior year, with higher sustainable fuel catalyst sales offsetting lower hydrocracking and custom catalyst sales.
Adjusted EBITDA was $30.8 million with a margin of 13%.
Backlog increased 23% year-over-year to $360 million, led by longer-cycle project orders offsetting short-cycle softness.
Free cash flow was negative $21.4 million due to working capital seasonality, acquisition payments, higher taxes, and tariff payments.
GAAP loss per share was $0.07; adjusted EPS was $0.50, down $0.12 year-over-year mainly due to tariffs.
Gross margin was 32.7% GAAP and 34.3% adjusted, with adjusted gross margin contracting 370 basis points year-over-year due to tariffs, volume, and mix.
Operating income was $5.5 million GAAP and $18.5 million adjusted, with adjusted operating margin of 7.8%.
Orders grew 2% year-over-year to $259 million, driven by 8% growth in project-related orders and strength in EMEA.
Sales were down 2% year-over-year to $235.9 million, with a 3% decline in short-cycle sales and unchanged project-related sales.
SG&A expenses increased on a GAAP basis due to acquisition and realignment costs but adjusted SG&A decreased 5% excluding these items.
Short-cycle orders declined 4% due to tariff impacts and market digestion of price increases.
Tariffs negatively impacted gross profit by $4.2 million and gross margin by 180 basis points in Q1.
Caustic soda demand remained stable with robust global alumina demand and Latin American pulp and paper capacity expansion offsetting US reductions.
Epoxy resin volume improved year over year despite weak building, automotive, and consumer electronics markets, supported by reliability and security of supply as the last fully integrated producer in North America and Europe.
Operating cash flow of more than $212 million was generated, funding the Winchester acquisition, paying down $39 million of debt, and buying back $10 million of Olin shares.
Second quarter adjusted EBITDA declined by 5% compared to 2025, primarily due to a headwind of $32 million of planned maintenance turnaround costs in our chemicals businesses.
Winchester's defense business grew due to strong military ammunition demand, while the commercial ammunition business faced margin weakness from customer destocking, lower pricing, and higher raw material costs.
Adjusted EBITDA was $54 million in Q2 2025, compared to $116 million in Q2 2024, with an adjusted EBITDA margin of 18% versus 29% last year.
Cash cost of sales decreased by $35 million to $225 million, with cash cost per short ton falling to $101 from $124, reflecting lower variable transportation and royalty costs and cost control efforts.
Free cash flow was negative $57 million in Q2 2025 due to $94 million in capital expenditures and mine development, primarily for Blue Creek, but the underlying business generated approximately $40 million of free cash flow excluding these investments.
Total revenues decreased to $298 million from $397 million year-over-year, driven by lower average gross selling prices and a higher mix of high vol A coal sold.
Warrior reported net income of $6 million or $0.11 per diluted share in Q2 2025, down from $71 million or $1.35 per diluted share in Q2 2024, primarily due to 30% lower average net selling prices.
Dafinchi