Shares of Ecovyst Inc (ECVT) surged 5.02% in intraday trading on Thursday after the company reported better-than-expected first-quarter results, reaffirmed its full-year guidance, and announced a strategic acquisition.

The specialty chemical producer posted adjusted earnings per share of $0.01 for the quarter, beating the Zacks Consensus Estimate of a loss of $0.03 per share. While this represented a decrease from $0.04 per share in the same quarter last year, it significantly outperformed analysts' expectations. Ecovyst's Q1 Adjusted EBITDA also came in strong at $38.9 million, surpassing the estimate of $29.8 million.

Despite reporting a net loss of $3.6 million for the quarter, investors were encouraged by the company's resilient performance and positive outlook. Ecovyst reaffirmed its full-year 2025 Adjusted EBITDA guidance, signaling confidence in its business prospects. Additionally, the company announced an agreement to acquire the sulfuric acid assets of Cornerstone Chemical Company for $35 million, subject to regulatory approvals. This strategic move is expected to enhance Ecovyst's Gulf Coast network and expand its capacity to meet increased customer demand for virgin sulfuric acid and regeneration services.

Kurt J. Bitting, Ecovyst's Chief Executive Officer, commented on the results, stating, "Ecovyst's businesses remained resilient in the first quarter of 2025. First quarter financial results for our Advanced Materials & Catalysts segment were stronger than anticipated due to favorability in sales timing for hydrocracking and specialty catalysts." He also expressed optimism about the company's future performance, citing expectations of high refinery utilization and growing sulfuric acid demand in mining applications.

The market's positive reaction to Ecovyst's earnings report and strategic initiatives reflects investor confidence in the company's ability to navigate challenges and capitalize on growth opportunities in the specialty chemicals sector.