Ecovyst, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Earnings per Share

Earnings per Share

12 Months Ended

Dec. 31, 2024

22. Earnings per Share:

Basic earnings per share is calculated as income available to common stockholders, divided by the weighted average number of common shares outstanding during the period. The weighted average number of common shares outstanding during the period for the computation of basic earnings per share excludes RSAs that have legally been issued but are nonvested during the period, as the sale of these shares is prohibited pending satisfaction of certain vesting conditions by the award recipients in order to earn the rights to the shares (see Note 21 to these consolidated financial statements for further information regarding outstanding nonvested restricted stock awards).

Diluted earnings per share is calculated as income available to common stockholders, divided by the weighted average number of common and potential common shares outstanding during the period, if dilutive. Potential common shares reflect (1) unvested RSAs and RSUs with service vesting conditions, (2) PSUs with vesting conditions considered probable of achievement and (3) options to purchase common stock, all of which have been included in the diluted earnings per share calculation using the treasury stock method.

The reconciliation from basic to diluted weighted average shares outstanding is as follows:


	Years ended December 31,
	2024	2023	2022
Weighted average shares outstanding – Basic	116,719,437	118,367,214	133,601,322
Dilutive effect of unvested common shares and RSUs with service conditions, PSUs considered probable of vesting and assumed stock option exercises and conversions	—	1,120,495	1,486,850
Weighted average shares outstanding – Diluted	116,719,437	119,487,709	135,088,172

The Company reported a net loss for the year ended December 31, 2024, therefore excluded 728,001 of dilutive effect of unvested common shares, RSUs with service conditions, PSUs considered probably of vesting and assumed stock option exercises and conversions from the computation of weighted average diluted shares outstanding.

Basic and diluted income per share are calculated as follows:


	Years ended December 31,
	2024		2023		2022
Numerator:
(Loss) income from continuing operations attributable to Ecovyst Inc.	$	(6,652)	$	71,154	$	69,795
Income from discontinued operations attributable to Ecovyst Inc.	—		—		3,902
Net (loss) income attributable to Ecovyst Inc.	$	(6,652)	$	71,154	$	73,697

Denominator:
Weighted average shares outstanding – Basic	116,719,437		118,367,214		133,601,322
Weighted average shares outstanding – Diluted	116,719,437		119,487,709		135,088,172

Net (loss) income per share:
Basic (loss) income per share - continuing operations	$	(0.06)	$	0.60	$	0.52
Diluted (loss) income per share - continuing operations	$	(0.06)	$	0.60	$	0.52
Basic income per share - discontinued operations	$	—	$	—	$	0.03
Diluted income per share - discontinued operations	$	—	$	—	$	0.03
Basic (loss) income per share	$	(0.06)	$	0.60	$	0.55
Diluted (loss) income per share	$	(0.06)	$	0.60	$	0.55

The table below presents additional details of the Company’s weighted average equity-based awards outstanding during each respective year that were excluded from the calculation of diluted earnings per share:


	Years ended December 31,
	2024	2023	2022
RSAs with performance only targets not yet achieved	—	—	539,688
Stock options with performance only targets not yet achieved	—	51,526	309,984
Anti-dilutive RSUs and PSUs	387,078	286,729	20,497
Anti-dilutive stock options	367,100	508,623	776,594

RSAs and stock options with performance only vesting conditions were not included in the dilution calculation, as the performance targets have not been achieved nor were probable of achievement as of the end of the respective periods. These awards and stock options were canceled on March 7, 2023 (see Note 21 to these consolidated financial statements for additional information). Certain stock options to purchase shares of common stock were excluded from the computation of diluted earnings per share for the respective periods because the options’ exercise price was greater than the average market price of the common shares. These stock options and anti-dilutive awards are not included in the dilution calculation, as their inclusion would have the effect of increasing diluted income per share or reducing diluted loss per share.