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, 2025

21. 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 20 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,
	2025	2024	2023
Weighted average shares outstanding – Basic	115,291,879	116,719,437	118,367,214
Dilutive effect of unvested common shares and RSUs with service conditions, PSUs considered probable of vesting and assumed stock option exercises and conversions	665,683	728,001	1,120,495
Weighted average shares outstanding – Diluted	115,957,562	117,447,438	119,487,709

The Company utilizes the control number concept in the computation of diluted earnings per share to determine whether potential common stock equivalents are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories.

Basic and diluted income per share are calculated as follows:


	Years ended December 31,
	2025		2024		2023
Numerator:
Net income from continuing operations	$	6,288	$	45,504	$	48,223
Net (loss) income from discontinued operations, net of tax	(77,414)		(52,156)		22,931
Net (loss) income	$	(71,126)	$	(6,652)	$	71,154

Denominator:
Weighted average shares outstanding – Basic	115,291,879		116,719,437		118,367,214
Weighted average shares outstanding – Diluted	115,957,562		117,447,438		119,487,709

Net (loss) income per share:
Basic income per share—continuing operations	$	0.05	$	0.39	$	0.41
Diluted income per share—continuing operations	$	0.05	$	0.39	$	0.40
Basic (loss) income per share—discontinued operations	$	(0.67)	$	(0.45)	$	0.19
Diluted (loss) income per share—discontinued operations	$	(0.67)	$	(0.44)	$	0.19
Basic (loss) income per share	$	(0.62)	$	(0.06)	$	0.60
Diluted (loss) income per share	$	(0.61)	$	(0.06)	$	0.60

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,
	2025	2024	2023

Stock options with performance only targets not yet achieved	—	—	51,526
Anti-dilutive RSUs and PSUs	282,675	387,078	286,729
Anti-dilutive stock options	367,100	367,100	508,623

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 20 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.