Ecovyst, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Earnings per Share

Earnings per Share

3 Months Ended

Mar. 31, 2026

18. 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.

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:


	Three months ended March 31,
		2026	2025
Weighted average shares outstanding – Basic		110,693,992	117,264,124
Dilutive effect of unvested common shares and RSUs with service conditions, PSUs considered probable of vesting and assumed stock option exercises and conversions		1,098,782	—
Weighted average shares outstanding – Diluted		111,792,774	117,264,124

We utilize 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.

The Company reported a net loss from continuing operations for the three months ended March 31, 2025, and therefore excluded the dilutive effect of 295,438 shares, which consisted of unvested common shares, RSUs with service conditions, PSUs considered probable 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:


	Three months ended March 31,
		2026		2025
Numerator:
Net income (loss) from continuing operations		$	5,746	$	(8,134)
Net (loss) income from discontinued operations, net of tax		(1,432)		4,537
Net income (loss)		$	4,314	$	(3,597)

Denominator:
Weighted average shares outstanding – Basic		110,693,992		117,264,124
Weighted average shares outstanding – Diluted		111,792,774		117,264,124

Net income (loss) per share:
Basic income (loss) per share - continuing operations		$	0.05	$	(0.07)
Diluted income (loss) per share - continuing operations		$	0.05	$	(0.07)
Basic (loss) income per share - discontinued operations		$	(0.01)	$	0.04
Diluted (loss) income per share - discontinued operations		$	(0.01)	$	0.04
Basic income (loss) per share		$	0.04	$	(0.03)
Diluted income (loss) per share		$	0.04	$	(0.03)

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


	Three months ended March 31,
		2026	2025


Anti-dilutive RSUs and PSUs		222,852	1,365,654
Anti-dilutive stock options		367,100	367,100

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.