Core Insights - Ecovyst (ECVT) reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and showing an increase from $0.22 per share a year ago, representing a 12% earnings surprise [1] - The company posted revenues of $182 million for the quarter ended December 2024, which was 5.37% below the Zacks Consensus Estimate and an increase from $172.8 million year-over-year [2] - Ecovyst has surpassed consensus EPS estimates only once in the last four quarters and has consistently missed revenue estimates during the same period [2] Earnings Outlook - The immediate price movement of Ecovyst's stock will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $171.25 million, and for the current fiscal year, it is $0.90 on revenues of $745.41 million [7] Industry Context - The Chemical - Specialty industry, to which Ecovyst belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5][6]

Financial Performance - Full year 2024 sales reached $704.5 million, a 1.9% increase from $691.1 million in 2023[4] - The company reported a net loss of $6.7 million for the full year 2024, with a net loss margin of 1.0% and diluted net loss per share of $0.06[4] - Sales for Q4 2024 were $182.0 million, a 5.3% increase from $172.8 million in Q4 2023[25] - Ecoservices segment sales for the fourth quarter were $148.9 million, a 5% increase from $141.4 million in the same quarter of 2023[6] - Advanced Silicas sales in the fourth quarter were $33.1 million, an increase of $1.7 million compared to the prior year[8] - Ecoservices segment sales increased by 5.3% to $598.3 million in 2024, while Advanced Materials & Catalysts sales remained relatively flat[37] - The company experienced a significant decline in Zeolyst Joint Venture sales, which fell by 25.6% to $116.5 million in 2024[37] Adjusted EBITDA and Cash Flow - Adjusted EBITDA for the fourth quarter was $75.9 million, up 8.7% compared to the fourth quarter of 2023, with an Adjusted EBITDA margin of 35.3%[4] - Adjusted EBITDA for 2024 was $238.2 million, down 8.3% from $259.9 million in 2023[37] - The company expects 2025 sales to range from $755 million to $815 million, with Adjusted EBITDA projected between $238 million and $258 million[13] - Full year 2024 net cash from operations was $149.9 million, compared to $137.6 million in 2023[10] - Adjusted Free Cash Flow for 2024 was $85.5 million, up from $72.3 million in 2023[38] Net Loss and Income - The net loss for the year 2024 was $6.7 million, a significant decline from a net income of $71.2 million in 2023[29] - For the three months ended December 31, 2024, the net loss was $30.5 million compared to a net income of $30.0 million for the same period in 2023[30] - Adjusted Net Income for 2024 was $86.1 million, a decrease from $117.2 million in 2023, reflecting a 26.6% decline[34] - The adjusted net income for Q4 2024 was $38.3 million, compared to $30.5 million in Q4 2023, representing a year-over-year increase of 25.7%[33] Assets and Liabilities - Cash and cash equivalents increased to $146.0 million in 2024 from $88.4 million in 2023[27] - Total assets decreased to $1,802.3 million in 2024 from $1,837.8 million in 2023[27] - Total liabilities decreased to $1,101.8 million in 2024 from $1,132.3 million in 2023[27] - The total debt as of December 31, 2024, was $870.8 million, slightly down from $877.5 million in 2023[40] - The Net Debt Leverage Ratio remained stable at 3.0x for both 2024 and 2023[40] Impairments and Expenses - The company reported an impairment of investment in affiliated companies amounting to $65.0 million in 2024[29] - The company recognized an impairment charge of $65.0 million on its investment in affiliated companies during the year ended December 31, 2024[33] - Interest expense decreased by 15.1% to $11.8 million in Q4 2024 from $13.9 million in Q4 2023[25] - Interest expense for Q4 2024 was $11.8 million, down from $13.9 million in Q4 2023, reflecting a decrease of approximately 15.1%[30] - The company reported depreciation and amortization expenses of $22.6 million for Q4 2024, slightly up from $22.1 million in Q4 2023[30] - Equity-based compensation expenses were $3.5 million for Q4 2024, compared to $3.4 million in Q4 2023, indicating a marginal increase[33] Strategic Initiatives - A strategic review of the Advanced Materials & Catalysts segment is underway, expected to be completed by mid-2025[12] - The company plans to continue focusing on its Advanced Materials & Catalysts segment, which includes its 50% share of the Zeolyst Joint Venture[32]

Core Insights - Ecovyst Inc. reported solid financial results for Q4 2024, with a sales increase of 5% year-over-year, reaching $182.0 million, despite a net loss of $30.5 million [3][10] - The company achieved an Adjusted EBITDA of $75.9 million for Q4 2024, reflecting an 8.7% increase compared to the same quarter in 2023, with an Adjusted EBITDA margin of 35.3% [3][10] - For the full year 2024, Ecovyst's sales totaled $704.5 million, a 1.9% increase from 2023, while the net loss for the year was $6.7 million [10][28] Full Year 2024 Results & Highlights - Sales for the full year 2024 were $704.5 million, compared to $691.1 million in 2023, driven by higher sales volume [10][5] - Adjusted EBITDA for the year was $238.2 million, with an Adjusted EBITDA margin of 29.0% [10][20] - The company reported a net loss of $6.7 million for the year, with a diluted net loss per share of $0.06 [10][25] Fourth Quarter 2024 Results & Highlights - In Q4 2024, the company experienced a net loss of $30.5 million, with a diluted net loss per share of $0.26 [3][10] - Adjusted net income for Q4 was $33.0 million, with an Adjusted diluted income per share of $0.28 [10][29] - The fourth quarter Adjusted EBITDA was $75.9 million, up 8.7% from Q4 2023, with a margin of 35.3% [3][10] Segment Results and Business Trends - Ecoservices segment sales in Q4 2024 were $148.9 million, up from $141.4 million in Q4 2023, driven by higher sales volume and favorable pricing [4][10] - Advanced Materials & Catalysts segment saw Q4 sales of $33.1 million, an increase from the previous year, primarily due to higher sales of advanced silicas [6][10] - The Zeolyst Joint Venture reported a decline in sales to $33.1 million in Q4 2024, down from $52.8 million in the prior year, due to timing issues with catalyst sales [6][10] Cash Flows and Balance Sheet - Cash flows from operating activities for the year were $149.9 million, an increase from $137.6 million in 2023 [8][10] - As of December 31, 2024, the company had cash and cash equivalents of $146.0 million and total gross debt of $870.8 million [8][26] - The net debt leverage ratio at year-end was 3.0x, reflecting the net loss for the year [8][10] 2025 Financial Outlook - The company anticipates positive demand for its regeneration services and virgin sulfuric acid sales in 2025, despite a cautious near-term outlook for global macroeconomic activity [9][10] - Ecovyst expects to capitalize on growth opportunities in advanced plastics recycling, bio-catalysis, and carbon capture [9][10] - The company plans to complete the expansion of its polyethylene catalyst production capacity by the end of 2025 [2][10]

Company Overview - Ecovyst Inc. is a leading integrated and innovative global provider of advanced materials, specialty catalysts, sulfuric acid, and regeneration services [3] - The company supports customers globally through a strategically located network of manufacturing facilities [3] Business Segments - The company operates two specialty businesses: Advanced Materials & Catalysts and Ecoservices [4] - Advanced Materials & Catalysts provides finished silica catalysts, catalyst supports, and functionalized silicas for high-performing plastics and sustainable chemistry [4] - The Zeolyst joint venture supplies specialty zeolites used in catalysts for sustainable fuel production and emission reduction [4] - Ecoservices offers sulfuric acid recycling for the North American refining industry and provides high-quality virgin sulfuric acid for industrial and mining applications [4] Upcoming Events - Ecovyst Inc. will conduct a conference call and audio-only webcast on February 27, 2025, at 11:00 a.m. Eastern Time to review its fourth quarter 2024 financial results [1] - Investors can access the live conference call via telephone or through an audio-only live webcast [2]

Core Insights - Ecovyst (NYSE: ECVT) reported a strong performance in Q3, indicating stabilization in end-market results, which suggests a recovery from earlier weaknesses this year [2] Financial Performance - The company demonstrated a solid quarter in Q3, reflecting improvements in market conditions [2]

Core Viewpoint - Ecovyst Inc. has initiated a strategic review process for its Advanced Materials & Catalysts business to maximize shareholder value [1][3]. Group 1: Business Overview - The Advanced Materials & Catalysts (AM&C) business consists of two units: Advanced Silicas and Zeolyst International, which are key suppliers of silica-based and zeolite-based advanced materials and catalysts [2][5]. - Advanced Silicas is essential for producing polyethylene, biocatalysts, and functional chemicals, while Zeolyst International focuses on sustainable fuels, including renewable diesel and sustainable aviation fuels [2][5]. Group 2: Strategic Review Details - The strategic review aims to evaluate options to enhance the value contribution of AM&C to Ecovyst and its shareholders, with completion expected by mid-2025 [3]. - The company does not plan to provide further public comments on the strategic review until it is completed or deemed necessary [3]. Group 3: Leadership Perspective - The CEO of Ecovyst expressed a positive long-term outlook for the AM&C business, highlighting its role as a critical innovation partner and its attractive financial characteristics [3].

Company Overview - Ecovyst Inc. is a leading integrated and innovative global provider of advanced materials, specialty catalysts, and services [3] - The company operates through a strategically located network of manufacturing facilities, contributing to environmental sustainability [3] Business Segments - Ecovyst has two specialty businesses: Ecoservices and Advanced Materials & Catalysts [4] - Ecoservices focuses on sulfuric acid recycling for the North American refining industry and provides high-quality virgin sulfuric acid for industrial applications [4] - Advanced Materials & Catalysts offers finished silica catalysts and specialty zeolites that support sustainable fuel production and emissions reduction [4] Upcoming Event - Nate Connor, Vice President of Finance & Treasurer, will present at the Bank of America Leveraged Finance Conference on December 3, 2024, at 3:30 p.m. Eastern [1] - The presentation will be available via webcast for media, investors, and the public, with a replay accessible for at least 90 days [2]

Core Insights - Ecovyst Inc. has launched its AlphaCat® advanced silica products aimed at enhancing biocatalysis applications, aligning with its strategy to diversify into high-growth potential markets [1][2] - The company has made initial investments to expand its research and testing capabilities at its main R&D site in Conshohocken, PA, leading to the development of advanced silica-based products [2][3] - The new product range includes functionalized silica supports for enzyme immobilization and biocatalysts with immobilized enzymes, catering to the growing demand in food, fuels, and chemical production sectors [3] Company Developments - The advanced silicas testing kit developed by Ecovyst allows customers to evaluate various silicas with different functionalities, enhancing the value of immobilized enzymes [3] - The company has successfully scaled manufacturing and quality processes for silica functionalization and enzyme immobilization at its facility in Kansas City, Kansas [3] - Ecovyst's Advanced Materials & Catalysts division focuses on providing high-performing silica catalysts and functionalized silicas, contributing to sustainable chemistry [5] Market Positioning - Ecovyst operates two specialty businesses: Ecoservices, which provides sulfuric acid recycling and chemical waste handling, and Advanced Materials & Catalysts, which supplies silica catalysts and specialty zeolites [5] - The company emphasizes its commitment to sustainability through its products and services, which are predominantly inorganic and aimed at improving environmental sustainability [4]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38221 | --- | --- | --- | |----------------------------------------------------------------------------|- ...

Ecovyst Inc. (NYSE:ECVT) Q3 2024 Earnings Conference Call October 31, 2024 11:00 AM ET Company Participants Gene Shiels - Director, Investor Relations Kurt Bitting - Chief Executive Officer Mike Feehan - Chief Financial Officer Conference Call Participants Patrick Cunningham - Citi David Begleiter - Deutsche Bank Aleksey Yefremov - KeyBanc Capital Markets John McNulty - BMO Capital Markets Kevin Estok - Jefferies Hamed Khorsand - BWS Financial Operator Good morning. My name is Jim and I will be your confere ...