Ecovyst Reports Third Quarter 2025 Results and Updates Guidance

Core Insights - Ecovyst Inc. reported third-quarter results for 2025, highlighting a strategic decision to sell its Advanced Materials & Catalysts segment to Technip Energies for $556 million, expected to close in Q1 2026 [3][12] - The company aims to use $450 million to $500 million of the net proceeds to reduce long-term debt, projecting a net debt leverage ratio below 1.5x, which is part of its strategy to enhance shareholder value and strengthen its balance sheet [3][4] - The Ecoservices segment showed strong demand, with third-quarter Adjusted EBITDA reaching $64 million, a 15% increase year-over-year, driven by favorable pricing and higher sales volume of virgin sulfuric acid [5][6] Financial Performance - Third-quarter 2025 sales were $204.9 million, up 33.1% from $153.9 million in Q3 2024, attributed to higher sulfur costs and increased sales volume [6][12] - Adjusted EBITDA for Ecoservices was $63.6 million, compared to $55.1 million in the same quarter last year, reflecting a margin of 31.0% [6][31] - Net income from continuing operations was $0.4 million, a significant decrease from $14.8 million in the prior year, with a net income margin of 0.2% [12][25] Cash Flow and Balance Sheet - Cash flows from operating activities for continuing operations were $77.5 million for the nine months ended September 30, 2025, compared to $66.0 million for the same period in 2024 [7][29] - As of September 30, 2025, the company had cash and cash equivalents of $99.1 million, with total gross debt at $864.3 million [8][27] - The company amended its stock repurchase plan, removing the expiration date, with $202.2 million available for repurchases as of September 30, 2025 [4][15] Revised Financial Outlook - The company revised its 2025 guidance for continuing operations, expecting sales between $700 million and $740 million, with Adjusted EBITDA of approximately $170 million [13][11] - The outlook assumes higher average sulfur prices and a projected pass-through of sulfur costs of approximately $70 million [11][13] - Positive demand for virgin sulfuric acid is anticipated, particularly in mining applications, supported by copper mine expansion projects [10][11]