Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $76 million for Q4 2024, an increase of 8.7% compared to Q4 2023, driven by higher sales volume and favorable contract pricing [6][18] - For the full year, adjusted EBITDA was $238 million, down from $260 million in 2023, primarily due to lower sales volume in the Zillow joint venture [19] - The net debt leverage ratio improved to three times at year-end, down from 3.2 times as of September 30, 2024 [6][22] Business Line Data and Key Metrics Changes - The Eco Services segment saw adjusted EBITDA increase nearly 12% year-over-year, with sales up 5% driven by higher volume and favorable pricing [6][20] - Advanced Silicas sales increased by 5% in Q4, attributed to higher sales used in polyethylene production [21] - Sales from the Zillow joint venture decreased due to the timing of hydrocracking catalyst sales, with a non-cash impairment charge of $65 million recognized [17][18] Market Data and Key Metrics Changes - The company anticipates stable gasoline demand and high alkylation unit utilization in the Eco Services segment for 2025 [8] - The mining sector shows robust growth for virgin sulfuric acid, driven by increased copper usage in data centers and energy infrastructure [9] - Demand for virgin sulfuric acid is expected to strengthen in the second half of 2025, supported by new mining projects and expansions in lead-acid battery plants [10] Company Strategy and Development Direction - The company is focused on capacity increases to support core and industrial businesses, with expansions underway for polyethylene catalyst capacity [7][12] - A strategic review of the Advanced Materials and Catalyst business is ongoing, expected to conclude in mid-2025, aimed at maximizing shareholder value [31] - The company is investing in emerging technologies, including biocatalysis and advanced recycling, with strong customer engagement anticipated [15][30] Management's Comments on Operating Environment and Future Outlook - Management maintains a cautious outlook for near-term demand due to global macroeconomic uncertainties but remains positive about long-term growth trends [8][23] - The company expects 2025 GAAP sales to range from $755 million to $815 million, including a $35 million increase from higher sulfur costs [23][24] - Adjusted EBITDA for 2025 is projected to be between $238 million and $258 million, reflecting a mid-single-digit percentage increase compared to 2024 [25] Other Important Information - The company ended 2024 with approximately $146 million in cash and $221 million in available liquidity [22] - Capital expenditures for 2025 are anticipated to be between $80 million and $90 million, primarily for growth-driven projects [26][88] Q&A Session Summary Question: Can you help us frame what this means from a volume decline perspective across each business? - Management indicated that turnaround costs incurred are a few million dollars, with additional costs from customer turnarounds [34][35] Question: What led to the record low EBITDA expected in Q1? - Management explained that the low EBITDA is primarily due to timing issues related to turnarounds and customer orders, not a decline in business fundamentals [41][46] Question: Can you discuss the strategic review of the Advanced Materials and Catalyst business? - The review aims to explore ways to maximize shareholder value and assess if there are alternative setups that could enhance the business [52][53] Question: What is the expected impact of sulfur price increases? - Management noted that sulfur costs are expected to rise due to lower refinery output, but the pass-through effect on pricing will not significantly impact EBITDA [92][94] Question: How does the company view the timing of orders in the hydrocracking catalyst business? - Management highlighted that order timing can vary significantly, affecting quarterly results, but remains confident in the overall business fundamentals [60][62]