#United States #Advanced Materials #Ecovyst #Specialty Catalysts #Malvern, Pennsylvania

Ecovyst Reports Fourth Quarter and Full Year Results for 2024

Ecovyst Inc. (NYSE: ECVT), a prominent global supplier of innovative advanced materials, specialty catalysts, and services, released its financial results for the fourth quarter and the full year ended December 31, 2024. The company reported total sales of $704.5 million for the year, showing an increase from $691.1 million in 2023.

Financial Highlights

Despite the sales growth, Ecovyst faced challenges, notably a net loss of $6.7 million for the year. The company indicated a net loss margin of 1.0%, corresponding to a diluted net loss of $0.06 per share. In contrast, adjusted net income was recorded at $68.6 million, contributing to an adjusted diluted income of $0.58 per share. Moreover, adjusted EBITDA reached $238.2 million, with an adjusted EBITDA margin of 29.0%.

Fourth Quarter Performance

For the fourth quarter alone, sales amounted to $182.0 million, compared to $172.8 million in the same quarter the previous year. However, the company reported a stark net loss of $30.5 million compared to a net income of $30.0 million for the fourth quarter of 2023, reflecting a net loss margin of 16.8% and diluting net loss per share to $0.26. Notably, adjusted net income for the quarter was $33.0 million, with adjusted diluted income standing at $0.28.

The company's adjusted EBITDA for this quarter saw an 8.7% increase, achieving $75.9 million with an adjusted EBITDA margin of 35.3%.

CEO Statement on Performance

Kurt J. Bitting, the CEO of Ecovyst, stated, “Ecovyst delivered solid results for the fourth quarter of 2024, demonstrating resilience amidst challenging global economic conditions.” He further emphasized growth in the Ecoservices segment, citing a quarterly adjusted EBITDA of $54 million, which represented a nearly 12% increase from the previous year.

Bitting also addressed improvements in operational efficiencies thanks to strategic investments, and he expressed optimism regarding the ongoing expansion of the polyethylene catalyst production capacity at their Kansas City site, projected for completion by year-end 2025.

Segment Results and Business Prospects

Ecovyst's business sectors presented varied performance indicators for the fourth quarter. The Ecoservices segment achieved sales of $148.9 million, a 5% increase from $141.4 million last year, bolstered by improved sales volumes and favorable contract pricing for regeneration services. Adjusted EBITDA for this segment hit $54.0 million, echoing increased operational efficiency and a better absorption of fixed costs.

In contrast, the Advanced Materials and Catalysts segment faced a decline in Zeolyst Joint Venture sales due to expected sales timing challenges. Fourth-quarter sales reached $33.1 million, down from $52.8 million year-on-year, although adjusted EBITDA for this segment rose modestly by $0.7 million.

Looking Ahead to 2025

As Ecovyst prepares for 2025, the outlook remains cautiously optimistic amidst soft global economic forecasts. The company anticipates stable demand for its regeneration services and is poised to meet growth opportunities in advanced plastics recycling and sustainable fuel production technologies. Specific financial goals include estimated sales ranging from $755 million to $815 million and an adjusted EBITDA target between $238 million and $258 million for the upcoming year.

As the company continues its strategic review of the Advanced Materials and Catalysts segment, it aims to enhance shareholder value while navigating an unpredictable market landscape.

Ecovyst remains committed to its vision of sustainability and innovation, illustrating its crucial role in advancing materials and catalysts essential for a greener economy.