Ecovyst (ECVT) Q1 2025 Earnings Call May 01, 2025 11:00 AM ET Speaker0 Good morning. My name is Madison, and I will be your conference operator today. Welcome to the ECOVIST First Quarter twenty twenty five Earnings Call and Webcast. Please note, today's call is being recorded and should run approximately one hour. Currently, all participants have been placed in a listen only mode to prevent any background noise. After the speakers' remarks, there will be a question and answer period. I would now like to ha ...

Ecovyst (ECVT) came out with quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.03 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 133.33%. A quarter ago, it was expected that this specialty chemical producer would post earnings of $0.25 per share when it actually produced earnings of $0.28, delivering a surprise of 12%.Over the last four qu ...

First Quarter 2025 May 1, 2025 — 11 a.m. ET Legal Discussion Forward-Looking Statements Some of the information contained in this presentation, the conference call during which this presentation is reviewed and any discussions that follow constitutes "forward-looking statements." Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "projects" and similar references to future periods. Forward-looking statements are based ...

Financial Performance - Sales for Q1 2025 were $162.2 million, a slight increase from $160.5 million in Q1 2024[4] - Net loss for Q1 2025 was $3.6 million, compared to a net income of $1.2 million in the same quarter last year, resulting in a net loss margin of 2.2%[4] - Adjusted EBITDA for Q1 2025 was $38.9 million, down from $45.5 million in Q1 2024, with an Adjusted EBITDA margin of 19.5%[4] - Operating loss for Q1 2025 was $0.9 million, a significant decline of 106.5% compared to an operating income of $13.9 million in Q1 2024[24] - Adjusted Net Income for the first quarter of 2025 was $1.6 million, compared to $7.0 million in the first quarter of 2024[31] Segment Performance - Ecoservices segment sales increased to $143.1 million in Q1 2025 from $141.6 million in Q1 2024, but Adjusted EBITDA decreased to $28.5 million from $41.5 million[5] - Advanced Materials & Catalysts segment saw sales rise to $19.1 million in Q1 2025 from $18.9 million in Q1 2024, with Adjusted EBITDA increasing to $17.5 million from $11.1 million[6] - Zeolyst Joint Venture sales surged by 60.4% to $37.7 million from $23.5 million year-over-year[33] - Ecoservices Adjusted EBITDA margin decreased to 19.9% from 29.3% year-over-year[33] - Advanced Materials & Catalysts Adjusted EBITDA increased by 57.7% to $17.5 million from $11.1 million in the previous year[33] Cash Flow and Debt - Cash flows from operating activities were $10.3 million in Q1 2025, significantly down from $36.5 million in Q1 2024[7] - Cash and cash equivalents decreased to $127.5 million from $146.0 million at the end of Q4 2024[26] - The net debt leverage ratio was 3.2x as of March 31, 2025, with total gross debt of $868.6 million[7] - The Net Debt Leverage ratio increased to 3.2x as of March 31, 2025, compared to 2.9x a year earlier[35] - Total debt as of March 31, 2025, was $868.6 million, a slight decrease from $875.3 million a year prior[35] Guidance and Outlook - The company reaffirmed its full-year 2025 Adjusted EBITDA guidance and increased sales outlook to $785 million to $845 million, up from $755 million to $815 million[10] - Adjusted Net Income for the full year 2025 is projected to be between $58 million and $85 million, with Adjusted Diluted Income per share expected to be between $0.50 and $0.70[15] Tax and Equity - The effective tax rate for Q1 2025 was 13.3%, compared to 49.1% in Q1 2024[24] - The company reported a significant increase in equity in net income from affiliated companies, which was a loss of $8.9 million in Q1 2025 compared to a loss of $2.1 million in Q1 2024, representing a 323.8% increase in losses[24] Other Financial Metrics - Cost of goods sold increased by 12.6% to $136.6 million, resulting in a gross profit of $25.6 million, down 34.7% from $39.2 million[24] - Total assets as of March 31, 2025, were $1,786.9 million, a slight decrease from $1,802.3 million at the end of 2024[26] - Total liabilities decreased to $1,088.2 million from $1,101.8 million at the end of 2024[26] - Adjusted Free Cash Flow for the first quarter of 2025 was $(13.0) million, a significant decline from $19.1 million in the same quarter of 2024[34]

Core Insights - Ecovyst Inc. reported resilient business performance in Q1 2025, with stronger-than-expected results in the Advanced Materials & Catalysts segment, while the Ecoservices segment met expectations despite challenges [3][4] - The company anticipates increased activity in its regeneration services business due to high refinery utilization and seasonal gasoline demand starting in Q2 2025 [3][4] - Ecovyst announced an agreement to acquire Cornerstone Chemical's sulfuric acid assets for $35 million, expected to close in Q2 2025, which will enhance its Gulf Coast network and capacity [3][9] Financial Performance - Q1 2025 sales were $162.2 million, a 1.1% increase from $160.5 million in Q1 2024 [9][23] - Adjusted EBITDA for Q1 2025 was $38.9 million, down from $45.5 million in Q1 2024, reflecting a decrease in the Ecoservices segment [9][32] - The Ecoservices segment reported sales of $143.1 million, up from $141.6 million in the previous year, while Adjusted EBITDA decreased to $28.5 million from $41.5 million [4][32] Segment Analysis - Advanced Materials & Catalysts segment saw sales of $19.1 million, slightly up from $18.9 million in Q1 2024, with a significant increase in Zeolyst Joint Venture sales to $37.7 million from $23.5 million [5][32] - Adjusted EBITDA for Advanced Materials & Catalysts increased to $17.5 million from $11.1 million, driven by higher sales volume in the Zeolyst Joint Venture [5][32] Cash Flow and Balance Sheet - Cash flows from operating activities were $10.3 million in Q1 2025, down from $36.5 million in Q1 2024, primarily due to timing of dividends from the Zeolyst Joint Venture [6][9] - As of March 31, 2025, the company had cash and cash equivalents of $127.5 million and total gross debt of $868.6 million, resulting in total available liquidity of $201.1 million [6][24] 2025 Financial Outlook - The company reaffirmed its full-year Adjusted EBITDA guidance and increased sales guidance due to anticipated higher sulfur costs [7][10] - Ecoservices is expected to benefit from higher sales volumes for regeneration services and virgin sulfuric acid in the second quarter and throughout 2025 [7][10] - The company anticipates significant year-over-year sales growth in the Zeolyst Joint Venture, driven by positive momentum in hydrocracking catalyst sales [7][10]

Wall Street expects a year-over-year decline in earnings on higher revenues when Ecovyst (ECVT) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 1, 2025, might help the stock move higher if these key numbers are better than expectations. ...

Financial Flexibility and Credit Agreement - Ecovyst Inc. announced the amendment of its existing ABL credit agreement, maintaining the facility at $100 million and extending it to April 2030 [1] - The amended facility will have an interest rate based on Term SOFR or a base rate with a margin of 1.25% - 1.75% or 0.25% - 0.75% per annum [1] - The CFO stated that this amendment is expected to enhance financial flexibility, reduce credit risk, lower borrowing costs, and improve liquidity [2] Recent Financial Adjustments - In January 2025, Ecovyst amended its Term Loan Facility, reducing the interest rate spread by 25 basis points to Term SOFR plus 2.00% per annum [2] Company Overview - Ecovyst Inc. is a global provider of advanced materials, specialty catalysts, and sulfuric acid regeneration services, focusing on sustainability [3] - The company operates two specialty businesses: Ecoservices, which provides sulfuric acid recycling and chemical waste handling, and Advanced Materials & Catalysts, which supplies finished silica catalysts and specialty zeolites [4]

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

Core Insights - Ecovyst Inc. and Enzyme Supplies Ltd. have signed a Memorandum of Understanding (MOU) to accelerate the growth of enzyme immobilization technologies, aiming to commercialize industrial biocatalysts [1][3] - The partnership will leverage Ecovyst's expertise in silica-based advanced materials and Enzyme Supplies' knowledge in enzyme processes to enhance industrial applications across various sectors [2][4] Company Overview - Ecovyst Inc. is a global provider of advanced materials, specialty catalysts, and sulfuric acid regeneration services, focusing on sustainability and innovative solutions [5][6] - Enzyme Supplies Ltd. specializes in high-quality enzyme products and technologies, aiming to improve customer yields and margins through innovation [4] Technological Focus - Enzyme immobilization technology enhances enzyme stability and reusability, improving economic efficiency compared to traditional liquid-based systems [2] - The collaboration aims to develop novel biocatalyst solutions that enhance process efficiencies and sustainability in industries such as biofuels, agriculture, and food processing [3][4]

MALVERN, Pa., March 18, 2025 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid and sulfuric acid regeneration services ("Ecovyst"), announced today that it has reached an agreement to acquire the sulfuric acid production assets of Cornerstone Chemical Company located in Waggaman, Louisiana. The acquisition is expected to expand Ecoservices' capacity to serve regeneration and virgin sulfuric acid cus ...