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Ecovyst Reports First Quarter 2025 Results and Reaffirms 2025 Guidance for Adjusted EBITDA
ECVTEcovyst (ECVT) Prnewswire·2025-05-01 10:00

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 35million,expectedtocloseinQ22025,whichwillenhanceitsGulfCoastnetworkandcapacity[3][9]FinancialPerformance−Q12025saleswere35 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 160.5millioninQ12024[9][23]−AdjustedEBITDAforQ12025was160.5 million in Q1 2024 [9][23] - Adjusted EBITDA for Q1 2025 was 38.9 million, down from 45.5millioninQ12024,reflectingadecreaseintheEcoservicessegment[9][32]−TheEcoservicessegmentreportedsalesof45.5 million in Q1 2024, reflecting a decrease in the Ecoservices segment [9][32] - The Ecoservices segment reported sales of 143.1 million, up from 141.6millioninthepreviousyear,whileAdjustedEBITDAdecreasedto141.6 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 18.9millioninQ12024,withasignificantincreaseinZeolystJointVenturesalesto18.9 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 11.1million,drivenbyhighersalesvolumeintheZeolystJointVenture[5][32]CashFlowandBalanceSheet−Cashflowsfromoperatingactivitieswere11.1 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 36.5millioninQ12024,primarilyduetotimingofdividendsfromtheZeolystJointVenture[6][9]−AsofMarch31,2025,thecompanyhadcashandcashequivalentsof36.5 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 868.6million,resultingintotalavailableliquidityof868.6 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]