## Ecovyst Inc. Reports Q3 2024 Earnings: Ecoservices Segment Drives Resilience
Malvern, PA (October 31, 2024)
– Ecovyst Inc. (NYSE: ECVT), a leading global provider of advanced materials, specialty catalysts, and services, today announced its financial results for the third quarter ended September 30, 2024. The company’s performance was marked by strong results in its Ecoservices segment, driven by favorable pricing and increased sales volume for virgin sulfuric acid and regeneration services.Key Highlights:
*
Sales:
$179.2 million, compared to $173.3 million in Q3 2023.*
Net Income:
$14.3 million, compared to $16.6 million in the year-ago quarter, with a net income margin of 8.0% and diluted net income per share of $0.12.*
Adjusted Net Income:
$16.5 million, with Adjusted Diluted Income per share of $0.14*
Adjusted EBITDA:
$59.8 million, down 12% compared to Q3 2023, with an Adjusted EBITDA margin of 28.5%*
Cash Flows from Operating Activities:
$106.4 million for the nine months ended September 30, 2024, compared to $73.4 million for the same period in 2023.*
Adjusted Free Cash Flow:
$59.3 million for the nine months ended September 30, 2024, compared to $19.8 million for the same period in 2023.Ecoservices Performance Fuels Growth:
Ecovyst’s Ecoservices segment continued to demonstrate resilience in the face of economic headwinds. The segment reported sales of $153.9 million in Q3 2024, a rise from $147.6 million in the same period last year. This growth was attributed to higher sales volume in virgin sulfuric acid and favorable contractual pricing in regeneration services. While manufacturing costs were elevated due to inflation and planned maintenance, the segment still achieved an Adjusted EBITDA of $55.1 million, a slight increase compared to Q3 2023.
Advanced Materials & Catalysts Segment Sees Mixed Results:
The Advanced Materials & Catalysts segment experienced mixed results in Q3 2024. While the company witnessed growth in polyethylene catalysts, certain hydrocracking and custom catalyst orders were shifted to Q4 2024. The segment’s Adjusted EBITDA for Q3 2024 came in at $10.9 million, a decline from $16.4 million in the same period last year, primarily due to lower sales volume in catalysts used in the production of sustainable fuels and emission control applications.
Outlook for 2024 Remains Positive:
Despite the global macroeconomic uncertainty, Ecovyst remains optimistic about its 2024 outlook. The company anticipates continued positive momentum in its Ecoservices business and expects higher polyethylene catalyst sales in the Advanced Materials & Catalysts segment. Ecovyst is maintaining its full-year 2024 Adjusted EBITDA guidance of $230 million to $245 million. This outlook reflects the company’s unwavering focus on achieving long-term growth objectives and creating value for its shareholders.
Key Takeaways:
* Ecovyst’s Ecoservices segment continues to drive growth with favorable pricing and increased sales volume.
* The Advanced Materials & Catalysts segment is experiencing some challenges, but growth in polyethylene catalysts offers promise.
* Ecovyst remains confident in its full-year 2024 financial outlook and is focused on long-term growth initiatives.
About Ecovyst Inc.
Ecovyst Inc. is a leading global provider of advanced materials, specialty catalysts, and services. The company’s products and services contribute to environmental sustainability, serving customers across various industries. For more information, visit www.ecovyst.com.
