Ecovyst Inc. Reports Growth in First Quarter Earnings, Projects Strong 2024 Outlook

Ecovyst

MALVERN, PA — Ecovyst Inc. (NYSE: ECVT), a leading chemical manufacturing company, has announced its financial results for the first quarter ended March 31, 2024, showcasing resilience and strategic growth despite market fluctuations. The company recorded sales of $160.5 million, marginally down from $160.9 million in the same period last year, amid a complex economic landscape.

Highlighting a significant turnaround, Ecovyst reported a net income of $1.2 million for the first quarter of 2024, a notable improvement from a net loss of $1.5 million in the year-ago quarter. This marks a net income margin of 0.7% and diluted net income per share of $0.01, with adjusted figures pointing to an even stronger performance. Adjusted Net Income stood at $5.1 million, translating to an Adjusted Diluted Income per share of $0.04.

A key driver of this financial health is the company’s Adjusted EBITDA, which saw a 6% increase to $45.5 million, compared to the same quarter last year. The company attributes this growth to robust demand across most of its product lines, particularly in virgin sulfuric acid and regeneration services, which offset weaker segments such as advanced silicas.

Chief Executive Officer Kurt J. Bitting underscored the strategic achievements, stating, “Ecovyst delivered solid results and year-over-year growth for the first quarter of 2024, reflecting positive demand fundamentals across the majority of our end use exposures.” Bitting also highlighted strong cash generation in the quarter, which has enabled the company to reduce its net debt leverage ratio to an impressive 2.9x.

Looking forward, Ecovyst’s 2024 financial outlook remains optimistic. The company projects full-year sales to range between $715 million to $755 million, with its 50% share of the Zeolyst Joint Venture expected to contribute an additional $145 million to $165 million in sales. Adjusted EBITDA is forecasted to be between $255 million and $275 million, alongside a free cash flow projection of $85 million to $105 million.

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Capital expenditures are anticipated to fall between $70 million and $80 million, with interest expenses estimated at $45 million to $55 million. The company also expects its effective tax rate to be in the mid-20% range.

This positive financial forecast reflects Ecovyst’s strategic positioning and operational efficiency in a competitive market. With a focus on high-demand products and a disciplined approach to cost management, the company is well-positioned to achieve its financial goals for 2024, offering promising prospects for investors and stakeholders alike.

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