Ecovyst Reports 1.9% Revenue Growth to $704.5 Million, Net Income Declines to $6.7 Million Loss

Ecovyst Inc. reported a modest increase in revenue for the fiscal year ending December 31, 2024, achieving total sales of $704.5 million, up from $691.1 million in 2023, marking a 1.9% growth. The Ecoservices segment, which includes sulfuric acid recycling and regeneration services, contributed significantly to this growth with sales rising to $598.3 million, a 2.3% increase from the previous year. However, the Advanced Materials & Catalysts segment saw a slight decline in sales, totaling $106.2 million, down marginally from $106.3 million in 2023. The overall gross profit increased to $201.5 million, reflecting a rise in sales volume, although this was partially offset by lower average selling prices and increased manufacturing costs.

The company experienced a notable decline in net income, reporting a loss of $6.7 million compared to a profit of $71.2 million in 2023. This shift was primarily attributed to a $65 million impairment charge on its investment in the Zeolyst Joint Venture, which was driven by lower sales volumes and demand outlook for catalyst materials. Additionally, equity in net income from affiliated companies decreased significantly to $15.1 million, down from $30.6 million in the prior year, further impacting the overall financial performance.

Ecovyst has made strategic moves to enhance its operational capabilities, including the recent renaming of its Catalyst Technologies segment to Advanced Materials & Catalysts, effective November 28, 2023. The company continues to focus on sustainability-driven innovation, with its products aimed at improving environmental outcomes, such as reducing emissions and enhancing fuel efficiency. As of December 31, 2024, Ecovyst operated ten manufacturing facilities and reported a workforce of 920 employees, with approximately 45% represented by unions or employee representative bodies.

Looking ahead, Ecovyst anticipates that ongoing demand for its products will remain strong, particularly in the Ecoservices segment, driven by high refinery utilization rates and stringent gasoline standards. The company also plans to continue investing in growth initiatives, including capital expenditures aimed at expanding its manufacturing capabilities. However, it faces challenges such as fluctuating raw material costs and the need to navigate a competitive landscape, which may impact its profitability and operational efficiency in the future. The company believes that its existing cash reserves and cash flow from operations will be sufficient to meet its financial obligations for at least the next twelve months.