Ecovyst Reports Modest Revenue Increase to $162.2 Million in Q1 2025

Ecovyst Inc. reported a modest increase in revenue for the first quarter of 2025, with total sales reaching $162.2 million, up from $160.5 million in the same period last year. The growth of $1.7 million, or 1.1%, was primarily driven by higher average selling prices, which reflected the pass-through of increased sulfur costs. However, this was partially offset by a decrease in sales volume, particularly in the Ecoservices segment, which experienced lower demand due to maintenance turnaround activities at both the company’s and its customers' facilities.

The company's gross profit for the quarter fell significantly to $25.6 million, a decrease of $13.6 million, or 34.7%, compared to $39.2 million in the prior year. This decline was attributed to increased manufacturing costs, including higher turnaround costs and inflation, as well as lower sales volume. Operating income also suffered, resulting in a loss of $0.9 million, down from a profit of $13.9 million in the previous year. The company’s equity in net income from affiliated companies, particularly from the Zeolyst Joint Venture, increased to $8.9 million from $2.1 million, reflecting higher sales volume in that segment.

Ecovyst's operational metrics showed a mixed performance across its segments. The Ecoservices segment generated sales of $143.1 million, a slight increase of 1.1% year-over-year, while the Advanced Materials & Catalysts segment saw sales rise to $19.1 million, also up 1.1%. The company reported an Adjusted EBITDA of $38.9 million, down from $45.5 million in the prior year, with the Ecoservices segment's Adjusted EBITDA decreasing by 31.3% to $28.5 million, while the Advanced Materials & Catalysts segment's Adjusted EBITDA increased by 57.7% to $17.5 million.

Looking ahead, Ecovyst has announced plans to acquire sulfuric acid production assets from Cornerstone Chemical Company for $35 million, pending regulatory approvals. This acquisition is expected to close in the second quarter of 2025 and is part of the company's strategy to enhance its operational capabilities. The company also amended its ABL Credit Agreement to improve its financial flexibility. Despite the challenges faced in the first quarter, Ecovyst remains optimistic about its long-term growth prospects, supported by strong demand trends in its key markets and strategic investments in its operations.