MALVERN, PA — Ecovyst Inc. (NYSE: ECVT) has announced its financial results for the third quarter ended September 30, 2024, revealing a solid performance despite certain market challenges. The company reported sales of $179.2 million, up from $173.3 million in the same period last year. However, net income saw a slight dip to $14.3 million compared to $16.6 million the previous year, with diluted net income per share at $0.12.
Adjusted EBITDA for the quarter was $59.8 million, reflecting a 12% decrease from the third quarter of 2023, while maintaining an adjusted EBITDA margin of 28.5%. Cash flow from operating activities soared to $106.4 million for the nine months ended September 30, 2024, up from $73.4 million for the same period in 2023, driven by favorable working capital changes and dividends from the Zeolyst Joint Venture.
CEO Kurt J. Bitting commented on the results, noting, “Ecovyst’s third-quarter results met our expectations, showcasing the resilience of our Ecoservices segment. This was driven by favorable pricing in regeneration services and increased sales volumes for virgin sulfuric acid.” He further emphasized the company’s commitment to operational excellence and strategic growth through investments in new technologies and collaborations.
In the Ecoservices segment, sales rose to $153.9 million, fueled by higher sales volume in virgin sulfuric acid and advantageous pricing. Adjusted EBITDA for this segment was slightly up, reaching $55.1 million, as increased manufacturing costs were offset by improved pricing and sales volume.
The Advanced Materials & Catalysts segment faced a slight downturn, with third-quarter sales of $25.3 million, a small decline from last year. This was attributed to shifts in niche custom catalyst sales timing and a decrease in Zeolyst Joint Venture sales, primarily due to lower demand for catalysts in sustainable fuels and emission control applications. Adjusted EBITDA for this segment dropped to $10.9 million from $16.4 million a year earlier.
Looking ahead, Ecovyst maintains a cautious but optimistic outlook for the remainder of 2024. The company anticipates continued positive momentum in its Ecoservices business and projects higher sales of polyethylene catalysts. The ongoing supply and demand imbalance in the renewable fuels sector poses challenges, but Ecovyst expects to maintain its guidance for full-year adjusted EBITDA of $230 million to $245 million.
Bitting also highlighted the company’s strategic priorities, stating, “Based upon our current expectations for the remainder of the year, we are maintaining our guidance for full-year 2024 Adjusted EBITDA. We believe the continued resilience and cash generation of our core businesses will allow Ecovyst to remain intently focused on achieving our long-term growth objectives and on value creation for our shareholders.”
Ecovyst’s financial outlook for 2024 includes sales projections between $700 million and $740 million, with an adjusted net income forecast of $53 million to $74 million. The company remains vigilant in navigating the macroeconomic uncertainties while focusing on strategic initiatives and shareholder value.
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