Ecovyst Reports First Quarter 2025 Results and Reaffirms 2025 Guidance for Adjusted EBITDA

Yahoo

01-05-2025

WAYNE, Pa., May 1, 2025 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid and sulfuric acid regeneration services, today reported results for the first quarter ended March 31, 2025.
First Quarter 2025 Results & Highlights
Sales of $162.2 million, compared to $160.5 million in the first quarter of 2024
Net Loss of $3.6 million, compared to Net Income of $1.2 million in the year-ago quarter, with a net loss margin of 2.2% and diluted net loss per share of $0.03. Adjusted Net Income was $1.2 million with Adjusted Diluted Income per share of $0.01
Adjusted EBITDA of $38.9 million, compared to $45.5 million in the first quarter of 2024, with an Adjusted EBITDA margin of 19.5%
Cash flows from operating activities were $10.3 million for the three months ended March 31, 2025, compared to $36.5 million for the three months ended March 31, 2024. Adjusted Free Cash Flow was $(13.0) million for the three months ended March 31, 2025, compared to $19.1 million for the three months ended March 31, 2024
Reaffirming full-year 2025 Adjusted EBITDA guidance
Announced an agreement to acquire the sulfuric acid assets of Cornerstone Chemical Company, for $35 million, subject to regulatory approvals and customary closing conditions, with closing expected in the second quarter of 2025
"Ecovyst's businesses remained resilient in the first quarter of 2025. First quarter financial results for our Advanced Materials & Catalysts segment were stronger than anticipated due to favorability in sales timing for hydrocracking and specialty catalysts. Results for our Ecoservices segment were in line with our expectations, with higher costs and lower sales volume compared to the year-ago quarter reflecting the impact of our planned turnarounds as well as the sales impact associated with customer turnaround activity during the quarter," said Kurt J. Bitting, Ecovyst's Chief Executive Officer. "We anticipate that in early May the significant planned turnaround activity in our Ecoservices segment will be largely behind us. We expect high refinery utilization and the seasonal increase in gasoline demand to support increased activity for our regeneration services business beginning in the second quarter, and we anticipate strong demand in mining applications to benefit sales of virgin sulfuric acid over the balance of the year."
"Ecovyst supports numerous industries that we believe are vital to fueling the economy and providing the critical materials needed to support the infrastructure and sustainable products required for the future. Our ongoing investments in Kansas City and Orange are evidence of the confidence we have in the long-term growth prospects for the end uses that we serve," said Bitting. "In addition, on March 18th, we announced that we had reached an agreement to acquire the Cornerstone Chemical sulfuric acid assets. We look forward to the anticipated closing of the transaction in the second quarter and expeditiously integrating it into the Ecoservices segment. We expect this acquisition will enhance our Gulf Coast network and expand our capacity to meet increased customer demand for virgin sulfuric acid and regeneration services."
Review of Segment Results and Business Trends
Ecoservices
First quarter 2025 sales were $143.1 million, compared to $141.6 million in the first quarter of 2024. The increase in sales reflects pass-through of higher sulfur costs and favorable contractual pricing for regeneration services, partially offset by lower sales volume for regeneration services and for virgin sulfuric acid. First quarter 2025 Adjusted EBITDA was $28.5 million, compared to $41.5 million in the first quarter of 2024. The decrease reflects higher manufacturing costs, including costs associated with planned turnaround activity, less favorable absorption of fixed costs associated with inventory timing, and general inflation as well as lower sales volume arising from turnaround activity at Ecoservices sites and at customer facilities.
Advanced Materials & Catalysts
During the first quarter of 2025, Advanced Silicas sales were $19.1 million, compared to $18.9 million in the first quarter of 2024. The modest increase in sales resulted from higher sales of niche custom catalyst sales associated with order timing, partially offset by lower sales of advanced silicas used for the production of polyethylene. Our proportionate 50% share of first quarter sales for the Zeolyst Joint Venture was $37.7 million, compared to $23.5 million in the first quarter of 2024. The increase in Zeolyst Joint Venture sales reflects higher sales of hydrocracking catalysts and specialty catalysts associated with customer-driven sales timing. First quarter 2025 Adjusted EBITDA for Advanced Materials & Catalysts, which includes our 50% proportionate share of earnings from the Zeolyst Joint Venture, was $17.5 million, compared to $11.1 million in the first quarter of 2024, with the increase largely driven by higher sales volume within the Zeolyst Joint Venture.
Cash Flows and Balance Sheet
Cash flows from operating activities was $10.3 million for the three months ended March 31, 2025, compared to $36.5 million for the three months ended March 31, 2024. The decrease was primarily driven by the timing of dividends received from the Zeolyst Joint Venture. At March 31, 2025, the Company had cash and cash equivalents of $127.5 million, total gross debt of $868.6 million and availability under the ABL facility of $73.6 million, after giving effect to $3.3 million of outstanding letters of credit and no revolving credit facility borrowings outstanding, for total available liquidity of $201.1 million. The net debt to net income ratio was not meaningful as of March 31, 2025 and the net debt leverage ratio was 3.2x as of March 31, 2025.
2025 Financial Outlook
We are reaffirming our full year Adjusted EBITDA guidance and increasing our guidance range for sales to reflect the expected pass-through impact of higher anticipated sulfur costs. Having completed major turnaround activities in the first quarter, and in anticipation of high refinery utilization and growing sulfuric acid demand in mining applications, we expect Ecoservices to benefit from higher sales volumes for regeneration services and for virgin sulfuric acid in the second quarter and for the remainder of 2025. We believe that favorable order timing within the Zeolyst Joint Venture in the first quarter provides a strong start to our full-year expectations for our Advanced Materials & Catalysts segment. For Advanced Silicas, we entered the year with an expectation that our polyethylene catalyst sales would continue to outpace global demand growth. However, as global demand for polyethylene may be impacted due to the uncertainty around the economic impact of tariffs, we remain cautious as to the impact on our sales for 2025. Within the Zeolyst Joint Venture, we anticipate significant year-over-year sales growth in 2025, compared to 2024, driven by positive momentum in hydrocracking catalyst sales. We continue to expect the supply and demand imbalance in renewable fuels to challenge near-term sales of our catalyst materials, resulting in an expectation for flat to slightly up year-over-year sales of catalysts used in sustainable fuel production.
"We currently believe Ecovyst has minimal direct exposure to the existing tariffs. At this time, we do not expect any first order impact in our Ecoservices segment due to its high U.S. production and sales concentration. For our Advanced Materials & Catalysts segment, we currently anticipate a limited impact on full-year 2025 Adjusted EBITDA of approximately $2 million to $3 million, under the assumption that the existing tariff schedule remains unchanged. Our current full-year outlook does not account for any significant macroeconomic impacts or related demand fluctuations that could result from prolonged tariff uncertainty," said Bitting.
The Company's current guidance for full year 2025 is as follows:
Sales of $785 million to $845 million1 (change from $755 million to $815 million)
Sales of $115 million to $130 million for proportionate 50% share of Zeolyst Joint Venture, which is excluded from GAAP Sales
Adjusted EBITDA2 of $238 million to $258 million
Adjusted Free Cash Flow2 of $60 million to $80 million
Capital expenditures of $80 million to $90 million
Interest expense of $47 million to $53 million
Depreciation & Amortization
Ecovyst - $87 million to $93 million
Zeolyst J.V. - $12 million to $14 million
Effective tax rate in the mid 20% range
Adjusted Net Income2 of $58 million to $85 million, with Adjusted Diluted Income per share of $0.50 to $0.70.
The Company's guidance for the second quarter of 2025 is as follows:
Adjusted EBITDA2 of $45 million to $55 million
1Sales outlook for 2025 assumes higher average sulfur prices compared to 2024 and higher projected pass-through of sulfur costs of approximately $65 million.
2In reliance upon the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K, the Company is not able to provide a reconciliation of its non-GAAP financial guidance to the corresponding GAAP measures without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation such as certain non-cash, nonrecurring or other items that are included in net (loss) income and net cash provided by operating activities as well as the related tax impacts of these items and asset dispositions / acquisitions and changes in foreign currency exchange rates that are included in cash flow, due to the uncertainty and variability of the nature and amount of these future charges and costs. Because this information is uncertain, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
Stock Repurchase Authorization
In April 2022, the Company's Board of Directors approved a stock repurchase program authorizing the repurchase of up to $450 million of the Company's outstanding common stock over the next four years. As of March 31, 2025, $229.6 million was available for share repurchases under the program.
For possible future repurchases, the actual timing, number, and nature of shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions and may be conducted through negotiated transactions, open market repurchases or other means, including through Rule 10b-18 trading plans or accelerated share repurchases. The repurchase program does not obligate the Company to acquire any number of shares in any specific period, or at all, and the repurchase program may be amended, suspended or discontinued at any time at the Company's discretion.
Conference Call and Webcast Details
On Thursday, May 1, 2025, Ecovyst management will review the first quarter 2025 results during a conference call and audio-only webcast scheduled for 11:00 a.m. Eastern Time.
Conference Call: Investors may listen to the conference call live via telephone by dialing 1 [phone] (domestic) or 1 [phone] (international) and use the participant code ECVTQ125.
Webcast: An audio-only live webcast of the conference call and presentation materials can be accessed at https://investor.ecovyst.com. A replay of the conference call/webcast will be made available at https://investor.ecovyst.com/events-presentations.
Investor Contact:
Gene Shiels(484) [e-mail]
About Ecovyst Inc.
Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid and sulfuric acid regeneration services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products and services contribute to improving the sustainability of the environment.
We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides high quality and high strength virgin sulfuric acid for industrial and mining applications. Ecoservices also provides chemical waste handling and treatment services, as well as ex-situ catalyst activation services for the refining and petrochemical industry. Advanced Materials & Catalysts, through its Advanced Silicas business, provides finished silica catalysts, catalyst supports and functionalized silicas necessary to produce high performing plastics and to enable sustainable chemistry, and through its Zeolyst Joint Venture, innovates and supplies specialty zeolites used in catalysts that support the production of sustainable fuels, remove nitrogen oxides from diesel engine emissions and that are broadly applied in refining and petrochemical processes. For more information, see our website at https://www.ecovyst.com.
Presentation of Non-GAAP Financial Measures
In addition to the results provided in accordance with U.S. generally accepted accounting principles ("GAAP") throughout this press release, the Company has provided non-GAAP financial measures — Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Diluted Income per share, Net Debt to Net Income ratio and Net Debt Leverage Ratio (collectively, "Non-GAAP Financial Measures") — which present results on a basis adjusted for certain items. The Company uses these Non-GAAP Financial Measures for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that these Non-GAAP Financial Measures are useful financial metrics to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. These Non-GAAP Financial Measures are not intended to replace, and should not be considered superior to, the presentation of the Company's financial results in accordance with GAAP. The use of the Non-GAAP Financial Measures terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. These Non-GAAP Financial Measures are reconciled from the respective measures under GAAP in the attached appendix.
Zeolyst Joint Venture
The Company's zeolite catalysts product group operates through its Zeolyst Joint Venture, which is accounted for as an equity method investment in accordance with GAAP. The presentation of the Zeolyst Joint Venture's sales represents 50% of the sales of the Zeolyst Joint Venture. The Company does not record its proportionate share of sales from the Zeolyst Joint Venture accounted for using the equity method as revenue and such sales are not consolidated within its results of operations. However, Adjusted EBITDA for the Company's Advanced Materials & Catalysts segment reflects the Company's 50% portion of the earnings from the Zeolyst Joint Venture that have been recorded as equity in net income in the Company's condensed consolidated statements of (loss) income for such periods and includes Zeolyst Joint Venture adjustments on a proportionate basis based on the Company's 50% ownership interest. Accordingly, the Company's Adjusted EBITDA margins are calculated including 50% of the sales of the Zeolyst Joint Venture for the relevant periods in the denominator.
Note on Forward-Looking Statements
Some of the information contained in this press release constitutes "forward-looking statements." Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "projects" and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Examples of forward-looking statements include, but are not limited to, statements regarding our future results of operations, financial condition, capital expenditure projects, liquidity, prospects, growth, strategies, capital allocation program (including the stock repurchase program), product and service offerings, expected demand trends, the timing and outcome, if any, of our strategic review process for our Advanced Materials & Catalysts segment, the closing of our acquisition of the sulfuric acid assets of Cornerstone Chemical Company, the effect of tariffs on our business and results and our second quarter and full year 2025 financial outlook. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, regional, national or global political, economic, business, competitive, market and regulatory conditions, including the enactment, schedule and impact of tariffs and trade disputes, currency exchange rates, the effects of inflation and other factors, including those described in the sections titled "Risk Factors" and "Management's Discussion & Analysis of Financial Condition and Results of Operations" in our filings with the SEC, which are available on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.
ECOVYST INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME
(in millions, except share and per share amounts)Three months ended
March 31,
20252024% ChangeSales$ 162.2$ 160.51.1 %
Cost of goods sold136.6121.312.6 %
Gross profit25.639.2(34.7) %
Selling, general and administrative expenses21.321.6(1.4) %
Other operating expense, net5.23.740.5 %
Operating (loss) income(0.9)13.9(106.5) %
Equity in net (income) from affiliated companies(8.9)(2.1)323.8 %
Interest expense, net11.013.4(17.9) %
Debt modification and extinguishment costs1.0—NM
Other expense, net0.20.2— %
(Loss) income before income taxes(4.2)2.4(275.0) %
(Benefit) provision for income taxes(0.6)1.2(150.0) %
Effective tax rate13.3 %49.1 %
Net (loss) income$ (3.6)$ 1.2NMEarnings per share:
Basic (loss) earnings per share$ (0.03)$ 0.01
Diluted (loss) earnings per share$ (0.03)$ 0.01Weighted average shares outstanding:
Basic117,264,124116,955,043
Diluted117,264,124117,451,149
ECOVYST INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share and per share amounts)
March 31,2025December 31,2024
ASSETSCash and cash equivalents
$ 127.5$ 146.0
Accounts receivable, net
76.977.9
Inventories, net
58.857.1
Derivative assets
5.16.5
Prepaid and other current assets
23.616.1
Total current assets
291.9303.6
Investments in affiliated companies
350.5349.3
Property, plant and equipment, net
571.1569.3
Goodwill
404.9404.1
Other intangible assets, net
95.298.4
Right-of-use lease assets
33.633.6
Other long-term assets
39.744.0
Total assets
$ 1,786.9$ 1,802.3
LIABILITIESCurrent maturities of long-term debt
$ 8.7$ 8.7
Accounts payable
34.543.9
Operating lease liabilities—current
8.89.3
Accrued liabilities
52.053.2
Total current liabilities
104.0115.1
Long-term debt, excluding current portion
850.3852.1
Deferred income taxes
104.7105.4
Operating lease liabilities—noncurrent
24.724.2
Other long-term liabilities
4.55.0
Total liabilities
1,088.21,101.8
Commitments and contingenciesEQUITYCommon stock ($0.01 par); authorized shares 450,000,000; issued shares 140,872,846 and 140,872,846 on March 31, 2025 and December 31, 2024, respectively; outstanding shares 117,385,510 and 116,534,803 on March 31, 2025 and December 31, 2024, respectively
1.41.4
Preferred stock ($0.01 par); authorized shares 50,000,000; no shares issued or outstanding on March 31, 2025 and December 31, 2024
——
Additional paid-in capital
1,100.41,106.8
Accumulated deficit
(181.1)(177.5)
Treasury stock, at cost; shares 23,487,336 and 24,338,043 on March 31, 2025 and December 31, 2024, respectively
(214.8)(222.8)
Accumulated other comprehensive loss
(7.2)(7.4)
Total equity
698.7700.5
Total liabilities and equity
$ 1,786.9$ 1,802.3
ECOVYST INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended
March 31,20252024
Cash flows from operating activities:
(in millions)
Net (loss) income
$ (3.6)$ 1.2
Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation
19.618.4
Amortization
3.53.5
Amortization of deferred financing costs and original issue discount
0.30.5
Foreign currency exchange loss
0.10.2
Deferred income tax provision
0.80.2
Net loss on asset disposals
0.20.6
Stock compensation
3.13.7
Equity in net (income) from affiliated companies
(8.9)(2.1)
Dividends received from affiliated companies
10.028.0
Other, net
1.2(4.3)
Working capital changes that provided (used) cash:Receivables
1.32.8
Inventories
(1.5)(7.1)
Prepaids and other current assets
(5.5)(3.3)
Accounts payable
(6.0)(3.9)
Accrued liabilities
(4.3)(1.9)
Net cash provided by operating activities
10.336.5
Cash flows from investing activities:Purchases of property, plant and equipment
(24.3)(17.4)
Net cash used in investing activities
(24.3)(17.4)
Cash flows from financing activities:Issuance of long-term debt, net of original issue discount and financing fees
870.8—
Repayments of long-term debt
(873.0)(2.3)
Tax withholdings on equity award vesting
(1.5)(1.2)
Repayment of financing obligation
(0.8)(0.7)
Net cash used in financing activities
(4.5)(4.2)
Effect of exchange rate changes on cash and cash equivalents
—(0.2)
Net change in cash and cash equivalents
(18.5)14.7
Cash and cash equivalents at beginning of period
146.088.4
Cash and cash equivalents at end of period
$ 127.5$ 103.1
Appendix Table A-1: Reconciliation of Net (Loss) Income to Adjusted EBITDAThree months ended
March 31,
20252024
(in millions)
Reconciliation of net (loss) income to Adjusted EBITDA
Net (loss) income$ (3.6)$ 1.2
(Benefit) provision for income taxes(0.6)1.2
Interest expense, net11.013.4
Depreciation and amortization23.121.9
EBITDA29.937.7
Joint venture depreciation, amortization and interest(a)3.23.3
Amortization of investment in affiliate step-up(b)0.61.6
Debt modification and extinguishment costs1.0—
Net loss on asset disposals(c)0.20.6
Foreign currency exchange loss(d)0.10.2
LIFO benefit(e)(0.8)(1.1)
Transaction and other related costs(f)1.90.1
Equity-based compensation3.13.7
Restructuring, integration and business optimization expenses(g) 0.10.2
Other(h)(0.4)(0.8)
Adjusted EBITDA$ 38.9$ 45.5
Descriptions to Ecovyst Non-GAAP Reconciliations(a)
We use Adjusted EBITDA as a performance measure to evaluate our financial results. Because our Advanced Materials & Catalysts segment reflects our 50% portion of the earnings from the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate share of depreciation, amortization and interest expense of the Zeolyst Joint Venture.
(b)
Represents the amortization of the fair value adjustments associated with the equity affiliate investment in the Zeolyst Joint Venture as a result of the combination of the businesses of PQ Holdings Inc. and Eco Services Operations LLC in May 2016. We determined the fair value of the equity affiliate investment and the fair value step-up was then attributed to the underlying assets of the Zeolyst Joint Venture. Amortization is primarily related to the fair value adjustments associated with intangible assets, including customer relationships and technical know-how.
(c)
When asset disposals occur, we remove the impact of net gain/loss of the disposed asset because such impact primarily reflects the non-cash write-off of long-lived assets no longer in use.
(d)
Reflects the exclusion of the foreign currency transaction gains and losses in the statements of (loss) income related to the remeasurement effects of monetary assets and liabilities, including non-permanent intercompany debt, denominated in foreign currency.
(e)
Represents non-cash adjustments to the Company's LIFO reserves for certain inventories in the U.S. that are valued using the LIFO method, effectively reflecting the results as if these inventories were valued using the FIFO method, which we believe provides a means of comparison to other companies that may not use the same basis of accounting for inventories.
(f)
Relates to certain transaction costs, including debt financing, due diligence and other costs related to transactions that are completed, pending or abandoned, that we believe are not representative of our ongoing business operations.
(g)
Includes the impact of restructuring, integration and business optimization expenses, which are incremental costs that are not representative of our ongoing business operations.
(h)
Other consists of adjustments for items that are not core to our ongoing business operations. These adjustments include environmental remediation and other legal costs, expenses for capital and franchise taxes, and defined benefit pension and postretirement plan (benefits) costs, for which our obligations are under plans that are frozen. Also included in this amount are adjustments to eliminate the benefit realized in cost of goods sold of the allocation of a portion of the contract manufacturing payments under the five-year agreement with the buyer of the Performance Chemicals business to the financing obligation under the failed sale-leaseback. Included in this line-item are rounding discrepancies that may arise from rounding from dollars (in thousands) to dollars (in millions).
Appendix Table A-2: Reconciliation of Net (Loss) Income and EPS to Adjusted Net Income and Adjusted EPS(1)
Three months ended
March 31,20252024Pre-tax amount
Tax expense (benefit)
After-tax amount
Per share, basic
Per share, dilutedPre-tax amount
Tax expense (benefit)
After-tax amount
Per share, basic
Per share, diluted(in millions, except share and per share amounts)
Net (loss) income
$ (4.2)
$ (0.6)
$ (3.6)
$ (0.03)
$ (0.03)$ 2.4
$ 1.2
$ 1.2
$ 0.01
$ 0.01
Amortization of investment in affiliate step-up(b)
0.6
0.1
0.5
—
—1.6
0.4
1.2
0.01
0.01
Debt modification and extinguishment costs
1.0
0.3
0.7
0.01
0.01—
—
—
—
—
Net loss on asset disposals(c)
0.2
0.1
0.1
—
—0.6
0.1
0.5
—
—
Foreign currency exchange loss(d)
0.1
—
0.1
—
—0.2
0.1
0.1
—
—
LIFO benefit(e)
(0.8)
(0.2)
(0.6)
(0.01)
(0.01)(1.1)
(0.3)
(0.8)
(0.01)
(0.01)
Transaction and other related costs(f)
1.9
0.5
1.4
0.02
0.020.1
—
0.1
—
—
Equity-based compensation
3.1
0.3
2.8
0.02
0.023.7
0.5
3.2
0.03
0.03
Restructuring, integration and business optimization expenses(g)
0.1
—
0.1
—
—0.2
0.1
0.1
—
—
Other(h)
(0.4)
(0.1)
(0.3)
—
—(0.7)
(0.2)
(0.5)
—
—
Adjusted Net Income(1)
$ 1.6
$ 0.4
$ 1.2
$ 0.01
$ 0.01$ 7.0
$ 1.9
$ 5.1
$ 0.04
$ 0.04
Weighted average shares outstanding117,264,124
117,559,562
116,955,043
117,451,149See Appendix Table A-1 for Descriptions to Ecovyst Non-GAAP Reconciliations in the table above.
(1)
We define Adjusted Net Income as net (loss) income adjusted for non-operating income or expense and the impact of certain non-cash or other items that are included in net (loss) income that we do not consider indicative of our ongoing operating performance. Adjusted Net Income is presented as a key performance indicator as we believe it will enhance a prospective investor's understanding of our results of operations and financial condition. Adjusted Net Income may not be comparable with net (loss) income or Adjusted Net Income as defined by other companies.
The adjustments to net (loss) income are shown net of applicable tax rates of 23.8% and 24.6% for the three months ended March 31, 2025 and 2024, respectively, except for equity-based compensation. The tax effect on equity-based compensation is derived by removing the tax effect of any equity-based compensation expense disallowed as a result of its inclusion within IRC Sec. 162(m), and adding the tax effect of equity-based stock compensation shortfall recorded as a discrete item.
Appendix Table A-3: Sales and Adjusted EBITDA by Business SegmentThree months ended
March 31,
20252024% ChangeSales:
Ecoservices$ 143.1$ 141.61.1 %
Advanced Materials & Catalysts(1) 19.118.91.1 %
Total sales$ 162.2$ 160.51.1 %Zeolyst Joint Venture sales$ 37.7$ 23.560.4 %Adjusted EBITDA:
Ecoservices$ 28.5$ 41.5(31.3) %
Advanced Materials & Catalysts17.511.157.7 %
Unallocated corporate expenses(7.1)(7.1)— %
Total Adjusted EBITDA$ 38.9$ 45.5(14.5) %Adjusted EBITDA Margin:
Ecoservices19.9 %29.3 %
Advanced Materials & Catalysts(2)30.8 %26.2 %
Total Adjusted EBITDA Margin(2)19.5 %24.7 %(1)
Represents GAAP sales for the Advanced Silicas business; Excludes our proportionate 50% share of sales from the Zeolyst Joint Venture.
(2)
Adjusted EBITDA Margin calculation reflects our proportionate 50% share of sales from the Zeolyst Joint Venture.
Appendix Table A-4: Adjusted Free Cash FlowThree months ended
March 31,
20252024
(in millions)
Net cash provided by operating activities$ 10.3$ 36.5
Less:
Purchases of property, plant and equipment(1)(24.3)(17.4)
Free Cash Flow(2)$ (14.0)$ 19.1Adjustments to free cash flow:
Cash paid for debt financing costs included in cash from operating activities 1.0—
Adjusted Free Cash Flow(2)$ (13.0)$ 19.1Net cash used in investing activities(3)$ (24.3)$ (17.4)
Net cash used in financing activities$ (4.5)$ (4.2)(1)
Excludes the Company's proportionate 50% share of capital expenditures from the Zeolyst Joint Venture.
(2)
We define Adjusted Free Cash Flow as net cash provided by operating activities less purchases of property, plant and equipment, adjusted for cash flows that are unusual in nature and/or infrequent in occurrence that neither relate to our core business nor reflect the liquidity of our underlying business. Historically these adjustments include proceeds from the sale of assets, net interest proceeds on swaps designated as net investment hedges, the cash paid for segment disposals and cash paid for debt financing costs included in cash from operating activities. Adjusted Free Cash Flow is a non-GAAP financial measure that we believe will enhance a prospective investor's understanding of our ability to generate additional cash from operations and is an important financial measure for use in evaluating our financial performance. Our presentation of Adjusted Free Cash Flow is not intended to replace, and should not be considered superior to, the presentation of our net cash provided by operating activities determined in accordance with GAAP. Additionally, our definition of Adjusted Free Cash Flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view Adjusted Free Cash Flow as a measure that provides supplemental information to our condensed consolidated statements of cash flows. You should not consider Adjusted Free Cash Flow in isolation or as an alternative to the presentation of our financial results in accordance with GAAP. The presentation of Adjusted Free Cash Flow may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures.
(3)
Net cash used in investing activities includes purchases of property, plant and equipment, which is also included in our computation of Adjusted Free Cash Flow.
Appendix Table A-5: Net Debt Leverage Ratio
March 31, 2025March 31, 2024(in millions, except ratios)
Total debt
$ 868.6$ 875.3
Less:Cash and cash equivalents
127.5103.1
Net debt
$ 741.1$ 772.2
Trailing twelve months:Net (loss) income
$ (11.5)$ 73.9
Adjusted EBITDA(1)
$ 231.5$ 262.5
Net Debt to Net Income ratio
NM 10.4x
Net Debt Leverage ratio
3.2x 2.9x
(1)
Refer to Appendix Table A-1: Reconciliation of Net (Loss) Income to Adjusted EBITDA for the reconciliation to the most comparable GAAP financial measure.
View original content to download multimedia:https://www.prnewswire.com/news-releases/ecovyst-reports-first-quarter-2025-results-and-reaffirms-2025-guidance-for-adjusted-ebitda-302443656.html
SOURCE Ecovyst Inc.