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1. Company Snapshot

1.a. Company Description

Ecovyst Inc.provides specialty catalysts and services in the United States, the Netherlands, the United Kingdom, and internationally.The company operates through two segments, Ecoservices and Catalyst Technologies.


The Ecoservices segment offers sulfuric acid recycling services for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications.The Catalyst Technologies segment provides customized catalyst products and process solutions to producers and licensors of polyethylene and methyl methacrylate.Its catalyst supports the production of plastics used in packaging films, bottles, containers, and other molded applications.


This segment also provides zeolite-based emission control catalysts, which enable the removal of nitrogen oxides from diesel engine emissions, as well as sulfur dioxide from fuels during the refining process.The company was formerly known as PQ Group Holdings Inc.and changed its name to Ecovyst Inc.


in August 2021.Ecovyst Inc.was founded in 1831 and is headquartered in Malvern, Pennsylvania.

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1.b. Last Insights on ECVT

Negative drivers behind Ecovyst Inc.'s recent performance include escalating end-market choppiness, recently announced tariffs, and high medical care ratios. The company's Q4 earnings release was met with a significant stock decline, despite beating earnings estimates. Additionally, the company's near-term outlook remains cloudy due to macroeconomic uncertainty. Furthermore, the recent agreement to acquire sulfuric acid assets from Cornerstone Chemical Company may pose integration challenges and dilute earnings in the short term.

1.c. Company Highlights

2. Ecovyst's Q3 2025 Earnings: A Resilient Performance Amidst Industry Challenges

Ecovyst reported a robust financial performance in Q3 2025, with adjusted EBITDA increasing 18% driven by favorable contractual pricing for regeneration services and higher sales volume for virgin sulfuric acid. The company's EPS came in at $0.19, beating analyst estimates of $0.1767. Revenue growth was driven by both price and volume, with the ecoservices segment reporting a 15% increase in adjusted EBITDA to $64 million. The company's financial results were impacted by unplanned downtime at customer refineries, but the near- and longer-term outlook remains favorable.

Publication Date: Nov -30

📋 Highlights
  • Segment Sale & Debt Reduction:: Sold Advanced Materials & Catalysts for $556M, with $530M net proceeds, $450M–$500M allocated to debt reduction.
  • Adjusted EBITDA Growth:: Q3 adjusted EBITDA rose 18% ($64M in Ecoservices, +15% YoY) driven by pricing and sales volume.
  • Stock Repurchases:: $5.5M repurchased in Q3, $20M planned for Q4, targeting $25.5M total in 2025.
  • Sulfuric Acid Demand:: Mining accounts for 20–25% of sales, with strong growth potential and structural price increases.
  • 2025 Free Cash Flow Guidance:: Adjusted free cash flow increased to $75M–$85M, with $70M from sulfur cost pass-through.

Business Outlook and Strategy

Ecovyst's strategy will focus on accelerating growth through organic initiatives and inorganic opportunities, as well as returning capital to stockholders through an active stock repurchase program. The company announced an agreement to sell its Advanced Materials and Catalysts segment to Technip Energies for $556 million, with the anticipated close in Q1 2026 expected to result in net proceeds of approximately $530 million. The company plans to apply $450 million to $500 million of the net proceeds to reduce its long-term debt.

Segment Performance and Guidance

The ecoservices segment reported adjusted EBITDA of $64 million, up 15% and within the guidance range provided during the Q2 call. Ecovyst expects adjusted EBITDA from continuing operations for 2025 to be approximately $170 million, implying adjusted EBITDA for the ecoservices segment to be around $200 million. The company increased its adjusted free cash flow range to between $75 million and $85 million. For 2026, Ecovyst expects increased regeneration volume, higher virgin sulfuric acid sales, and contributions from positive contractual pricing.

Valuation and Growth Prospects

With a P/E Ratio of -9.76 and an EV/EBITDA of 8.65, the market is pricing in some level of risk. Analysts estimate next year's revenue growth at 2.2%. Ecovyst's ROE is -15.9%, while ROIC stands at 9.11%. The company's net debt to EBITDA ratio is -0.28, indicating a healthy debt position. As Ecovyst focuses on growth initiatives and returns capital to stockholders, its valuation multiples will be influenced by its ability to execute on its strategy and deliver favorable financial results.

3. NewsRoom

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Ballast Asset Management LP Has $4.57 Million Position in Ecovyst Inc. $ECVT

Dec -01

Source: defenseworld.net

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Ecovyst Inc. (ECVT) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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Ecovyst (ECVT) Q3 Earnings and Revenues Lag Estimates

Nov -04

Source: zacks.com

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Ecovyst Reports Third Quarter 2025 Results and Updates Guidance

Nov -04

Source: prnewswire.com

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RPM International (NYSE:RPM) vs. Ecovyst (NYSE:ECVT) Financial Review

Oct -24

Source: defenseworld.net

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Ecovyst to Host Third Quarter 2025 Earnings Conference Call and Webcast on Tuesday, November 4, 2025 at 11:00 a.m. ET

Oct -22

Source: prnewswire.com

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Ecovyst Inc. (ECVT) Acquires On Ecovyst's Advanced Materials & Catalysts Business Call (Transcript)

Sep -11

Source: seekingalpha.com

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Ecovyst Announces Agreement to Sell its Advanced Materials & Catalyst Segment to Technip Energies

Sep -11

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.04%)

6. Segments

Ecoservices

Expected Growth: 7.5%

Growing demand for sustainable solutions, increasing environmental regulations, and rising concerns over climate change drive growth in Ecovyst's ecoservices segment, enabling a cleaner environment and reduced emissions.

Advanced Materials & Catalysts

Expected Growth: 4.5%

Growing demand for clean energy, increasing adoption of emission control technologies, and rising need for efficient petroleum refining processes drive the growth of Advanced Materials & Catalysts segment.

7. Detailed Products

EcoShield

A proprietary, sulfur-based product used to remove impurities and contaminants from hydrocarbon streams, improving the quality and stability of fuels and other petroleum products.

EcoSulfur

A high-quality, sulfur-based product used in the production of fertilizers, pesticides, and other agricultural products.

EcoPur

A line of proprietary, sulfur-based products used to remove impurities and contaminants from industrial processes, improving efficiency and reducing waste.

EcoServices

A range of technical services and solutions provided to the refining, petrochemical, and industrial industries to improve operational efficiency and reduce environmental impact.

8. Ecovyst Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ecovyst Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the increasing demand for sustainable products.

Bargaining Power Of Customers

Ecovyst Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are specialized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Ecovyst Inc. relies on a few key suppliers for raw materials, which gives them some bargaining power. However, the company's long-term contracts and diversified supply chain mitigate this risk.

Threat Of New Entrants

The chemical industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to compete with Ecovyst Inc.

Intensity Of Rivalry

The chemical industry is highly competitive, with several established players competing for market share. Ecovyst Inc. must continually innovate and improve its products to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 55.48%
Debt Cost 8.88%
Equity Weight 44.52%
Equity Cost 8.96%
WACC 8.92%
Leverage 124.63%

11. Quality Control: Ecovyst Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Hudson Technologies

A-Score: 5.3/10

Value: 5.3

Growth: 7.6

Quality: 6.5

Yield: 0.0

Momentum: 8.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Ecovys

A-Score: 5.3/10

Value: 7.3

Growth: 3.3

Quality: 2.6

Yield: 5.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

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Core Molding Technologies

A-Score: 5.2/10

Value: 7.2

Growth: 5.9

Quality: 5.3

Yield: 0.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Kronos Worldwide

A-Score: 5.0/10

Value: 9.1

Growth: 2.7

Quality: 5.0

Yield: 9.0

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

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NTIC

A-Score: 4.3/10

Value: 6.8

Growth: 5.8

Quality: 5.2

Yield: 3.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Koppers

A-Score: 3.8/10

Value: 6.7

Growth: 4.8

Quality: 2.7

Yield: 1.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.62$

Current Price

8.62$

Potential

-0.00%

Expected Cash-Flows