Ecovyst beats Q1 earnings estimates, shares rise 4%

Published 01/05/2025, 11:12
Ecovyst beats Q1 earnings estimates, shares rise 4%

Investing.com -- Ecovyst Inc. (NYSE:ECVT) reported better-than-expected first quarter earnings on Thursday, sending its shares up 4% in early trading. The company, which provides advanced materials and specialty catalysts, also issued full-year guidance above analyst estimates.

For the first quarter ended March 31, 2025, Ecovyst posted adjusted earnings per share of $0.01, beating the analyst consensus of -$0.03. Revenue came in at $162.2 million, up 1% YoY but below the $168.59 million analysts had projected. The company’s net loss was $3.6 million, compared to net income of $1.2 million in the same quarter last year.

Ecovyst’s CEO Kurt J. Bitting said, "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."

Looking ahead, the company reaffirmed its full-year 2025 adjusted EBITDA guidance and provided an outlook above Wall Street expectations. Ecovyst forecasts fiscal year 2025 EPS of $0.50-$0.70, compared to the $0.59 consensus estimate. It also sees full-year revenue of $785-845 million, above the $775.7 million analysts were expecting.

The company announced an agreement to acquire the sulfuric acid assets of Cornerstone Chemical Company for $35 million, with the deal expected to close in the second quarter of 2025, subject to regulatory approvals.

Ecovyst’s adjusted EBITDA for Q1 was $38.9 million, down from $45.5 million in the prior-year quarter, with an adjusted EBITDA margin of 19.5%. Cash flows from operating activities decreased to $10.3 million from $36.5 million in the year-ago period.

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