Ecovyst Q3 sales miss estimates

Overview

• Ecovyst Q3 sales from continuing ops grow 33% yr/yr but miss analyst expectations

• Adjusted EBITDA for Q3 misses analyst estimates despite Ecoservices segment growth

• Company announces divestiture of Advanced Materials & Catalysts for $556 mln

Outlook

• Ecovyst revises 2025 sales guidance to $700 mln-$740 mln for Ecoservices

• Company expects 2025 Adjusted EBITDA of approximately $170 mln

• Ecovyst anticipates $75 mln-$85 mln in Adjusted Free Cash Flow for 2025

Result Drivers

• VIRGIN SULFURIC ACID DEMAND - Strong demand for virgin sulfuric acid contributed to sales growth, supported by mining applications and copper mine expansion projects

• FAVORABLE PRICING - Favorable contractual pricing in regeneration services supported Ecoservices segment growth despite lower volumes

• CUSTOMER DOWNTIME - Unplanned and extended customer downtime led to lower regeneration services volume, partially offsetting sales growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified chemicals peer group is "buy"

• Wall Street's median 12-month price target for Ecovyst Inc is $12.00, about 31.1% above its November 3 closing price of $8.27

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn59cNhza

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)