NYSE$ECVT
Ecovyst Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Ecovyst's financial performance increased year-over-year, driven by strong pricing and favorable mix, but was impacted by lower sales volume and unplanned operational downtime.
Ecovyst Inc. reported second-quarter results with sales of $184.1 million. Net income increased by 36% year-over-year to $26.1 million, and Adjusted EBITDA increased by 9% year-over-year to $79.3 million. The company updated its full year 2023 guidance to reflect anticipated softening of demand in select end uses and the impact of an unforeseen outage and production restriction at one of its sites.
- Sales were $184.1 million, compared to $225.2 million in the second quarter of 2022, with the reduction primarily driven by lower pass-through of sulfur costs.
- Net income increased 36% year-over-year to $26.1 million, with diluted net income per share of $0.22, up 57% year-over-year.
- Adjusted EBITDA increased 9% year-over-year to $79.3 million, with an Adjusted EBITDA margin of 34.7%.
- The company repurchased 4,000,000 shares at an average price of $10.88, for a total cost of $43.5 million.
Headline financials
Revenue & EPS history
Ecovyst · Revenue · Quarterly
$184M
Revenue by segment
Ecovyst · $158M total across 1 segment · Q2 2023
- Ecoservices$158M-18.1%100.0%
Forward guidance
Ecovyst updated its 2023 financial outlook to reflect weaker demand in nylon and polyethylene end uses, as well as the impact of an unplanned equipment outage and production restriction at the Ecoservices’ Dominguez site. Adjusted EBITDA is now expected to be in the range of $260 million to $275 million.
Tailwinds
- Expectations for regeneration services demand remain positive.
- Sales of hydrocracking and other zeolite-based catalysts remains positive.
- Potential expansion of production of renewable fuels.
- Low-carbon technologies driving growth in the mining sector.
- Future growth opportunities, as evidenced by our recently announced collaboration with Valoregen on plastics recycling.
Headwinds
- Evidence of softer demand in end uses more linked to global macroeconomic fundamentals.
- Lower demand expectations and de-stocking from certain customers.
- Weaker demand in the nylon and polyethylene end uses.
- Unplanned equipment outage and production restriction at the Ecoservices’ Dominguez location.
- Impact of both lost sales volume and higher maintenance and repair costs associated with the unplanned equipment outage.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2023
-1.5%
Avg return
Earnings day
-1.9%
Avg return
5 days after
+0.2%
Avg return
30 days after
49%
20 / 41 earnings
Positive
+19.6%
Q3 2024
Best reaction
-29.9%
Q2 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +4.3% | +0.1% | -8.5% | |
| Q4 2025 | +1.1% | +1.3% | +13.4% | |
| Q3 2025 | -1.3% | -5.5% | +10.8% | |
| Q1 2025 | +3.5% | +13.0% | +24.6% | |
| Q4 2024 | -14.4% | -18.6% | -22.2% | |
| Q3 2024 | +19.6% | +22.1% | +24.8% | |
| Q2 2024 | -29.9% | -34.8% | -24.7% | |
| Q1 2024 | +3.0% | +2.6% | -2.2% | |
| Q4 2023 | -1.3% | -7.6% | +14.0% | |
| Q3 2023 | +4.4% | +2.0% | +9.0% | |
| Q2 2023 | -17.2% | -18.3% | -14.4% | |
| Q1 2023 | -7.1% | -10.3% | -8.5% | |
| Q4 2022 | -1.4% | +6.6% | +4.8% | |
| Q3 2022 | -5.3% | -2.8% | -7.4% | |
| Q2 2022 | +5.2% | +4.5% | -4.6% | |
| Q1 2022 | -10.2% | -13.2% | -7.5% | |
| Q4 2021 | +9.4% | +10.3% | +19.8% | |
| Q1 2016 | -16.5% | -24.4% | -24.2% | |
| Q3 2021 | +3.6% | +5.1% | -22.1% | |
| Q2 2021 | +0.8% | +7.0% | -15.7% | |
| Q1 2021 | +1.9% | +5.3% | +9.5% | |
| Q4 2020 | +0.3% | +0.3% | -6.4% | |
| Q3 2020 | -3.4% | -5.3% | +9.2% | |
| Q2 2020 | -8.2% | -8.9% | -11.2% | |
| Q1 2020 | -1.1% | +4.5% | +19.7% | |
| Q4 2019 | +0.5% | -9.2% | -37.9% | |
| Q3 2019 | -0.2% | -0.2% | -3.3% | |
| Q2 2019 | +7.5% | +10.3% | +9.2% | |
| Q1 2019 | -0.1% | -2.0% | -1.0% | |
| Q4 2018 | -2.2% | -2.5% | -9.4% | |
| Q3 2018 | +1.9% | -4.8% | -6.4% | |
| Q2 2017 | -3.0% | -1.9% | -2.2% | |
| Q2 2018 | +0.2% | -0.1% | -0.8% | |
| Q1 2017 | -0.1% | +3.8% | +27.6% | |
| Q1 2018 | -2.6% | -1.0% | +25.3% | |
| Q2 2016 | -4.3% | -3.8% | +3.2% | |
| Q4 2015 | -4.3% | -3.8% | +3.2% | |
| Q4 2017 | +3.5% | +4.1% | +8.7% | |
| Q3 2016 | +0.7% | -0.3% | +4.4% | |
| Q4 2016 | +0.7% | -0.3% | +4.4% | |
| Q3 2017 | +1.3% | -0.6% | +3.3% |
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