NYSE$ECVT

Ecovyst Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Ecovyst's fourth quarter and full year results for 2023 were reported.

Ecovyst reported Q4 2023 sales of $172.8 million and net income of $30.0 million. Adjusted EBITDA increased by 0.9% to $69.8 million compared to Q4 2022, driven primarily by higher sales volume. The company's diverse end-use exposures and stable demand fundamentals contributed to the solid financial results.

  • Sales were $172.8 million, a decrease from $182.8 million in Q4 2022, primarily due to lower sulfur costs.
  • Net income from continuing operations was $30.0 million, with diluted income per share of $0.26.
  • Adjusted EBITDA increased 0.9% year-over-year to $69.8 million, with an Adjusted EBITDA margin of 30.9%.
  • Ecovyst advanced strategic objectives, positioning for growth in sustainable fuels, advanced recycling, and low-carbon technologies.

Headline financials

Total Revenue

$173M

Previous: $183M-5.5%
EPS (adj)

$0.22

Previous: $0.25-12.0%
Adjusted EBITDA

$69.8M

Previous: $69.2M+0.9%
Capital Expenditures

-$11.7M

Previous: $19.4M-160.1%
Net Income

$30M

Previous: $21.5M+39.5%
Operating Income

$22.8M

Previous: $22.1M+3.2%
Gross Profit

$47.3M

Previous: $49.5M-4.4%
Stock-Based Comp

$3.48M

Previous: $3.21M+8.4%

Revenue & EPS history

Ecovyst · Revenue · Quarterly

$173M

Q4 2023-5.5%vs Q4 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Ecovyst · $148M total across 1 segment · Q3 2023

  • Ecoservices
    $148M-24.6%

Forward guidance

Ecovyst provided full year 2024 guidance, anticipating solid performance in regeneration services offset by timing-related factors for hydrocracking catalysts and cautiousness regarding economic conditions moderating demand recovery.

Tailwinds

  • Sales of $715 million to $755 million
  • Sales of $145 million to $165 million for proportionate 50% share of Zeolyst Joint Venture
  • Adjusted EBITDA of $255 million to $275 million
  • Adjusted Free Cash Flow of $85 million to $105 million
  • Ecovyst is firmly committed to executing the strategy that we presented at our November 2023 investor day that we believe will deliver long-term value for our shareholders.

Headwinds

  • We believe that our regeneration services business will experience another solid year in 2024, which will be somewhat offset by a timing related off-cycle year for hydrocracking catalysts.
  • We are also cautious about the continuing uncertain economic conditions moderating demand recovery for virgin sulfuric acid and polyethylene catalysts.
  • Capital expenditures of $70 million to $80 million
  • Interest expense of $45 million to $55 million
  • Effective tax rate in the mid 20% range

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 Q4 2023

Historical avgQ4 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

Earnings price reactions
QuarterReport dateReaction (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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