Ecovyst (ECVT) Bank of America Securities 2024 Leveraged Finance Conference summary

Company Overview and Market Position

• Global leader in polyacrylamide with $5 billion in sales, 8,000 employees, and 56% global market share.

• Products are essential for water treatment, oil and gas, mining, and paper industries, with a focus on sustainability and SDG alignment.

• North America is the largest market (41% of sales), followed by Asia Pacific and Europe; product portfolio exceeds 1,000 products and 1,700 patents.

• Direct sales now account for two-thirds of revenue, reducing reliance on resellers.

• Eight main manufacturing sites globally, with capacity expansion of 100,000 tons annually targeting 1.7 million tons by end of 2025.

Key Strategic and Business Highlights

• Focus on strengthening core segments through digitization, AI, and efficiency improvements to maximize production and reliability.

• Emphasis on capturing share in industrial segments via capacity expansion and leveraging technology advantages.

• Accelerating growth in sustainable and low-carbon markets by commercializing new products and expanding capacity.

• Commitment to maintaining an industry-leading safe and responsible workplace.

• Leverage reduction remains a priority, with a net debt leverage ratio of 3.2x as of September 30, 2024.

Financial Performance and Growth

• Achieved over 10% CAGR in sales over 20 years, with EBITDA CAGR of 12% and recent margins near 20%.

• Q3 2024 GAAP sales reached $179 million, with adjusted EBITDA of $60 million and a 29% margin.

• Ecoservices segment Q3 sales were $153.9 million, with adjusted EBITDA of $55.1 million and a 35.8% margin.

• Year-to-date adjusted free cash flow was $59 million, and liquidity stood at $188 million as of September 30, 2024.

• Net debt reduced by EUR 200 million in 2023, with strong cash generation and two U.S. acquisitions in Q3 for fracking.