Ecovyst Inc. (ECVT): Business Model Canvas [10-2024 Updated]

In today's rapidly evolving industrial landscape, Ecovyst Inc. (ECVT) stands out with its innovative business model centered on sustainability and advanced chemical solutions. By leveraging strategic partnerships, proprietary technology, and a commitment to customer-centric services, Ecovyst is reshaping the refining and petrochemical industries. Discover how this company effectively integrates its key activities and value propositions to drive growth and meet the demands of a greener future.

Ecovyst Inc. (ECVT) - Business Model: Key Partnerships

Joint ventures with Zeolyst for specialty catalysts

Ecovyst Inc. holds a 50% ownership stake in Zeolyst International, a joint venture that focuses on the production of specialty catalysts. For the three months ended September 30, 2024, the Adjusted EBITDA from the Zeolyst Joint Venture was $3.3 million, down from $9.6 million in the same period of 2023. The decline is attributed to lower sales volumes associated with catalysts used in sustainable fuels and emission control applications.

In the nine months ended September 30, 2024, the Adjusted EBITDA from the joint venture totaled $15.8 million, down from $31.3 million in the previous year. The joint venture's sales for the same period were reported at $204.1 million for 2024, compared to $236.2 million for 2023.

Partnerships with suppliers for raw materials like sulfuric acid

Ecovyst relies on strategic partnerships with suppliers to acquire essential raw materials, including sulfuric acid. The company has reported increased sales volume for virgin sulfuric acid, which contributed to an overall sales increase of $5.9 million to $179.2 million for the three months ending September 30, 2024. This increase is a direct result of favorable pricing and supplier relationships that enable Ecovyst to meet growing demand in its Ecoservices segment, which generated an Adjusted EBITDA of $55.1 million for the same period.

Collaborations with customers for waste handling and treatment services

Ecovyst's Ecoservices segment focuses on waste handling and treatment services, collaborating closely with customers to enhance operational efficiency. For the nine months ended September 30, 2024, the Ecoservices segment reported sales of $449.4 million, reflecting a growth of 1.4% compared to the same period in 2023. The segment's Adjusted EBITDA for this period was $146.3 million. These collaborations are crucial for maintaining customer satisfaction and driving revenue growth through value-added services.

Partnership Type	Details	Financial Impact (2024)
Joint Ventures with Zeolyst	50% ownership stake focusing on specialty catalysts	Adjusted EBITDA: $15.8 million (9M 2024), $3.3 million (Q3 2024)
Supplier Partnerships	Acquisition of raw materials like sulfuric acid	Sales: $179.2 million (Q3 2024)
Customer Collaborations	Waste handling and treatment services	Sales: $449.4 million (9M 2024)

Overall, these key partnerships play a significant role in Ecovyst's business model, providing essential resources and enhancing service offerings that drive financial performance.

Ecovyst Inc. (ECVT) - Business Model: Key Activities

Manufacturing advanced materials and specialty catalysts

Ecovyst Inc. operates within the Advanced Materials & Catalysts segment, which reported sales of $73.1 million for the nine months ended September 30, 2024, a decrease of $1.8 million or 2.4% compared to $74.9 million for the same period in 2023. The Adjusted EBITDA for this segment was $36.8 million, a decrease of $17.9 million or 32.7% year-over-year. This decline was primarily attributed to lower sales volumes within the Zeolyst Joint Venture, which is significant for catalysts in sustainable fuel production.

Providing sulfuric acid regeneration services

Ecovyst's Ecoservices segment achieved sales of $449.4 million for the nine months ended September 30, 2024, reflecting a modest increase of $6.0 million or 1.4% compared to $443.4 million for the same period in 2023. The growth was driven by higher sales volume of virgin sulfuric acid and regeneration services, counterbalanced by lower average selling prices due to the pass-through of lower sulfur costs. The Adjusted EBITDA for Ecoservices was $146.3 million, a decrease of $5.3 million or 3.5% from the previous year.

Conducting research and development for product innovation

Research and development (R&D) is integral to Ecovyst's strategy, particularly in enhancing product offerings in the Advanced Materials & Catalysts segment. The company allocated $7.8 million in capital expenditures for this segment during the nine months ended September 30, 2024, compared to $3.6 million in the same period of 2023. The focus on R&D is essential for maintaining competitive advantage and fostering innovation in catalyst technologies.

Key Activity	Sales (in millions)	Adjusted EBITDA (in millions)	Capital Expenditures (in millions)
Advanced Materials & Catalysts	$73.1	$36.8	$7.8
Ecoservices	$449.4	$146.3	N/A

Ecovyst Inc. (ECVT) - Business Model: Key Resources

Proprietary technology for catalyst production

Ecovyst Inc. possesses advanced proprietary technology in catalyst production, particularly through its joint venture, Zeolyst International. As of September 30, 2024, the sales generated from the joint venture amounted to approximately $76.6 million for the quarter and $204.1 million for the nine months ended September 30, 2024. The catalysts produced are utilized in sustainable fuels and emission control applications, highlighting the company's commitment to innovation and sustainability.

Skilled workforce in chemical engineering and manufacturing

Ecovyst employs a highly skilled workforce, essential for maintaining its competitive edge in the chemical manufacturing sector. The company reported an increase in selling, general, and administrative expenses, reaching $64.3 million for the nine months ended September 30, 2024, which reflects investment in human capital. This workforce is crucial in supporting the technical aspects of catalyst development and production processes.

Access to raw materials and supply chain networks

The company has established robust supply chain networks, ensuring access to necessary raw materials for its manufacturing processes. In the nine months ended September 30, 2024, Ecovyst's total sales reached $522.5 million, with Ecoservices contributing $449.4 million, largely driven by an increase in sales volume of virgin sulfuric acid. The efficient management of its supply chain is vital for minimizing costs and maximizing production efficiency.

Key Resources	Details
Proprietary Technology	Sales from Zeolyst International: $76.6 million (Q3 2024), $204.1 million (9M 2024)
Skilled Workforce	Selling, General, and Administrative Expenses: $64.3 million (9M 2024)
Supply Chain Access	Total Sales: $522.5 million (9M 2024), Ecoservices Sales: $449.4 million (9M 2024)

Ecovyst Inc. (ECVT) - Business Model: Value Propositions

High-quality, sustainable catalyst solutions for refining and petrochemical industries

Ecovyst Inc. specializes in providing high-performance catalyst solutions designed for the refining and petrochemical sectors. The company focuses on developing catalysts that enhance operational efficiency while minimizing environmental impact. For instance, the sales in the Advanced Materials & Catalysts segment for the nine months ended September 30, 2024, were $73.1 million, reflecting a slight decline of 2.4% compared to $74.9 million for the same period in 2023. This decline was primarily attributed to lower sales volume of advanced silicas, which are essential for polyethylene production.

Efficient sulfuric acid recycling services that reduce environmental impact

Ecovyst's Ecoservices division has reported significant sales growth in sulfuric acid recycling services. For the nine months ended September 30, 2024, Ecoservices generated sales of $449.4 million, an increase of 1.4% from $443.4 million in the prior year. This growth was driven by higher sales volume, particularly in virgin sulfuric acid and regeneration services, which are crucial for minimizing waste and enhancing sustainability in industrial processes. The company emphasizes its commitment to environmental stewardship through innovative recycling technologies that mitigate the ecological footprint of sulfuric acid usage.

Customizable solutions to meet specific client needs and regulatory requirements

Ecovyst offers tailored catalyst solutions that cater to the unique demands of its clients, ensuring compliance with evolving regulatory standards. The company’s ability to customize products is evident in its strategic focus on customer partnerships, allowing for the development of specialized catalysts that meet specific operational needs. This approach not only enhances client satisfaction but also fortifies customer loyalty. In the nine months ended September 30, 2024, Ecovyst's gross profit was $147.6 million, which highlights the profitability of its customized offerings despite a slight decrease from $150.6 million in the same period in 2023.

Segment	Sales (in millions)	Change (%)	Gross Profit (in millions)	Adjusted EBITDA (in millions)
Ecoservices	$449.4	1.4	$147.6	$146.3
Advanced Materials & Catalysts	$73.1	(2.4)	$147.6	$36.8
Total	$522.5	0.8	$147.6	$162.3

Ecovyst Inc. (ECVT) - Business Model: Customer Relationships

Long-term contracts with key clients in refining and chemicals sectors

Ecovyst Inc. has established long-term contracts with major clients in the refining and chemicals sectors, securing a stable revenue stream. For the nine months ended September 30, 2024, the company reported total sales of $522.5 million, with a significant portion generated from these long-term partnerships. The sales breakdown indicates a slight increase compared to $518.3 million for the same period in 2023, reflecting the resilience of these contracts amidst fluctuating market conditions.

Technical support and consultancy for product applications

Ecovyst offers extensive technical support and consultancy services to its customers, enhancing product application efficiency. This service is crucial in sectors that demand high precision and expertise, such as sustainable fuels and emission control. The company reported an Adjusted EBITDA of $162.3 million for the nine months ended September 30, 2024, down from $190.1 million in 2023, primarily due to challenges in customer demand and increased operational costs.

Service Type	2024 Adjusted EBITDA (in millions)	2023 Adjusted EBITDA (in millions)	Change (%)
Technical Support	162.3	190.1	-14.6

Customer feedback integration into product development processes

Ecovyst actively integrates customer feedback into its product development processes, aiming to enhance customer satisfaction and product relevance. This approach is reflected in the company’s commitment to innovation, which has been essential in maintaining competitive advantage. In the latest quarter, the company reported a net income of $14.3 million for Q3 2024, compared to $16.6 million in Q3 2023, indicating a need for ongoing improvement in aligning products with customer expectations.

Financial Metric	Q3 2024	Q3 2023	Change (%)
Net Income	14.3 million	16.6 million	-13.9

Ecovyst Inc. (ECVT) - Business Model: Channels

Direct sales to industrial clients in North America

Ecovyst Inc. primarily operates through direct sales to industrial clients, focusing on sectors such as petrochemicals, refining, and specialty materials. For the nine months ended September 30, 2024, the company reported total sales of $522.5 million, with the Ecoservices segment contributing $449.4 million and the Advanced Materials & Catalysts segment contributing $73.1 million. The direct sales strategy allows Ecovyst to maintain strong relationships with key industrial players, ensuring a consistent demand for its products.

Online platforms for information dissemination and inquiries

Ecovyst utilizes its online platforms not only for information dissemination but also for customer inquiries. The company’s website serves as a vital communication channel, providing detailed product information, technical data sheets, and customer service options. This digital presence enhances customer engagement and streamlines the inquiry process. As of September 30, 2024, the company had cash and cash equivalents of $123.5 million, indicating a robust financial position to support its online initiatives.

Participation in industry conferences and trade shows for visibility

Ecovyst actively participates in industry conferences and trade shows, which are essential for brand visibility and networking. These events allow the company to showcase its advanced materials and specialty catalysts, fostering relationships with both existing and potential clients. In 2024, the company’s Adjusted EBITDA was reported at $59.8 million for the third quarter, reflecting its ongoing commitment to maintaining a strong market presence.

Channel	Sales Contribution (2024)	Adjusted EBITDA (Q3 2024)	Cash Position (Sept 2024)
Direct Sales	$522.5 million	$59.8 million	$123.5 million
Online Platforms	N/A	N/A	$123.5 million
Industry Conferences	N/A	$59.8 million	$123.5 million

Ecovyst Inc. (ECVT) - Business Model: Customer Segments

Refineries and petrochemical companies requiring catalysts

The primary customer segment for Ecovyst Inc. includes refineries and petrochemical companies that require catalysts for various chemical processes. In the nine months ended September 30, 2024, the Advanced Materials & Catalysts segment generated sales of $73.1 million, a decrease from $74.9 million in the same period in 2023. The Zeolyst Joint Venture, which is significant for catalyst production, reported a total sales of $204.1 million for the nine months ended September 30, 2024, compared to $236.2 million for the same period in 2023. This segment's performance is critical as it supports the production of sustainable fuels and emission control applications, which are increasingly demanded by the refining industry as they adapt to regulatory changes and sustainability goals.

Industries needing sulfuric acid and related services

Another key customer segment consists of industries that require sulfuric acid and related services. The Ecoservices segment, which focuses on sulfuric acid regeneration and other related services, reported sales of $449.4 million for the nine months ended September 30, 2024, compared to $443.4 million during the same period in 2023. The increase in sales is attributed to higher sales volume, particularly for virgin sulfuric acid and regeneration services, which rose due to strong demand in the Gulf Coast region. The segment's Adjusted EBITDA was $146.3 million for the nine months ended September 30, 2024, slightly down from $151.6 million in 2023.

Companies focused on sustainable practices in chemical production

Lastly, Ecovyst targets companies that are increasingly focusing on sustainable practices in chemical production. As the market shifts towards sustainability, Ecovyst's products, particularly in the Advanced Materials & Catalysts segment, are positioned to meet the needs of these environmentally conscious companies. The Adjusted EBITDA for the Advanced Materials & Catalysts segment was $36.8 million for the nine months ended September 30, 2024, down from $54.7 million in 2023. This decline reflects lower sales volumes associated with catalysts used for sustainable fuels, indicating a critical area for growth as demand for greener technologies rises.

Customer Segment	Sales (9M 2024)	Sales (9M 2023)	Adjusted EBITDA (9M 2024)	Adjusted EBITDA (9M 2023)
Refineries and Petrochemical Companies	$73.1 million	$74.9 million	N/A	N/A
Industries needing Sulfuric Acid	$449.4 million	$443.4 million	$146.3 million	$151.6 million
Companies focused on Sustainability	N/A	N/A	$36.8 million	$54.7 million

Ecovyst Inc. (ECVT) - Business Model: Cost Structure

Fixed manufacturing costs, including labor and overhead.

The fixed manufacturing costs for Ecovyst Inc. consist of labor and overhead expenses associated with production activities. For the nine months ended September 30, 2024, the total cost of goods sold was reported at $124.5 million, reflecting a rise of 3.7% compared to the previous year's $120.1 million. The gross profit margin for this period stood at 30.5%, which indicates that fixed costs are a significant component of the overall expenses.

Variable costs tied to raw material procurement.

Variable costs primarily arise from raw material procurement, which has been impacted by fluctuations in prices. The company noted that the average selling prices for its products decreased due to the pass-through of lower costs associated with raw materials, including sulfur and natural gas. The total sales for the Ecoservices segment amounted to $449.4 million for the nine-month period, with a notable increase in sales volume of $36.4 million, attributed to higher demand for virgin sulfuric acid and regeneration services. The variable costs associated with these materials are crucial for maintaining profitability, especially given the adverse price movements in the raw materials market.

Cost Category	Q3 2024 (in millions)	Q3 2023 (in millions)	Change (%)
Cost of Goods Sold	124.5	120.1	3.7
Gross Profit	54.7	53.2	2.8
Operating Income	31.6	32.0	(1.3)

Research and development expenditures for innovation.

Research and development (R&D) expenditures are essential for driving innovation within Ecovyst Inc. For the nine months ended September 30, 2024, the company reported total adjusted EBITDA of $162.3 million, which reflects the impact of R&D investments aimed at enhancing product offerings and operational efficiencies. The R&D costs are considered part of the selling, general, and administrative expenses, which increased to $64.3 million compared to $59.5 million in the same period the prior year, indicating a strategic focus on innovation.

Overall, the cost structure of Ecovyst Inc. highlights the interplay between fixed and variable costs, with a significant emphasis on managing raw material expenses and investing in research and development to sustain competitive advantage in the market.

Ecovyst Inc. (ECVT) - Business Model: Revenue Streams

Sales from catalyst products and regeneration services

For the nine months ended September 30, 2024, total sales for Ecovyst Inc. were $522.5 million, reflecting a modest increase of $4.2 million compared to $518.3 million for the same period in 2023. Within this total, sales from the Ecoservices segment were $449.4 million, which represents an increase of $6.0 million, or 1.4%, compared to $443.4 million in the prior year. The growth in Ecoservices was attributed to higher sales volumes of virgin sulfuric acid and regeneration services, despite a decrease in average selling prices due to the pass-through of lower costs, including sulfur and natural gas .

Long-term contracts providing stable income

Long-term contracts play a crucial role in Ecovyst's revenue stability. The company benefits from contractual agreements that secure pricing and volume for its regeneration services, which typically experience seasonal fluctuations. For instance, the demand for gasoline products peaks in the summer months, leading to increased sales and working capital requirements, particularly in the second and third quarters . The company reported an increase in average selling prices of approximately $3.0 million for the three months ended September 30, 2024, driven by favorable contractual pricing in regeneration services .

Joint venture profits from Zeolyst operations

Ecovyst holds a 50% interest in the Zeolyst Joint Venture, which is pivotal to its Advanced Materials & Catalysts segment. For the nine months ended September 30, 2024, the Adjusted EBITDA from the Zeolyst Joint Venture was $15.8 million, down from $31.3 million in the same period of 2023, reflecting lower sales of catalysts used in sustainable fuels and emission control applications . The equity in net income from affiliated companies for this period was reported at $2.5 million, significantly lower than $16.3 million for the same period in the previous year . The decrease was primarily driven by lower sales volumes associated with the catalysts .

Revenue Stream	2024 Sales (in millions)	2023 Sales (in millions)	Change (in millions)	% Change
Ecoservices	$449.4	$443.4	$6.0	1.4%
Advanced Materials & Catalysts	$73.1	$74.9	($1.8)	(2.4%)
Total Sales	$522.5	$518.3	$4.2	0.8%

Article updated on 8 Nov 2024

Resources:

1. Ecovyst Inc. (ECVT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ecovyst Inc. (ECVT)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Ecovyst Inc. (ECVT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.