Ecovyst Completes Sale of Advanced Materials & Catalysts Segment to Technip Energies

Rhea-AI Summary

Ecovyst (NYSE: ECVT) announced it has completed the sale of its Advanced Materials & Catalysts segment to Technip Energies on Jan 2, 2026. The company expects net proceeds of approximately $530 million after taxes and transaction expenses and says the transaction will reduce leverage to a Net Debt Leverage Ratio below 1.5x. Ecovyst used $465 million of proceeds to pay down its Term Loan and intends the remaining proceeds to enhance financial flexibility and support stock repurchases.

Positive

• Net proceeds of approximately $530 million
• Net Debt Leverage Ratio expected below 1.5x
• Paid down $465 million of Term Loan reducing leverage
• Management cites proceeds to support stock repurchases and growth strategies

Negative

• Divestiture of the Advanced Materials & Catalysts segment reduces company scope

Key Figures

Expected net proceeds approximately $530 million Net proceeds after taxes and transaction expenses from AM&C sale

Debt repayment $465 million Net proceeds used at closing to pay down Term Loan

Net Debt Leverage Ratio below 1.5x Expected leverage after applying AM&C sale proceeds

Retention bonus period three months Supplemental retention bonus equal to three months of base salary

Market Reality Check

$9.73 Last Close

Volume Volume 944,422 is below the 20-day average of 1,637,820, suggesting a relatively subdued pre-news session. low

Technical Shares at $9.73 were trading above the 200-day MA $8.11 and 2.75% below the 52-week high.

Peers on Argus

ECVT was down 1.42% while peers were mixed: SCL (-0.02%), ODC (+0.18%), KRO (-0.67%), MATV (-3.03%), CLMT (+0.71%). Moves appear stock-specific rather than a sector-wide reaction.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 04	Q3 2025 earnings	Positive	-5.2%	Q3 results plus updated guidance and AM&C divestment plan details.
Oct 22	Earnings call setup	Neutral	-0.1%	Announcement of scheduling for Q3 2025 earnings call and webcast.
Sep 11	AM&C sale agreement	Positive	+2.5%	Agreement to sell Advanced Materials & Catalysts segment to Technip Energies.
Aug 07	Q2 2025 earnings	Negative	-2.3%	Q2 results with higher sales but lower net income and updated guidance.
Jul 24	Q2 call scheduled	Neutral	+2.3%	Scheduling announcement for the second quarter 2025 earnings call.

Pattern Detected

Ecovyst news often sees mixed reactions: strategic actions like the AM&C sale announcement drew gains, while earnings-related updates have sometimes sold off despite strategic positives.

Recent Company History

Over the past six months, Ecovyst reported Q2 and Q3 2025 results, tightened guidance, and advanced balance sheet actions. On Sep 11, 2025 it agreed to sell the Advanced Materials & Catalysts segment to Technip Energies for $556M, expecting net proceeds of about $530M and leverage below 1.5x. Today’s completion of that sale follows through on that plan, converting the previously announced transaction into cash proceeds and debt reduction.

Market Pulse Summary

This announcement confirms the closing of Ecovyst’s sale of its Advanced Materials & Catalysts segment to Technip Energies, converting the previously agreed $556 million deal into cash proceeds. The company expects net proceeds of about $530 million, used in part to repay $465 million on its Term Loan and target a Net Debt Leverage Ratio below 1.5x. Investors may watch future updates on capital returns and growth deployment.

Key Terms

term loan financial

"the Company used $465 million of the net proceeds to pay down its Term Loan."

A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.

AI-generated analysis. Not financial advice.

WAYNE, Pa., Jan. 2, 2026 /PRNewswire/ -- Ecovyst Inc. (NYSE: ECVT) ("Ecovyst" or the "Company"), a leading provider of virgin sulfuric acid, sulfuric acid regeneration services and ex-situ catalyst activation services, announced today that the Company has completed the sale of its Advanced Materials & Catalysts segment to Technip Energies.

"We believe the sale of our Advanced Materials & Catalysts segment creates significant value for our stockholders by allowing us to realize the intrinsic value of the business," said Kurt J. Bitting, Ecovyst's Chief Executive Officer. "Net proceeds from the sale will provide for significantly reduced leverage and enhanced financial flexibility that we believe will support the implementation of our growth strategies as well as the active return of capital to stockholders through our existing stock repurchase authorization," added Bitting. "We want to thank the Advanced Materials & Catalysts team for their valued contributions to Ecovyst, and we wish them continued success as part of Technip Energies."

Arnaud Pieton, CEO of Technip Energies, commented: "Closing this transaction is an important milestone in the evolution of Technip Energies. With Advanced Materials & Catalysts, we are combining a differentiated catalysts and advanced materials platform with our process technologies and engineering expertise, creating an integrated offering that helps our customers to improve efficiency, reliability and emissions performance across their assets. We are very happy to welcome Advanced Materials & Catalysts teams and look forward to working together to deliver the next phase of growth for our customers and stakeholders."

The Company expects net proceeds after taxes and transaction expenses to be approximately $530 million, resulting in a Net Debt Leverage Ratio below 1.5x. As part of the closing, the Company used $465 million of the net proceeds to pay down its Term Loan.

Lazard Frères & Co. LLC served as financial advisor, and Ropes & Gray LLP and Babst, Calland, Clements and Zomnir, P.C. served as legal counsel to Ecovyst. Evercore served as financial advisor, and Gibson, Dunn & Crutcher LLP served as legal counsel to Technip Energies.

About Ecovyst

Ecovyst Inc. and subsidiaries is a leading integrated provider of virgin sulfuric acid, sulfuric acid regeneration services and ex-situ catalyst activation services. We support our customers through our strategically located network of manufacturing facilities. We believe that our products and services contribute to improving the sustainability of the environment.

Our Ecoservices business provides sulfuric acid recycling to the North American refining industry for the production of alkylate and also provides high quality and high strength virgin sulfuric acid for industrial and mining applications. Ecoservices also provides chemical waste handling and treatment services, as well as ex-situ catalyst activation services for the refining and petrochemical industry.

For more information, see our website at https://www.ecovyst.com.

About Technip Energies

Technip Energies is a global technology and engineering company. With leadership positions in LNG, hydrogen, ethylene, sustainable chemistry, and CO2 management, Technip Energies is contributing to the development of critical markets such as energy, energy derivatives, decarbonization, and circularity. Its complementary business segments, Technology, Products and Services (TPS) and Project Delivery, turn innovation into scalable and industrial reality. Through collaboration and excellence in execution, its 17,000+ employees across 34 countries are fully committed to bridging prosperity with sustainability for a world designed to last. Technip Energies generated revenues of €6.9 billion in 2024 and is listed on Euronext Paris. The Company also has American Depositary Receipts trading over the counter. For further information: https://www.ten.com

Presentation of Non-GAAP Financial Measures

In this press release, the Company has provided Net Debt Leverage Ratio, which is not provided in accordance with U.S. generally accepted accounting principles ("GAAP") and which presents results on a basis adjusted for certain items. The Company uses this Non-GAAP financial measure for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that this Non-GAAP financial measure is a useful financial metric to assess its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business. This Non-GAAP financial measure is not intended to replace, and should not be considered superior to, the presentation of the Company's financial results in accordance with GAAP. The use of his Non-GAAP financial measure terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. This Non-GAAP financial measure is reconciled from the measures under GAAP in the attached appendix.

Note on Forward-Looking Statements

Some of the information contained in this press release constitutes "forward-looking statements." Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "projects," "aims" and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Examples of forward-looking statements include, but are not limited to, the anticipated benefits of the closing of the Advanced Materials & Catalysts sale transaction, the expected net proceeds and the potential uses thereof, our anticipated financial position following consummation of the transaction, including our projected Net Debt Leverage Ratio, the implementation of our growth strategies, and our plans to return capital to stockholders through stock repurchases. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: regional, national or global political, economic, business, competitive, market and regulatory conditions, including the enactment, schedule and impact of tariffs and trade disputes; currency exchange rates; the effects of inflation; and other factors, including those described in the sections titled "Risk Factors" and "Management's Discussion & Analysis of Financial Condition and Results of Operations" in our filings with the SEC, which are available on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

Appendix: Reconciliation of Expected Debt to Expected Net Debt⁽¹⁾

(in millions, except ratios)
Total gross debt as of September 30, 2025			$         864
Expected net proceeds			$         530
Debt paydown			(465)
Excess Cash			$           65
Cash and cash equivalents as of September 30, 2025			$           99
Remaining Debt(2)			$         399
Less: Expected Remaining Cash(3)			185
Expected Net Debt			$         214
Adjusted EBITDA Guidance Provided in November 3, 2025 earnings release(4)			$         170
Expected Net Debt Leverage Ratio			1.3 x

⁽¹⁾ This table illustrates projected debt and projected net debt upon consummation of the sale of the Advanced Materials & Catalysts segment and the related debt paydown in connection with the consummation of such sale.

⁽²⁾ Equal to total gross debt as of September 30, 2025 less debt paydown of $465 million.

⁽³⁾ Expected Remaining Cash includes cash and cash equivalents as of September 30, 2025 of $99 million plus $21 million of expected net cash generation in the fourth quarter of 2025 plus Excess Cash as calculated above.

⁽⁴⁾ Guidance for Adjusted EBITDA from continuing operations of approximately $170 million provided in November 3, 2025 earnings release.

For more information:
Gene Shiels – Director of Investor Relations
(484) 617 1225
gene.shiels@ecovyst.com

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SOURCE Ecovyst Inc.

FAQ

What did Ecovyst (ECVT) announce on January 2, 2026?

Ecovyst announced completion of the sale of its Advanced Materials & Catalysts segment to Technip Energies.

How much did Ecovyst (ECVT) receive from the sale of Advanced Materials & Catalysts?

Ecovyst expects net proceeds of approximately $530 million after taxes and transaction expenses.

How did Ecovyst (ECVT) use the sale proceeds after closing?

The company used $465 million of the net proceeds to pay down its Term Loan.

What leverage target did Ecovyst (ECVT) report after the transaction?

Ecovyst expects a Net Debt Leverage Ratio below 1.5x following the sale.

Will Ecovyst (ECVT) return capital to shareholders after the sale?

The company said remaining proceeds will enhance financial flexibility and support the active return of capital via its stock repurchase authorization.

Who advised Ecovyst and Technip Energies on the transaction?

Lazard Frères & Co. LLC and Ropes & Gray LLP (and Babst, Calland, Clements and Zomnir) advised Ecovyst; Evercore and Gibson, Dunn & Crutcher advised Technip Energies.