David Silver's questions to Ecovyst Inc (ECVT) leadership • Q4 2024
Question
David Silver asked for a breakdown of the 2025 CapEx budget, more color on the genesis of the Zeolyst JV impairment charge, and clarification on the pass-through timing for rising sulfur costs.
Answer
CFO Michael Feehan stated that about $5-6 million of the $80-90 million CapEx budget is a roll-over from 2024, with the spending predominantly focused on growth projects in Kansas City (polyethylene catalyst) and Chem32 (catalyst activation). He explained the non-cash impairment charge reduced a portion of the accounting 'step-up' in the JV's value from a 2016 transaction, triggered by the revised demand outlook for emission control and sustainable fuels. CEO Kurt Bitting noted that sulfur cost pass-throughs occur mostly within the same quarter and are not a material drag on Q1 results.