Executive Summary

Q1 2021 results landed at the high end of the preliminary ranges despite Texas storm impacts: sales $123–$127M, operating income $1–$3M, adjusted EBITDA $40–$42M; storm reduced sales by ~5% and adjusted EBITDA by ~18% versus Q1 2020 . Management said absent the storm, results would have exceeded Q1 2020 pre-pandemic levels .
Segment performance: Refining Services sales were $100M (flat YoY) with adjusted EBITDA of $33M (down $9M due to storm); Catalysts saw Silica Catalysts sales +6% to $26M, Zeolyst JV sales $29M (down $3M YoY), and segment adjusted EBITDA of $19M with 33% margin .
2021 guidance reaffirmed: sales $555–$565M, Zeolyst JV $140–$150M, adjusted EBITDA $215–$225M, adjusted FCF $75–$85M; Q2 outlook calls for ~15% sequential GAAP sales growth and ~10% Zeolyst JV sales growth, with H2 adjusted EBITDA ~40% above H1 .
Strategic catalysts: sale of Performance Chemicals expected in Q3 with after-tax proceeds now estimated at ~$995M (up from $950M), enabling a special dividend of $2.50–$3.25/share and $450–$550M debt reduction; rebranding to “ecovyst” as a pure-play catalysts and services company .

What Went Well and What Went Wrong

What Went Well

Resilience and execution: “strong operational and financial performance” with Q1 results at high end of ranges; absent storm, sales, adjusted EBITDA and margins would have exceeded Q1 2020 pre-pandemic levels .
Silica Catalysts strength: sales +6% to $26M led by polyethylene catalysts; Catalysts segment margin at 33% despite JV volume headwinds .
Strategic progress: nearing completion of portfolio transformation; updated after-tax net proceeds on Performance Chemicals to ~$995M and unveiled Ecovyst brand positioning for sustainability-focused growth .

What Went Wrong

Storm impact: winter storm Uri reduced Refining Services volumes and added repair costs, cutting segment adjusted EBITDA by $9M and compressing company margins ~460 bps in Q1 .
Zeolyst JV softness: hydrocracking and specialty catalyst change-outs deferred, pushing JV sales down $3M YoY; unfavorable fixed cost absorption on lower inventories pressured margins (expected to reverse in H2) .
Q1 adjusted EBITDA down vs prior year: $40–$42M vs $49M in Q1 2020 due to storm and JV timing headwinds; EPS detail not provided in preliminary release .

Financial Results

Company YoY comparison (Q1 2020 → Q1 2021)

Metric	Q1 2020	Q1 2021 (prelim)
Revenue ($USD Millions)	$126	$123–$127
Operating Income ($USD Millions)	$12	$1–$3
Adjusted EBITDA ($USD Millions)	$49	$40–$42
Adjusted EBITDA Margin (%)	38.9% (49/126)	~32.3%–33.6% (midpoint 41/125)

Notes: Q1 2021 figures are preliminary ranges; margins derived from disclosed sales/EBITDA midpoints .

Segment performance (sequential trend: Q4 2020 → Q1 2021)

Segment Metric	Q4 2020	Q1 2021
Refining Services Sales ($USD Millions)	$103	$100
Refining Services Adjusted EBITDA ($USD Millions)	$41	$33 (storm impact -$9M)
Refining Services Adjusted EBITDA Margin (%)	~39.8% (41/103)	~33.0% (33/100)
Silica Catalysts Sales ($USD Millions)	$21	$26 (+6% YoY)
Zeolyst JV Sales ($USD Millions)	$29	$29 (down $3M YoY)
Catalysts Adjusted EBITDA ($USD Millions)	$15 (30% margin)	$19 (33% margin)

KPIs (Q1 2021)

KPI	Q1 2021
Storm Impact on Sales	~$6M
Storm Impact on Adjusted EBITDA	~$9M
Margin Compression vs PY	~460 bps
Take-or-pay and sulfur pass-through effects	Price uplift largely pass-through; ~$3M pass-through cited

Estimates vs Actuals (Q1 2021)

Metric	Consensus	Actual/Prelim
Revenue ($USD Millions)	N/A (S&P Global consensus unavailable)	$123–$127
EPS ($USD)	N/A (S&P Global consensus unavailable)	Not disclosed in preliminary release
Adjusted EBITDA ($USD Millions)	N/A (S&P Global consensus unavailable)	$40–$42

Consensus via S&P Global was not available at the time of this analysis due to data access limits. Company provided preliminary ranges only .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
GAAP Sales	FY 2021	$555–$565M	$555–$565M	Maintained
Zeolyst JV Sales	FY 2021	$140–$150M	$140–$150M	Maintained
Adjusted EBITDA	FY 2021	$215–$225M	$215–$225M	Maintained
Adjusted Free Cash Flow	FY 2021	$75–$85M	$75–$85M	Maintained
Special Dividend	At PChem sale close	$2.50–$3.25/share	$2.50–$3.25/share	Maintained
Debt Reduction	At PChem sale close	$450–$550M	$450–$550M	Maintained
Pro Forma Leverage	YE 2021	Mid–high 3s	Mid–high 3s	Maintained
Corporate Cost Savings	FY 2021	~$3M; run-rate $10–$15M by Q2 2022	~$3M; run-rate $10–$15M by Q2 2022	Maintained
Q2 Sales (GAAP)	Q2 2021 seq. vs Q1	N/A	~+15% vs Q1	New detail
Q2 Zeolyst JV Sales	Q2 2021 seq. vs Q1	N/A	~+10% vs Q1	New detail
Q2 Adjusted EBITDA	Q2 2021	N/A	Largely in line with prior year; +$5M higher turnaround costs	New detail
H2 Adjusted EBITDA vs H1	FY 2021	N/A	~+40% vs H1	New detail

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2020)	Previous Mentions (Q4 2020)	Current Period (Q1 2021)	Trend
Refining utilization & mobility	Gasoline demand ~90% of 2019; utilization ~80%; normalization post hurricanes	Rebound continuing; strong RS margins ~40%	Vehicles miles, refinery utilization >90% expected in Q2; RS volumes recovering post storm	Improving
Hydrocracking catalyst timing	Deferred change-outs; JV sales ~half prior year	Deferred change-outs; JV sales $29M; Catalysts margin 30%	H2 rebound expected; JV sales $29M; Catalysts margin 33%	Recovering in H2
Renewable fuels & Chem32	N/A	Acquired Chem32 to extend services; niche activation tech	Early synergies; rising renewable catalysts demand; off-site activation benefits	Expanding
Storms / weather events	Hurricanes impacted volumes	N/A	Winter storm Uri materially impacted RS sales/EBITDA; margin -460 bps	Transitory headwind
Pricing / pass-through	RS pricing resilient; sulfur pass-through affected sales	Pricing resilience contributed to margins	Low single-digit underlying price improvement; ~$3M pass-through; take-or-pay mitigated volumes	Firm
Regulatory environment	Sustainability positioning; clean energy transition	Sustainability-focused growth strategy	Expect tighter CAFE/Tier 3, EU/China standards; supports alkylation and emission catalysts	Supportive tailwind
Leverage / capital allocation	Target ~4x post PM sale	Pro forma mid–high 3s 2021; special dividend plan	Low 3s by end-2022 target via ~0.5x/year deleveraging; bolt-ons possible	Deleveraging path intact

Management Commentary

“Absent the storm, our results would have exceeded the first quarter of last year, which was prior to the effects of the pandemic.” — Belgacem Chariag .
“Refining Services sales for the quarter of $100 million were in line with the prior year… Adjusted EBITDA of $33 million was reduced by $9 million due to the storm.” — Mike Crews .
“Sales for silica catalysts improved by 6% to $26 million… Zeolyst Joint Venture sales of $29 million were down $3 million… Adjusted EBITDA of $19 million and margin of 33%.” — Mike Crews .
“We unveiled ecovyst, the future brand for our pure-play catalyst and services company.” — Belgacem Chariag .
“We now expect net proceeds to be approximately $995 million, up from our original estimate of $950 million.” — Belgacem Chariag .
“We are planning to use the net proceeds… to pay a special dividend of $2.50 to $3.25 per share and reduce debt by $450 million to $550 million.” — Mike Crews .

Q&A Highlights

Second-half strength: H2 driven by alkylation recovery (summer driving) and hydrocracking change-outs; volume leverage accretive to margins .
Pricing dynamics: RS price uplift largely sulfur pass-through (~$3M) and take-or-pay; underlying pricing low single-digit positive despite mix/storm noise .
Catalysts restocking vs catch-up: Management framed it as catching up with growth; renewable diesel catalysts and Chem32 activation expected to strengthen through Q2–Q4 .
Leverage outlook: Pro forma mid–high 3s at YE21; path to low 3s by end-2022 via ~0.5x/year deleveraging; bolt-on M&A considered but debt reduction remains priority .
Chem32 synergies: Off-site sulfiding/activation reduces downtime and safety risk; unique IP supports renewable fuels; synergies from Gulf Coast footprint and customer relationships .
Regulatory drivers: Expect tighter CAFE/Tier 3 and global emissions standards; incremental demand for high-octane alkylate and emission-control catalysts .

Estimates Context

Consensus (S&P Global) was unavailable at the time of this analysis due to data access limits; the company furnished preliminary ranges instead .
Q1 adjusted EBITDA of $40–$42M vs prior-year $49M reflects storm impact and deferred catalyst orders; management indicated results were at the high end of initial ranges .
With H2 weighted earnings and reaffirmed FY guidance, estimates likely need to reflect stronger H2 Zeolyst JV sales and RS volume recovery per company commentary .

Key Takeaways for Investors

Transitory weather headwind masked underlying recovery; absent storm, Q1 would have exceeded pre-pandemic Q1 2020, supporting confidence in FY guidance .
Sequential Catalysts momentum (Silica +6% sales; margin 33%) and expected H2 hydrocracking rebound position ECVT for back-half leverage and margin expansion .
RS fundamentals firm with take-or-pay contracts and sulfur pass-through; underlying pricing low-single-digit positive; expect utilization >90% to lift volumes in Q2–Q3 .
Strategic actions (Performance Chemicals sale, special dividend, debt paydown) provide near-term catalysts and de-risk balance sheet; after-tax proceeds estimated ~$995M .
Chem32 adds a differentiated services lever to renewable fuels catalyst activation with early synergies; expands addressable market and enhances cross-sell within refiners .
Regulatory tailwinds (Tier 3, EU/China standards) sustain alkylate and emission-control catalyst demand, reinforcing medium-term growth thesis .
Trading lens: H2 skew and reaffirmed guidance suggest investors should look through Q1 storm impact; watch Q2 sequential uptick in GAAP and JV sales as confirmation of trajectory .

Ecovyst Inc. (ECVT)·Q1 2021 Earnings Summary