Ecovyst Inc. (ECVT): Business Model Canvas [Dec-2025 Updated]

You're looking past the noise to see exactly how Ecovyst Inc. (ECVT) is structured now, focusing purely on their Ecoservices pivot after the recent changes. As an analyst who's seen a few corporate shifts, I can tell you the core value is in their essential sulfuric acid regeneration for North American refiners, targeting $\text{700M}$ to $\text{740M}$ in sales for 2025. We need to see how they manage the $\text{864.3M}$ in gross debt while executing on those long-term contracts; this canvas breaks down every moving part, so check out the details below to see the real mechanics.

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

You're looking at the core relationships that keep Ecovyst Inc. running smoothly, especially as they integrate major acquisitions and manage their balance sheet. These partnerships are critical for supply security and revenue stability, so let's look at the hard numbers defining them as of late 2025.

Long-term contracts with key sulfur raw material suppliers

Ecovyst Inc. relies on established, long-term contracts and relationships with many of its key raw material suppliers across all business segments. This structure helps insulate operations from immediate spot-market volatility. For the Ecoservices segment, which is the core of the continuing operations, contractual mechanisms are already in place to manage input costs.

Here's what we know about the contractual framework supporting raw material flow:

• Approximately 90% of Ecoservices segment sales occurred under contracts that included some form of raw material pass-through clause in 2024.
• Approximately 50% of Ecoservices production capacity serves customers under staggered multi-year commitment contracts.
• Excluding contracts with automatic evergreen provisions, about 40% of the sulfuric acid volume for the year ended December 31, 2024, was under contracts expiring at the end of 2025 or beyond.

Strategic alliances with major North American refiners

The relationship with North American refiners is central to the Ecoservices business, as it provides the spent acid for regeneration services, which is key to producing alkylate, a cleaner-burning gasoline component. These alliances are cemented by multi-year service agreements.

The regeneration service contracts provide high revenue visibility. For instance, the third quarter 2025 sales of $204.9 million reflected favorable contractual pricing for these regeneration services.

Technology partners for proprietary acid regeneration processes

Ecovyst Inc. partners with other experts to drive innovation in its catalyst and advanced materials space, which is distinct from the core regeneration service itself but leverages shared technological expertise. For the Advanced Materials & Catalysts segment, which is slated for divestiture, the partnership structure is very long-term.

Specifically, through the Zeolyst Joint Venture, scientists work with partners like Shell R&D centers to develop novel refining catalysts. Furthermore, for the Advanced Silicas business, Ecovyst Inc. is either the sole or dual supplier to key global customers under various term agreements.

• Term agreements for polyethylene catalysts and advanced silicas supports extend up to 10 years.
• A multi-year supply agreement is in place for MMA catalyst with a leading global producer.

Cornerstone Chemical Company for Waggaman asset integration

The integration of the Waggaman, Louisiana, sulfuric acid production assets from Cornerstone Chemical Company is a key 2025 partnership/transaction milestone. Ecovyst Inc. completed this acquisition on May 6, 2025. This move was expected to translate into increased network flexibility and greater supply reliability for customers.

The transaction details are concrete:

• Acquisition completion date: May 6, 2025.
• Total consideration: $35.0 million plus customary working capital adjustments of $6.3 million.
• The acquisition is expected to provide a significant increase in capacity for virgin sulfuric acid and regeneration services.

Financial institutions for managing $864.3 million in gross debt

Managing the balance sheet requires strong relationships with financial institutions, particularly following strategic capital deployment like the Waggaman acquisition. While the Q1 2025 report showed gross debt of $868.6 million as of March 31, 2025, the partnership context involves managing the stated debt level, which you noted as $864.3 million.

The company is actively working to optimize this structure. Ecovyst Inc. announced an agreement to divest its Advanced Materials & Catalysts segment for $556 million, with expected net proceeds around $530 million, explicitly aimed at decreasing long-term debt. The guidance for interest expense for the full year 2025 is set between $32 million to $34 million.

Here is a snapshot of the financial context surrounding this debt management partnership:

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

You're looking at the core engine of Ecovyst Inc., which, as of late 2025, is heavily focused on its Ecoservices segment following the strategic decision to divest the Advanced Materials & Catalysts unit.

Sulfuric acid regeneration for North American refiners

This is the bread and butter of the Ecoservices division, providing essential recycling services to the North American refining industry, primarily for the production of alkylate. The business benefits from favorable contractual pricing, which helped drive Q3 2025 Adjusted EBITDA for the Ecoservices segment to $63.6 million, up from $55.1 million in Q3 2024. The segment's margin in Q3 2025 hit 31.0%. Still, regeneration volume saw a temporary dip due to external factors, which management noted was a drag on overall segment performance.

Manufacturing and distribution of virgin sulfuric acid

Ecovyst Inc. also manufactures and distributes high-quality, high-strength virgin sulfuric acid for industrial and mining applications. Demand here has been robust; Q3 2025 saw higher sales volume for virgin sulfuric acid, which helped offset the lower regeneration volume. Mining applications are a key growth driver, representing 20% to 25% of sales. The company expects this segment to benefit from increased virgin sulfuric acid volume in 2026, supported by robust mining demand.

Managing planned and unplanned customer turnaround activities

A key activity involves managing the logistics around customer maintenance schedules. Planned turnaround activities caused a drag on results in Q1 2025, but management noted these were largely behind them by early May 2025. More recently, unplanned and extended customer downtime adversely impacted regeneration services volume in Q3 2025. The company is actively working to manage these disruptions to maintain supply reliability for its refining customers.

Executing organic growth and bolt-on acquisitions like Waggaman

Ecovyst Inc. is clearly prioritizing strategic, accretive bolt-on inorganic growth within Ecoservices. The most significant recent move was completing the acquisition of the Waggaman, Louisiana, sulfuric acid production assets from Cornerstone Chemical Company on May 6, 2025. This was a cash deal costing $35.0 million plus customary working capital adjustments of $6.3 million. This acquisition immediately enhanced network flexibility and supply reliability, with sales contributions from Waggaman noted in Q2 and Q3 2025 results. Management is also executing organic growth by driving expansion projects at Houston and Waggaman to meet anticipated demand.

Here's a quick look at the financial context surrounding these core activities as of the Q3 2025 reporting:

Research and development for process optimization and new applications

While the strategic focus has shifted post-divestiture announcement (sale price $556 million, net proceeds $\approx$ $530 million), Ecovyst Inc. still emphasizes innovation. The strategy targets more than 80% of its innovation pipeline toward customer sustainability transitions. This includes process optimization within Ecoservices to enhance efficiency and support the growth anticipated from the Waggaman site and Houston expansion. The company is also looking ahead to 2026, anticipating higher regeneration volume and positive contractual pricing.

For the full year 2025, the updated guidance for continuing operations projects sales between $700 million and $740 million, with Adjusted EBITDA expected around $170 million. Finance: review the Q4 2025 capital allocation plan against the $75 million to $85 million Adjusted Free Cash Flow guidance by next Tuesday.

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

You're looking at the core assets Ecovyst Inc. (ECVT) relies on to drive its Ecoservices segment, especially as they streamline the business by divesting the Advanced Materials & Catalysts segment.

Strategically located network of manufacturing facilities (Gulf Coast)

Ecovyst Inc. supports its North American refinery industry customers through a network of facilities. You see tangible evidence of this strategic positioning with recent investments aimed at boosting capacity in key areas. Specifically, the company highlighted plans to expand storage and logistics in Houston and is investing in the Waggaman facility to increase sulfuric acid capacity. This network is central to their regeneration services, which recycle spent acid for alkylate production. The Ecoservices business is the leading provider of these services to the North American refining industry.

Proprietary sulfuric acid regeneration technology and expertise

The intellectual property here is deep, built on over a century of sulfuric acid processing know-how. The Ecoservices segment operates seven sulfuric acid regeneration units, processing 1.5 million tons of spent acid annually that would otherwise go to landfills or deep-well disposal. Beyond regeneration, Ecovyst Inc. employs proprietary technology in its treatment services, such as the THIOCAT® fixed-bed sulfiding technology used for catalyst activation. Also, the company offers a high standard of technical and analytical service to ensure optimum product performance.

• Ecoservices provides end-to-end regeneration services supporting alkylate production for over 75 years.
• Regeneration process turns spent acid into a usable component via incineration and purification.
• Expertise supports the production of specialty grade virgin sulfuric acid for mining and industrial uses.

Long-term, multi-year customer contracts (approx. 50% of Ecoservices capacity)

Contractual stability is a major asset here, providing a predictable revenue floor. For the Ecoservices segment, approximately 50% of production capacity is locked in with customers under staggered multi-year commitment contracts for regeneration services. These agreements are structured to enhance sales and margin predictability because they typically feature take-or-pay volume protection and/or quarterly price adjustments tied to inputs like commodity costs, labor, and natural gas. This structure helps insulate the business from raw material volatility, honestly.

Skilled technical and operations personnel

The execution of complex chemical processing and regeneration requires specialized human capital. This resource is demonstrated by the company's long history of innovation expertise and its commitment to offering a high standard of technical and analytical service. The operational reliability, supported by the seven regeneration units, speaks directly to the quality and experience of the technical and operations teams managing these critical assets.

Available liquidity of $184.7 million as of Q3 2025

Financial flexibility is a key resource, especially heading into the expected close of the AM&C segment sale in Q1 2026. Here's the quick math on the balance sheet strength as of September 30, 2025.

What this estimate hides is that the company anticipates applying between $450 million and $500 million of the net proceeds from the segment sale to reduce the term loan, which will significantly alter the post-close cash balance.

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

Essential sulfuric acid recycling for cleaner alkylate production

• Regeneration of approximately 5 million barrels of Sulfuric Acid annually enables the production of alkylate.
• Alkylate is a key component for blending cleaner and more efficient fuels.
• Regeneration services customer contracts are typically on five- to ten-year terms.

Reliable, high-quality virgin sulfuric acid for industrial and mining

Ecovyst provides high quality and high strength virgin sulfuric acid for industrial and mining applications. The revised 2025 financial outlook for Ecoservices sales, which includes virgin sulfuric acid, is $700 million to $740 million. Favorable demand is expected for virgin sulfuric acid sales into mining applications in the second half of 2025.

Environmental sustainability through acid regeneration services

• Regeneration services avoid significant landfill or deep well disposal.
• In 2025, Ecovyst received a Gold rating from EcoVadis.
• The Gold rating placed Ecovyst in the top 95% of all rated companies.
• Ecovyst is the only North American Sulfuric Acid producer to achieve this Gold rating level as of 2025.

Supply security via a robust, strategically located asset network

Ecovyst supports customers globally through its strategically located network of manufacturing facilities. The network was expanded in Q2 2025 with the acquisition of Cornerstone Chemical Company's sulfuric acid production assets in Waggaman, Louisiana, for $35.0 million plus customary working capital adjustments of $6.3 million. This acquisition is expected to bolster the resilience of the overall plant network.

Contractual pricing mechanisms that mitigate commodity price risk

Favorable contractual pricing for regeneration services was a driver for Q2 2025 sales and Q3 2025 Adjusted EBITDA. Virgin sulfuric acid customer contracts are typically on one- to five-year terms. As of year-end 2024, approximately 40% of sulfuric acid volume was under contracts expiring at the end of 2025 or beyond.

Key Ecoservices Financial and Operational Metrics (Late 2025 Estimates/Actuals)

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

You're looking at how Ecovyst Inc. locks in revenue and supports its core industrial customers. The relationship structure is heavily weighted toward long-term, embedded service agreements, especially within the Ecoservices segment, which is the focus following the announced divestiture of the Advanced Materials & Catalysts business.

Dedicated account management for long-term contract stability

Ecovyst Inc. builds stability through multi-year commitments. In the Ecoservices segment, approximately 50% of production capacity is dedicated to customers under staggered multi-year commitment contracts for regeneration services. These contracts include provisions for value pricing resets and cost pass-throughs, which helps stabilize margins. As of the end of 2024, excluding contracts with automatic evergreen provisions, approximately 40% of the sulfuric acid volume was covered by contracts set to expire at the end of 2025 or later. The company's strategy, as stated by the CEO in November 2025, involves being confident in vying for and propelling customers' expansion and growth. The revised 2025 guidance for Ecoservices sales from continuing operations is between $700 million and $740 million.

High-touch technical support for complex regeneration services

The regeneration service is complex, requiring deep integration with customer refinery operations. The Ecoservices segment delivered an Adjusted EBITDA margin of 31.0% in the third quarter of 2025, reaching $63.6 million in Adjusted EBITDA for that quarter. This performance reflects, in part, the value derived from favorable contractual pricing for these regeneration services, which suggests the technical support and reliability are priced into the relationship. The company is focused on operational efficiency, having achieved improved uptime in this segment.

Contractual cost pass-through clauses for raw material price changes

Mitigating input volatility is key to relationship stability, as it prevents surprise price hikes for customers. In 2024, roughly 90% of Ecoservices segment sales were under contracts featuring some form of raw material pass-through clause. This mechanism covers costs like commodity inputs, labor, and natural gas. For the full year 2025, the guidance anticipates a projected pass-through of sulfur costs of approximately $65 million, directly impacting the top line.

Direct, relationship-based sales model with major customers

The sales approach is direct, focusing on long-term partnerships rather than transactional sales, particularly for specialized products. While the Catalyst Technologies segment is being divested, its historical relationship structure highlights the depth sought: term agreements for polyethylene catalysts and advanced silicas supports extended up to 10 years with key global customers. The current focus in Ecoservices is on supporting demand in sectors like mining, where virgin sulfuric acid sales are expected to benefit from incremental demand associated with copper mine expansion projects in the fourth quarter of 2025.

Focus on customer expansion projects for future volume growth

Ecovyst Inc. actively invests to support customer growth, which secures future volume. Strategic investments include the expansion project at the Kansas City site, which was expected to finish in 2025, and advancement at the Chem32 site, both intended to support anticipated growth in catalyst production and activation capacity. The company anticipates higher CapEx in 2026 to scale the recently acquired Waggaman site and other growth projects to capture upside from sustained demand in mining and onshoring applications.

Here are some key figures related to the Ecoservices customer base and financial structure as of late 2025:

The relationships are cemented by service reliability and contractual frameworks designed to manage cost dynamics:

• Regeneration services contracts feature potential for value pricing resets.
• Freight expenses are generally passed through directly to customers.
• Customer commitments support ongoing expansion of polyethylene production capacity.
• The company is targeting more than 90% of investment for customer sustainability transition.

Ecovyst Inc. (ECVT) - Canvas Business Model: Channels

You're looking at how Ecovyst Inc. gets its specialized products and services-like sulfuric acid regeneration and advanced catalysts-to the customer. The channel strategy here is built around physical proximity, long-term contracts, and complex logistics, which makes sense for essential, high-volume industrial inputs.

Direct sales force managing long-term customer relationships is the core for securing the high-value, recurring business in the Ecoservices segment. This approach relies on deep technical knowledge and what Ecovyst calls customer intimacy, especially for securing the long-term customer commitments that underpin the silica catalyst expansion plans. This isn't about transactional sales; it's about embedding their service into the customer's operational cycle, like refinery alkylation or mining supply chains.

The physical infrastructure is key to this entire model. Ecovyst supports customers globally through its strategically located network of manufacturing facilities. As of the third quarter of 2025, the company was focused on its continuing operations, which are primarily the Ecoservices segment, supported by a network that includes the recently expanded Gulf Coast footprint. Before the recent divestiture announcement, the company reported having 12 facilities worldwide.

Strategically located production and regeneration facilities are the backbone. The recent strategic move was the completion of the acquisition of sulfuric acid production assets in Waggaman, Louisiana, from Cornerstone Chemical Company in the second quarter of 2025. This site, near the existing Baton Rouge facility, was acquired for a purchase price of $35.0 million plus customary working capital adjustments of $6.3 million. This immediately enhanced network flexibility and supply reliability for virgin sulfuric acid and regeneration services customers along the Gulf Coast.

For the Advanced Materials & Catalysts business, which was slated for divestiture, channel strength was demonstrated by capacity expansion at the Kansas City, KS site, which was expected to start up late in 2025, increasing silica catalyst production capability by approximately 50%.

Integrated logistics for efficient acid and spent acid transport is crucial for the Ecoservices segment, which moves large volumes of sulfuric acid and spent acid. While specific logistics cost or volume data isn't public, the Waggaman acquisition was explicitly aimed at strengthening this network to support future growth needs on a cost-efficient basis. The company's revised 2025 guidance for Ecoservices sales from continuing operations is set between $700 million to $740 million.

The channels are also defined by the financial reporting structure itself, which provides defintely clear communication to the market. You can track the performance of these channels through the reported segment results and guidance updates, which are made available via the Investor Relations website.

Here's a quick look at the scale of the operations supporting these channels as of late 2025, focusing on the continuing operations:

The Investor Relations website serves as the primary digital channel for transparency regarding these physical and financial movements. You can review the latest data points, such as the Q3 2025 Adjusted EBITDA of $57.5 million from continuing operations, or the revised full-year Adjusted EBITDA guidance of approximately $170 million from continuing operations.

The key elements of the channel strategy, as they relate to physical assets and financial scale, are:

• Network Size: Expansion via Waggaman, LA acquisition in Q2 2025.
• Logistics Focus: Enhancing network flexibility and supply reliability for acid transport.
• Customer Contracts: Long-term agreements supporting the 50% planned capacity increase in Kansas City catalysts.
• Financial Visibility: Quarterly updates on segment performance, such as Ecoservices Q3 2025 Adjusted EBITDA of $63.6 million.

Finance: draft 13-week cash view by Friday.

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

Ecovyst Inc. focuses its primary customer base within the Ecoservices segment, which is the main driver of revenue from continuing operations, projected to generate sales between $700 million and $740 million for full-year 2025.

North American petroleum refiners (alkylate production)

• This group drives demand for sulfuric acid regeneration services, essential for alkylate production, a gasoline blending component.
• Regeneration services experienced lower volume in Q3 2025 due to unplanned and extended customer downtime at refineries.
• Despite downtime, favorable contractual pricing for regeneration services contributed to Ecoservices segment Adjusted EBITDA of $63.6 million in Q3 2025.
• The segment's full-year 2025 Adjusted EBITDA is projected at about $200 million.

Industrial chemical manufacturers requiring virgin sulfuric acid

This segment utilizes high-quality and high-strength virgin sulfuric acid for various industrial applications. The higher sales volume for virgin sulfuric acid, including contributions from the Waggaman assets acquired in Q2 2025, supported Q3 2025 sales.

Mining operations with growing demand for high-strength acid

Mining is a significant end-market for virgin sulfuric acid, with management noting strong demand trends. Mining applications for sulfuric acid are stated to represent 20% to 25% of sales.

The company anticipates a continuation of positive demand for virgin sulfuric acid sales in mining applications, supported by incremental demand associated with copper mine expansion projects in the fourth quarter of 2025.

Large-scale customers requiring 100% requirement arrangements

While specific contract percentages are not public, the nature of sulfuric acid regeneration for refining implies long-term, high-volume commitments, which are often structured as 100% requirement arrangements to ensure supply reliability for critical processes like alkylate production. The Ecoservices segment's business model relies on these relationships, providing a foundation for its $63.6 million Adjusted EBITDA in the third quarter of 2025.

Customers focused on sustainability and circular economy solutions

Ecovyst Inc.'s differentiated businesses support sustainability trends, particularly through its sulfuric acid recycling services, which align with circular economy principles by reusing materials. The company's overall trailing twelve-month revenue as of September 30, 2025, was $779 million.

The following table summarizes key financial metrics related to the Ecoservices segment, which serves the primary customer groups listed above, based on late 2025 reporting:

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

You're looking at the core outflows Ecovyst Inc. (ECVT) is managing for its 2025 fiscal year, focusing on the continuing operations after the announced segment sale. Honestly, managing variable input costs and fixed operational expenses is key to hitting those profitability targets analysts are watching so closely.

The cost structure is heavily influenced by raw material volatility, particularly sulfur, which is managed through contractual mechanisms. The projected impact of this input cost on revenue for 2025 is significant, though it is largely offset by pass-through agreements.

• Projected pass-through of higher sulfur costs factored into 2025 sales guidance is approximately $70 million.
• Manufacturing and plant turnaround costs saw impact in the first quarter of 2025, where results reflected higher manufacturing costs, including costs associated with planned turnaround activity.
• Management anticipated higher turnaround costs in the third quarter of 2025 compared to the prior year, even as Q2 saw lower turnaround costs.

Here's the quick math on the major fixed and semi-fixed financial commitments for 2025, based on the revised guidance from the third quarter call:

The capital expenditure range of $60 million to $70 million is specifically for the Ecoservices segment. What this estimate hides is the split between maintenance and growth CapEx, though maintenance CapEx was noted as higher in the first nine months of 2025 due to turnaround activities. The interest expense range of $32 million to $34 million reflects the cost of servicing the debt load, which stood at a net debt of approximately $782.3 million as of September 30, 2025.

The unallocated corporate costs are set at about $30 million for the year, with a slight expectation that this figure will see a small reduction in 2026 following the segment disposition. Finance: draft 13-week cash view by Friday.

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

You're looking at the core ways Ecovyst Inc. (ECVT) brings in cash, specifically from its Ecoservices segment, as we map out the business model canvas near the end of 2025. This segment is really the engine, focused on sulfuric acid services and sales.

The revenue streams are fundamentally built around two main activities supporting the refining and industrial sectors. First, you have the recurring service fees from refiners for sulfuric acid regeneration. This is service revenue, and the third quarter of 2025 showed the benefit of favorable contractual pricing in this area, even with some temporary volume dips due to customer downtime. Second, there are the direct sales of virgin sulfuric acid, which Ecovyst Inc. supplies to industrial and mining customers. The demand here looks solid, supported by incremental needs from copper mine expansion projects.

A significant component built into the revenue expectation for 2025 is the mechanism for handling fluctuating input costs. This is key for maintaining margins on the services provided. The sales outlook for 2025 specifically assumes higher average sulfur prices compared to 2024, which is reflected in the projected revenue from the cost pass-through. Specifically, the revenue component tied to the sulfur cost pass-through mechanisms is pegged at approximately $70 million in 2025 sales.

To give you the big picture for the full-year 2025 forecast from continuing operations, here's how the top-line and profitability targets look:

Honestly, the guidance update in November 2025 shows confidence in the Ecoservices segment, setting the full-year sales guidance for Ecoservices from continuing operations between $700 million and $740 million. This is the number you want to track for the segment's top-line performance.

When you look at profitability, the expected Adjusted EBITDA from continuing operations for the full year 2025 is set at approximately $170 million. Breaking that down, the Ecoservices segment itself is expected to contribute an Adjusted EBITDA of approximately $200 million, with unallocated corporate costs offsetting about $30 million of that. This structure shows how tightly linked the service revenue and cost recovery mechanisms are to the final profitability figures you see.

Here are some other key financial parameters guiding the 2025 outlook for continuing operations, which you'll need for any valuation work:

• Capital expenditures for Ecoservices are projected between $60 million and $70 million.
• Interest expense is forecast to be in the range of $32 million to $34 million.
• Depreciation & Amortization is estimated between $75 million and $80 million.
• The effective tax rate is expected to be in the mid 20% range.

Finance: draft the Q4 2025 revenue forecast model incorporating the $70M pass-through by Wednesday.