Ecovyst Inc. (ECVT)

Ecovyst Inc., formerly PQ Group Holdings Inc., is a global provider of specialty catalysts and services. It was incorporated in Delaware in 2015, traces its roots to 1831, and has been listed on the New York Stock Exchange under "ECVT" since August 2021. Its products are predominantly inorganic and carbon-free, and it says they support lower emissions, higher fuel efficiency, cleaner fuels and renewable fuel production. The company sold its Performance Materials business in December 2020 and its Performance Chemicals business in August 2021, and both are presented as discontinued operations.

Ecovyst reports two segments. Ecoservices (about 85.6% of 2022 sales of $820.2 million) recycles spent sulfuric acid from North American refineries into fresh acid for alkylate production, and provides end-to-end logistics. It also produces virgin sulfuric acid for water treatment, mining and industrial uses, provides treatment services for hazardous and non-hazardous wastes, and offers ex situ catalyst sulfiding and pre-activation through Chem32, acquired in March 2021. Catalyst Technologies (about 14.4% of sales) makes silica catalysts and supports for polyethylene producers, catalyst for methyl methacrylate and other niche custom catalysts. It also includes the company's 50% interest in the Zeolyst Joint Venture, which makes zeolite catalysts for refinery hydrocracking, emission control and renewable fuels. The company's key end uses are Regeneration and Treatment Services; Industrial, Mining & Automotive; Polymers & Engineered Plastics; and Clean Fuels, Emission Control & Other.

Customers include refiners, chemical and petrochemical producers, and other catalyst makers, such as Exxon Mobil, BASF, Chevron Products, Albemarle, Grace, Dow Chemical, Mitsubishi Chemical, LyondellBasell and Shell. The top ten customers, with relationships averaging more than 50 years, accounted for about 58% of 2022 sales including the proportionate Zeolyst JV share. One customer represented 13%, or $103.3 million. Many sales are made under long-term, requirements-based or term contracts. About 83% of Ecoservices sales in 2022 were under contracts with raw material pass-through clauses. Ecoservices is mostly regional because of shipping costs, with facilities concentrated on the Gulf Coast and in California, where more than 60% of U.S. refining capacity is located. Catalyst Technologies competes mainly on a global basis.

Ecovyst operated ten manufacturing facilities as of December 31, 2022 and delivers products by barge, rail, truck and pipeline, in some cases through captive pipelines to refinery customers. It uses readily available raw materials and natural gas, with long-term contracts with many key suppliers, and uses hedging and pass-through mechanisms to manage cost volatility. The company estimates it holds a number one or two supply share position in products that generated more than 90% of 2022 sales plus its Zeolyst JV share, including a share above 50% in U.S. sulfuric acid regeneration services. It also operates R&D centers to develop catalysts with customers.