Ecovyst sells catalyst division for $530M to slash debt amid volatile markets
Ecovyst Inc. has completed the sale of its Advanced Materials & Catalysts division for roughly $530 million. The deal, finalised on 2 January 2026, marks a major shift in the company’s focus. Proceeds were quickly used to cut debt, strengthening the balance sheet in a challenging stock market today.
Ecovyst specialises in sulfuric acid production, recycling, and industrial catalysts for sectors like oil refining and chemical manufacturing. Its Ecoservices arm relies heavily on refinery operations, where spent acid is generated. High refinery activity this year could support demand, though unplanned shutdowns remain a risk, as CEO Kurt Bitting noted.
The sale to Technip Energies allowed Ecovyst to pay down $465 million of its term loan. This move lowered net leverage to under 1.5x, a better position than Chemtrade, a rival in sulfuric acid, which sits at 1.8x. Despite the improved finances, Ecovyst’s stock valuation remains high at 10.23x forward EV to EBITDA.
Analysts project a 10% drop in EBITDA due to weaker regeneration volumes. Such a decline could push the valuation multiple even higher, raising concerns about overpricing. While the stock has outperformed the S&P 500 recently, risks around execution and stock market today persist.
The $530 million sale has trimmed Ecovyst’s debt and reduced leverage. However, the company still faces pressure from potential EBITDA declines and a high stock valuation. Investors are advised to hold, balancing the stronger balance sheet against ongoing stock market today risks.
