Ecovyst’s $530M deal reshapes its future after a volatile stock market climb
Ecovyst Inc. (ECVT) has seen its stock market rise sharply this year, outperforming the S&P 500 after several difficult years. The company, which specialises in sulfuric acid production, recycling, and industrial catalysts, recently completed a major deal to sell off part of its business for over half a billion dollars. This move has reshaped its financial position but also introduced new uncertainties for stock market investors.
On January 2, 2026, Ecovyst finalised the sale of its Advanced Materials & Catalysts division to Technip Energies (THNPY) for approximately $530 million. The company quickly used $465 million of the proceeds to cut down its term loan, lowering net leverage to below 1.5x—better than rival Chemtrade’s 1.8x ratio. This debt reduction improves Ecovyst’s balance sheet, though analysts note the stock market remains priced at a premium, trading around 10.23x forward EV to EBITDA.
The sale leaves Ecovyst more reliant on its Ecoservices segment, which recycles spent sulfuric acid from refineries. CEO Kurt Bitting has warned that this business can swing with refinery maintenance schedules, leading to uneven quarterly results. Industry forecasts suggest high refinery usage this year, but a projected 10% drop in regeneration volumes could still drag EBITDA lower, affecting the company’s valuation. Despite the recent gains, Ecovyst’s stock market faces risks. Its current valuation is not considered cheap, and any dip in operational performance could pressure share prices. The company’s focus now shifts to executing its remaining business strategy without the stability of its sold-off division.
The $530 million sale has strengthened Ecovyst’s financial footing by cutting debt and improving leverage ratios. However, the loss of the Advanced Materials & Catalysts segment and potential volatility in Ecoservices may test investor confidence. With the stock market trading at a high multiple and EBITDA under pressure, the company’s next steps will be closely watched.
