A month has gone by since the last earnings report for Ingevity (NGVT) . Shares have added about 6.4% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Ingevity due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?Analysts were qu ...

Core Insights - Ingevity Corporation (NGVT) reported a first-quarter 2025 profit of $20.5 million or 56 cents per share, a significant improvement from a loss of $56 million or $1.54 per share in the same quarter last year [1] - Adjusted earnings for the quarter were 99 cents per share, up from 47 cents a year ago, excluding one-time items [1] Revenue Performance - Revenues decreased by 16.5% year over year to $284 million, primarily due to lower sales in the Industrial Specialties product line and the Advanced Polymer Technologies segment [2] - The Performance Chemicals division generated revenues of $95 million, down approximately 35.4% year over year [2] - Road Technologies' product line sales were $44.3 million, down 3% [2] - Industrial Specialties' product line sales fell 50% to $50.7 million due to repositioning measures aimed at exiting lower-margin markets [2] - Performance Materials unit revenues rose around 1.2% year over year to $146.8 million, driven by volume growth in the Asia Pacific region and China [3] - Advanced Polymer Technologies segment sales decreased by 12.1% to $42.2 million, with EBITDA up 31.6% to $12.5 million due to higher utilization rates [4] Financial Metrics - First-quarter operating cash flow was $25.4 million, with free cash flow of $15.4 million [5] - No share repurchases occurred during the quarter, leaving $353.4 million remaining under the current $500 million authorization [5] - Net leverage improved to 3.3x from 3.6x in the previous quarter [5] 2025 Outlook - NGVT revised its 2025 guidance to account for potential risks from lower expected global auto production, projecting sales between $1.25 billion and $1.40 billion and adjusted EBITDA between $380 million and $415 million [6] Stock Performance - NGVT shares have declined by 26.1% over the past year, compared to a 3.1% decline in the industry [7]

Financial Performance - Ingevity Corporation reported net sales of $284.0 million for Q1 2025, a decrease of approximately 16.5% from $340.1 million in Q1 2024[166]. - The gross profit for Q1 2025 was $113.4 million, compared to $99.7 million in Q1 2024, reflecting an increase in gross profit margin[166]. - The net income for Q1 2025 was $20.5 million, a significant recovery from a net loss of $56.0 million in Q1 2024[166]. - Adjusted EBITDA for the three months ended March 31, 2025, was $91.3 million, compared to $74.4 million in 2024, reflecting an increase of 22.5%[200]. - Cash provided by operating activities for the three months ended March 31, 2025, was $25.4 million, an increase of $37.5 million compared to the same period in 2024[218]. Cost Management - The company incurred approximately $12.3 million in restructuring and other charges in Q1 2025, down from $62.8 million in Q1 2024[166]. - Gross profit for Q1 2025 increased by $13.7 million, primarily due to decreased manufacturing costs of $18.1 million and LIFO liquidation benefit of $4.5 million, partially offset by unfavorable sales volume of $7.7 million[170]. - Selling, general and administrative expenses (SG&A) decreased by $4.1 million (nine percent) to $43.1 million, representing 15 percent of net sales in Q1 2025[171]. - Research and technical expenses increased by $0.9 million, with a percentage of net sales rising to 2.7 percent in Q1 2025 due to lower sales[172]. Segment Performance - Performance Materials net sales increased by $1.7 million (one percent) in Q1 2025, driven by favorable pricing and sales mix[185]. - Performance Chemicals net sales decreased by $52.0 million (35 percent) in Q1 2025, primarily due to repositioning actions and a slower start to the road paving season[187]. - Advanced Polymer Technologies net sales decreased by $5.8 million (12 percent) in Q1 2025, primarily due to a volume decline and unfavorable pricing[192]. - Segment EBITDA for Performance Chemicals improved by $10.3 million in Q1 2025, reflecting cost savings from repositioning actions[191]. Future Outlook - The company expects net sales for 2025 to be between $1.25 billion and $1.4 billion, reflecting a downward adjustment due to an estimated 10% reduction in North America light vehicle production[207]. - The Performance Chemicals reportable segment anticipates improved net sales in its road technologies product line compared to 2024, while the Advanced Polymer Technologies segment expects flat net sales due to weak end market demand[207]. - Projected Adjusted EBITDA for 2025 is expected to be between $380 million and $415 million, with Performance Materials segment EBITDA anticipated to decline compared to the prior year[208]. Cash and Capital Management - As of March 31, 2025, the company had $71.5 million in cash and cash equivalents, with $67.5 million held by foreign subsidiaries[211]. - The company has $353.4 million remaining under its stock repurchase authorization as of March 31, 2025, with no common stock repurchased during the three months ended March 31, 2025[215]. - Capital expenditures for the three months ended March 31, 2025, totaled $10.0 million, a decrease of $6.6 million compared to $16.6 million in 2024[220]. Foreign Operations and Currency Impact - Approximately 27% of the company's net sales in the first three months of 2025 came from foreign-based operations in Europe, South America, and Asia[226]. - A hypothetical 10% adverse change in the average exchange rates of the Brazilian real, Chinese renminbi, and euro to the U.S. dollar would have decreased net sales by approximately $3.5 million or 1% for Q1 2025[226]. Interest Rates and Debt Management - Total interest expense for Q1 2025 was $19.4 million, down from $22.3 million in Q1 2024[177]. - The company entered into a floating-to-fixed interest rate swap with a notional amount of $200 million, converting floating rate debt to a fixed rate of 3.84% until August 2026[227]. - As of March 31, 2025, approximately $547 million of borrowings had a variable interest rate component with a weighted average interest rate of 5.80%[228]. - A hypothetical 100 basis point increase in variable interest rates would have increased annual interest expense by approximately $5.5 million or 8% for Q1 2025[228]. Raw Material Costs - Crude tall oil (CTO) represented 8% of the cost of sales for Q1 2025, with raw material CTO spend of approximately $10 million[230]. - A hypothetical unhedged 10% increase in CTO prices would have increased the cost of sales by approximately $1.0 million or 1% for Q1 2025[230]. - Natural gas constituted approximately 5% of the cost of goods sold for Q1 2025, with a hypothetical 10% increase in natural gas pricing resulting in a $0.9 million increase in cost of sales[231]. - As of March 31, 2025, the fair value of open natural gas derivative contracts was a net asset of $1.0 million[231]. Accounting Policies - The company's critical accounting policies have not substantially changed from those described in the 2024 Annual Report[225].

Ingevity (NGVT) Q1 2025 Earnings Call May 06, 2025 09:00 AM ET Company Participants John Nypaver - VP of Investor Relations & TreasurerDavid Li - President and CEOMary Hall - Executive VP & CFOJon Tanwanteng - Managing DirectorDan Rizzo - Senior Vice PresidentAbigail Eberts - Equity Research Associate Conference Call Participants John McNulty - MD - Chemicals Analyst Operator Good morning or good afternoon all, and welcome to the Ingevity First Quarter twenty twenty five Earnings Call and Webcast. My name i ...

Financial Data and Key Metrics Changes - First quarter sales were $284 million, down 17% year-over-year due to repositioning actions in Performance Chemicals and weak industrial demand [10] - Adjusted gross profit increased by 10% to $129 million, with gross margin improving over 1,000 basis points [10] - Adjusted EBITDA rose by $17 million, with margins improving from 21.9% to 32.1%, marking the fourth consecutive quarter of year-over-year margin improvement [11][12] - Free cash flow improved by $44 million year-over-year to $15 million, reflecting benefits from repositioning actions [12] Business Line Data and Key Metrics Changes - Performance Materials saw higher sales due to favorable regional and product mix, with EBITDA margins remaining near 54% [13][15] - Advanced Polymer Technologies (APT) experienced lower overall sales, but EBITDA increased by $3 million, with margins rising to 29.6% [19] - Performance Chemicals sales decreased by 35% primarily due to repositioning actions, but segment EBITDA showed year-over-year improvement of $10 million [21][22] Market Data and Key Metrics Changes - North American auto production is expected to decline by approximately 10% year-over-year, impacting guidance for the Performance Materials segment [8][15] - Volume growth was observed in China due to government incentives driving higher vehicle sales, while North American volumes were down year-over-year [13][14] Company Strategy and Development Direction - The company is focused on disciplined execution of its strategy to optimize the portfolio and drive business performance, aiming to create significant value for shareholders [8][24] - The strategic review of Industrial Specialties and the North Charleston refinery is progressing well, with expectations to communicate a path forward before the end of the year [22] Management's Comments on Operating Environment and Future Outlook - Management is actively monitoring developments related to tariffs and macro demand conditions, believing the direct impact on the business will be minimal [7][24] - Despite headwinds, the company is confident in its ability to deliver strong profitability in 2025 and beyond [8][24] Other Important Information - The company has introduced a new President for APT, who brings over 25 years of experience in transforming business profitability [20] - The average age of automobiles in the U.S. is at an all-time high, suggesting a future need for replacements [15] Q&A Session Summary Question: Pricing in Performance Materials business - Management indicated that they have a strong position and are seeing encouraging performance, with pricing being a lever they can pull if needed [29][30][32] Question: Update on strategic review of Industrial Specialties - The process is progressing well with a broad degree of interest, and management is being deliberate in their approach [34][36] Question: Strategic and operational priorities in a volatile environment - The focus remains on disciplined execution, optimizing business performance, and reducing leverage [40][41] Question: Cash flow forecast amidst potential auto production decline - Management is confident in free cash flow generation even in a declining sales environment due to effective working capital management [43][44] Question: Impact of EV slowdown on forecasts - While EVs are slowing down, management remains optimistic about the adoption of new technologies and their investment in Nexeon [47][48][50] Question: Filtration market capacity for potential volume shifts - The filtration market is sizable and can absorb underutilized capacity, although it is a lower margin market compared to auto [53][54] Question: Long-term leverage goals - The long-term target for leverage remains between 2 to 2.5 times [58]

FIRST QUARTER 2025 EARNINGS PRESENTATION May 6, 2025 Use of non-GAAP financial measures: This presentation includes certain non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided within the Appendix to this presentation. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those measures provided. The company does not attempt to provid ...

News Ingevity Corporation 4920 O'Hear Avenue Suite 400 North Charleston, SC 29405 USA www.ingevity.com Contact: Caroline Monahan 843-740-2068 media@ingevity.com Investors: John E. Nypaver, Jr. 843-740-2002 investors@ingevity.com Ingevity reports first quarter 2025 financial results HIGHLIGHTS: The results and guidance in this release include non-GAAP financial measures. Refer to the section entitled "Use of non- GAAP financial measures" within this release. All comparisons are made versus the same period in ...

Ingevity Corporation’s (NGVT) shares have gained 9.6% over the past six months. The company has also outperformed the Zacks Chemicals Specialty industry’s decline of 8% over the same time frame.Let’s take a look into the factors that are driving NGVT stock.Image Source: Zacks Investment ResearchNGVT Gains on Strategic Repositioning and AcquisitionsIngevity is taking several actions to expand capacity and drive long-term growth. It remains committed to investing organically. Ingevity is also committed to cap ...

It has been about a month since the last earnings report for Ingevity (NGVT) . Shares have lost about 8.3% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Ingevity due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Then?Analysts ...

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