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 ...

[Ingevity Q1 2025 Financial Results Overview](index=1&type=section&id=Ingevity%20reports%20first%20quarter%202025%20financial%20results) [Q1 2025 Financial Highlights](index=1&type=section&id=HIGHLIGHTS) Ingevity's first quarter 2025 results showed a **17% decline** in net sales to **$284.0 million**, primarily due to the strategic repositioning of the Performance Chemicals segment, while adjusted EBITDA grew **23%** to **$91.3 million** with margins improving to **32.1%**, driven by cost reductions and a better product mix Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $284.0M | $340.1M | -17% | | Net Income | $20.5M | ($56.0M) | N/A | | Diluted EPS | $0.56 | ($1.54) | N/A | | Adjusted EBITDA | $91.3M | $74.4M | +23% | | Adjusted EBITDA Margin | 32.1% | 21.9% | +10.2 p.p. | | Diluted Adjusted EPS | $0.99 | $0.47 | +111% | | Operating Cash Flow | $25.4M | ($12.1M) | N/A | | Free Cash Flow | $15.4M | ($28.7M) | N/A | - The decline in net sales was **primarily attributed** to the strategic repositioning of the Performance Chemicals segment, which involved exiting certain lower-margin end markets[3](index=3&type=chunk) - The **significant improvement** in **Adjusted EBITDA** and margins was a **result of successful repositioning actions** in Performance Chemicals, including reduced raw material costs and an improved product mix[4](index=4&type=chunk)[5](index=5&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) The company's segments showed mixed results, with Performance Materials sales growing slightly, Advanced Polymer Technologies sales declining but achieving higher EBITDA, and Performance Chemicals experiencing a significant sales drop but a substantial improvement in its EBITDA loss [Performance Materials Segment](index=1&type=section&id=Performance%20Materials) Sales in the Performance Materials segment increased by **1%** to **$146.8 million**, driven by higher volumes in China and the Asia Pacific region, with segment EBITDA also rising by **1%** to **$79.1 million**, maintaining a strong EBITDA margin of **53.9%** Performance Materials Q1 2025 Results | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $146.8M | $145.1M | +1% | | Segment EBITDA | $79.1M | $78.0M | +1% | | Segment EBITDA Margin | 53.9% | 53.8% | +0.1 p.p. | - Growth was **primarily due to higher volumes** in China and the Asia Pacific region. In North America, an **improved mix of higher-value products** for fuel-efficient vehicles offset lower volumes[8](index=8&type=chunk) [Advanced Polymer Technologies Segment](index=2&type=section&id=Advanced%20Polymer%20Technologies) The Advanced Polymer Technologies segment reported a **12% sales decrease** to **$42.2 million**, as lower volumes in Asia offset gains in EMEA and North America, yet segment EBITDA increased by **$3.0 million** to **$12.5 million**, and margins expanded to **29.6%**, primarily due to higher plant utilization rates Advanced Polymer Technologies Q1 2025 Results | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $42.2M | $48.0M | -12% | | Segment EBITDA | $12.5M | $9.5M | +31.6% | | Segment EBITDA Margin | 29.6% | 19.8% | +9.8 p.p. | - The increase in **EBITDA** was driven by **higher utilization rates** as the company built inventory ahead of a planned extended outage in Q2 for new boiler installation[9](index=9&type=chunk) [Performance Chemicals Segment](index=2&type=section&id=Performance%20Chemicals) Performance Chemicals sales fell **35%** to **$95.0 million**, with the Industrial Specialties product line down **50%** due to strategic repositioning and the exit from lower-margin markets, but segment EBITDA improved by **$10.3 million** to a near break-even negative **$0.3 million**, demonstrating the positive impact of cost savings, improved product mix, and lower raw material costs Performance Chemicals Q1 2025 Results | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $95.0M | $147.0M | -35% | | - Industrial Specialties | $50.7M | $101.3M | -50% | | - Road Technologies | $44.3M | $45.7M | -3% | | Segment EBITDA | ($0.3M) | ($10.6M) | +$10.3M | - The **significant improvement** in **EBITDA** reflects the **successful execution of repositioning actions**, including cost savings, exiting low-margin markets, and lower raw material costs[10](index=10&type=chunk) [Liquidity and Capital Management](index=2&type=section&id=Liquidity%2FOther) The company **Generated operating cash flow** of **$25.4 million** and **$15.4 million** in **free cash flow**, aided by improved working capital from lower raw material costs, with no shares repurchased and **$353.4 million remains available** under the current **Board authorization**, and **Net leverage improved sequentially** to **3.3 times** - **Generated operating cash flow** of **$25.4 million** and **free cash flow** of **$15.4 million**[11](index=11&type=chunk) - **No share repurchases were made** in Q1; **$353.4 million remains available** under the current **Board authorization**[11](index=11&type=chunk) - **Net leverage improved sequentially** to **3.3 times**[11](index=11&type=chunk) [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) Ingevity has **widened to reflect risks** from international trade relations and lowered expectations for global auto production, while continuing to focus on improving profitability and reducing leverage Revised Full Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Sales | $1.25 billion to $1.40 billion | | Adjusted EBITDA | $380 million to $415 million | - The guidance range was **widened to reflect risks** associated with lowered expectations of global auto production due to the current state of international trade relations[12](index=12&type=chunk) [Financial Statements & Schedules](index=4&type=section&id=FINANCIAL%20SCHEDULES) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, Ingevity reported **Net sales** of **$284.0 million**, a decrease from **$340.1 million** in Q1 2024, with **Gross profit** increasing to **$113.4 million** from **$99.7 million**, and achieving a **Net income** of **$20.5 million**, a significant turnaround from a net loss of **$56.0 million** in the prior-year period, resulting in a **Diluted EPS** of **$0.56** compared to a loss of **$1.54** Q1 2025 Statement of Operations (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $284.0 | $340.1 | | Gross profit | $113.4 | $99.7 | | Restructuring and other charges, net | $12.3 | $62.8 | | Income (loss) before income taxes | $26.8 | ($71.9) | | Net income (loss) | $20.5 | ($56.0) | | Diluted earnings (loss) per share | $0.56 | ($1.54) | [Segment Operating Results](index=6&type=section&id=Segment%20Operating%20Results) In Q1 2025, Performance Materials sales grew slightly to **$146.8 million** with stable **EBITDA** of **$79.1 million**, Performance Chemicals sales dropped to **$95.0 million** from **$147.0 million**, but its **EBITDA** loss narrowed significantly to **$0.3 million** from **$10.6 million**, and Advanced Polymer Technologies sales decreased to **$42.2 million**, while its **EBITDA** grew to **$12.5 million** Q1 Net Sales by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Performance Materials | $146.8 | $145.1 | | Performance Chemicals | $95.0 | $147.0 | | Advanced Polymer Technologies | $42.2 | $48.0 | | **Total net sales** | **$284.0** | **$340.1** | Q1 Segment EBITDA (in millions) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Performance Materials | $79.1 | $78.0 | | Performance Chemicals | ($0.3) | ($10.6) | | Advanced Polymer Technologies | $12.5 | $9.5 | | **Total segment EBITDA** | **$91.3** | **$76.9** | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Ingevity's **Total Assets** stood at **$2,056.1 million**, a slight increase from **$2,022.6 million** at year-end 2024, with **Total Liabilities** relatively stable at **$1,821.5 million**, and key changes including an increase in accounts receivable and **Inventories, net**, while **Long-term debt** saw a slight reduction Balance Sheet Summary (in millions) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $71.5 | $68.0 | | Inventories, net | $245.4 | $226.8 | | **Total Assets** | **$2,056.1** | **$2,022.6** | | Long-term debt | $1,332.6 | $1,339.7 | | **Total Liabilities** | **$1,821.5** | **$1,827.4** | | **Total Equity** | **$234.6** | **$195.2** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first three months of 2025, the company **Generated operating cash flow** of **$25.4 million**, a **significant improvement** from a **$12.1 million** use of cash in the same period of 2024, with cash used in investing activities at **$11.5 million** and cash used in financing activities at **$11.0 million**, leading to a net increase in cash for the quarter Q1 Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $25.4 | ($12.1) | | Net cash provided by (used in) investing activities | ($11.5) | ($16.3) | | Net cash provided by (used in) financing activities | ($11.0) | $23.4 | | **Change in cash, cash equivalents, and restricted cash** | **$4.3** | **($6.8)** | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations for key non-GAAP metrics used by management, including **Adjusted Earnings**, **Adjusted EBITDA**, **Free Cash Flow**, and **Net Debt Ratio**, which are adjusted for items like restructuring charges, acquisition costs, and other special items to provide a clearer view of the company's core operational performance and liquidity [Reconciliation of Net Income to Adjusted Earnings](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Earnings%20(Loss)%20and%20Diluted%20Adjusted%20Earnings%20(Loss)%20per%20Share) **Adjusted earnings** for Q1 2025 were **$36.4 million**, or **$0.99** per **diluted share**, compared to **$17.2 million**, or **$0.47** per share, in Q1 2024, with adjustments from GAAP **Net income** of **$20.5 million** primarily including **$12.3 million** in **Restructuring and other charges, net** and **$7.9 million** in proxy contest charges Q1 Reconciliation to Adjusted Earnings (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) (GAAP) | $20.5 | ($56.0) | | Restructuring and other charges, net | $12.3 | $62.8 | | Loss on CTO resales | — | $26.5 | | Proxy contest charges | $7.9 | — | | Tax effect and other items | ($4.3) | ($21.2) | | **Adjusted earnings (loss) (Non-GAAP)** | **$36.4** | **$17.2** | [Reconciliation of Net Income to Adjusted EBITDA](index=14&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) **Adjusted EBITDA** for Q1 2025 was **$91.3 million**, an increase from **$74.4 million** in Q1 2024, with the reconciliation from GAAP **Net income** including adding back interest, taxes, D&A, and **Other adjustments**, and the **Adjusted EBITDA Margin** improved significantly to **32.1%** from **21.9%** in the prior year Q1 Reconciliation to Adjusted EBITDA (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) (GAAP) | $20.5 | ($56.0) | | Provision (benefit) for income taxes | $6.3 | ($15.9) | | Interest expense, net | $19.4 | $22.3 | | Depreciation and amortization | $24.9 | $29.6 | | Restructuring and other charges, net | $12.3 | $62.8 | | Other adjustments | $7.9 | $31.6 | | **Adjusted EBITDA (Non-GAAP)** | **$91.3** | **$74.4** | [Calculation of Free Cash Flow](index=15&type=section&id=Calculation%20of%20Free%20Cash%20Flow) The company **Generated operating cash flow** of **$15.4 million** in **free cash flow** in Q1 2025, a substantial improvement from a cash use of **$28.7 million** in Q1 2024, calculated by subtracting **Capital expenditures** of **$10.0 million** from net cash provided by operating activities of **$25.4 million** Q1 Free Cash Flow Calculation (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $25.4 | ($12.1) | | Less: Capital expenditures | $10.0 | $16.6 | | **Free Cash Flow (Non-GAAP)** | **$15.4** | **($28.7)** | [Calculation of Net Debt Ratio](index=16&type=section&id=Calculation%20of%20Net%20Debt%20Ratio) As of March 31, 2025, Ingevity's **Net Debt** was calculated at **$1,242.8 million**, and with a **LTM Adjusted EBITDA** of **$379.6 million**, the **Net debt ratio** stood at **3.3x** Net Debt Ratio Calculation as of March 31, 2025 (in millions) | Component | Amount | | :--- | :--- | | Total Debt | $1,397.0 | | Less: Cash and equivalents | $71.7 | | Less: Restricted investment | $82.5 | | **Net Debt** | **$1,242.8** | | LTM Adjusted EBITDA | $379.6 | | **Net debt ratio (Non GAAP)** | **3.3x** |

Group 1: Product Launch and Innovation - BASF SE has launched three new natural-based products for personal care: Verdessence Maize, Lamesoft OP Plus, and Dehyton PK45 GA/RA [1][2] - Verdessence Maize is a plant-based styling polymer made from renewable feedstocks, offering performance comparable to synthetic polymers [3] - Lamesoft OP Plus is a biodegradable opacifier dispersion that enhances the appearance of formulations, while Dehyton PK45 GA/RA is a betaine derived from Rainforest Alliance Certified coconut oil, suitable for shampoos and cleansers [3] Group 2: Market Position and Performance - BASF's focus on biodegradable solutions aims to capture the conscious consumer market in the personal care sector [3] - The company's stock has declined by 18.4% over the past year, slightly worse than the industry average decline of 17.1% [4] - BASF currently holds a Zacks Rank of 3 (Hold), with better-ranked stocks in the Basic Materials sector including Ingevity Corporation, Axalta Coating Systems, and Carpenter Technology Corporation [5]

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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Ingevity Corporation’s (NGVT) stock looks promising at the moment. Its shares have popped roughly 41% over the past six months. NGVT is expected to benefit from the strategic repositioning of its Performance Chemicals segment, strategic acquisitions and actions to drive growth.We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it is poised to carry the momentum ahead.Let's see what makes NGVT stock an attractive investment option at the ...

Industry Overview - The Zacks Chemicals Specialty industry is facing challenges due to soft demand, particularly in Europe and China, alongside elevated input, supply chain, and logistics costs [1][5][7] - The industry consists of manufacturers producing specialty chemical products for various end-use markets, including textiles, automotive, and agriculture [3][4] Demand and Economic Conditions - Demand softness is noted in building and construction as well as industrial markets, primarily due to economic slowdowns in Europe and China [5][6] - Elevated borrowing costs and inflation are negatively impacting the residential construction industry, contributing to weakened manufacturing activities [6][7] Cost Pressures - Specialty chemical manufacturers are experiencing inflation in raw material costs and disruptions in supply chains and freight transportation [7] - Although raw material costs have moderated, they remain higher than pre-pandemic levels, continuing to pressure margins [7] Strategic Measures - Companies in the specialty chemicals sector are implementing strategic measures such as cost-cutting, productivity improvements, and expansion into high-growth markets to navigate the challenging environment [2][8] - Actions to strengthen balance sheets and boost cash flows are also being prioritized [8] Industry Performance - The Zacks Chemicals Specialty industry has underperformed compared to the S&P 500 and the broader Zacks Basic Materials sector, with a loss of 20.1% over the past year [11] - The industry currently trades at an EV/EBITDA ratio of 22.1X, higher than the S&P 500's 17.59X and the sector's 11.84X [12] Company Highlights - **Axalta Coating Systems**: This company is benefiting from strength in its refinish business, with expected earnings growth of 7.2% for 2025 and a recent upward revision of 5.9% in earnings estimates [13][15] - **Ingevity Corp**: Expected to see earnings growth of 26.8% for 2025, with operational improvements and strategic acquisitions aiding performance [16][17] - **Flexible Solutions International Inc.**: This company has an expected earnings growth rate of 50% for 2025, with recent upward revisions of 12.5% in earnings estimates [19][20]

Core Insights - Ingevity Corporation (NGVT) reported a fourth-quarter 2024 profit of $16.6 million or 46 cents per share, a significant improvement from a loss of $116.8 million or $3.23 per share in the same quarter last year [1] - Adjusted earnings for the quarter were 95 cents per share, exceeding the Zacks Consensus Estimate of 12 cents [1] Revenue Performance - Revenues decreased by 19.6% year over year to $298.8 million, primarily due to the repositioning of the Performance Chemicals segment [2] - The Performance Chemicals division generated revenues of $98.7 million, down approximately 44% year over year [3] - Road Technologies' sales were $48.5 million, down 9.2%, while Industrial Specialties sales fell 59.2% to $50.2 million [3] - Performance Materials revenues rose by 2.2% to $156.2 million, driven by volume growth in North America and China [4] - Advanced Polymer Technologies segment sales increased by 3.5% to $43.9 million, attributed to higher volumes [5] Financial Metrics - The fourth-quarter operating cash flow was $64.5 million, with free cash flow of $39.6 million, which included a $50 million termination fee related to a long-term CTO supply contract [6] - Net leverage improved to 3.5x from 4x in the previous quarter [6] Future Outlook - For 2025, NGVT aims to enhance shareholder value through improved EBITDA, margins, and strong cash flows, with sales projected between $1.3 billion and $1.4 billion [7] - The company anticipates adjusted EBITDA in the range of $400-$415 million for 2025 [7] Stock Performance - Ingevity's shares have declined by 4.3% over the past year, compared to a 20.6% decline in the industry [8]

Financial Performance - Ingevity Corporation reported revenue of $609.6 million from Performance Materials, $608.2 million from Performance Chemicals, and $188.6 million from Advanced Polymer Technologies for the fiscal year 2024[15]. - Performance Materials segment net sales for 2024 were $609.6 million, up from $586.0 million in 2023, representing a growth of 2.7%[42]. - Performance Chemicals segment net sales for 2024 were $608.2 million, a decrease of 32.5% from $902.1 million in 2023[48]. - Advanced Polymer Technologies segment net sales for 2024 were $188.6 million, down from $204.0 million in 2023, reflecting a decline of 7.0%[73]. - For the year ended December 31, 2024, net sales decreased to $1,406.4 million, down 16 percent from $1,692.1 million in 2023, primarily due to a volume decline of $274.9 million[178][182]. - Gross profit for 2024 was $454.7 million, a decrease of $17.2 million from 2023, driven by unfavorable sales volume and pricing, partially offset by decreased manufacturing costs[184]. - Selling, general, and administrative expenses decreased by approximately $17.0 million to $166.7 million in 2024, representing 12 percent of net sales[186]. - The company recorded a goodwill impairment charge of $349.1 million for the year ended December 31, 2024[191]. - Performance Chemicals segment net sales declined by 33% to $608.2 million in 2024, down from $902.1 million in 2023, largely due to repositioning actions and exit from lower-margin markets[206]. - Segment EBITDA for Performance Chemicals fell to $14.7 million in 2024, a decrease of $51.0 million compared to $65.7 million in 2023[207]. Strategic Initiatives - The company is exploring strategic alternatives for its Performance Chemicals industrial specialties product line, which may include divestiture of parts of the North Charleston site[23]. - The company is exploring strategic alternatives for its industrial specialties product line and North Charleston CTO refinery, with no guarantee of successful transactions[80]. - The Performance Chemicals repositioning is expected to yield cash savings of approximately $95 million to $110 million, with $84.0 million realized in 2024[175]. - The company expects to incur total charges of approximately $350.0 million related to the Performance Chemicals repositioning, with $250.0 million in asset-related charges and $100.0 million to be settled in cash[170]. Customer Concentration and Market Risks - In 2024, the top ten customers in the Performance Materials segment accounted for approximately 85% of sales, indicating a high customer concentration risk[45]. - The company serves approximately 750 customers in the road technologies product line, with the top ten customers accounting for about 37% of sales in 2024[63]. - In 2024, the ten largest customers accounted for approximately 46% of the segment's sales, with around 250 customers globally[75]. - Sales to the Company's ten largest customers accounted for 38 percent of total sales for 2024, with no single customer exceeding 10 percent[101]. Operational Challenges - The company faces supply chain risks, including pricing pressures and limited availability of raw materials, which could negatively impact operations and financial results[89]. - The automotive market's adverse conditions may negatively impact demand for automotive carbon products, which are tied to global internal-combustion-engine and hybrid electric vehicle production levels[91]. - The road technologies product line is heavily dependent on government infrastructure spending, which can be affected by budgetary constraints and delays[92]. - The company is exposed to cyclical end-markets, such as automotive and apparel, which are subject to rapid changes in consumer demand and preferences[93]. - Increased competition from new technologies and emerging competitors could adversely affect the company's financial condition and results of operations[94]. - The adoption of electric and hydrogen fuel cell vehicles is increasing, which may reduce demand for activated carbon automotive products unless the company develops new products for these markets[97]. - Competition from other caprolactone manufacturers, including new entrants, poses a risk to the company's financial condition and results of operations[98]. Sustainability and Environmental Impact - Ingevity's products help reduce ecological impact, with automotive activated carbon products recovering 8 million gallons of gasoline daily[21]. - Ingevity is committed to sustainability, utilizing renewable materials in its products and technologies to enhance environmental benefits[20]. - The company has set targets for greenhouse gas emissions and sustainability goals, but there is no assurance that these targets will be met, which could negatively impact investor interest[121]. - Environmental standards drive the implementation of gasoline vapor emission control systems, with potential growth in automotive carbon applications contingent on stricter regulations[116]. - Changes in environmental laws and regulations could lead to significant additional capital expenditures and operating expenses for the company[120]. Workforce and Diversity - The company employs approximately 1,600 employees, with 73 percent based in the U.S., and 51 percent of production employees represented by labor unions[28]. - The board of directors is composed of 33 percent women and 22 percent racially and ethnically diverse members, reflecting the company's commitment to diversity[31]. - Ingevity's global workforce was reduced by 23%, with approximately 40% of the Performance Chemicals segment's workforce affected[169]. Financial Management and Capital Structure - The company relies on various forms of credit for working capital needs, and unfavorable economic conditions could adversely affect access to capital[126]. - The company executed a floating-to-fixed interest rate swap with a notional amount of $200.0 million, converting floating rate debt to a fixed rate of 3.84% until August 2026[158]. - Total interest expense for 2024 increased to $97.8 million, up from $93.3 million in 2023, primarily due to higher average debt levels and interest rates[194]. - The increase in interest income for 2024 was to $7.7 million, up from $6.3 million in 2023, primarily driven by other interest income[195]. Legal and Regulatory Environment - The company operates under a complex legal and regulatory environment related to chemical manufacturing, which could lead to increased operating costs and potential interruptions in operations[118]. - The jury awarded BASF damages of approximately $28.3 million, which will be trebled to approximately $85.0 million under U.S. antitrust law[112]. - As of December 31, 2024, the total amount accrued for the Delaware Proceeding, including post-judgment interest, was $91.4 million[113]. Cybersecurity and IT Risks - The Company relies on information technology systems for operations, making it vulnerable to cyber-attacks and data breaches, which could disrupt business[105]. - The company has achieved ISO 27001 certification in 2024, indicating a commitment to cybersecurity and the protection of sensitive information[128]. - The company experienced no material impacts from cybersecurity threats in the past three years, but vulnerabilities remain a concern[135].