Financial Data and Key Metrics Changes - Full year sales decreased by 17% to $1.4 billion from nearly $1.7 billion in the previous year [16] - GAAP net loss for the year was $430 million, impacted by non-recurring charges totaling $688 million [17] - Adjusted gross profit was $521 million, down 4% year-over-year, but gross margin improved by 510 basis points [19] - Adjusted EBITDA margin improved by 350 basis points to 25.8% despite lower sales [20] - Free cash flow generated was $51 million, significantly stronger than previous guidance [23] Business Line Data and Key Metrics Changes - Performance Materials achieved record sales and EBITDA, with margins surpassing 50% [9] - Performance Chemicals revenue declined by 33% to $608 million, primarily due to exiting lower-margin markets [34] - Advanced Polymer Technologies (APT) experienced an 8% revenue decline, with EBITDA of $35.2 million and a margin of 18.7% [32] Market Data and Key Metrics Changes - North America represents nearly 50% of Performance Materials sales, benefiting from larger vehicle sizes and stringent emissions standards [28] - Asia Pacific accounts for about 40% of total Performance Materials sales, with China being a significant market [28] - Europe is less impactful due to a regulatory environment favoring electric vehicles [29] Company Strategy and Development Direction - The company is focusing on higher-margin end markets and improving raw material cost structures in Performance Chemicals [8] - Plans to explore strategic alternatives for the industrial specialties product line and North Charleston CTO Refinery are underway [11] - The company aims to reduce net leverage to below 2.8 times by the end of 2025 [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate sales between $1.3 billion and $1.4 billion in 2025, with EBITDA between $400 million and $415 million [38] - The company anticipates strong free cash flow generation in 2025, which will support debt reduction efforts [37] - Management noted that the automotive market trends favor hybrids and ICE vehicles, which is beneficial for the company [51] Other Important Information - The company achieved top quartile safety performance in the American Chemistry Council's responsible care benchmarking [13] - Ingevity was recognized as one of America's most responsible companies of 2025 by Newsweek Magazine [14] Q&A Session Summary Question: Pricing in Performance Chemicals business - Management indicated that current prices reflect the market price of CTO, and improvements are expected as high-cost CTO inventory is consumed [45][48] Question: Trends in the auto market - Management noted a declining interest in EVs versus hybrids, which is favorable for the company's product content in vehicles [51] Question: Impact of tariffs on customers - Management stated that there has been minimal impact from tariffs on the business or customers, but uncertainty remains [58] Question: CapEx projections for 2025 - Most of the expected CapEx is maintenance-related, with some growth spending anticipated [61] Question: Increased innovation spend in Performance Materials - The increased spend is primarily directed towards developing new applications for batteries, particularly silicon anodes [65] Question: Working capital assumptions for 2025 - Management cautioned against expecting a repeat of 2024's working capital reduction, as growth in the core business may offset benefits from working off high-cost CTO inventory [67][69] Question: Exploring alternatives for the industrial business - Management confirmed significant interest from outside parties since the announcement of exploring alternatives for the industrial specialties business [85]

FOURTH QUARTER AND FULL YEAR 2024 EARNINGS PRESENTATION February 19, 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 ...

Financial Performance - Q4 net sales were $298.8 million, a decrease of 20% compared to the prior year, primarily due to repositioning actions in the Performance Chemicals segment[5]. - Q4 net income was $16.6 million, with diluted EPS of $0.46, including pre-tax restructuring charges of $23.4 million; adjusted earnings were $34.7 million with diluted adjusted EPS of $0.95[6]. - Full year net sales totaled $1.4 billion, down 17% year-over-year, with a net loss of $430.3 million reflecting significant pre-tax charges related to repositioning actions[8]. - Adjusted EBITDA for FY was $362.7 million, down 4%, with an adjusted EBITDA margin of 25.8%, an increase of 350 basis points[8]. - Performance Materials segment achieved record sales of $609.6 million for FY, up 4%, driven by higher volumes and improved pricing[10]. - Advanced Polymer Technologies segment sales were $188.6 million for FY, down 8%, impacted by unfavorable mix and price concessions[11]. - Performance Chemicals segment sales decreased 33% for FY to $608.2 million, with a significant decline in the Industrial Specialties product line[12]. - Net sales for Q4 2024 were $298.8 million, a decrease of 19.6% compared to $371.7 million in Q4 2023[26]. - Gross profit for Q4 2024 increased to $101.9 million, up from $59.5 million in Q4 2023, reflecting a gross margin improvement[26]. - Net income for Q4 2024 was $16.6 million, compared to a net loss of $116.8 million in Q4 2023[26]. - Performance Materials segment net sales increased to $156.2 million in Q4 2024 from $152.8 million in Q4 2023, while Performance Chemicals segment net sales decreased to $98.7 million from $176.5 million[28]. - Total segment EBITDA for Q4 2024 was $80.6 million, an increase from $61.8 million in Q4 2023[28]. - Adjusted earnings for the twelve months ended December 31, 2024, were $128.3 million, compared to $129.6 million in 2023[53]. - The diluted adjusted earnings per share for Q4 2024 was $0.95, compared to a loss of $0.20 in Q4 2023[53]. - The net income margin for the three months ended December 31, 2024, was 5.6%, while the margin for the same period in 2023 was -31.4%[66]. - Adjusted EBITDA for the three months ended December 31, 2024, was $80.6 million, compared to $42.1 million in the same period of 2023, indicating an increase of approximately 91.4%[66]. Restructuring and Charges - The company incurred restructuring and other charges of $186.2 million for the full year 2024, compared to $170.2 million in 2023[28]. - The company incurred restructuring and other charges of $23.4 million in Q4 2024, compared to $120.8 million in Q4 2023[53]. - The company reported a goodwill impairment charge of $349.1 million for the full year 2024, with no such charge in 2023[26]. - The company reported a goodwill impairment charge of $349.1 million for the twelve months ended December 31, 2024[66]. Cash Flow and Debt - Net cash provided by operating activities for Q4 2024 was $64.5 million, up from $44.4 million in Q4 2023[38]. - Cash provided by financing activities in Q4 2024 was a net outflow of $97.6 million, compared to a net outflow of $6.5 million in Q4 2023[38]. - Total debt as of December 31, 2024, was $1,405.2 million, with a net debt of $1,255.2 million[76]. - The net debt ratio as of December 31, 2024, was 3.5x, indicating a decrease from the previous ratio[76]. - Cash and cash equivalents decreased to $68.0 million from $95.9 million year-over-year[36]. - Long-term debt, including finance lease obligations, was $1,339.7 million as of December 31, 2024, compared to $1,382.8 million in 2023[36]. - Cash, cash equivalents, and restricted cash at the end of Q4 2024 totaled $86.6 million, down from $111.9 million at the end of Q4 2023[38]. - Cash paid for interest in Q4 2024 was $24.4 million, slightly down from $24.8 million in Q4 2023[39]. Future Guidance - The company announced full year 2025 guidance of sales between $1.3 billion and $1.4 billion, adjusted EBITDA between $400 million and $415 million, and free cash flow between $220 million and $260 million[3]. - Net leverage improved to 3.5 times from 4.0 times in the previous quarter, with expectations to reduce it below 2.8 times by Q4 2025[14]. Capital Expenditures - Total capital expenditures for the twelve months ended December 31, 2024, were $77.6 million, a decrease from $109.8 million in 2023[38]. - Capital expenditures for the twelve months ended December 31, 2024, were $77.6 million, down from $109.8 million in 2023[74].

Group 1 - Ingevity (NGVT) has shown strong performance in the Basic Materials sector, with a year-to-date return of 12.6%, significantly outperforming the sector average of -7.3% [4] - The Zacks Consensus Estimate for Ingevity's full-year earnings has increased by 29% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [4] - Ingevity holds a Zacks Rank of 1 (Strong Buy), suggesting it is positioned to outperform the market in the near term [3] Group 2 - Ingevity is part of the Chemical - Specialty industry, which has seen an average loss of 17.5% year-to-date, further highlighting Ingevity's relative strength within its industry [6] - Another stock in the Basic Materials sector, Nouveau Monde Graphite Inc. (NMG), has also outperformed the sector with a year-to-date return of 32.1% and a Zacks Rank of 2 (Buy) [5] - The Mining - Miscellaneous industry, to which Nouveau Monde Graphite belongs, has experienced a year-to-date decline of 18.7%, indicating that both Ingevity and Nouveau Monde Graphite are performing well compared to their respective industries [6]

Core Viewpoint - Ingevity Corporation (NGVT) is exploring strategic alternatives for its Performance Chemicals Industrial Specialties product line, which may include divesting part of its North Charleston site, while excluding certain product lines [1][3]. Group 1: Strategic Review and Financial Performance - The strategic review aims to enhance shareholder value by allowing the company to concentrate on higher growth and margin opportunities, thereby improving earnings and cash flow [2]. - Ingevity anticipates reporting net sales of approximately $1.4 billion and an adjusted EBITDA of around $360 million for fiscal 2024, with free cash flow expected to exceed $40 million [4]. - The company has gained positive momentum, with expectations to deliver adjusted EBITDA modestly above $400 million in fiscal 2025, excluding impacts from the strategic review [5]. Group 2: Market Performance - NGVT's shares have increased by 8.6% over the past year, contrasting with a 17.1% decline in its industry [6].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Ingevity (NGVT) as a strong candidate for value investors due to its favorable financial metrics and Zacks Rank [2][4][6]. Company Analysis - Ingevity (NGVT) currently holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4]. - The stock is trading at a P/E ratio of 13.10, significantly lower than its industry's average of 23.22, suggesting it may be undervalued [4]. - NGVT's Forward P/E has fluctuated between 8.41 and 14.94 over the past year, with a median of 11.20, indicating variability in market perception [4]. - The P/S ratio for NGVT is 1.07, compared to the industry's average P/S of 1.63, further supporting the notion of undervaluation [5]. - Overall, the combination of these metrics suggests that NGVT is an impressive value stock with a strong earnings outlook [6].

Core Viewpoint - Ingevity Corporation's stock is currently viewed as a promising investment opportunity, having increased approximately 40% over the past three months, driven by strategic repositioning, acquisitions, and growth initiatives [1] Earnings Estimates - Earnings estimates for Ingevity for 2024 have risen over the past 60 days, with the Zacks Consensus Estimate for the current year increasing by 15.9% [3] - Ingevity has outperformed the Zacks Consensus Estimate in three of the last four quarters, achieving an average earnings surprise of about 95.4% [4] Financial Performance - Ingevity's Return on Equity (ROE) for the trailing 12 months stands at 24.5%, significantly higher than the industry average of 16.1% [5] Strategic Actions - The company is undertaking several initiatives to expand capacity and drive long-term growth, including organic investments and maximizing product value [6] - The repositioning of the Performance Chemicals segment aims to reduce exposure to lower-margin markets, with plans to consolidate operations and close the Crossett facility, expected to yield annual savings of $20-$25 million starting in 2025 [7] Operational Improvements - Ingevity has begun to see benefits from its strategic repositioning, focusing on operational improvements that lead to lower input costs and enhanced manufacturing efficiency [8] Acquisitions - The acquisition of the Capa caprolactone business has provided Ingevity with a new technology platform for revenue and earnings growth, and the expansion of its distribution network in Europe is expected to enhance market presence [9]

For Immediate ReleaseChicago, IL – December 12, 2024 – Today, Zacks Equity Research Axalta Coating Systems Ltd. (AXTA) , Ingevity Corp. (NGVT) and AdvanSix Inc. (ASIX) .Industry: Specialty ChemicalsLink: https://www.zacks.com/commentary/2381908/3-chemical-specialty-stocks-to-watch-amid-industry-challengesThe Zacks Chemicals Specialty industry is mired in challenges from sluggish demand, largely due to the slowdown in Europe and a slow economic recovery in China. Margins of companies in this space also remai ...

A month has gone by since the last earnings report for Ingevity (NGVT) . Shares have added about 14.6% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important catalysts. Ingevity's Earnings Beat Estimates in Q3, Revenues Down ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...