Ingevity(NGVT) - 2024 Q4 - Annual Results

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].