Ingevity's Q4 Earnings Beat Estimates, Revenues Down Y/Y

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]