Ingevity Q2 Earnings Surpass Estimates, Revenues Decline Y/Y

Core Insights - Ingevity Corporation (NGVT) reported a second-quarter 2025 loss of $146.5 million or $4.02 per share, an improvement from a loss of $283.7 million or $7.81 per share in the same quarter last year [1] - Adjusted earnings for the quarter were $1.39 per share, up from $1.01 a year ago, surpassing the Zacks Consensus Estimate of $1.02 per share [1][9] - Revenues decreased by 6.5% year over year to $365.1 million, primarily due to lower sales in the Performance Chemicals segment [2] Segment Performance - The Performance Chemicals division generated revenues of $167.9 million, down approximately 9.5% year over year, with Road Technologies sales at $119.5 million (down 7.4%) and Industrial Specialties at $48.4 million (down 14.2%) [3] - EBITDA for the Performance Chemicals segment increased by 244% to $32 million, attributed to successful repositioning and cost savings [3] - Performance Materials revenues fell by 2.1% year over year to $153.9 million, impacted by lower sales in Asia and Europe, while North America saw higher sales; segment EBITDA was $77.1 million, down 6.2% [4] - Advanced Polymer Technologies segment sales decreased by 9.6% to $43.3 million due to reduced customer demand, particularly in Europe, with segment EBITDA down 90.8% to $0.9 million [5] Financial Overview - Operating cash flow for the second quarter was $79 million, with free cash flow of $66.8 million; no share repurchases occurred during the quarter, leaving $353.4 million remaining under the current $500 million authorization [6] - Net leverage improved to 3x from 3.3x in the previous quarter [6] 2025 Outlook - NGVT has revised its 2025 EBITDA guidance upwards, now expecting adjusted EBITDA between $390 million and $415 million, compared to the previous range of $380 million to $415 million; sales estimates remain between $1.25 billion and $1.40 billion [7][9] Stock Performance - NGVT shares have increased by 50.8% over the past year, outperforming the industry average increase of 1.2% [8]