Financial Data and Key Metrics Changes - Total company sales for 2025 were $1.3 billion, an 8% decline compared to the previous year [8] - Adjusted EBITDA increased by 10% year-over-year to $398 million, with margins expanding by 500 basis points to 30.8% [10] - GAAP net loss for 2025 was $167 million, including $337 million of pre-tax special charges [9] - Free cash flow reached $274 million, the highest level in the past five years, exceeding updated guidance [11] Business Line Data and Key Metrics Changes - Performance Materials sales remained flat at $607 million, despite lower auto production due to industry volatility [12] - Performance Chemicals sales declined by $86 million, primarily due to repositioning actions within Industrial Specialties [8] - Advanced Polymer Technologies faced a 15% sales decline, with segment EBITDA down 18% year-over-year due to volume declines [16] Market Data and Key Metrics Changes - The automotive industry faced significant disruptions from tariff uncertainties and supply chain challenges, impacting production and demand [35] - Pavement Technologies sales remained flat year-over-year, with volume growth in the NAFTA region offset by lower infrastructure spending in South America [14] - The company noted a positive trend in North America regarding the adoption of fuel-efficient ICE vehicles [35] Company Strategy and Development Direction - The company aims to grow adjusted earnings per share by 10% and free cash flow per share by 5% through 2027 [4] - Plans to divest Advanced Polymer Technologies segments and Road Markings product line were announced [4] - Focus on optimizing higher value applications in filtration, particularly in water, pharma, and food and beverage sectors [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in starting 2026 with strong performance in core businesses despite a challenging economic environment [7] - The company expects 2026 Adjusted EPS to be in the range of $4.08-$5.20, with sales projected between $1.1 billion and $1.2 billion [18] - Management highlighted the importance of regulatory changes in China and India as potential growth drivers for Performance Materials [55][56] Other Important Information - The company successfully reduced net leverage to 2.6x, exceeding its target of below 2.8x [12] - Share repurchases of approximately $56 million were executed in 2025, with a remaining authorization of just under $300 million [11] Q&A Session Summary Question: Update on potential asset sales and impact on buybacks - Management confirmed that both APT and Road Markings sales processes are progressing well, with expectations to announce updates before year-end [26] - Share buybacks of $300 million are planned regardless of asset sales, with a ratable cadence throughout the year [27] Question: Stranded costs and their timing - Management confirmed clear visibility to eliminate $15 million in stranded costs by year-end, with accumulation expected more in the latter half of the year [29] Question: Performance Materials auto production assumptions - Management indicated a stable auto production environment, with potential upside if supply chain issues abate [34] Question: Peak margins for new segments - Management expects Performance Materials to maintain margins north of 50%, with Performance Chemicals projected in the mid-teens [44] Question: Opportunities for acquisitions in Pavement Technologies - Management stated that while they see growth potential in existing technologies, acquisitions are not a priority in the near term [58]

Financial Data and Key Metrics Changes - Total company sales for 2025 were $1.3 billion, an 8% decline compared to the previous year [8] - GAAP net loss for 2025 was $167 million, which included $337 million in pre-tax special charges [9] - Adjusted gross profit increased by 6.8% year-over-year to $556 million, with gross margin expanding by 610 basis points [9] - Total adjusted EBITDA rose 10% year-over-year to $398 million, with margins expanding 500 basis points to 30.8% [10] - Total diluted adjusted EPS improved by 30% to $4.55 [10] - Free cash flow reached $274 million, the highest level in the past five years, exceeding updated guidance [11] Business Line Data and Key Metrics Changes - Performance Materials sales remained flat at $607 million, despite lower auto production due to industry volatility [12] - Performance Chemicals sales declined by $86 million, primarily due to repositioning actions within Industrial Specialties [8] - Pavement Technologies' sales remained flat year-over-year, benefiting from pricing and favorable mix shifts [15] - Advanced Polymer Technologies faced a 15% sales decline and an 18% drop in segment EBITDA due to market pressures [17] Market Data and Key Metrics Changes - The automotive industry faced significant disruptions from tariff uncertainties and supply chain challenges, impacting production volumes [12][36] - Demand for Performance Materials is expected to remain stable, with potential upside if supply chain issues abate [36] - The company anticipates a stable environment for auto production in 2026, with a focus on hybrids and fuel-efficient ICE vehicles [36][55] Company Strategy and Development Direction - The company aims to grow adjusted earnings per share by 10% and free cash flow per share by 5% through 2027 [4] - Plans to initiate sales processes for Advanced Polymer Technologies segments and Road Markings product line were announced [4] - The company is focused on optimizing its portfolio and generating cash flow while reducing leverage [21] - Future growth opportunities are being explored in higher value applications within filtration and energy solutions [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence and optimism for 2026, emphasizing strong execution in core businesses [7] - The company does not expect a meaningful recovery in the global economy for 2026, with sales projected between $1.1 billion and $1.2 billion [19] - Management highlighted the importance of regulatory changes in China and India as potential growth drivers for Performance Materials [55] Other Important Information - The company completed the sale of its North Charleston CTO refinery and the majority of the Industrial Specialties product line [5] - The remaining share repurchase authorization at year-end was just under $300 million [11] Q&A Session Summary Question: Update on potential asset sales and share buybacks - Management is encouraged by the interest in both APT and Road Markings assets and expects to announce updates before the end of the year [26] - Share buybacks of $300 million are expected to continue regardless of asset sales [27] Question: Stranded costs and their timing - Management has clear visibility on eliminating $15 million in stranded costs by year-end, with accumulation expected more in the latter half of the year [29] Question: Performance Materials and auto production assumptions - Management expects stable auto production with potential upside if supply chain issues improve, particularly in North America [36] Question: Peak margins for new segments - Management anticipates maintaining EBITDA margins above 50% for Performance Materials and expects mid-teens margins for Performance Chemicals [46] Question: Seasonal EBITDA recognition for Pavement Technologies - Approximately 90% of annual EBITDA for Pavement Technologies is expected to be recognized in Q2 and Q3 due to seasonality [48]

FULL YEAR AND FOURTH QUARTER 2025 EARNINGS PRESENTATION February 26, 2026 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 ...

Core Viewpoint - Ingevity's recent earnings report shows a mixed performance with a significant loss but improved adjusted earnings, raising questions about future trends leading up to the next earnings release [1][2]. Financial Performance - Ingevity reported a Q2 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 [2]. - Adjusted earnings were $1.39 per share, up from $1.01 a year ago, surpassing the Zacks Consensus Estimate of $1.02 per share [2]. - Revenues declined 6.5% year over year to $365.1 million, primarily due to lower sales in the Performance Chemicals segment [3]. Segmental Review - The Performance Chemicals division generated revenues of $167.9 million, down 9.5% year over year, with Road Technologies' sales at $119.5 million, down 7.4%, and Industrial Specialties' sales at $48.4 million, down 14.2% [4]. - Performance Materials revenues fell 2.1% to $153.9 million, affected by lower sales in Asia and Europe, while North America saw higher sales [5]. - Advanced Polymer Technologies segment sales decreased 9.6% to $43.3 million due to reduced customer demand, particularly in Europe [6]. Financial Metrics - Operating cash flow for Q2 was $79 million, with free cash flow of $66.8 million, and no share repurchases during the quarter [7]. - Net leverage improved to 3x from 3.3x in the previous quarter [7]. 2025 Outlook - Ingevity revised its EBITDA guidance upward, now expecting adjusted EBITDA between $390 million and $415 million, compared to the previous range of $380-$415 million [8]. - Sales estimates remain between $1.25 billion and $1.40 billion [8]. Analyst Sentiment - Analysts have not made any earnings estimate revisions in the past two months, indicating a period of stability in expectations [9]. Investment Scores - Ingevity has a Growth Score of A but a low Momentum Score of F, resulting in an aggregate VGM Score of B [10]. Industry Context - Ingevity operates within the Zacks Chemical - Specialty industry, where competitor Element Solutions reported revenues of $625.2 million, reflecting a year-over-year increase of 2% [12].

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]

Financial Performance - Net sales decreased by 16.5% from $340.1 million in Q1 2024 to $284 million in Q1 2025[7] - Adjusted EBITDA increased by 22.7% from $74.4 million in Q1 2024 to $91.3 million in Q1 2025[7] - Adjusted EBITDA margin increased by 1020 bps from 21.9% in Q1 2024 to 32.1% in Q1 2025[7] - Diluted adjusted EPS increased by 110.6% from $0.47 in Q1 2024 to $0.99 in Q1 2025[7] - Free cash flow improved from negative $28.7 million in Q1 2024 to positive $15.4 million in Q1 2025[71] Segment Performance - Performance Materials net sales increased by 1.2% from $145.1 million to $146.8 million, with a 1.4% increase in Segment EBITDA from $78 million to $79.1 million[18] - Advanced Polymer Technologies net sales decreased by 12.1% from $48 million to $42.2 million, but Segment EBITDA increased by 31.6% from $9.5 million to $12.5 million[23] - Performance Chemicals net sales decreased by 35.4% from $147 million to $95 million, but Segment EBITDA improved by $10.3 million from negative $10.6 million to negative $0.3 million[28] Guidance and Outlook - The company widened its revenue guidance to $1.25 - $1.4 billion and affirmed free cash flow guidance of $220 - $260 million[33] - The company expects net debt ratio to be below 2.8x by year end[17, 33] - A 10% reduction in North America auto production is expected to lower Performance Materials EBITDA by approximately $15-$20 million[33, 34]