NGVT

A month has gone by since the last earnings report for Ingevity (NGVT). Shares have lost about 0.6% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Ingevity due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. Ingevity reported second-quarter 2026 adjusted earnings of $1.74 per share, up 42.6% year over year, beating the Zacks Consensus Estimate of $1.31 by 32.8%. Revenues declined 5.2% to $314.1 million but surpassed the consensus mark of $299.4 million by 4.9%. Excluding the divested Road Markings business, sales rose 5%. Higher pricing, favorable product mix and increased volumes lifted adjusted EBITDA margin to 36.6%. Performance Materials generated net sales of $160.6 million, up 4.4% from $153.9 million in the prior-year quarter. The segment’s EBITDA increased 6.3% year over year to $86.1 million. Higher volumes, improved price and mix, and stronger plant utilization more than offset increased selling, general and administrative and other expenses. The company’s Performance Chemicals operations are now represented by the Pavement Technologies segment following the Road Markings divestiture. Pavement Technologies’ net sales fell 22.4% year over year to $104.2 million, primarily because the Road Markings product line was sold on April 15, 2026. Segment EBITDA declined to $25.4 million from $28.8 million because the prior-year quarter included $6 million of Road Markings EBITDA. Improved pricing and volumes in the remaining business partly offset the lost contribution. Advanced Polymer Technologies posted net sales of $49.3 million, up 13.9% from $43.3 million. Segment EBITDA jumped to $11.2 million from $2 million. Improved product mix and higher plant utilization supported the increase, as the year-ago period included extended downtime related to new boiler installations. Net cash used in operating activities was $13.8 million in the second quarter. Free cash flow totaled $89.1 million. Ingevity repurchased approximately $35 million of common stock during the quarter at a weighted average price of $70.94 per share. Roughly $211 million remained available under the company’s existing share-repurchase authorization at the end of the period. Net leverage improved to 2.5 times from 3 times in the prior-year quarter and also declined from the first quarter of 2026. Cash and cash equivalents stood at $97.4 million as of June 30, 2026. Ingevity raised its full-year 2026 adjusted earnings guidance to $5-$5.45 per share from the previous projection of $4.7-$5.2. The company also increased its adjusted EBITDA forecast to $380-$400 million from $370-$395 million. The company continues to expect full-year net sales of $1.05-$1.15 billion. Free cash flow is now projected at $220-$245 million, excluding the $113.2 million litigation settlement payment, compared with the prior outlook of $215-$245 million. Ingevity intends to use its projected cash generation to reduce leverage to its long-term target range of 2-2.5 times and return capital to shareholders. In the past month, investors have witnessed a downward trend in fresh estimates. At this time, Ingevity has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Ingevity has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Ingevity belongs to the Zacks Chemical - Specialty industry. Another stock from the same industry, Element Solutions (ESI), has gained 2.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Element Solutions reported revenues of $977.9 million in the last reported quarter, representing a year-over-year change of +56.4%. EPS of $0.47 for the same period compares with $0.37 a year ago. For the current quarter, Element Solutions is expected to post earnings of $0.48 per share, indicating a change of +17.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.3% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Element Solutions. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ingevity Corporation (NGVT) : Free Stock Analysis Report Element Solutions Inc. (ESI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026 at 10:00 a.m. ET Chief Executive Officer and President - David H. Li Chief Financial Officer - Phillip J. Platt Head of Investor Relations - Mickey Walsh Operator: Hello, everyone. Thank you for joining us, and welcome to the Ingevity Second Quarter 2026 Earnings Call and Webcast. After today’s prepared remarks, we will host a Q&A session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Mickey Walsh, head of investor relations. Please go ahead. Mickey Walsh: Thank you. Good morning, and welcome again to Ingevity’s second quarter 2026 earnings call. Last evening, we posted a presentation on our investor site that you can use to follow today’s discussion. It can be found on our website, ir.ingevity.com, under Events and Presentations. Throughout this call, we may refer to non-GAAP financial measures, which are intended to supplement, not substitute, comparable GAAP measures. Definitions of these non-GAAP financial measures and reconciliations to comparable GAAP measures are included in our earnings release. We may make forward-looking statements regarding future events and future financial performance of the company during this call. And we caution you that these statements are just projections, and actual results or events may differ materially from those projections described in our earnings release. The agenda for today’s call is listed on Slide 3. Today, you will hear from David H. Li, our CEO and President, and Phillip J. Platt, our CFO. Our prepared comments will focus on results from the second quarter of 2026 from continuing operations and recent business highlights. Following the prepared remarks, we will open the line for a Q&A session. I will now turn the call over to David. David H. Li: Thank you, Mickey, and good morning, everyone. Please turn to Slide 4. This quarter represents another period of outstanding execution across the company and further demonstrates the progress we are making in building a stronger, higher-quality Ingevity. Our businesses delivered excellent commercial and operational performance. Excluding the Road Markings divestiture, sales increased 5%, with growth across all three segments. More importantly, adjusted EBITDA increased nearly 14%, and adjusted EBITDA margins expanded to 36.6%, demonstrating the earnings power of our portfolio and the discipline with which our teams continue to operate. Performance Materials once again delivered exceptional results, with EBITDA margins approaching 54%. Beyond the quarter, we continue to benefit from a structural shift in consumer buying habits toward hybrid vehicles. Hybrid vehicles require our most advanced carbon solutions and contribute a higher-value product mix. We believe this represents a sustainable market trend that reinforces both the long-term earnings power and competitive positioning of the business. Pavement Technologies continued to build positive momentum, while Advanced Polymer Technologies delivered meaningful year-over-year improvement through pricing actions, product mix, and operational execution. Both businesses performed well despite facing some headwinds from the volatile geopolitical environment. Along with this strong operating performance, we also continued executing our portfolio strategy. During the quarter, we completed the sale of our Road Markings product line. Combined with the Industrial Specialties divestiture completed earlier this year, these actions continue improving the quality of our portfolio while allowing us to focus resources on our highest-return opportunities. In addition, the strategic alternatives process for Advanced Polymer Technologies continues to progress well and is now in an advanced stage. Our priority remains achieving the best outcome for shareholders while continuing to sharpen our strategic focus. Our disciplined and balanced capital allocation strategy also remained unchanged. During the quarter, we repurchased $35 million of shares and remain ahead of pace toward our $300 million share repurchase commitment by the end of 2026. We also continue to reduce leverage and invest in attractive organic growth opportunities. Together, these actions strengthen our financial flexibility and support our long-term value creation potential. Finally, we are beginning to see encouraging commercial validation of several organic growth initiatives, particularly filtration, where our carbon technology is demonstrating differentiated performance. I will discuss these opportunities in more detail later in the call. Overall, I am extremely proud of what our teams accomplished this quarter. We are executing with discipline, strengthening the business, and building a stronger, higher-quality Ingevity with more durable earnings power while investing in long-term growth opportunities. And with that, I will turn it over to Phillip. Phillip J. Platt: Thank you, David, and good morning, everyone. Please turn to Slide 5. As Dave mentioned, our second quarter results highlight the continued improvement in the earnings quality of our businesses and demonstrate the benefits of our portfolio transformation strategy. Sales for the quarter were $314 million. While reported sales declined 5% due to the divestiture of the Road Markings product line on April 15, sales excluding Road Markings increased over 5%, with growth across all three segments. Adjusted EBITDA increased 14% to $115 million, while margins expanded over 600 basis points to 36.6%. These results were driven by higher pricing, a favorable product mix, improved asset utilization, and disciplined operational execution across the company. Adjusted earnings per share increased to $1.74, benefiting from the stronger operating performance, lower interest expense, and a reduced share count from our ongoing share repurchase program. Turning to Slide 6. These charts highlight our continued focus on strengthening the balance sheet and generating cash. Beginning with the chart on the left, free cash flow, excluding the litigation settlement payment made this quarter, was approximately $89 million. And free cash flow per share increased to $2.52. Compared to the prior year, the improvement was driven by stronger earnings, lower interest expense resulting from debt reduction, and reduced restructuring spending. Capital expenditures remained disciplined at approximately $10 million. Turning to net leverage. Trailing 12-month adjusted EBITDA increased to approximately $403 million, while net leverage improved to 2.5 times. As a result, we have reached the upper end of our target leverage range outlined during the strategic portfolio update. We also repurchased $35 million of shares during the quarter, leaving approximately $211 million available under our current authorization. As Dave mentioned, we remain fully committed to the $300 million share repurchase plan that we announced last December while continuing to maintain our leverage objectives. Now let’s turn to the segment results, beginning with Performance Materials on Slide 7. Performance Materials delivered another strong quarter and remains a highly differentiated business with industry-leading profitability and growth opportunities in both automotive and higher-value filtration applications. Sales increased 4% to $161 million, driven by higher volumes, favorable mix, and annual pricing actions. The continued shift in consumer preference toward hybrid vehicles, which utilize more advanced and higher-value carbon solutions, further supported both growth in revenue and profitability. Segment EBITDA increased 6% to $86 million, and EBITDA margins expanded to 53.6%, as higher volumes, improved price and mix, and stronger plant utilization more than offset higher SG&A spending. Demand remained solid throughout the quarter, supporting efficient plant utilization and inventory levels that remained largely unchanged from the first quarter. For the remainder of the year, we expect plant utilization to normalize, reflecting lower expected auto production as well as the execution of planned maintenance outages. While this dynamic benefited second quarter profitability, it represents a timing shift that is reflected in our expectations for the back half of this year. Please turn to Slide 8. Beginning this quarter, we have renamed the Performance Chemicals segment Pavement Technologies following the completion of the Road Markings divestiture on April 15. Reported sales declined 22% as a result of the divestiture. Excluding Road Markings, sales increased 3%, as favorable pricing and volume growth drove stronger performance in the remaining business. Growth was led by North America and was partially offset by softer demand in China and South America, as higher asphalt prices impacted project costs and drove project delays. Segment EBITDA declined by $3.4 million due to the absence of approximately $6 million of Road Markings earnings included in the prior-year period. The segment EBITDA decline was partially offset by improved pricing and volumes in the core Pavement Technologies business. Overall, excluding the impact of the Road Markings divestiture, both sales and EBITDA increased year over year, and EBITDA margin expanded 300 basis points to 24.4%, highlighting the improved earnings profile of the remaining Pavement Technologies business. Please turn to Slide 9. Advanced Polymer Technologies delivered meaningful year-over-year improvement during the quarter, reflecting the benefits of a more favorable product mix and higher asset utilization. Sales increased 14% to $49 million, benefiting from pricing surcharges and improved mix toward higher-value derivative products. As a reminder, the pricing surcharges were implemented in response to higher raw material and energy costs following the conflict in the Middle East. Segment EBITDA increased to $11 million from $2 million a year ago, and EBITDA margin improved to 22.7%. The improvement reflects a favorable product mix, higher plant utilization, and the absence of the operational downtime associated with the boiler installation project that impacted results in 2025. Results also benefited from competitor supply disruptions resulting from the Middle East conflict that began in the latter part of the first quarter of this year. In summary, we continue to demonstrate our ability to execute our portfolio simplification strategy while delivering solid operating performance. We are focused on maximizing value through commercial and operational excellence and remain committed to our capital allocation strategy. And with that, I will turn the call back to David to discuss our updated outlook. David H. Li: Thanks, Phillip. Turning to Slide 10. The strength and consistency of our first-half performance give us confidence to raise our outlook for the full year. Performance Materials continues to deliver exceptional profitability, supported by healthy demand and favorable product mix. As I mentioned earlier, we continue to benefit from the structural shift toward hybrid vehicles, which require increasingly advanced carbon solutions. Pavement Technologies continues to perform well, and Advanced Polymer Technologies has improved meaningfully from last year. Collectively, these results reinforce our confidence that the business we are building is capable of delivering more durable and predictable earnings, stronger cash generation, and attractive returns across a variety of market conditions. Our updated outlook reflects the strength of our first-half execution and financial results across the company. As we project our second-half outlook, there are a few factors that we expect to influence the cadence of results. First, we will execute planned maintenance outages at two of our Performance Materials facilities. Second, auto production in North America is expected to be weaker in the back half of the year. And lastly, the macroeconomic environment remains dynamic. As a result, we are increasing our adjusted EBITDA and EPS guidance. We now expect adjusted EBITDA of $380 million to $400 million and adjusted earnings per share of $5.00 to $5.45. The EBITDA outlook represents a 5% increase over the prior year at the midpoint, which is in line with or slightly ahead of expectations discussed at our strategic portfolio update in December. Additionally, we are raising the low end of our free cash flow guidance. Our free cash flow range is now $220 million to $245 million, as improved earnings are partially offset by higher inventory levels to support our customers amid strong demand in automotive end markets and a seasonal inventory build in pavement. Advanced Polymer Technologies remains included in our reported results and guidance. As I noted earlier, the sale process continues to progress well and is now in an advanced stage. And our guidance does not assume any proceeds from a potential transaction. We are also encouraged by the progress of several organic growth initiatives that leverage our technology leadership in advanced carbon materials. During the quarter, we secured our first municipal water treatment contract for PFAS filtration. This represents an encouraging early win and provides commercial validation that our technology can deliver meaningful customer value and clear differentiation in the attractive water treatment market. While still early in its development, we believe filtration has the potential to become an important long-term growth driver for Ingevity. We expect to share more over time as we continue advancing both the technology and commercial development of this opportunity. Beyond filtration, we continue advancing attractive opportunities in warm-mix asphalt technologies and energy storage, further diversifying our long-term organic growth profile. In closing, we are building a stronger, higher-quality Ingevity, one with a more focused portfolio, more durable earnings, multiple organic growth vectors, and disciplined capital allocation. We believe those characteristics position us to create sustainable, long-term shareholder value. And with that, I will turn it over for questions. Operator: We will now begin the Q&A session. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Jonathan Tanwanteng with CJS Securities. Your line is now open. Please go ahead. Lee Jagoda: Hey, it’s actually Lee Jagoda for Jon. Good morning. David H. Li: Morning. Lee Jagoda: So, I guess, a couple of questions on Performance Materials and then maybe one on the other segments. In terms of Performance Materials, were the planned outages factored into the prior outlook in terms of the timing being in Q3? David H. Li: Yeah. I will let Phillip take that one. Phillip J. Platt: Yeah. Hey, Lee. Thanks for the question. Yes, those planned outages are already baked into the outlook that we previously provided. Lee Jagoda: Okay. Perfect. And then just on the margins in that segment in general, a couple of questions. Obviously, really impressive performance in the quarter. How do we think about the short-term kind of margins relative to Q2, assuming that, you know, the U.S. auto stuff is supposed to be down, the geographic mix changes a little bit? And then, kind of medium term, as we think about margins, you are starting to include some of the positive benefits from, you know, potentially this PFAS opportunity and/or other opportunities. How does that change the margin structure in Performance Materials more structurally over time? David H. Li: Yeah. Why don’t I start, and then I’m sure Phillip can pepper in some more details. So first, you know, we’re really encouraged by the strong first half. And we saw all the segments performing well. As to your question on the second half, yes, so we’re watching all the industry forecasts, and sort of the cadence of auto production is expected to be a bit softer in the second half, and obviously, our sales would follow that. One of the things that we talked about and called out that I think is really going to be a more structural and enduring positive for us is this transition to hybrid. So we saw that in the first quarter. We saw that continue in the second quarter. It seems like the hybrids, especially in North America, are really hitting a sweet spot for the consumer. Obviously, hybrids also require our most advanced carbon solutions and also produce a higher-value product mix. So that is a real positive for us. And then, as you mentioned, we saw some early commercial validation of our filtration opportunity. All of that, we think, is, in the midterm, very positive for the Performance Materials margins. But in the second half, we would expect likely some step back just given the kind of cadence and planned outages that Phillip mentioned. But what would you say, Phillip? Phillip J. Platt: Lee, I would point you to our commentary on Slide 10 of the deck, where, you know, our expectation for the full year of 2026 is around the mid-50s for that segment. Obviously, to David’s point, that would imply slight pressure in the second half compared to the first half. Lee Jagoda: Sure. Great. And then one more on APT, if I can slip it in here. So, $11 million of quarterly EBITDA, really strong, nice improvement. And I know it is being influenced by a couple of different factors. Can you kind of talk about or remind us if there is any seasonality in that business? Or if that is the sort of run rate that business is capable of in the environment that we are in right now going forward? David H. Li: Yeah. There is not really seasonality. We are coming off a trough in the last couple of years in terms of industrial demand. The team is doing a great job in a pretty volatile environment. We mentioned earlier, I think, last quarter, that we actually saw some benefit from the Middle East conflict because one of our fellow suppliers had some supply challenges. So we were able to step in there and fill that supply need. I think that has normalized now. And what we would expect to see is sort of more normalized trends going forward. The business has performed very strongly, and we are encouraged by that. But I think there is not really seasonality, and we would expect some more normalization through the year. Lee Jagoda: Sounds great. I will hop back in the queue. Thanks. Operator: Your next question comes from the line of John McNulty with BMO. Your line is now open. Please go ahead. John McNulty: Good morning. Thanks for taking my question. Maybe two quick ones. So on the road paving side, or Pavement Technologies, I think in the prepared remarks, you commented on rising asphalt prices and the potential that it may impact road spending. Is it fair to assume that anything that may get curtailed just because budgets are thin and things are getting a little bit trickier as people get to the end of the year because of raw material inflation and what have you, that spending likely gets pushed out just to the next year? It is not like the road is half paved and just is left there. Is that a fair way to think about it, or is this potentially an ongoing issue that may drag through 2027 as well if raws are difficult and budgets are still thin? David H. Li: Yes, John. So first, thanks for the question. Despite the challenging environment, we also actually saw growth in pavement absent the Road Markings business. In fact, Evotherm, the warm-mix additive, grew 8% year over year, so we are encouraged by that. And we still think there is a long runway for penetration of that technology. We did start to see some of that impact from the Middle East. So the reality is, given the higher oil prices, asphalt prices are up almost 50%. We saw that most pronounced in the international opportunities. So, for example, China, although not a big part of our business, was down almost 80%. In North America, I think projects are still continuing to go through, but obviously, if the environment remains elevated, you could see that start to impact the business, and that is all comprehended in our outlook. So we saw it most pronounced in the international projects, less so in North America. Obviously, we are continuing to monitor that situation closely. John McNulty: Got it. Okay. Fair enough. And then just a question in PM on the filtration initiative. In particular, it sounds like you landed something for the use of filtering PFAS out. As part of that, did you find, or did the customer find, that your activated carbon solution is maybe better than the traditional carbon solution, I guess? Or is it just, hey, look, you are a new entrant, you are kind of more aggressively going after business and really kind of chasing it down, or maybe in the past you had not in certain areas? This is just the first win. How should we think about that? David H. Li: Yeah. Thanks, John. We are really encouraged by that first win. We think it is a key milestone for us. You know, it is a situation where we were not the low bidder for that opportunity. We were chosen because of the differentiation of our technology. And I think, as most know, this is a really fast-growing market, especially in the U.S., where many municipalities are looking to reach those expected requirements for PFAS. Our technology, as we continue in this discovery process, we believe offers customers an easy drop-in, and it is lower cost as well. And it obviously is really good for taking out some of the larger molecules associated with PFAS. And so there is definitely some technology differentiation. We are continuing our efforts there. The team is doing a great job, and we are really excited. We think this is just the beginning for us. John McNulty: Got it. Thanks very much for the call. David H. Li: Thanks. Operator: Your next question comes from the line of Daniel Rizzo with Jefferies. Your line is now open. Please go ahead. Daniel Rizzo: Hey, guys. Thanks for taking my questions. So with the Road Markings business, you mentioned that North America is relatively strong despite some cost hiccups, but I think you said you saw some weakness in China and South America. I guess, how meaningful is that, though? I thought that you were mostly North American for this business, particularly after all the moves you guys have made. David H. Li: Yeah. You are right, Daniel. Thanks for the question. So I think that was one of the reasons why we were able to grow despite those headwinds. International is not the biggest part of that business, but it represents growth opportunities. As a reminder, we recently were registered, or got approval, in Germany. That was a good indication of the continued validation of the technology in Europe. I think what we would say is that without those headwinds, the business would have grown even more strongly. Daniel Rizzo: Okay. That is helpful. And then with just, like, looking at EBITDA margins kind of broadly. So, you know, you have maybe down the road some mix headwinds from activated carbon. But overall, it should expand. But I guess my question is, is that coming from just improved mix broadly and improved cost absorption, or are there other productivity moves you are making that are going to continue to bear fruit? Because you have done a lot already. I was just wondering if the cost-cutting aspect of it is kind of finished. David H. Li: Yeah. I will let Phillip take that one. Phillip J. Platt: Yeah. You are talking specifically about Performance Materials? Daniel Rizzo: Is that right, Phillip? Or just—no, just overall, actually. Phillip J. Platt: Yeah. Well, I mean, part of the margin uplift you are seeing is the removal of Road Markings, which, you know, we said was near-zero EBITDA. So that is a benefit there. You know, we did—I love to talk about it—but we did have some stranded costs that were left over from our Industrial Specialties sale as well as the Road Markings sale. So, as a reminder, that was about $20 million. And what we said is we expect to eliminate at least $15 million of that. Happy to report, through Q2, we have eliminated $10 million of that. So there is some cost benefit that we are seeing. But really, what you are seeing a lot in the margin uplift is really the mix in Performance Materials and our ability to run the plants at really high throughputs. Daniel Rizzo: Okay. All right. Thank you very much. Operator: This concludes the Q&A session. I will now turn the call back to David H. Li for closing remarks. David H. Li: Thank you again for joining us today. As we conclude, I leave you with five key takeaways. First, our portfolio transformation is nearing completion and continues to improve the quality of our portfolio and sharpen our strategic focus. Second, our core businesses continue to demonstrate resilient margins and strong cash generation across a dynamic operating environment. Third, our first-half performance demonstrates the durability and resilience of the business and the strength of our execution. This is reflected in our margin expansion, strong cash generation, and increased full-year guidance. Fourth, disciplined capital allocation remains a priority. We are investing in high-return growth opportunities with minimal capital investment, strengthening our balance sheet, and returning meaningful capital to shareholders. To wrap up, we are delivering on the commitments we set out in our strategic portfolio update and remain on track to achieve our financial commitments. We are building a stronger, higher-quality Ingevity with a more focused portfolio, differentiated technology positions, expanded earnings power, and financial flexibility to create long-term value for our shareholders. Thank you again for your interest and support of Ingevity. And with that, we will conclude today’s call. Operator: This concludes today’s call. Thank you for attending. You may now disconnect. Before you buy stock in Ingevity, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ingevity wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ingevity (NGVT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Ingevity Corporation NGVT reported second-quarter 2026 adjusted earnings of $1.74 per share, up 42.6% year over year and above the Zacks Consensus Estimate of $1.31 by 32.8%. Revenues declined 5.2% to $314.1 million but surpassed the consensus mark of $299.4 million by 4.9%. Excluding the divested Road Markings business, sales rose 5%. Higher pricing, favorable product mix and increased volumes lifted adjusted EBITDA margin to 36.6%. Ingevity Corporation price-consensus-eps-surprise-chart | Ingevity Corporation Quote Performance Materials generated net sales of $160.6 million, up 4.4% from $153.9 million in the prior-year quarter. The segment’s EBITDA increased 6.3% year over year to $86.1 million. Higher volumes, improved price and mix, and stronger plant utilization more than offset increased selling, general and administrative and other expenses. The company’s Performance Chemicals operations are now represented by the Pavement Technologies segment following the Road Markings divestiture. Pavement Technologies’ net sales fell 22.4% year over year to $104.2 million, primarily because the Road Markings product line was sold on April 15, 2026. Segment EBITDA declined to $25.4 million from $28.8 million because the prior-year quarter included $6 million of Road Markings EBITDA. Improved pricing and volumes in the remaining business partly offset the lost contribution. Advanced Polymer Technologies posted net sales of $49.3 million, up 13.9% from $43.3 million. Segment EBITDA jumped to $11.2 million from $2 million. Improved product mix and higher plant utilization supported the increase, as the year-ago period included extended downtime related to new boiler installations. Net cash used in operating activities was $13.8 million in the second quarter. Free cash flow totaled $89.1 million. NGVT repurchased approximately $35 million of common stock during the quarter at a weighted average price of $70.94 per share. Roughly $211 million remained available under the company’s existing share-repurchase authorization at the end of the period. Net leverage improved to 2.5 times from 3 times in the prior-year quarter and also declined from the first quarter of 2026. Cash and cash equivalents stood at $97.4 million as of June 30, 2026. Ingevity raised its full-year 2026 adjusted earnings guidance to $5-$5.45 per share from the previous projection of $4.7-$5.2. The company also increased its adjusted EBITDA forecast to $380-$400 million from $370-$395 million. The company continues to expect full-year net sales of $1.05-$1.15 billion. Free cash flow is now projected at $220-$245 million, excluding the $113.2 million litigation settlement payment, compared with the prior outlook of $215-$245 million. Ingevity intends to use its projected cash generation to reduce leverage to its long-term target range of 2-2.5 times and return capital to shareholders. Shares of Ingevity have gained 52.7% in a year compared with the industry’s 5.6% growth. Image Source: Zacks Investment Research NGVT currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the basic materials space are Neo Performance Materials Inc. NOPMF,Almonty Industries Inc. ALM and Skeena Resources Limited SKE. Neo Performance is slated to report second-quarter 2026 results on Aug. 11. The Zacks Consensus Estimate for earnings is pegged at 50 cents per share. NOPMF sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Almonty is expected to report second-quarter 2026 results on Aug. 13. The Zacks Consensus Estimate for ALM’s second-quarter earnings per share is pegged at 10 cents, indicating 300% year-over-year growth. ALM carries a Zacks Rank #2 (Buy) at present. Skeena is expected to report second-quarter 2026 results on Aug. 13. The consensus estimate for SKE’s loss per share is pegged at 11 cents. SKE presently carries a Zacks Rank #2. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ingevity Corporation (NGVT) : Free Stock Analysis Report Skeena Resources Limited (SKE) : Free Stock Analysis Report Almonty Industries Inc. (ALM) : Free Stock Analysis Report Neo Performance Materials Inc. (NOPMF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Ingevity (NGVT) just posted second quarter 2026 results that show higher profitability compared with last year’s loss, alongside lower sales and the completion of a multi year share repurchase program. See our latest analysis for Ingevity. At a share price of $73.11, Ingevity has gained 21.67% on a year-to-date share price basis, while the 1-year total shareholder return of 80.97% points to strong recent momentum despite some shorter-term pullbacks. If this kind of earnings-driven move has your attention, it could be a good moment to see what else is setting up in the market with the 18 top founder-led companies Ingevity now has improved profitability and a completed buyback behind it, along with a sharp share price run. The business looks stronger on paper. The key issue is whether the current valuation already reflects that strength. The most followed valuation narrative for Ingevity puts fair value at $89 per share compared with the latest close of $73.11. That gap hinges on some ambitious profitability assumptions and a relatively low required return on future cash flows. Read the complete narrative. Want to see how Ingevity gets from today’s earnings base to that higher margin world? The narrative leans heavily on a sharp earnings ramp, richer margins and a future earnings multiple that sits below the wider chemicals sector. Curious which moving parts matter most to that $89 figure and how sensitive it is to those assumptions? The full narrative lays out the step by step path behind that call. Result: Fair Value of $89 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Ingevity still faces meaningful risks, including pressure on Advanced Polymer Technologies margins and potential demand weakness in key industrial and automotive end markets that could challenge this upbeat narrative. Find out about the key risks to this Ingevity narrative. The analyst narrative leans on strong future earnings and a fair value of $89, yet Ingevity currently trades on a P/E of 100.9x. That is far above the fair ratio of 32.7x, the US Chemicals industry at 25.6x, and peer average of 23.4x. This rich multiple increases the valuation risk if growth falls short. To see how this P/E gap fits into the wider picture of Ingevity and similar stocks, take a closer look at the See what the numbers say about this price — find out in our valuation breakdown. If this mix of optimism and concern around Ingevity feels familiar, do not wait for someone else to decide what it means. Take a closer look at the balance of potential upside and downside by checking the 4 key rewards and 2 important warning signs If Ingevity has sharpened your focus, do not stop here. Put a few more quality ideas on your radar now so you are not reacting later. Target potential value opportunities early by scanning the 55 high quality undervalued stocks before other investors start paying attention. Build a steadier income stream by reviewing the 9 dividend fortresses that combine higher yields with resilient fundamentals. Reduce portfolio stress by focusing on the 81 resilient stocks with low risk scores that show stronger balance sheets and lower overall risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NGVT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Ingevity Corporation? Here are five stocks we like better. Strong second-quarter performance: Excluding the divested Road Markings business, sales rose 5%, while adjusted EBITDA increased 14% to $115 million and margins expanded to 36.6%. Adjusted diluted EPS reached $1.74. 2026 outlook raised: Ingevity now expects adjusted EBITDA of $380 million–$400 million, adjusted EPS of $5.00–$5.45, and free cash flow of $220 million–$245 million. Portfolio and capital allocation progress: The company completed the Road Markings divestiture, advanced strategic alternatives for Advanced Polymer Technologies, repurchased $35 million of shares, and reduced net leverage to 2.5 times. Ingevity (NYSE:NGVT) reported second-quarter 2026 results marked by higher adjusted earnings, margin expansion and progress on its portfolio simplification efforts, as the company raised its full-year adjusted EBITDA and earnings-per-share outlook. Chief Executive Officer and President Dave Li said sales excluding the divested Road Markings product line increased 5% from the prior-year period, with growth across the company’s three operating segments. Adjusted EBITDA rose nearly 14%, while adjusted EBITDA margin expanded to 36.6%. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Reported quarterly sales were $314 million, down 5% because of the April 15 sale of the Road Markings business. Adjusted EBITDA increased 14% to $115 million, and adjusted diluted earnings per share rose to $1.74, supported by operating performance, lower interest expense and a reduced share count, Chief Financial Officer Phil Platt said. Ingevity completed the sale of its Road Markings product line during the quarter, following the earlier divestiture of its Industrial Specialties business. Li said the transactions are intended to improve the company’s portfolio quality and concentrate resources on higher-return opportunities. → Microsoft Just Flipped the AI Spending Narrative Overnight The company also said its strategic alternatives process for Advanced Polymer Technologies, or APT, has entered an advanced stage. Li said management’s priority is to achieve the best result for shareholders, while the company’s guidance continues to include APT and assumes no proceeds from a potential transaction. Ingevity repurchased $35 million of shares during the quarter and had about $211 million remaining under its current authorization. The company said it remains ahead of pace toward its previously announced commitment to repurchase $300 million of shares by the end of 2027. → Carrier Earnings Could Send the Stock to a New All-Time High Free cash flow excluding a litigation settlement payment was about $89 million, or $2.52 per share. Capital expenditures totaled approximately $10 million. Trailing 12-month adjusted EBITDA reached about $403 million, and net leverage improved to 2.5 times, reaching the upper end of the company’s stated target range. Performance Materials posted sales of $161 million, up 4% from a year earlier, driven by higher volumes, product mix and annual pricing actions. Segment EBITDA increased 6% to $86 million, and EBITDA margin expanded to 53.6%. Li said a shift in consumer buying habits toward hybrid vehicles has supported the segment. Hybrid vehicles use Ingevity’s more advanced carbon solutions and generate a higher-value product mix, he said. Platt said the company expects Performance Materials’ full-year EBITDA margin to be in the mid-50% range, implying some pressure in the second half compared with the first half. The company expects plant utilization to normalize during the remainder of the year as auto production is projected to decline and Ingevity completes planned maintenance outages at two Performance Materials facilities. Platt said those outages had already been included in the company’s previous outlook. Ingevity also disclosed its first municipal water-treatment contract for PFAS filtration. Li said the company was selected based on technological differentiation rather than being the lowest bidder. He said the activated carbon technology offers an easier drop-in solution, lower cost and performance in removing larger PFAS molecules. The company views filtration as an early-stage but potentially meaningful long-term growth opportunity. The former Performance Chemicals segment was renamed Pavement Technologies following the Road Markings sale. Reported segment sales declined 22% because of the divestiture, but sales excluding Road Markings rose 3%, aided by pricing and volume gains in North America. Segment EBITDA declined $3.4 million, largely reflecting the absence of about $6 million in Road Markings earnings included in the prior-year quarter. Excluding the divestiture, both sales and EBITDA increased year over year, while EBITDA margin rose 300 basis points to 24.4%. Higher asphalt prices contributed to weaker demand and project delays in China and South America, according to management. Li said asphalt prices had risen nearly 50% amid higher oil prices, with the effects more pronounced internationally than in North America. He added that Evotherm, the company’s warm-mix asphalt additive, grew 8% year over year. Advanced Polymer Technologies reported a 14% increase in sales to $49 million, driven by pricing surcharges and a more favorable mix of higher-value derivative products. Segment EBITDA rose to $11 million from $2 million a year earlier, and EBITDA margin improved to 22.7%. Platt attributed the improvement to product mix, higher plant utilization and the absence of operational downtime tied to a boiler installation project in 2025. The business also benefited from competitor supply disruptions connected to the Middle East conflict that began late in the first quarter. Li said those supply-related benefits have normalized and that the business does not have meaningful seasonality. Based on first-half execution and results, Ingevity raised its full-year outlook. The company now expects adjusted EBITDA of $380 million to $400 million and adjusted earnings per share of $5.00 to $5.45. Ingevity also raised the lower end of its free-cash-flow outlook, now expecting $220 million to $245 million. The company said stronger earnings are being partly offset by higher inventory levels needed to support automotive customers amid demand strength and seasonal pavement inventory building. Li said the company is continuing to advance growth opportunities in filtration, warm-mix asphalt technologies and energy storage while maintaining its focus on debt reduction, share repurchases and organic investments. Ingevity Corporation, traded as NGVT, is a specialty chemicals and performance materials company headquartered in North Charleston, South Carolina. The company operates two primary business units: Performance Chemicals and Performance Materials. The Performance Chemicals segment produces and markets specialty chemicals derived largely from wood and other natural feedstocks, including rosin acids, tall oil fatty acids and esters, as well as specialty petroleum resins. These products serve a broad range of industries, including paper, adhesives, coatings, oilfield drilling and consumer goods. The Performance Materials segment develops and manufactures activated carbon products and composites for applications such as automotive emissions control, industrial air and water purification, and spill containment. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ingevity Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Ingevity (NGVT) came out with quarterly earnings of $1.74 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $1.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +32.82%. A quarter ago, it was expected that this company would post earnings of $0.84 per share when it actually produced earnings of $1.15, delivering a surprise of +36.9%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Ingevity, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $314.1 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.91%. This compares to year-ago revenues of $365.1 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ingevity shares have added about 25.9% since the beginning of the year versus the S&P 500's gain of 8.5%. While Ingevity has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ingevity was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.64 on $304.7 million in revenues for the coming quarter and $5.05 on $1.12 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Linde (LIN), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 31. This gas supplier is expected to post quarterly earnings of $4.49 per share in its upcoming report, which represents a year-over-year change of +9.8%. The consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level. Linde's revenues are expected to be $8.96 billion, up 5.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ingevity Corporation (NGVT) : Free Stock Analysis Report Linde PLC (LIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the 14% adjusted EBITDA growth to disciplined operational execution and a structural consumer shift toward hybrid vehicles, which require more advanced, higher-value carbon solutions. The divestitures of Road Markings and Industrial Specialties were framed as critical steps in sharpening strategic focus on high-return opportunities and improving overall portfolio quality. Performance Materials achieved near-record 53.6% margins, driven by favorable product mix and high plant utilization, though management noted this was partially a timing benefit from pulling forward production. Advanced Polymer Technologies saw a significant turnaround due to pricing surcharges and a mix shift toward higher-value derivative products, despite geopolitical volatility in the Middle East. Pavement Technologies faced international headwinds as higher oil prices inflated asphalt costs by approximately 50%, leading to project delays in China and South America. The company is pivoting toward organic growth in filtration, citing the first municipal water treatment contract as commercial validation of their carbon technology's differentiated performance. Full-year adjusted EBITDA guidance was raised to $380 million to $400 million, reflecting first-half strength while accounting for expected second-half softness in North American auto production. Second-half margins are expected to face slight pressure due to planned maintenance outages at two Performance Materials facilities and a normalization of plant utilization rates. Free cash flow guidance was narrowed to $220 million to $245 million, assuming higher inventory levels will be necessary to support strong automotive demand and seasonal pavement needs. The strategic alternatives process for the Advanced Polymer Technologies segment is in an advanced stage, though current guidance does not yet assume any transaction proceeds. Management remains committed to a $300 million share repurchase plan by the end of 2026, with $211 million in remaining authorization to be executed alongside leverage reduction goals. Management successfully eliminated $10 million of the $20 million in stranded costs resulting from recent divestitures, with a goal to reach at least $15 million in total savings. A one-time litigation settlement payment impacted reported free cash flow during the quarter, though underlying cash generation remained strong at $89 million. Competitor supply disruptions in the Middle East provided a temporary volume tailwind for the Advanced Polymer Technologies segment that is expected to normalize in future periods. The renaming of Performance Chemicals to Pavement Technologies reflects the structural change in the segment following the exit from the Road Markings product line. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects mid-50s margins for the full year, noting that while the second half will see a step back due to maintenance, the shift to hybrids is a structural, enduring positive. Hybrids are described as a 'sweet spot' for consumers, requiring higher-value carbon solutions that support long-term margin expansion. Higher asphalt prices, driven by oil volatility, significantly impacted international projects, with China volumes down almost 80%. North American projects have remained more resilient, and management believes the long-term penetration runway for warm-mix additives like Evotherm remains intact. Ingevity secured its first municipal contract not as the low bidder, but due to technology that offers an easy 'drop-in' solution for removing large PFAS molecules. Management views this as a high-growth market where their activated carbon provides a lower-cost, higher-performance alternative to traditional solutions. The recent $11 million EBITDA performance was aided by a temporary supply gap from a competitor affected by Middle East conflict. Management expects APT results to normalize as these temporary market disruptions subside, though the business remains significantly improved over the prior year.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted EBITDA increased nearly 14% and margins expanded to 36.6%, demonstrating strong earnings power. Performance Materials delivered exceptional results with EBITDA margins approaching 54%, driven by hybrid vehicle demand. Pavement Technologies grew 3% excluding divestitures, with EBITDA margin expanding 300 basis points to 24.4%. Advanced Polymer Technologies improved meaningfully, with EBITDA rising to $11 million from $2 million a year ago. The company secured its first municipal water treatment contract for PFAS filtration, validating its technology differentiation. Planned maintenance outages at two Performance Materials facilities will pressure second-half profitability. North American auto production is expected to be weaker in the back half of the year, impacting sales. Higher asphalt prices due to geopolitical tensions caused project delays in China and South America. The road markings divestiture reduced reported sales by 22% in Pavement Technologies and removed $6 million in prior-year EBITDA. Inventory levels are expected to increase to support strong automotive demand and seasonal pavement build, partially offsetting free cash flow. Here are the key highlights from Ingevity Corp's Q2 2026 earnings call, presented as summarized Q&A pairs. Warning! GuruFocus has detected 6 Warning Signs with NGVT. Is NGVT fairly valued? Test your thesis with our free DCF calculator. Q: Regarding Performance Materials, were the planned maintenance outages factored into the prior outlook, and are they expected to occur in Q3? A: (Phil Platt, CFO) Yes, those planned outages were already baked into the outlook that we previously provided. Q: Performance Materials margins were very impressive in Q2. How should we think about short-term margins given softer U.S. auto production, and medium-term margins as new opportunities like PFAS filtration contribute? A: (Dave Lee, CEO) We are encouraged by the strong first half. The structural shift to hybrids, which require our most advanced carbon solutions, is a positive. We also saw early commercial validation of our filtration opportunity. However, for the second half, we expect a slight step back due to planned outages and softer auto production. (Phil Platt, CFO) Our full-year 2026 expectation for the segment is around mid-50% EBITDA margins, which implies slight pressure in the second half compared to the first. Q: Advanced Polymer Technologies (APT) delivered $11 million in quarterly EBITDA, a strong improvement. Is this a sustainable run rate, or is there seasonality or one-time benefits to consider? A: (Dave Lee, CEO) There is not really seasonality in APT. We are coming off a trough in industrial demand. The team did a great job, and we saw some benefit from the Middle East conflict as competitors had supply disruptions. We believe that benefit has normalized, and we would expect more normalized trends going forward. Q: On Pavement Technologies, you mentioned rising asphalt prices impacting project costs. Is this a push-out of spending to next year, or could it be an ongoing issue into 2027? A: (Dave Lee, CEO) Despite the challenging environment, we saw growth in pavement excluding the road markings divestiture. Our Evotherm warm mix additive grew 8% year-over-year. The impact from higher oil prices was most pronounced in international markets like China. In North America, projects are continuing, but we are monitoring the situation closely. Q: On the filtration initiative, you landed a contract for filtering PFAS. Was this win due to your carbon technology being superior, or was it a pricing strategy? A: (Dave Lee, CEO) We are really encouraged by this key milestone. We were not the low bidder; we were chosen because of the differentiation of our technology. Our solution offers an easy drop-in, is lower cost, and is effective at removing larger PFAS molecules. This is just the beginning for us. Q: You mentioned weakness in China and South America for Pavement Technologies. How meaningful is this, given the business is mostly North American? A: (Dave Lee, CEO) You are right; international is not the biggest part of the business, but it represents growth opportunities. Without those headwinds, the business would have grown even more strongly. Q: Looking at overall EBITDA margin expansion, is this coming from improved mix and cost absorption, or are there other productivity moves still bearing fruit? A: (Phil Platt, CFO) Part of the margin uplift is from the removal of the near-zero EBITDA road markings business. We also had about $20 million in stranded costs from divestitures, and we have eliminated $10 million of that through Q2. However, a lot of the margin uplift is from the mix in Performance Materials and our ability to run plants at high throughputs. Q: Can you provide more detail on the organic growth initiatives, specifically in filtration and energy storage? A: (Dave Lee, CEO) We are encouraged by the progress. In filtration, we secured our first municipal water treatment contract for PFAS, which is commercial validation. We believe this has the potential to become an important long-term growth driver. Beyond filtration, we are advancing opportunities in warm mix asphalt technologies and energy storage, further diversifying our long-term organic growth profile. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Second Quarter 2026 Results and Recent Highlights: Net sales of $314.1 million decreased 5% from prior year; excluding Road Markings, sales increased 5% Net income from continuing operations of $39.8 million, or $1.13 per diluted share, compared to $(141.4) million, or $(3.87) per diluted share, in the prior year Adjusted earnings from continuing operations of $61.5 million and $1.74 of adjusted diluted earnings per share compared to $44.9 million and $1.22 in the prior year Adjusted EBITDA from continuing operations of $115.0 million, up $14.0 million from the prior year; Adjusted EBITDA margin from continuing operations of 36.6% compared to 30.5% in the prior year Completed the sale of Road Markings product line on April 15, 2026, for approximately $63 million in net proceeds Raises full year Adjusted EBITDA outlook to a range of $380 to $400 million following a solid start to the year NORTH CHARLESTON, S.C., July 29, 2026--(BUSINESS WIRE)--Ingevity Corporation (NYSE: NGVT) today reported its financial results for the second quarter of 2026. The results and guidance in this release include non-GAAP financial measures; see "Use of non‑GAAP financial measures" section for definitions and reconciliations to the most comparable GAAP measure. Unless otherwise stated, all comparisons below are made versus the same period in 2025 and are presented on a continuing operations basis. Full Company Results Net sales of $314.1 million decreased 5% driven primarily by the sale of the Road Markings product line on April 15, 2026. Excluding Road Markings, sales increased 5% with growth across all three segments. The company reported net income from continuing operations of $39.8 million or $1.13 per diluted share (EPS). Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations increased 14% to $115.0 million, driven by higher price, favorable product mix, and increased volumes in Performance Materials and Pavement Technologies, along with improved product mix and asset utilization in Advanced Polymer Technologies. Second quarter adjusted EBITDA margin from continuing operations was 36.6% compared to 30.5% in the prior year. "We are delivering on the commitments we set at the beginning of the year," said Ingevity President and CEO Dave Li. "Strong commercial and operational execution across our businesses drove another strong quarter, giving us the confidence to raise our full-year diluted adjusted EPS and adjusted EBITDA guidance. While our outlook for the second half remains measured given the dynamic operating environment, our results reinforce the strength of the business and the progress we're making in building a stronger, more focused Ingevity. The completion of the Road Markings divestiture in April further demonstrates our commitment to portfolio transformation. We also continue to invest in organic growth opportunities that leverage our differentiated carbon technologies. Our recent municipal water treatment contract for PFAS filtration provides early commercial validation of our technology and demonstrates its potential to create attractive new growth opportunities in adjacent markets. Together, these actions are creating a stronger Ingevity: a more focused company with differentiated technology, attractive organic growth opportunities, and a stronger foundation for sustainable long-term shareholder value." Segment Results Performance Materials Performance Materials sales increased 4% to $160.6 million driven by higher volumes and favorable mix driven by a continued shift in consumer preferences from battery electric vehicles to hybrids, further supported by annual pricing actions. Segment EBITDA was up 6% to $86.1 million driven by higher volumes, improved price and mix, and higher plant utilization, which more than offset higher SG&A and other expenses. Segment EBITDA margin improved 100 basis points to 53.6% compared to 52.6% in the prior year. Pavement Technologies Pavement Technologies sales declined 22% to $104.2 million, primarily due to the April 15, 2026, divestiture of the Road Markings product line. Excluding the divestiture, sales increased 3%, driven by higher price and volumes with regional strength in North America partially offset by weakness in China and South America. Segment EBITDA was $25.4 million, down $3.4 million from the prior year, primarily reflecting the absence of $6.0 million of Road Markings EBITDA included in the prior-year period, partially offset by improved pricing and volumes in the remaining Pavement Technologies business. Segment EBITDA margin was 24.4%, compared with 21.4% in the prior year. Advanced Polymer Technologies Advanced Polymer Technologies sales increased 14% to $49.3 million driven primarily by higher prices, including a price surcharge to offset increased raw material and energy cost, a favorable mix toward higher-value derivative products, and competitor supply disruptions. Segment EBITDA for the quarter was $11.2 million compared to $2.0 million. The improvement was driven by improved product mix and higher plant utilization compared with the prior year period that included extended downtime associated with the installation of new boilers and further supported by competitor supply disruptions. Segment EBITDA margin was 22.7% compared to 4.6% in the prior year. Corporate and Other Corporate and other expenses, which are not included in segment financial results, were $7.7 million, similar to the prior year. Liquidity/Other Continuing and Discontinued Operations Second quarter operating cash flow was negative $15.8 million, a decrease of $120.2 million versus the same quarter in 2025 driven by a $113.2 million litigation settlement payment. Excluding the litigation settlement, the company generated $89.1 million free cash flow, an increase of $22.3 million. Second quarter of 2026 reflects improved earnings, reduced interest expense due to debt repayments, and lower restructuring spend compared to the prior year. Share repurchases totaled approximately $35 million for the second quarter at a weighted average cost per share of $70.94, with approximately $211 million available capacity remaining under the company's current share repurchase authorization. Net leverage improved to 2.5 times versus the first quarter of 2026 and is down from 3.0 times versus the same quarter last year. Full Year 2026 Outlook: Following another strong quarter, the company is raising its full-year 2026 outlook while maintaining a measured view of the second half of the year. It now expects full year 2026 net sales between $1.05 billion and $1.15 billion, adjusted EBITDA between $380 million and $400 million, and diluted adjusted EPS of $5.00 to $5.45. Free cash flow is expected to be between $220 million and $245 million, excluding $113.2 million related to a litigation settlement. The company intends to utilize the strong free cash flow to reduce leverage to within our long-term target range of 2.0 to 2.5 times and return cash to shareholders. The 2026 outlook includes full year financial results for Advanced Polymer Technologies but excludes the divested Industrial Specialties product line for the full year and the Road Markings product line beginning April 15, 2026. Additional Information: The company will host a live webcast on Thursday, July 30, at 10:00 a.m. (Eastern) to discuss second quarter 2026 fiscal results. The webcast can be accessed via the Investor section of Ingevity’s website. Participants may pre-register for the event here. Participants may also listen to the conference call by dialing 833 461 5787 (inside the U.S.) and entering access code 943357132. Callers outside the U.S. can find international dial-in numbers here. For those unable to join the live event, a recording will be available beginning at approximately 2:00 p.m. (Eastern) on July 30, 2026, through July 29, 2027, at this replay link. Instructions for accessing the webcast and conference call, along with a slide deck containing relevant financial and statistical information, will be posted to the Investors section of Ingevity’s website after the company issues its earnings release on July 29, 2026. Ingevity: Purify, Protect and Enhance Ingevity (NYSE: NGVT) is a global specialty materials company that develops advanced carbon and engineered materials solutions that improve mobility, strengthen and extend the life of infrastructure and enhance industrial processes. With a 90‑year legacy of innovation, we work closely with customers to solve technical challenges and deliver materials that improve performance and environmental outcomes in essential applications. Our portfolio includes Performance Materials activated carbon technologies for emissions control and filtration; Pavement Technologies solutions for high-performance pavement applications and dispersants for crop protection; and Advanced Polymer Technologies specialty polymers for coatings and industrial applications. Headquartered in North Charleston, South Carolina, Ingevity operates from 17 locations worldwide and employs approximately 1,400 people. Learn more at ingevity.com. Ingevity Corporation Non-GAAP Financial Measures Ingevity has presented certain financial measures, defined below, which have not been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and has provided a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP on the following pages. These financial measures are not meant to be considered in isolation nor as a substitute for the most directly comparable financial measure calculated in accordance with GAAP. Investors should consider the limitations associated with these non-GAAP measures, including the potential lack of comparability of these measures from one company to another. We believe these non-GAAP financial measures provide management as well as investors, potential investors, securities analysts, and others with useful information to evaluate the performance of the business, because such measures, when viewed together with our financial results computed in accordance with GAAP, provide a more complete understanding of the factors and trends affecting our historical financial performance, liquidity measures, and projected future results. Ingevity uses the following non-GAAP measures: Adjusted earnings (loss) from continuing operations is defined as net income (loss) from continuing operations plus restructuring and other (income) charges, net, goodwill impairment charges, long-lived asset impairment charge, acquisition and other-related (income) costs, pension and postretirement settlement and curtailment (income) charges, impairment of license agreement, debt refinancing fees, litigation charge, proxy contest charges, portfolio realignment costs, gain on sale of business, gain (loss) on strategic investment, and the income tax expense (benefit) on those items, less the provision (benefit) from certain discrete tax items. Diluted adjusted earnings (loss) from continuing operations per share is defined as diluted earnings (loss) from continuing operations per share plus restructuring and other (income) charges, net, per share, acquisition and other-related (income) costs per share, pension and postretirement settlement and curtailment (income) charges per share, impairment of license agreement per share, debt refinancing fees per share, litigation charge per share, proxy contest charges per share, portfolio realignment costs per share, gain on sale of business per share, gain (loss) on strategic investment per share, goodwill impairment charge per share, long-lived asset impairment charge and the income tax expense (benefit) per share on those items, less the provision (benefit) from certain discrete tax items per share. Adjusted EBITDA from continuing operations is defined as net income (loss) from continuing operations plus interest expense, net, provision (benefit) for income taxes, depreciation, amortization, restructuring and other (income) charges, net, acquisition and other-related (income) costs, litigation charge, impairment of license agreement, proxy contest charges, portfolio realignment costs, gain on sale of business, gain (loss) on strategic investment, goodwill impairment charge, long-lived asset impairment charge and pension and postretirement settlement and curtailment (income) charges, net. Adjusted EBITDA from discontinued operations is defined as net income (loss) from discontinued operations plus interest expense, net, provision (benefit) for income taxes, depreciation, amortization, restructuring and other (income) charges, net, gain on sale of business. Total Adjusted EBITDA is defined as Adjusted EBITDA from continuing operations and Adjusted EBITDA from discontinued operations. Adjusted EBITDA margin from continuing operations is defined as Adjusted EBITDA from continuing operations divided by Net sales from continuing operations. Adjusted EBITDA margin from discontinued operations is defined as Adjusted EBITDA from discontinued operations divided by Net sales from discontinued operations. Total Adjusted EBITDA Margin is defined as Total Adjusted EBITDA divided by Total net sales. Total Net Sales is defined as Net sales from continuing operations and Net sales from discontinued operations. Net Debt is defined as the sum of notes payable, short-term debt, current maturities of long-term debt and long-term debt including finance lease obligations less the sum of cash and cash equivalents, restricted cash associated with our new market tax credit financing arrangement, and restricted investment associated with certain finance lease obligations, excluding the allowance for credit losses on held-to-maturity debt securities held within the restricted investment. Net Debt Ratio is defined as Net Debt divided by the last twelve months Total Adjusted EBITDA. Free Cash Flow is defined as the sum of net cash provided by (used in) the following items: operating activities less capital expenditures. Free Cash Flow per share is defined as Free Cash Flow divided by diluted weighted average common shares outstanding. Ingevity's management also uses the above financial measures as the primary measures of profitability and liquidity of the business. In addition, Ingevity believes Adjusted EBITDA from continuing operations and Adjusted EBITDA Margin from continuing operations are useful measures because they exclude the effects of financing and investment activities as well as non-operating activities. GAAP Reconciliation of 2026 Adjusted EBITDA Guidance A reconciliation of net income to Adjusted EBITDA from continuing operations as projected for 2026 is not provided. Ingevity does not forecast net income as it cannot, without unreasonable effort, estimate or predict with certainty various components of net income. These components, net of tax, include further restructuring and other income (charges), net; additional acquisition and other-related (income) costs; litigation charges; additional pension and postretirement settlement and curtailment (income) charges; and revisions due to legislative tax rate changes. Additionally, discrete tax items could drive variability in our projected effective tax rate. All of these components could significantly impact such financial measures. Further, in the future, other items with similar characteristics to those currently included in Adjusted EBITDA from continuing operations, that have a similar impact on the comparability of periods, and which are not known at this time, may exist and impact Adjusted EBITDA from continuing operations. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729575881/en/ Contacts Caroline [email protected] Investors: Mickey [email protected]