Slide 1: First Quarter 2025 Earnings Presentation
FIRST QUARTER 2025 EARNINGS PRESENTATION May 6, 2025
Slide 2: Use of non-GAAP financial measures and forward-looking statements
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. In
Slide 3: Agenda
AGENDA 1 Quarter Highlights & Updates 2 Consolidated Financial Results 3 Segment Performance 4 Guidance 5 Q&A 3
Slide 4: First Quarter Highlights and Updates
FIRST QUARTER HIGHLIGHTS AND UPDATES David H. Li named President and CEO effective April 7th Company delivered its 4th consecutive quarter of higher year-over-year margins with increased free cash flow and reduced leverage Performance Materials delivered its 7th consecutive quarter of EBITDA margins
Slide 5: First Quarter (Q1) Consolidated Financial Performance
FIRST QUARTER (Q1) CONSOLIDATED FINANCIAL PERFORMANCE Performance Highlights Q1 Financials (1) Sales declined, primarily due to the exit of certain lower-margin end markets Q1 Q1 vs PY within our Industrial Specialties product line completed in 2024 as part of the $ in millions except percentage and
Slide 6: Q1 2025 Financial Metrics and Highlights
Q1 2025 FINANCIAL METRICS AND HIGHLIGHTS Net Debt Ratio (1) and Trailing Twelve Months (TTM) Adj. EBITDA (1) Capital Allocation $ in millions Share repurchase Net Debt Ratio TTM Adj. EBITDA Capital expenditures 4.5 400 M&A, growth invest 422 Debt activity 4.0 4.0 4 3.8 350 3.5 26 3.5 3.3 35 7 143 30
Slide 7: Performance Materials
PERFORMANCE MATERIALS Q1 Q1 $ % $ IN MILLIONS VS. PRIOR VS. PRIOR 2025 2024 YEAR YEAR Performance Highlights Net Sales 146.8 145.1 1.7 1.2% Sales increased 1% driven by higher volume in China and Asia Pacific, Segment EBITDA 79.1 78.0 1.1 1.4% and the implementation of annual price increases; North
Slide 8: Advanced Polymer Technologies
ADVANCED POLYMER TECHNOLOGIES Performance Highlights Q1 Q1 $ % $ IN MILLIONS VS. PRIOR VS. PRIOR 2025 2024 Michael N. Shukov named senior vice president and president, Advanced YEAR YEAR Polymer Technologies, effective March 12, 2025 Net Sales 42.2 48.0 (5.8) (12.1)% Sales declined as higher volumes
Slide 9: Performance Chemicals
PERFORMANCE CHEMICALS $ IN MILLIONS Q1 Q1 $ VS. PRIOR % VS. PRIOR Performance Highlights 2025 2024 YEAR YEAR Sales lower due primarily to segment repositioning actions Net Sales 95.0 147.0 (52.0) (35.4)% 50.7 101.3 (50.6) (50.0)% INDUSTRIAL SPECIALTIES: Sales down 50% due primarily to the impact o
Slide 10: 2025 Guidance and Outlook
2025 GUIDANCE AND OUTLOOK Ingevity widens range of prior guidance to reflect ~10% reduction in North America auto production forecasts; affirms free cash flow and leverage guidance FY Guidance Opportunities: Global auto production is stronger than current forecasts Financial Metric FY Guidance C
Slide 11: Thank you for your interest in Ingevity
FOR MORE INFORMATION Investors John E. Nypaver, Jr. (843) 740 - 2002 Media Caroline Monahan (843) 740 - 2068 Thank you for your interest in Ingevity. 11
Slide 12: Appendix
APPENDIX 12
Slide 13: Definitions of 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 follo
Slide 14: Reconciliation of Net Income and Diluted EPS to Adjusted Earnings
Reconciliation of Net Income (Loss) (GAAP) and Diluted Earnings (Loss) Per Share (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) and Diluted Adjusted Earnings (Loss) Per Share (Non-GAAP) Three Months Ended March 31, In millions, except per data (unaudited) 2025 2024 Net income (loss) (GAAP) $ 20.5 $ (
Slide 15: Reconciliation of Net Income and Diluted EPS to Adjusted Earnings (notes)
Reconciliation of Net Income (Loss) (GAAP) and Diluted Earnings (Loss) Per Share (GAAP) to Adjusted Earnings (Loss) (Non-GAAP) and Diluted Adjusted Earnings (Loss) Per Share (Non-GAAP) (4) We exclude gains and losses from strategic investments from our segment results, as well as our non-GAAP financ
Slide 16: Restructuring and other (income) charges
Restructuring and other (income) charges Three Months Ended March 31, In millions 2025 2024 Work force reductions and other $ 1.2 $ — Performance Chemicals' repositioning 11.1 62.3 Restructuring charges (1) $ 12.3 $ 62.3 North Charleston plant transition — 0.5 Other (income) charges, net (1) $ — $ 0
Slide 17: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income (GAAP) to Adjusted EBITDA (Non-GAAP) Three Months Ended March 31, In millions, except percentages (unaudited) 2025 2024 Net income (loss) (GAAP) $ 20.5 $ (56.0) Provision (benefit) for income taxes 6.3 (15.9) Interest expense, net 19.4 22.3 Depreciation and amortization
Slide 18: Reconciliation of Gross Profit to Adjusted Gross Profit
Reconciliation of Gross Profit (GAAP) to Adjusted Gross Profit (Non-GAAP) Three Months Ended March 31, In millions, except percentages (unaudited) 2025 2024 Gross Profit (GAAP) $ 113.4 $ 99.7 Plus: Depreciation and amortization 15.2 17.6 Adjusted gross profit (Non-GAAP) $ 128.6 $ 117.3 Net Sales $ 2
Slide 19: Reconciliations of SG&A to Adjusted SG&A
Reconciliations of SG&A (GAAP) to Adjusted SG&A (Non-GAAP) Three Months Ended March 31, In millions, except percentages (unaudited) 2025 2024 SG&A (GAAP) $ 43.1 $ 47.2 Research and technical expenses (GAAP) 7.7 6.8 Total SG&A (GAAP) 50.8 54.0 Less: Depreciation and amortization 9.7 12.0 Adjusted SG&
Slide 20: Reconciliations of Other (income) expense, net to Adjusted
Reconciliations of Other (income) expense, net (GAAP) to Adjusted Other (income) expense, net (Non-GAAP) Three Months Ended March 31, In millions, except percentages (unaudited) 2025 2024 Other (income) expense, net (GAAP) $ 4.1 $ 32.2 Less: Loss on CTO resales — 26.5 (Gain) loss on strategic invest
Slide 21: Reconciliation of Cash Flow from Operations to Free Cash Flow
Reconciliation of Cash Flow from Operations (GAAP) to Free Cash Flow (Non-GAAP) Three Months Ended March 31, In millions (unaudited) 2025 2024 Cash Flow from Operations (GAAP) $ 25.4 $ (12.1) Less: Capital Expenditures (GAAP) 10.0 16.6 Free Cash Flow (Non-GAAP) $ 15.4 $ (28.7) 2024 In millions (unau
Slide 22: Calculation of Net Debt to Adjusted EBITDA Ratio
Calculation of Net Debt to Adjusted EBITDA Ratio (Non-GAAP) In millions, except ratios (unaudited) March 31, 2025 Notes payable and current maturities of long-term debt $ 60.4 Long-term debt including finance lease obligations 1,332.6 Debt issuance costs 4.0 Total Debt $ 1,397.0 Less: Cash and cash