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.
Use of non-GAAP financial measures: This press release 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 press release. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those measures provided. The company does not attempt to provide reconciliations of forward-looking non-GAAP guidance to the comparable GAAP measure because the impact and timing of the factors underlying the guidance assumptions are inherently uncertain and difficult to predict and are unavailable without unreasonable efforts. In addition, Ingevity believes such reconciliations would imply a degree of certainty that could be confusing to investors. |
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Forward-looking statements: This press release contains "forward looking statements" within the meaning of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements generally include the words "will," "plans," "intends," "targets," "expects," "outlook," "guidance," "believes," "anticipates" or similar expressions. Forward looking statements may include, without limitation, the potential benefits of any divestiture, acquisition or investment transaction, leadership transitions within our organization, expected financial positions, guidance, results of operations and cash flows; financing plans; business strategies and expectations; operating plans; capital and other expenditures; competitive positions; growth opportunities for existing products; benefits from new technology and cost reduction initiatives, plans and objectives; litigation-related strategies and outcomes; and markets for securities. Actual results could differ materially from the views expressed. Factors that could cause actual results to materially differ from those contained in the forward looking statements, or that could cause other forward looking statements to prove incorrect, include, without limitation, our ability to adjust our cost and operating structure after giving effect to any transaction that results from our announced review of strategic alternatives for our Advanced Polymer Technologies segment; adverse effects from general global economic, geopolitical and financial conditions beyond our control, including inflation, global trade tensions, and the Russia-Ukraine war and conflict in the middle east; risks related to our international sales and operations, including changes in tariffs; adverse conditions in the automotive market; competition from substitute products, new technologies and new or emerging competitors; worldwide air quality standards; a decrease in government infrastructure spending; adverse conditions in cyclical end markets; the limited supply of or lack of access to sufficient raw materials, or any material increase in the cost to acquire such raw materials; issues with or integration of future acquisitions and other investments; risks related to co-located operations; the provision of services by third parties at several facilities; supply chain disruptions; natural disasters and extreme weather events; or other unanticipated problems such as labor difficulties (including work stoppages), equipment failure or unscheduled maintenance and repair; planned and unplanned production slowdowns and shutdowns, turnarounds and outages, attracting and retaining key personnel; dependence on certain large customers; legal actions associated with our intellectual property rights; protection of our intellectual property and other proprietary information; information technology security breaches and other disruptions; government policies and regulations, including, but not limited to, those affecting the environment, climate change, tax policies, tariffs and the chemicals industry; losses due to lawsuits arising out of environmental damage or personal injuries associated with chemical or other manufacturing processes; and the other factors detailed from time to time in the reports we file with the Securities and Exchange Commission (the "SEC"), including those described in Part I, Item 1A. Risk Factors in our most recent Annual Report on Form 10 K as well as in our other filings with the SEC. These forward-looking statements speak only to management's beliefs as of the date of this press release. Ingevity assumes no obligation to provide any revisions to, or update, any projections and forward-looking statements contained in this press release. |
INGEVITY CORPORATION | ||||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||||
|
|
|
| |||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, | |||||||||||
In millions, except per share data |
2026 |
|
2025 |
|
2026 |
2025 | ||||||||
Net sales |
$ |
314.1 |
|
|
$ |
331.5 |
|
|
$ |
572.1 |
|
$ |
579.4 |
|
Cost of sales |
|
175.1 |
|
|
|
203.7 |
|
|
|
316.7 |
|
|
339.7 |
|
Gross profit |
|
139.0 |
|
|
|
127.8 |
|
|
|
255.4 |
|
|
239.7 |
|
Selling, general, and administrative expenses |
|
39.0 |
|
|
|
43.6 |
|
|
|
79.7 |
|
|
85.5 |
|
Research and technical expenses |
|
6.1 |
|
|
|
7.0 |
|
|
|
12.8 |
|
|
14.0 |
|
Restructuring and other (income) charges, net |
|
1.7 |
|
|
|
7.2 |
|
|
|
2.2 |
|
|
9.1 |
|
Goodwill impairment charge |
|
— |
|
|
|
183.8 |
|
|
|
— |
|
|
183.8 |
|
Long-lived asset impairment charge |
|
32.1 |
|
|
|
— |
|
|
|
32.1 |
|
|
— |
|
Other (income) expense, net |
|
(4.8 |
) |
|
|
4.2 |
|
|
|
17.6 |
|
|
8.3 |
|
Interest expense, net |
|
14.2 |
|
|
|
18.6 |
|
|
|
30.1 |
|
|
38.0 |
|
Income (loss) from continuing operations before income taxes |
|
50.7 |
|
|
|
(136.6 |
) |
|
|
80.9 |
|
|
(99.0 |
) |
Provision (benefit) for income taxes on continuing operations |
|
10.9 |
|
|
|
4.8 |
|
|
|
17.7 |
|
|
13.3 |
|
Net income (loss) from continuing operations |
|
39.8 |
|
|
|
(141.4 |
) |
|
|
63.2 |
|
|
(112.3 |
) |
Income (loss) from discontinued operations, net of income taxes |
|
(4.5 |
) |
|
|
(5.1 |
) |
|
|
31.9 |
|
|
(13.7 |
) |
Net income (loss) |
$ |
35.3 |
|
|
$ |
(146.5 |
) |
|
$ |
95.1 |
|
$ |
(126.0 |
) |
|
|
|
|
|
|
|
| |||||||
Per share data |
|
|
|
|
|
|
| |||||||
Basic earnings (loss) per share from continuing operations |
$ |
1.15 |
|
|
$ |
(3.87 |
) |
|
$ |
1.81 |
|
$ |
(3.08 |
) |
Basic earnings (loss) per share from discontinued operations |
|
(0.13 |
) |
|
|
(0.15 |
) |
|
|
0.91 |
|
|
(0.38 |
) |
Basic earnings (loss) per share |
$ |
1.02 |
|
|
$ |
(4.02 |
) |
|
$ |
2.72 |
|
$ |
(3.46 |
) |
|
|
|
|
|
|
|
| |||||||
Diluted earnings (loss) per share from continuing operations |
$ |
1.13 |
|
|
$ |
(3.87 |
) |
|
$ |
1.78 |
|
$ |
(3.08 |
) |
Diluted earnings (loss) per share from discontinued operations |
|
(0.13 |
) |
|
|
(0.15 |
) |
|
|
0.89 |
|
|
(0.38 |
) |
Diluted earnings (loss) per share |
$ |
1.00 |
|
|
$ |
(4.02 |
) |
|
$ |
2.67 |
|
$ |
(3.46 |
) |
|
|
|
|
|
|
|
| |||||||
Weighted average shares outstanding |
|
|
|
|
|
|
| |||||||
Basic |
|
34.7 |
|
|
|
36.5 |
|
|
|
35.0 |
|
|
36.4 |
|
Diluted |
|
35.3 |
|
|
|
36.5 |
|
|
|
35.6 |
|
|
36.4 |
|
INGEVITY CORPORATION | |||||||||||||||
Segment Operating Results (Unaudited) | |||||||||||||||
|
|
|
| ||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, | ||||||||||||
In millions |
2026 |
|
2025 |
|
2026 |
|
2025 | ||||||||
Performance Materials |
$ |
160.6 |
|
|
$ |
153.9 |
|
|
$ |
316.0 |
|
|
$ |
300.7 |
|
Pavement Technologies |
|
104.2 |
|
|
|
134.3 |
|
|
|
162.5 |
|
|
|
193.2 |
|
Advanced Polymer Technologies |
|
49.3 |
|
|
|
43.3 |
|
|
|
93.6 |
|
|
|
85.5 |
|
Net sales |
$ |
314.1 |
|
|
$ |
331.5 |
|
|
$ |
572.1 |
|
|
$ |
579.4 |
|
|
|
|
|
|
|
|
| ||||||||
Performance Materials |
$ |
86.1 |
|
|
$ |
81.0 |
|
|
$ |
178.1 |
|
|
$ |
164.5 |
|
Pavement Technologies |
|
25.4 |
|
|
|
28.8 |
|
|
|
26.0 |
|
|
|
34.6 |
|
Advanced Polymer Technologies |
|
11.2 |
|
|
|
2.0 |
|
|
|
18.8 |
|
|
|
15.6 |
|
Segment EBITDA (1) |
$ |
122.7 |
|
|
$ |
111.8 |
|
|
$ |
222.9 |
|
|
$ |
214.7 |
|
Interest expense, net |
|
(14.2 |
) |
|
|
(18.6 |
) |
|
|
(30.1 |
) |
|
|
(38.0 |
) |
(Provision) benefit for income taxes on continuing operations |
|
(10.9 |
) |
|
|
(4.8 |
) |
|
|
(17.7 |
) |
|
|
(13.3 |
) |
Depreciation and amortization (2) |
|
(22.0 |
) |
|
|
(25.2 |
) |
|
|
(44.7 |
) |
|
|
(49.7 |
) |
Gain on sale of business (3) |
|
8.6 |
|
|
|
— |
|
|
|
8.6 |
|
|
|
— |
|
Restructuring and other income (charges), net (4) (5) |
|
(1.7 |
) |
|
|
(7.2 |
) |
|
|
(2.2 |
) |
|
|
(9.1 |
) |
Goodwill impairment charge (6) |
|
— |
|
|
|
(183.8 |
) |
|
|
— |
|
|
|
(183.8 |
) |
Long-lived asset impairment charge (6) |
|
(32.1 |
) |
|
|
— |
|
|
|
(32.1 |
) |
|
|
— |
|
Gain (loss) on strategic investment (4) (7) |
|
— |
|
|
|
(2.5 |
) |
|
|
— |
|
|
|
(2.5 |
) |
Litigation charge (8) |
|
— |
|
|
|
— |
|
|
|
(16.2 |
) |
|
|
— |
|
Impairment of license agreement (9) |
|
— |
|
|
|
— |
|
|
|
(2.8 |
) |
|
|
— |
|
Proxy contest charges (10) |
|
— |
|
|
|
(0.3 |
) |
|
|
— |
|
|
|
(8.2 |
) |
Portfolio realignment costs (11) |
|
(2.9 |
) |
|
|
— |
|
|
|
(6.1 |
) |
|
|
— |
|
Corporate and other (12) |
|
(7.7 |
) |
|
|
(7.8 |
) |
... |