Ingevity (NGVT) investor relations material

Executive summary

• Net sales declined 7% year-over-year to $365.1 million, with a net loss of $146.5 million due to a $183.8 million non-cash goodwill impairment in Advanced Polymer Technologies.

• Adjusted EBITDA increased 9% to $110.0 million, with margin improving to 30.1%; Performance Materials maintained a 50.1% EBITDA margin.

• Performance Chemicals repositioning drove cost savings and EBITDA gains, but reduced sales and led to a 23% global workforce reduction.

• Free cash flow reached $66.8–$67 million, and net leverage ratio improved to 3.0x from 4.0x year-over-year.

• Advanced Polymer Technologies EBITDA declined due to plant shutdowns, tariffs, and weak demand.

Financial highlights

• Q2 net sales were $365.1 million, down 6.5–7% year-over-year, mainly from lower volumes in Performance Chemicals and Advanced Polymer Technologies.

• Adjusted EBITDA for Q2 was $110.0 million (30.1% margin), up 9% year-over-year.

• Gross profit increased $14.7 million year-over-year, with margin up to 37.8–42.0%.

• Free cash flow for Q2 was $66.8–$67 million, up from $11.6 million year-over-year.

• GAAP net loss of $146.5 million due to the $183.8 million non-cash goodwill impairment in APT.

Outlook and guidance

• Full-year adjusted EBITDA guidance raised to $390–$415 million; free cash flow guidance to $230–$260 million.

• Net sales guidance reaffirmed at $1.25–$1.4 billion; confident in achieving year-end net leverage below 2.8x.

• Performance Materials full-year EBITDA margin expected above 50%; Performance Chemicals EBITDA margin guided to high single to low double digits.

• Advanced Polymer Technologies sales expected to decline mid- to high-single digits, with EBITDA margin between 15–20%.

• Guidance reflects improved North America auto production outlook and solid year-to-date results.