Ingevity (NGVT) Investor Update summary

Leadership transition and strategic focus

• CFO Mary Hall will depart in May 2026, with Phil Platt named as her successor, ensuring a smooth transition.

• The company completed a comprehensive strategic review, identifying Advanced Polymer Technologies and Road Markings as non-core and initiating divestiture processes, while maintaining customer support during the transition.

• The business is sharpening its focus on two core segments: Performance Materials and Pavement Technologies, both positioned for superior profitability and growth.

• Leadership is committed to building a more agile, future-ready enterprise optimized for performance in priority markets.

Portfolio transformation and business strengths

• Exiting Industrial Specialties and initiating sales of Advanced Polymer Technologies and Road Markings to simplify the business and focus on core competencies.

• Performance Materials, centered on automotive activated carbon and filtration, expects ~$600M revenue in 2025 and maintains 50%+ EBITDA margins, benefiting from stricter emissions standards.

• Pavement Technologies leads in warm mix asphalt and road preservation additives, targeting ~$300M revenue in 2025 and mid-to-high teens EBITDA margins, with a $400 million market opportunity.

• Both segments benefit from unique technology, deep customer relationships, technical expertise, and industry advocacy, creating high barriers to entry.

Financial outlook and capital allocation

• Projected to generate nearly $1 billion in deployable cash over two years, with priorities on organic growth, debt reduction, and $300 million in share repurchases.

• Projected 2027 revenue of $940-980M and EBITDA of $350-370M, with EBITDA margins of 36-39% and annual free cash flow exceeding $200M in 2026/2027.

• Annual revenue and EBITDA growth targeted above 3%, with EBITDA margins above 37% and EPS growth above 10%.

• Leverage is expected to be maintained in the 2x-2.5x range, with strong liquidity and no near-term debt maturities.

• Capital deployment prioritizes $60M annual capex, debt reduction, and $300M in share repurchases over the next two years.