Ingevity (NGVT) Jefferies Global Industrials Conference 2026 summary

Portfolio transformation and strategic focus

• Completed divestitures of Industrial Specialties and Road Markings, with a third divestment underway and expected to finish by year-end, streamlining the business to focus on core segments.

• Core businesses now are Performance Materials and Pavement Technologies, both less cyclical and offering greater cash flow predictability.

• Leadership and culture have been refreshed, emphasizing performance, innovation, and a strong internal culture called the IngeviWay.

• Significant cost reductions achieved, with $10 million in stranded costs eliminated and a clear plan to remove an additional $5 million.

• EBITDA margins are targeted at 36%-39% post-portfolio transformation, maintaining high profitability.

Performance Materials and filtration growth

• Performance Materials maintains EBITDA margins above 50%, driven by innovation and strong customer relationships, even in a flat auto production environment.

• Activated carbon business is expanding into high-growth filtration markets, especially PFAS water treatment, with the addressable market exceeding $1 billion and growing at double digits.

• Additional opportunities exist in food & beverage and biopharma, leveraging the unique properties of hardwood-activated carbon.

• Regulatory changes in China and India are expected to increase demand for activated carbon, with new standards coming into effect by 2028-2029.

• Technical know-how and quality record provide a strong competitive moat, with no product recalls and high barriers to entry for new competitors.

Pavement Technologies and market leadership

• Pavement Technologies is a $300 million business, with two-thirds in pavement preservation and the rest in hot and warm mix, led by the Evotherm brand.

• Warm mix technology offers energy savings, safety, and season extension, and is supported by advocacy efforts to influence regulatory standards.

• Warm mix comprises 20%-25% of the U.S. paving market, with the company as the clear leader in this segment.

• The business is well-diversified across the U.S., with ongoing efforts to expand internationally, including recent regulatory approval in Germany.

• Elevated oil prices and discretionary project delays are potential headwinds, but infrastructure demand remains robust.