Ingevity (NGVT) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $305.1M, down 8.4% YoY, mainly reflecting the Road Markings divestiture; excluding Road Markings, sales rose 2% on higher pricing and favorable mix.

• Adjusted EBITDA was $108.0M, down $2.4M YoY, while adjusted EBITDA margin expanded 230 bps to 35.4%.

• Adjusted diluted EPS rose to $1.63 from $1.31; Performance Materials remained resilient, while asphalt costs pressured Pavement Technologies.

Financial highlights

• Adjusted gross profit was $146.8M versus $151.2M; adjusted gross margin increased 270 bps to 48.1%.

• GAAP net income from continuing operations was $51.1M, or $1.46 per diluted share, versus $40.8M and $1.10 a year earlier.

• Nine-month adjusted EBITDA rose to $314.5M from $302.7M; nine-month net income from continuing operations was $114.3M versus a $71.5M loss.

• Q3 adjusted SG&A was $39.5M, or 12.9% of sales, versus $40.7M and 12.3% YoY.

Outlook and guidance

• FY26 adjusted EBITDA guidance narrowed to $385M–$395M, with the prior $390M midpoint maintained; net sales are expected at ~$1.1B and adjusted diluted EPS at $5.25–$5.45.

• FY26 free cash flow guidance is $220M–$230M; a separate outlook excluding the $113.2M litigation settlement payment is $380M–$400M.

• FY26 segment outlook calls for low-single-digit Performance Materials growth and mid-50% margins; low-single-digit Pavement Technologies growth excluding Road Markings and mid-teens margins; and low-double-digit APT growth with ~20% margins.

• Q4 assumptions include seasonal auto and pavement demand reductions, planned maintenance, softer APT demand, and higher asphalt and other input costs.

• APT sale timing may extend into early 2027, though an announcement before year-end remained possible.