Ingevity (NGVT) Water Tower Research Virtual Insights Conference summary

Strategic transformation and portfolio focus

• Underwent a major portfolio transformation, divesting non-core businesses and focusing on Performance Materials and Pavement Technologies as core segments.

• Achieved two out of three planned divestitures, with the final divestment in advanced stages.

• Strengthened balance sheet by reducing leverage from nearly 4x to 2.5x and increased share repurchases.

• Enhanced strategic clarity and internal alignment through these changes.

Growth drivers and market opportunities

• Performance Materials benefits from the structural shift to hybrid vehicles, requiring advanced carbon solutions with higher value.

• Filtration, especially PFAS water treatment, is an emerging growth area, with the first municipal contract won based on technology differentiation.

• Pavement Technologies, led by warm mix additives, offers compelling value for road builders and DOTs, with only 20% market penetration in the U.S.

• Energy storage and next-generation carbon materials are longer-term opportunities, with investments in silicon anode and carbon nanotube technologies.

Competitive positioning and financial impact

• Performance Materials segment maintains over 50% EBITDA margins, supported by technological leadership and stringent quality standards.

• Filtration growth is expected to be accretive to margins by upgrading excess volume from near-zero margin to specialty margins.

• Warm mix additives in Pavement Technologies extend paving seasons, lower costs, and improve road life, supporting continued growth despite raw material headwinds.