Ingevity Reports Third Quarter 2025 Financial Results
NORTH CHARLESTON, S.C. – November 6, 2025 – Ingevity Corporation (NYSE: NGVT) today announced financial results for the third quarter of 2025, highlighting solid performance across key business segments, strong cash generation, and progress on the company’s portfolio optimization initiatives.
On September 4, 2025, Ingevity announced the sale of the majority of its Industrial Specialties product line and the North Charleston crude tall oil refinery (“the Divestiture”). The transaction, which is expected to close by early 2026, represents a significant step in the company’s ongoing portfolio optimization strategy. As a result, the financial results associated with the Divestiture are now reported as discontinued operations.
Third Quarter 2025 Highlights
- Net sales from continuing operations: $333.1 million, flat year over year
- Net income from continuing operations: $40.8 million
- Diluted earnings per share (EPS) from continuing operations: $1.10
- Adjusted earnings from continuing operations: $48.3 million, flat year over year
- Diluted adjusted EPS: $1.31, down 2%
- Adjusted EBITDA from continuing operations: $110.4 million, up 2%
- Adjusted EBITDA margin: 33.1%, up 60 basis points
Ingevity’s overall results reflect continued resilience in its Performance Materials and Performance Chemicals businesses, offset by ongoing challenges in the Advanced Polymer Technologies (APT) segment. The company also incurred approximately $4.2 million of indirect costs related to the Divestiture that were not eligible for discontinued operations treatment.
Management Commentary
“We are pleased with our third quarter results, which demonstrate the underlying strength and flexibility of our portfolio,” said David Li, president and CEO of Ingevity. “We’ve taken a significant step toward our strategic objectives with the announced sale of Industrial Specialties and the North Charleston refinery, and we expect to share additional updates from our portfolio review by year-end.”
Li added, “Our strong results this quarter reflect the resilience of our Performance Materials segment amid a dynamic tariff environment, record North American pavement sales, and the benefits of our ongoing repositioning actions. This combination generated substantial free cash flow, allowing us to reduce debt and resume share repurchases.”
Segment Performance
Performance Materials
Sales in the Performance Materials segment increased 3% to $155.0 million, driven primarily by higher volumes tied to improved global automotive production.
Segment EBITDA decreased 1% to $79.9 million, resulting in an EBITDA margin of 51.5%. While higher volumes contributed positively, these gains were offset by increased variable compensation and unfavorable foreign exchange (FX) impacts.
The segment’s performance underscores its continued leadership in automotive applications, where Ingevity’s activated carbon products play a critical role in emissions control systems.
Advanced Polymer Technologies (APT)
The Advanced Polymer Technologies segment continued to face headwinds during the quarter, with sales declining $10.6 million to $38.2 million. This decline reflects persistent indirect tariff effects that have dampened demand in key customer markets, along with weak industrial activity and heightened competition from Chinese producers.
Despite lower sales, segment EBITDA increased 1% to $9.9 million, with margins improving 580 basis points to 25.9%. The improvement was driven by lower raw material costs, enhanced operational efficiencies, and favorable FX.
Management noted that the team continues to execute actions to strengthen APT’s competitiveness and position the business for recovery as industrial demand stabilizes.
Performance Chemicals
Sales from continuing operations in Performance Chemicals grew nearly 5% to $139.9 million, supported by record North American pavement sales.
Segment EBITDA increased 2% to $24.8 million, while segment EBITDA margin declined 40 basis points to 17.7%, largely due to lower pricing in road markings as the company adjusted to competitive market conditions.
The segment’s strong top-line growth reflects the success of Ingevity’s Road Technologies product line, which continues to benefit from infrastructure investment and higher demand for pavement performance solutions.
Liquidity and Capital Allocation
Ingevity generated total operating cash flow of $129.7 million, including discontinued operations, and produced free cash flow of $117.8 million for the quarter. The company used its strong cash generation to repurchase $25 million of shares and reduce net leverage to 2.7x.
At quarter-end, approximately $328 million remained available under the company’s share repurchase authorization. Management reiterated its commitment to a balanced capital allocation strategy focused on debt reduction, strategic investment, and returning capital to shareholders.
Updated Full-Year 2025 Guidance
Ingevity has revised its full-year 2025 outlook to reflect continued challenges in the Advanced Polymer Technologies segment due to competitive pressures and ongoing indirect tariff impacts. These factors have delayed the anticipated recovery in industrial demand.
The company now expects:
- Total net sales: between $1.25 billion and $1.35 billion
- Total adjusted EBITDA: between $390 million and $405 million
Upcoming Webcast and Conference Call
Ingevity will host a live webcast today, Thursday, November 6, 2025, at 10:00 a.m. Eastern Time, to discuss third-quarter results. The webcast will be accessible on the Investors section of Ingevity’s website at ingevity.com.
Investors in the U.S. may also join by dialing 833-470-1428 and entering access code 871022. International participants can find global dial-in numbers on the company’s website. A replay of the webcast will be available beginning at approximately 2:00 p.m. Eastern on November 6, 2025, through November 5, 2026.
About Ingevity
Ingevity: Purify, Protect and Enhance.
Ingevity provides innovative products and technologies that purify, protect, and enhance the world around us. With a talented global team, the company develops, manufactures, and markets solutions that help customers solve complex challenges while advancing sustainability.
Ingevity operates through three business segments:
- Performance Materials: Activated carbon products for automotive and air purification applications
- Advanced Polymer Technologies: Caprolactone-based specialty polymers
- Performance Chemicals: Specialty chemicals and pavement technologies
The company’s products are used in a wide range of applications, including adhesives, agrochemicals, asphalt paving, biodegradable bioplastics, coatings, elastomers, pavement markings, and automotive components.
Headquartered in North Charleston, South Carolina, Ingevity operates 24 facilities worldwide and employs approximately 1,600 people. The company’s common stock trades on the New York Stock Exchange under the ticker NGVT.
For more information.
Use of Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures intended to supplement, not replace, comparable GAAP measures. Reconciliations of non-GAAP measures to GAAP measures are provided in the Appendix of this release. Ingevity does not provide reconciliations of forward-looking non-GAAP guidance because of the inherent uncertainty in estimating future factors and timing.
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