Ingevity (NGVT) Q1 2026 earnings summary

Executive summary

• Net sales rose 4–4.1% year-over-year to $258.0 million, driven by pricing actions and favorable FX, with strong commercial performance in Performance Materials and Pavement Technologies.

• Completed divestitures of Ozark Materials Road Markings, North Charleston CTO refinery, and Industrial Specialties for combined proceeds of $158 million, advancing portfolio simplification.

• Repurchased $52 million of shares in Q1, ahead of plan, leveraging market volatility and divestiture proceeds; $246 million remains under authorization.

• Implemented temporary surcharges in APT to offset higher raw material and energy costs.

• Net income from continuing operations was $23.4 million, with adjusted earnings from continuing operations at $41.4 million ($1.15 per diluted share).

Financial highlights

• Adjusted EBITDA was $91.5–$92 million, flat year-over-year, with a margin of 35.5%.

• Adjusted gross profit rose to $131.7 million with a 51% margin.

• Free cash flow was negative $12.3 million, reflecting inventory build and seasonal factors.

• Diluted adjusted EPS increased 13.9–14% to $1.15, aided by lower interest expense and share repurchases.

• Cash and cash equivalents at quarter-end were $95.4 million.

Outlook and guidance

• Reaffirmed 2026 guidance: net sales $1.05–$1.15 billion, adjusted EBITDA $370–$395 million, adjusted EPS $4.70–$5.20.

• Free cash flow expected at $215–$245 million, excluding $113.2 million litigation settlement.

• Plans to complete $300 million in share repurchases through 2027; $15 million already repurchased in Q2.

• Net leverage target of 2x–2.5x in 2026; current net leverage ratio at 2.5–2.6x.

• Indirect costs from divested businesses expected to be reduced by at least $15 million during 2026.