Ingevity Corporation reported its full‑year and fourth‑quarter 2025 results, showing a 2.7% decline in net sales to $1.2 billion for the year and a 3.2% drop in Q4 sales to $255.1 million. The company posted a GAAP net loss of $150.3 million for the year, driven by $336.8 million in pre‑tax special charges, and a Q4 net loss of $78.8 million.
On a continuing‑operations basis, Ingevity’s adjusted EBITDA rose to $373.0 million for the year, a margin of 31.9%, and $70.3 million in Q4, a margin of 27.6%. Including discontinued operations, adjusted EBITDA reached $397.5 million for the year (30.8% margin) and $70.3 million for Q4. The company’s total net sales, including discontinued operations, were $1.3 billion, an 8% decline from the prior year.
Analysts had projected Q4 revenue of $262.4 million and adjusted EPS of $0.70. Ingevity delivered $255.1 million in revenue, a miss of $7.3 million (2.8%), and an adjusted EPS of $0.58, falling short of consensus by $0.12 (17%). The full‑year guidance for 2026 remains unchanged: sales of $1.1 billion to $1.2 billion, adjusted EBITDA of $380 million to $400 million, and free cash flow of $225 million to $250 million.
Segment analysis shows Advanced Polymer Technologies sales down 15% year‑over‑year and EBITDA down 18%, reflecting softness in that business. Performance Materials sales were flat, while Performance Chemicals experienced a $86 million decline due to repositioning actions within Industrial Specialties. The company completed the sale of its North Charleston refinery and the majority of its Industrial Specialties product line, and is pursuing strategic alternatives for Advanced Polymer Technologies and Road Markings to reduce portfolio volatility and focus on higher‑margin businesses.
Market reaction to the earnings was muted; the stock fell about 4% in pre‑market trading and remained flat in the after‑market session, with a brief dip of 6.3% at one point. The primary driver of the negative reaction was the Q4 adjusted EPS miss, which investors viewed as a sign of ongoing profitability challenges despite the company’s strong free‑cash‑flow generation.
Management emphasized confidence in its portfolio strategy, noting that “we enter 2026 with good momentum, and we will continue to execute the portfolio strategy, drive performance in our core businesses, and build Ingevity Corporation into a premier specialty materials company.” CEO David H. Li also highlighted that the company expects 2026 adjusted EPS to be in the range of $4.08 to $5.20, acknowledging that a meaningful global‑economy recovery is unlikely.
The company’s adjusted EBITDA grew nearly 10% over 2024, with industry‑leading margins above 30% and $274 million of free cash flow, slightly exceeding commitments. Total company sales of $1.3 billion declined 8% from the prior year, while Performance Materials sales remained flat despite lower auto production driven by tariff and supply‑chain volatility.
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