Ingevity Reports 2024 Financial Results Amid Strategic Shift

Ingevity ( (NGVT) ) has released its Q4 earnings. Here is a breakdown of the information Ingevity presented to its investors.

Ingevity Corporation, headquartered in North Charleston, South Carolina, operates in the chemicals sector, offering solutions through its Performance Materials, Advanced Polymer Technologies, and Performance Chemicals segments. The company recently reported its fourth quarter and full year 2024 financial results, highlighting a strategic repositioning within its Performance Chemicals segment.

Ingevity’s financial results for the fourth quarter of 2024 showed a 20% decline in net sales to $298.8 million, primarily due to repositioning actions. However, the company achieved an adjusted EBITDA of $80.6 million, marking a 91% improvement. For the full year, net sales decreased by 17% to $1.4 billion, with a net loss of $430.3 million, attributed to substantial charges in the Performance Chemicals segment. Adjusted earnings for the year stood at $128.3 million.

Key performance metrics revealed that the Performance Materials segment achieved record sales for the year, driven by increased demand for fuel-efficient vehicle solutions. Meanwhile, Performance Chemicals faced decreased sales due to the strategic exit from lower-margin markets, but saw an improvement in segment EBITDA margins in the latter half of the year. The company also announced plans to explore strategic alternatives for parts of its Performance Chemicals segment.

Looking ahead, Ingevity has provided guidance for 2025, projecting sales between $1.3 billion and $1.4 billion, with adjusted EBITDA anticipated between $400 million and $415 million. The company remains focused on enhancing shareholder value through improved EBITDA margins and stronger cash flow, with a commitment to reducing its net leverage ratio significantly by the end of 2025.