Ingevity Q2 Earnings Surpass Estimates, Revenues Decline Y/Y

Ingevity Corporation NGVT recorded a second-quarter 2025 loss of $146.5 million or a loss of $4.02 per share. This compared favorably with a loss of $283.7 million or a loss of $7.81 per share in the year-ago quarter.

Excluding one-time items, adjusted earnings in the quarter were $1.39 per share, up from $1.01 a year ago. The figure beat the Zacks Consensus Estimate of $1.02 per share.

Revenues fell 6.5% year over year to $365.1 million in the quarter. This decline was due to lower sales in the Performance Chemicals segment.

Ingevity Corporation Price, Consensus and EPS Surprise

Ingevity Corporation price-consensus-eps-surprise-chart | Ingevity Corporation Quote

NGVT’s Segmental Review

The Performance Chemicals division generated revenues of $167.9 million in the reported quarter, down around 9.5% year over year. Road Technologies' product line sales of $119.5 million were down 7.4%. Industrial Specialties’ product line sales of $48.4 million fell 14.2%, owing to the impact of the segment's repositioning measures, which were aimed at exiting lower-margin end markets. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the segment rose 244% to $32 million as a result of the successful implementation of the repositioning plans and cost savings, as well as lower raw material costs.

Revenues in the Performance Materials unit fell around 2.1% year over year to $153.9 million. This was a result of lower sales in Asia and Europe due to tariff uncertainty. North America witnessed higher sales. Segment EBITDA was $77.1 million, down 6.2% due to investments in innovation and a few one-time employee compensation costs.

Sales in the Advanced Polymer Technologies segment were down 9.6% to $43.3 million. This downside was due to reduced customer demand, particularly in Europe. Segment EBITDA was $0.9 million, down 90.8%, due to the planned extended outage in the second quarter.

NGVT’s Financials

The second-quarter operating cash flow was $79 million, with free cash flow of $66.8 million. There were no share repurchases during the quarter, leaving $353.4 million remaining under the current $500 million authorization. Net leverage improved to 3x from the previous quarter’s 3.3x.

NGVT’s 2025 Outlook Revised

NGVT's focus will be on improving profitability and reducing leverage. With the current state of trade affairs in mind, NGVT has raised the bottom end of its EBITDA guidance to incorporate the solid first-half results and improvement in North America auto production forecasts. Per the revised guidance, adjusted EBITDA has been updated to be between $390 million and $415 million compared with the previous expectation of $380-$415 million. Sales estimates are reaffirmed at between $1.25 billion and $1.40 billion.

NGVT Stock’s Price Performance

Shares of Ingevity have gained 50.8% in a year compared with the industry’s 1.2% rise.

NGVT’s Rank & Key Picks

NGVT currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks worth a look in the basic materials space are Avino Silver & Gold Mines Ltd. (ASM), Gold Fields Limited GFI and Vizsla Silver Corp. VZLA.

Avino Silver is slated to report second-quarter results on Aug. 13. The Zacks Consensus Estimate for earnings is pegged at 3 cents per share. ASM’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 104.2%. Avino Silver flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Gold Fields is slated to report second-quarter results on Aug. 22. The Zacks Consensus Estimate for GFI’s second-quarter earnings is pegged at 59 cents per share. Gold Fields currently sports a Zacks Rank #1.

Vizsla is expected to report quarterly results on Sept. 11. The consensus estimate for VZLA’s earnings is pegged at a loss of a penny per share. VZLA’s earnings met the Zacks Consensus Estimate in three of the last four quarters while beating it in one, with the average surprise being 75%. Vizsla sports a Zacks Rank #1 at present.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research