NGVT Reports Losses in Q4, Missing Estimates, Revenues Dip Y/Y

Ingevity Corporation NGVT recorded a fourth-quarter 2025 loss of $84.6 million, or a loss of $2.37 per share. This compared unfavorably with an income of $16.6 million or 46 cents per share in the year-ago quarter.

Excluding one-time items, adjusted earnings (from continuing operations) in the quarter were 58 cents per share, down from 95 cents a year ago. The figure missed the Zacks Consensus Estimate of 74 cents per share.

Revenues from continuing operations fell 3% year over year to $255.1 million in the quarter. This decline was due to lower sales in Advanced Polymer Technologies and Performance Materials.

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 $67.4 million in the reported quarter, up around 6.5% year over year. Industrial Specialties’ product line was excluded. Road Technologies saw a volume growth, driven by an extended paving season. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the segment declined to a negative $1.2 million as a result of competitive pricing pressure in Road Markings.

Revenues in the Performance Materials unit fell around 3% year over year to $151.2 million. This was a result of lower sales in North America from supply chain disruptions in the auto industry. Segment EBITDA was $78 million, down 4.5% year over year, impacted by lower global auto production driven by tariff uncertainty and supply chain challenges.

Sales in the Advanced Polymer Technologies segment were down 17% to $36.5 million due to dampened demand. Segment EBITDA was $5.5 million, down 21% due to lower volumes.

NGVT’s Financials

The fourth-quarter operating cash flow was $97.1 million, with free cash flow of $73.5 million. There were share repurchases of $31 million during the quarter, leaving $297 million remaining under the current share repurchase authorization. Net leverage improved to 2.6x from the previous quarter’s 2.7x.

NGVT’s 2026 Outlook

NGVT expects full-year 2026 sales between $1.1 billion and $1.2 billion. Adjusted EBITDA guidance is between $380 million and $400 million, with adjusted EPS between $4.80 to $5.20. The company expects free cash flow between $225 million and $250 million in 2026.

NGVT Stock’s Price Performance

Shares of Ingevity have gained 46.1% in a year compared with the industry’s 7.1% rise.

NGVT’s Rank & Key Picks

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

Some better-ranked stocks in the basic materials space are Orla Mining Ltd. ORLA, Sociedad Química y Minera de Chile S.A. SQM and Avino Silver & Gold Mines Ltd. ASM.

Orla Mining is scheduled to report fourth-quarter results on March 19. The Zacks Consensus Estimate for ORLA’s fourth-quarter earnings is pegged at 36 cents, indicating 414.29% year over year growth. ORLA currently flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Sociedad is slated to report fourth-quarter results on Feb. 27. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, indicating 78.57% year over year growth. SQM sports a Zacks Rank #1 at present.

Avino Silver is slated to report fourth-quarter results on March 11. The consensus estimate for ASM’s earnings is pegged at 6 cents. ASM, presently carrying a Zacks Rank #2 (Buy), beat the consensus estimate in all the last four quarters, the average earnings surprise being 150%.

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

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