Ingevity reports second quarter 2026 financial results

Use of non-GAAP financial measures: This press release includes certain non‐GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non‐GAAP financial measures to GAAP financial measures are provided within the Appendix to this press release. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those measures provided. The company does not attempt to provide reconciliations of forward-looking non-GAAP guidance to the comparable GAAP measure because the impact and timing of the factors underlying the guidance assumptions are inherently uncertain and difficult to predict and are unavailable without unreasonable efforts. In addition, Ingevity believes such reconciliations would imply a degree of certainty that could be confusing to investors.

Forward-looking statements: This press release contains “forward looking statements” within the meaning of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements generally include the words “will,” “plans,” “intends,” “targets,” “expects,” “outlook,” “guidance,” “believes,” “anticipates” or similar expressions. Forward looking statements may include, without limitation, the potential benefits of any divestiture, acquisition or investment transaction, leadership transitions within our organization, expected financial positions, guidance, results of operations and cash flows; financing plans; business strategies and expectations; operating plans; capital and other expenditures; competitive positions; growth opportunities for existing products; benefits from new technology and cost reduction initiatives, plans and objectives; litigation-related strategies and outcomes; and markets for securities. Actual results could differ materially from the views expressed. Factors that could cause actual results to materially differ from those contained in the forward looking statements, or that could cause other forward looking statements to prove incorrect, include, without limitation, our ability to adjust our cost and operating structure after giving effect to any transaction that results from our announced review of strategic alternatives for our Advanced Polymer Technologies segment; adverse effects from general global economic, geopolitical and financial conditions beyond our control, including inflation, global trade tensions, and the Russia-Ukraine war and conflict in the middle east; risks related to our international sales and operations, including changes in tariffs; adverse conditions in the automotive market; competition from substitute products, new technologies and new or emerging competitors; worldwide air quality standards; a decrease in government infrastructure spending; adverse conditions in cyclical end markets; the limited supply of or lack of access to sufficient raw materials, or any material increase in the cost to acquire such raw materials; issues with or integration of future acquisitions and other investments; risks related to co-located operations; the provision of services by third parties at several facilities; supply chain disruptions; natural disasters and extreme weather events; or other unanticipated problems such as labor difficulties (including work stoppages), equipment failure or unscheduled maintenance and repair; planned and unplanned production slowdowns and shutdowns, turnarounds and outages, attracting and retaining key personnel; dependence on certain large customers; legal actions associated with our intellectual property rights; protection of our intellectual property and other proprietary information; information technology security breaches and other disruptions; government policies and regulations, including, but not limited to, those affecting the environment, climate change, tax policies, tariffs and the chemicals industry; losses due to lawsuits arising out of environmental damage or personal injuries associated with chemical or other manufacturing processes; and the other factors detailed from time to time in the reports we file with the Securities and Exchange Commission (the “SEC”), including those described in Part I, Item 1A. Risk Factors in our most recent Annual Report on Form 10 K as well as in our other filings with the SEC. These forward-looking statements speak only to management’s beliefs as of the date of this press release. Ingevity assumes no obligation to provide any revisions to, or update, any projections and forward-looking statements contained in this press release.

INGEVITY CORPORATION

Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

In millions, except per share data

2026

2025

2026

2025

Net sales

$

314.1

$

331.5

$

572.1

$

579.4

Cost of sales

175.1

203.7

316.7

339.7

Gross profit

139.0

127.8

255.4

239.7

Selling, general, and administrative expenses

39.0

43.6

79.7

85.5

Research and technical expenses

6.1

7.0

12.8

14.0

Restructuring and other (income) charges, net

1.7

7.2

2.2

9.1

Goodwill impairment charge

—

183.8

—

183.8

Long-lived asset impairment charge

32.1

—

32.1

—

Other (income) expense, net

(4.8

)

4.2

17.6

8.3

Interest expense, net

14.2

18.6

30.1

38.0

Income (loss) from continuing operations before income taxes

50.7

(136.6

)

80.9

(99.0

)

Provision (benefit) for income taxes on continuing operations

10.9

4.8

17.7

13.3

Net income (loss) from continuing operations

39.8

(141.4

)

63.2

(112.3

)

Income (loss) from discontinued operations, net of income taxes

(4.5

)

(5.1

)

31.9

(13.7

)

Net income (loss)

$

35.3

$

(146.5

)

$

95.1

$

(126.0

)

Per share data

Basic earnings (loss) per share from continuing operations

$

1.15

$

(3.87

)

$

1.81

$

(3.08

)

Basic earnings (loss) per share from discontinued operations

(0.13

)

(0.15

)

0.91

(0.38

)

Basic earnings (loss) per share

$

1.02

$

(4.02

)

$

2.72

$

(3.46

)

Diluted earnings (loss) per share from continuing operations

$

1.13

$

(3.87

)

$

1.78

$

(3.08

)

Diluted earnings (loss) per share from discontinued operations

(0.13

)

(0.15

)

0.89

(0.38

)

Diluted earnings (loss) per share

$

1.00

$

(4.02

)

$

2.67

$

(3.46

)

Weighted average shares outstanding

Basic

34.7

36.5

35.0

36.4

Diluted

35.3

36.5

35.6

36.4

INGEVITY CORPORATION

Segment Operating Results (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

In millions

2026

2025

2026

2025

Performance Materials

$

160.6

$

153.9

$

316.0

$

300.7

Pavement Technologies

104.2

134.3

162.5

193.2

Advanced Polymer Technologies

49.3

43.3

93.6

85.5

Net sales

$

314.1

$

331.5

$

572.1

$

579.4

Performance Materials

$

86.1

$

81.0

$

178.1

$

164.5

Pavement Technologies

25.4

28.8

26.0

34.6

Advanced Polymer Technologies

11.2

2.0

18.8

15.6

Segment EBITDA ⁽¹⁾

$

122.7

$

111.8

$

222.9

$

214.7

Interest expense, net

(14.2

)

(18.6

)

(30.1

)

(38.0

)

(Provision) benefit for income taxes on continuing operations

(10.9

)

(4.8

)

(17.7

)

(13.3

)

Depreciation and amortization ⁽²⁾

(22.0

)

(25.2

)

(44.7

)

(49.7

)

Gain on sale of business ⁽³⁾

8.6

—

8.6

—

Restructuring and other income (charges), net ^{(4) (5)}

(1.7

)

(7.2

)

(2.2

)

(9.1

)

Goodwill impairment charge ⁽⁶⁾

—

(183.8

)

—

(183.8

)

Long-lived asset impairment charge ⁽⁶⁾

(32.1

)

—

(32.1

)

—

Gain (loss) on strategic investment ^{(4) (7)}

—

(2.5

)

—

(2.5

)

Litigation charge ⁽⁸⁾

—

—

(16.2

)

—

Impairment of license agreement ⁽⁹⁾

—

—

(2.8

)

—

Proxy contest charges ⁽¹⁰⁾

—

(0.3

)

—

(8.2

)

Portfolio realignment costs ⁽¹¹⁾

(2.9

)

—

(6.1

)

—

Corporate and other ⁽¹²⁾

(7.7

)

(7.8

)

(16.4

)

(16.2

)

Indirect costs allocated to Divestiture ⁽¹³⁾

—

(3.0

)

—

(6.2

)

Net income (loss) from continuing operations

$

39.8

$

(141.4

)

$

63.2

$

(112.3

)

⁽¹⁾

Segment EBITDA is defined as segment net sales less segment operating expenses (segment operating expenses consist of costs of sales, selling, general and administrative expenses, research and technical expenses, other (income) expense, net, excluding depreciation and amortization). We have excluded the following items from segment EBITDA: interest expense associated with corporate debt facilities, interest income, income taxes, depreciation, amortization, gain on sale of business, restructuring and other income (charges), net, goodwill impairment charges, long-lived asset impairment charges, acquisition and other-related income (costs), gain (loss) on strategic investments, impairment of license agreement, proxy contest charges, portfolio realignment costs, pension and postretirement settlement and curtailment income (charges), net, litigation charge, indirect costs allocated to Divestiture, and Corporate and other costs.

⁽²⁾

The table below provides an allocation of these charges between our three reportable segments to provide investors, potential investors, securities analysts and others with the information, should they choose, to apply such (income) charges to each respective reportable segment for which the charges relate.

Three Months Ended June 30,

Six Months Ended June 30,

In millions

2026

2025

2026

2025

Performance Materials

$

11.1

$

9.9

$

22.0

$

19.8

Pavement Technologies

3.5

6.0

7.0

11.9

Advanced Polymer Technologies

7.4

8.3

15.7

16.0

Indirect costs allocated to Divestiture ⁽ⁱ⁾

—

1.0

—

2.0

Depreciation and amortization

$

22.0

$

25.2

$

44.7

$

49.7

(i) Includes indirect costs previously allocated to the Divestiture that are not eligible for discontinued operations accounting treatment.

⁽³⁾

The gain relates to the sale of our former Performance Chemicals' road markings product line on April 15, 2026.

⁽⁴⁾

For more information on these charges, refer to the Reconciliation of Adjusted Earnings table on page 8.

⁽⁵⁾

The table below provides an allocation of these charges between our three reportable segments to provide investors, potential investors, securities analysts and others with the information, should they choose, to apply such (income) charges to each respective reportable segment for which the charges relate.

Three Months Ended June 30,

Six Months Ended June 30,

In millions

2026

2025

2026

2025

Performance Materials

$

1.0

$

—

$

1.5

$

—

Pavement Technologies

0.7

0.6

1.8

1.2

Advanced Polymer Technologies

—

5.9

(1.1)

6.5

Indirect costs allocated to Divestiture

—

0.7

—

1.4

Restructuring and other (income) charges, net

$

1.7

$

7.2

$

2.2

$

9.1

⁽⁶⁾

The company recorded a non-cash impairment charge within Advanced Polymer Technologies.

⁽⁷⁾

Charge relates to our Advanced Polymer Technologies reportable segment.

⁽⁸⁾

For information on our litigation charges please refer to Note 13, Commitments and Contingencies, in the Notes to the Condensed Consolidated Financial Statements included in the Company’s Form 10-Q for the quarter ended March 31, 2026, filed on May 7, 2026. Updates will be provided in subsequent filings of the Company's Form 10-Q in 2026.

⁽⁹⁾

Charge represents an impairment of a license agreement within our Performance Materials reportable segment.

⁽¹⁰⁾

Charges represent legal and other professional service fees as well as incremental proxy solicitation costs related to a proxy contest.

⁽¹¹⁾

Charges represent professional service fees related to a review of the company's portfolio.

⁽¹²⁾

Corporate and other costs is defined as costs associated with corporate administrative functions (e.g., executive office, corporate finance, legal, human resources) and other compliance costs to operate as a NYSE listed entity. Also includes corporate administrative function share of information technology, safety, health, accounting and human resource departments.

⁽¹³⁾

Includes indirect costs previously allocated to the Divestiture that are not eligible for discontinued operations accounting treatment.

Three Months Ended June 30,

Six Months Ended June 30,

In millions

2026

2025

2026

2025

Cost of sales

$

—

$

1.2

$

—

$

3.7

Selling, general, and administrative expenses

—

1.8

—

2.5

Indirect costs allocated to Divestiture

$

—

$

3.0

$

—

$

6.2

INGEVITY CORPORATION

Condensed Consolidated Balance Sheets (Unaudited)

In millions

June 30, 2026

December 31, 2025

Assets

Cash and cash equivalents

$

97.4

$

78.1

Accounts receivable, net

155.8

127.2

Inventories, net

154.0

186.0

Restricted investment, net

85.8

—

Prepaid and other current assets

50.8

47.0

Current assets of discontinued operations

—

15.9

Current assets

543.8

454.2

Property, plant, and equipment, net

575.0

608.1

Goodwill

4.3

4.3

Other intangibles, net

137.3

176.1

Deferred income taxes

87.0

117.0

Restricted investment, net

—

84.4

Strategic investments

83.4

83.1

Other assets

106.7

104.4

Noncurrent assets of discontinued operations

—

19.5

Total Assets

$

1,537.5

$

1,651.1

Liabilities

Accounts payable

$

88.0

$

92.0

Accrued expenses

60.3

148.0

Notes payable and current maturities of long-term debt

144.0

47.1

Other current liabilities

45.3

51.1

Current liabilities of discontinued operations

—

3.1

Current liabilities

337.6

341.3

Long-term debt including finance lease obligations

1,056.2

1,161.4

Deferred income taxes

44.2

55.1

Other liabilities

52.6

62.9

Noncurrent liabilities of discontinued operations

—

0.7

Total Liabilities

1,490.6

1,621.4

Equity

46.9

29.7

Total Liabilities and Equity

$

1,537.5

$

1,651.1

INGEVITY CORPORATION

Condensed Consolidated Statements of Cash Flows (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

In millions

2026 ⁽¹⁾

2025 ⁽¹⁾

2026 ⁽¹⁾

2025 ⁽¹⁾

Cash provided by (used in) operating activities:

Net income (loss)

$

35.3

$

(146.5

)

$

95.1

$

(126.0

)

Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:

Depreciation and amortization

22.0

25.6

44.7

50.5

Restructuring and other (income) charges, net

6.6

21.9

14.9

34.2

Impairment of license agreement

—

—

2.8

—

(Gain) loss on strategic investment

—

2.5

—

2.5

Goodwill impairment charge

—

183.8

—

183.8

Long-lived asset impairment charge

32.1

—

32.1

—

(Gain) loss on sale of business

(7.2

)

—

(62.8

)

—

Litigation charges

—

—

16.2

—

Other non-cash items

15.5

3.5

41.8

11.1

Changes in operating assets and liabilities, net of effect of divestitures:

Restructuring and other cash outflow, net

(6.8

)

(11.5

)

(15.4

)

(23.1

)

CTO resales cash inflow (outflow), net

—

—

—

6.2

Litigation settlement payment

(113.2

)

—

(113.2

)

—

Changes in other operating assets and liabilities, net

1.9

(0.3

)

(72.0

)

(34.8

)

Net cash provided by (used in) operating activities

$

(13.8

)

$

79.0

$

(15.8

)

$

104.4

Cash provided by (used in) investing activities:

Capital expenditures

$

(10.3

)

$

(12.2

)

$

(20.6

)

$

(22.2

)

Proceeds from sale of businesses

63.2

—

156.3

—

Proceeds from Restricted investment

23.1

—

47.8

—

Proceeds from disposition of assets

—

—

—

3.6

Other investing activities, net

(0.6

)

9.4

(1.8

)

4.3

Net cash provided by (used in) investing activities

$

75.4

$

(2.8

)

$

181.7

$

(14.3

)

Cash provided by (used in) financing activities:

Proceeds from revolving credit facility and other borrowings

$

163.7

$

66.2

$

877.5

$

158.5

Payments on revolving credit facility and other borrowings

(167.6

)

(129.0

)

(885.6

)

(229.3

)

Debt issuance costs

—

—

(4.0

)

—

Finance lease obligations, net

(0.3

)

(0.2

)

(0.6

)

(0.6

)

Tax payments related to withholdings on vested equity awards

(1.4

)

—

(5.7

)

(2.6

)

Proceeds and withholdings from share-based compensation plans, net

2.5

—

5.8

—

Repurchases of common stock under stock repurchase plan

(34.5

)

—

(86.8

)

—

Net cash provided by (used in) financing activities

$

(37.6

)

$

(63.0

)

$

(99.4

)

$

(74.0

)

Increase (decrease) in cash, cash equivalents, and restricted cash

24.0

13.2

66.5

16.1

Effect of exchange rate changes on cash

1.6

3.0

1.8

4.4

Change in cash, cash equivalents, and restricted cash

25.6

16.2

68.3

20.5

Cash, cash equivalents, and restricted cash at beginning of period

155.3

90.9

112.6

86.6

Cash, cash equivalents, and restricted cash at end of period ⁽²⁾

$

180.9

$

107.1

$

180.9

$

107.1

⁽¹⁾ The cash flows related to discontinued operations have not been segregated and remain included in the major classes of assets and liabilities. Accordingly, the Condensed Consolidated Statements of Cash Flows include the results of continuing and discontinued operations.

⁽²⁾ Includes restricted cash of $83.5 million and $30.2 million and cash and cash equivalents of $97.4 million and $76.9 million at June 30, 2026 and 2025, respectively. Restricted cash is included within "Prepaid and other current assets" and "Restricted investment, net" within the condensed consolidated balance sheets.

Supplemental cash flow information:

Cash paid for interest, net of capitalized interest

$

17.4

$

22.6

$

28.5

$

37.2

Cash paid for income taxes, net of refunds

(5.2

)

1.2

(2.7

)

5.6

Purchases of property, plant, and equipment in accounts payable

(1.1

)

(0.6

)

0.7

2.3

Leased assets obtained in exchange for new operating lease liabilities

(0.9

)

0.4

4.9

0.4