Ingevity reports third quarter 2026 financial results

Third Quarter 2026 Results and Recent Highlights:

• Net sales of $305.1 million decreased 8% from prior year; excluding Road Markings, sales increased 2%
• Net income from continuing operations of $51.1 million, or $1.46 per diluted share, compared to $40.8 million, or $1.10 per diluted share, in the prior year
• Adjusted earnings from continuing operations of $56.7 million and $1.63 of adjusted diluted earnings per share compared to $48.3 million and $1.31 in the prior year
• Adjusted EBITDA from continuing operations of $108.0 million, down $2.4 million from the prior year; adjusted EBITDA margin from continuing operations expanded 230 basis points to 35.4%
• Narrows full year adjusted EBITDA outlook to a range of $385 million to $395 million, maintaining the midpoint of the prior range

NORTH CHARLESTON, S.C.--(BUSINESS WIRE)--Ingevity Corporation (NYSE: NGVT) today reported its financial results for the third quarter of 2026.

The results and guidance in this release include non-GAAP financial measures; see “Use of non‑GAAP financial measures” section for definitions and reconciliations to the most comparable GAAP measure. Unless otherwise stated, all comparisons below are made versus the same period in 2025 and are presented on a continuing operations basis.

Full Company Results

Net sales of $305.1 million decreased 8%, primarily driven by the sale of the Road Markings product line on April 15, 2026. Excluding Road Markings, sales increased 2%. The company reported net income from continuing operations of $51.1 million or $1.46 per diluted share (EPS). Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations decreased $2.4 million to $108.0 million, while adjusted EBITDA margin expanded 230 basis points to 35.4%. Favorable pricing and product mix, strong operating performance in Performance Materials and improved results in Advanced Polymer Technologies partially offset higher input and logistics costs in Pavement Technologies and Advanced Polymer Technologies.

“Third quarter results reflect disciplined execution across the portfolio amid a mixed global demand environment,” said Ingevity President and CEO Dave Li. “Performance Materials benefited from resilient North American automotive demand, driven by favorable hybrid vehicle trends and higher filtration sales, driven by pricing, while Advanced Polymer Technologies delivered improved profitability on better pricing and product mix. In Pavement Technologies, softer demand and higher input and logistic costs pressured results. We are taking action to improve performance while remaining confident in the long-term value of the business.

We are particularly encouraged by the progress in filtration, where our investments in talent, technology and commercial capabilities are translating into customer adoption and tangible growth. While still early, this progress strengthens our confidence in filtration’s potential to become a meaningful contributor to Ingevity’s growth and profitability. We also continue to advance the sale of Advanced Polymer Technologies, however, the timing of an announced agreement may extend into early 2027. With solid execution through the first nine months, we are narrowing our full-year adjusted EBITDA guidance while maintaining the midpoint of our previous range, reflecting increased visibility and confidence as we enter the final quarter of the year.”

Segment Results

Performance Materials

Performance Materials net sales remained strong and nearly flat to prior year at $154.1 million as resilient North American demand, supported by continued consumer preference for hybrid vehicles, and higher non-auto filtration sales driven primarily by pricing, offset lower volumes from softness in automotive applications in China and Europe. Segment EBITDA held essentially flat to $83.4 million as pricing actions, non-auto filtration growth and strong manufacturing performance were offset by lower volumes and higher SG&A. Segment EBITDA margin remained strong at 54.1%, consistent with the prior year, demonstrating the resilient earnings power of the segment.

Pavement Technologies

Pavement Technologies net sales decreased 24% to $106.0 million, primarily due to the April 15, 2026, divestiture of the Road Markings product line. Excluding Road Markings, sales were nearly flat as higher prices offset softer demand. Persistently higher asphalt costs, driven by crude oil inflation, continued to increase project costs for our customers, pressuring demand and limiting sales growth. Segment EBITDA was $19.6 million, down $7.3 million. Segment EBITDA reflects lower volumes, the retention of dis-synergy costs largely due to the divestiture of road markings, as well as higher input and logistics costs. Segment EBITDA margin was 18.5%, compared with 19.2% in the prior year.

Advanced Polymer Technologies

Advanced Polymer Technologies net sales increased 18% to $45.0 million driven by higher pricing, including a price surcharge to offset increased input costs, and favorable mix toward higher-value derivative products. Segment EBITDA for the quarter increased $0.7 million to $11.7 million, primarily driven by the favorable product mix and higher pricing partially offset by higher input costs. Segment EBITDA margin was 26.0%, down 280 basis points as pricing surcharges helped to recover higher input costs, but carried little to no incremental margin.

Corporate and Other

Corporate and other expenses, which are not included in segment financial results, were $6.7 million, an improvement of $1.1 million from the prior year.

Liquidity/Other Continuing and Discontinued Operations

Third quarter operating cash flow was $99.2 million, a decrease of $30.5 million versus the same quarter in 2025. The company generated $85.5 million free cash flow, a decrease of $32.3 million driven primarily by $21 million of working capital benefits in the prior year period from divested businesses. Additionally, capital expenditures increased approximately $2 million to $14 million for the quarter.

Share repurchases totaled approximately $39 million during the third quarter at a weighted average price of $71.45 per share, bringing year-to-date share repurchases to approximately $125 million. Approximately $172 million of available capacity remains under the company's current share repurchase authorization. Net leverage remained at 2.5 times, consistent with the second quarter and down from 2.7 times in the prior-year period.

Full Year 2026 Outlook:

Following solid third-quarter results, the company is narrowing its full-year 2026 adjusted EBITDA outlook to a range of $385 million to $395 million, maintaining the midpoint of the prior range. The company expects full-year net sales of approximately $1.1 billion and diluted adjusted EPS of $5.25 to $5.45. Free cash flow is now expected to be between $220 million and $230 million, excluding the second quarter $113.2 million litigation settlement payment, reflecting increased capital expenditures and working capital investments as the company enters 2027.

The company intends to use its strong free cash flow to maintain leverage within its long-term target range of 2.0 to 2.5 times and return capital to shareholders. The outlook reflects continued resilient performance in Performance Materials, improved year-over-year results in Advanced Polymer Technologies and continued cost pressures within Pavement Technologies. The 2026 outlook includes full-year financial results for Advanced Polymer Technologies but excludes the divested Industrial Specialties product line for the full year and Road Markings following its April 15, 2026, divestiture.

Additional Information: The company will host a live webcast on Thursday, November 5, at 10:00 a.m. (Eastern) to discuss third quarter 2026 fiscal results. The webcast can be accessed via the Investor section of Ingevity’s website. Participants may pre-register for the event here.

Participants may also listen to the conference call by dialing 833 461 5787 (inside the U.S.) and entering access code 736418594. Callers outside the U.S. can find international dial-in numbers here. For those unable to join the live event, a recording will be available beginning at approximately 2:00 p.m. (Eastern) on November 5, 2026, through November 4, 2027, at this replay link.

Instructions for accessing the webcast and conference call, along with a slide deck containing relevant financial and statistical information, will be posted to the Investors section of Ingevity’s website after the company issues its earnings release on November 4, 2026.

Ingevity: Purify, Protect and Enhance

Ingevity (NYSE: NGVT) is a global specialty materials company that develops advanced carbon and engineered materials solutions that improve mobility, strengthen and extend the life of infrastructure and enhance industrial processes. With a century of innovation, we work closely with customers to solve technical challenges and deliver materials that improve performance and environmental outcomes in essential applications. Our portfolio includes Performance Materials activated carbon technologies for emissions control and filtration; Pavement Technologies solutions for high-performance pavement applications and dispersants for crop protection; and Advanced Polymer Technologies specialty polymers for coatings and industrial applications. Headquartered in North Charleston, South Carolina, Ingevity operates from 17 locations worldwide and employs approximately 1,400 people. Learn more at ingevity.com.

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.

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Caroline Monahan 843-740-2068 media@ingevity.com
Investors: Mickey Walsh 843-740-2002 investors@ingevity.com