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Mar 31, 2024
Ingevity Q1 2024 Earnings Report
Reported a net loss due to Performance Chemicals repositioning, but Performance Materials maintained momentum.
Key Takeaways
Ingevity's first quarter 2024 net sales were $340.1 million, a 13% decrease compared to the prior year, primarily due to the repositioning of the Performance Chemicals segment. The company reported a net loss of $56.0 million, or $1.54 per share, while adjusted earnings were $19.1 million, or $0.52 per share. Adjusted EBITDA was $76.9 million, with a margin of 22.6%.
Net sales decreased by 13% to $340.1 million due to the repositioning of Performance Chemicals.
Net loss was $56.0 million, with a diluted loss per share of $1.54; adjusted earnings were $19.1 million, with diluted adjusted EPS of $0.52.
Adjusted EBITDA was $76.9 million, with an adjusted EBITDA margin of 22.6%.
Performance Materials maintained strong auto carbon volumes and pricing.
Revenue by Segment
Forward Guidance
The company is reiterating its full year guidance of sales between $1.40 billion and $1.55 billion and adjusted EBITDA between $365 million and $390 million.
Positive Outlook
- Impressed with first quarter performance.
- Encouraged by the impressive results in Performance Materials.
- Sequential improvement in APT.
- Progress made on the repositioning efforts in Performance Chemicals.
- Expect industrial markets to pick up in the back half of the year.
Challenges Ahead
- Customer order patterns continue to reflect caution regarding the pace of recovery in industrial markets.
- Net sales decreased by 13% primarily as a result of the repositioning of Performance Chemicals
- Net loss of $56.0 million and diluted loss per share (EPS) of $1.54
- Operating cash flow of negative $12.1 million with free cash flow of negative $28.7 million reflecting normal seasonal inventory build and cash losses on crude tall oil (CTO) resales of $19.8 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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