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Mar 31, 2025
Ingevity Q1 2025 Earnings Report
Reported first quarter 2025 financial results
Key Takeaways
Ingevity reported a decrease in net sales for Q1 2025, primarily due to repositioning actions in Performance Chemicals. However, the company saw an increase in adjusted EBITDA and improved adjusted EBITDA margin, driven by successful repositioning and continued strong profitability in Performance Materials. Net income and EPS were positive despite special charges.
Net sales decreased by 17% to $284.0 million, mainly due to the exit of certain lower-margin end markets in Performance Chemicals.
Net income was $20.5 million with diluted EPS of $0.56, impacted by $20.2 million in before-tax special charges.
Adjusted earnings were $36.4 million and diluted adjusted EPS was $0.99.
Adjusted EBITDA increased by 23% to $91.3 million, with the adjusted EBITDA margin improving to 32.1%.
Revenue by Segment
Forward Guidance
Ingevity widened its full-year 2025 guidance ranges for sales and adjusted EBITDA due to declines in industry forecasts for auto production caused by trade tensions and tariff uncertainty.
Positive Outlook
- Continued execution on strategic commitments to improve profitability.
- Continued execution on strategic commitments to reduce leverage.
- Strong market positions provide flexibility.
- Global manufacturing footprint provides flexibility.
- Focus remains on portfolio optimization.
Challenges Ahead
- Industry forecasts for global auto production have declined.
- Trade tensions are impacting forecasts.
- Tariff uncertainty is impacting forecasts.
- Widened guidance range reflects increased risk.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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