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Jun 30, 2023
Ingevity Q2 2023 Earnings Report
Reported financial results with revenue growth and maintained strong adjusted EBITDA margins.
Key Takeaways
Ingevity Corporation reported a 15% increase in net sales to $481.8 million for the second quarter of 2023. Net income was $35.5 million, with diluted EPS at $0.97. Adjusted EBITDA remained flat at $120.7 million, with a margin of 25.1%. The company has initiated cost reduction actions expected to yield $35 million in annualized savings.
Net sales increased by 15% to $481.8 million.
Net income reached $35.5 million, with diluted EPS of $0.97.
Adjusted EBITDA was $120.7 million, maintaining a 25.1% margin.
Cost reduction actions initiated, anticipating $35 million in annualized savings.
Revenue by Segment
Forward Guidance
Ingevity adjusts full-year guidance to sales between $1.6 billion and $1.7 billion, and adjusted EBITDA between $390 million and $420 million due to high CTO costs pressuring Industrial Specialties’ profitability and the weaker industrial environment.
Positive Outlook
- AFA transition that will diversify raw material stream
- Global expansion in Pavement
- Higher adoption of sustainable products such as those delivered by our APT
- Higher adoption of sustainable products such as those delivered by our Performance Materials segments
- Disciplined cost management
Challenges Ahead
- High costs of CTO are pressuring Industrial Specialties’ profitability
- Weaker industrial environment is not providing the opportunity to fully recoup these costs
- Uncertainty in North America, Europe and Asia automotive markets
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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