Loading...
•
Jun 30, 2024
Ingevity Q2 2024 Earnings Report
Reported a net loss due to a Performance Chemicals non-cash goodwill impairment charge, while Performance Materials delivered strong results.
Key Takeaways
Ingevity reported a decrease in net sales by 19% to $390.6 million, primarily due to the repositioning of its Performance Chemicals segment. The company experienced a net loss of $283.7 million, or $7.81 per share, due to a $349.1 million non-cash goodwill impairment charge in Performance Chemicals. Adjusted EBITDA decreased by 16% to $101.3 million, with a margin of 25.9%.
Net sales decreased by 19% to $390.6 million.
Net loss was $283.7 million, or $7.81 per share, due to a Performance Chemicals goodwill impairment.
Adjusted EBITDA decreased by 16% to $101.3 million, with adjusted EBITDA margin of 25.9%.
Revised full year sales guidance to between $1.40 billion and $1.50 billion, and adjusted EBITDA to between $350 million and $360 million.
Revenue by Segment
Forward Guidance
Ingevity is revising its full year sales guidance to between $1.40 billion and $1.50 billion, and adjusted EBITDA to between $350 million and $360 million.
Positive Outlook
- Continued strength of Performance Materials.
- Stability of APT will help offset headwinds in Performance Chemicals.
Challenges Ahead
- Segment results this year will be challenged as a result of high-cost CTO inventory, which we expect to work through by the end of Q1 2025.
- Lack of a rebound in industrial demand, primarily impacting the Industrial Specialties product line.
- Unfavorable weather conditions to date in North America.
- Guidance reflects some uncertainty regarding the recovery of Road Technologies volumes in the second half.
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
Loading earnings performance data...
Loading earnings reaction data...