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Jun 30, 2025
Ingevity Q2 2025 Earnings Report
Ingevity reported its second quarter 2025 financial results, with a decrease in net sales but significant improvements in adjusted earnings and adjusted EBITDA, despite a substantial goodwill impairment charge.
Key Takeaways
Ingevity's second quarter 2025 results showed a 7% decline in net sales to $365.1 million, primarily due to lower sales in Performance Chemicals. The company reported a net loss of $146.5 million and diluted loss per share of $4.02, largely impacted by a $183.8 million non-cash goodwill impairment charge related to Advanced Polymer Technologies. However, adjusted earnings increased by 39% to $51.1 million, and adjusted EBITDA rose by 9% to $110.0 million, with the adjusted EBITDA margin improving to 30.1%, driven by successful repositioning actions in Performance Chemicals.
Net sales for Q2 2025 were $365.1 million, a 7% decrease compared to the prior year, mainly due to lower sales in Performance Chemicals.
The company reported a net loss of $146.5 million and diluted loss per share of $4.02, which included a significant $183.8 million pre-tax non-cash goodwill impairment charge for Advanced Polymer Technologies.
Adjusted earnings increased by 39% to $51.1 million, and diluted adjusted earnings per share rose by 38% to $1.39, demonstrating strong underlying profitability.
Adjusted EBITDA grew by 9% to $110.0 million, with the adjusted EBITDA margin improving to 30.1%, primarily driven by successful repositioning efforts in Performance Chemicals.
Revenue by Segment
Forward Guidance
Ingevity has raised the low-end of its adjusted EBITDA guidance for the full year 2025, reflecting strong year-to-date results and improved expectations for North America auto production, while maintaining its full-year sales guidance.
Positive Outlook
- Raised the low-end of adjusted EBITDA guidance to between $390 million and $415 million.
- Reflects solid results achieved year-to-date.
- Improved expectations for North America auto production.
- Maintains full-year sales guidance between $1.25 billion and $1.40 billion.
- Demonstrates confidence in continued strong profitability.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- Global trade uncertainty due to tariff announcements could impact future industrial demand recovery.
- Potential for softening customer demand, as seen in Advanced Polymer Technologies.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
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