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Sep 30, 2025
Ingevity Q3 2025 Earnings Report
Ingevity reported its third quarter 2025 financial results, highlighting a flat net sales performance from continuing operations, increased adjusted EBITDA, and strong free cash flow generation.
Key Takeaways
Ingevity delivered a resilient third quarter in 2025, with net sales from continuing operations remaining flat at $333.1 million. The company achieved a net income of $43.5 million and diluted EPS of $1.18. Total Adjusted EBITDA increased by 14% to $121.2 million, with the margin improving to 33.5%. Strong operating cash flow of $129.7 million and free cash flow of $117.8 million enabled accelerated deleveraging and share repurchases.
Net sales from continuing operations remained flat at $333.1 million, with growth in Performance Chemicals and Performance Materials offset by declines in Advanced Polymer Technologies.
Net income for the quarter was $43.5 million, with diluted EPS of $1.18, while net income from continuing operations was $40.8 million and diluted EPS from continuing operations was $1.10.
Total Adjusted EBITDA increased by 14% to $121.2 million, and the Total Adjusted EBITDA margin improved to 33.5%.
The company generated strong free cash flow of $117.8 million, which contributed to a reduction in net leverage to 2.7x and facilitated $25 million in share repurchases.
Revenue by Segment
Forward Guidance
Ingevity revised its full-year 2025 guidance, projecting total net sales between $1.25 billion and $1.35 billion and total adjusted EBITDA between $390 million and $405 million.
Positive Outlook
- The company is actively pursuing portfolio optimization with the announced sale of Industrial Specialties and the North Charleston refinery.
- Strong quarterly results highlight the resilience of Performance Materials.
- Successful execution of repositioning actions contributed to performance.
- Record pavement sales in North America boosted Performance Chemicals.
- Significant free cash flow generation enabled accelerated deleveraging and share repurchases.
Challenges Ahead
- Full-year guidance was revised due to specific challenges in the Advanced Polymer Technologies segment.
- Advanced Polymer Technologies faces competitive pressures.
- Ongoing indirect tariff impacts continue to affect Advanced Polymer Technologies.
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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