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Dec 31, 2021
Ingevity Q4 2021 Earnings Report
Reported solid results despite supply chain challenges, inflationary cost pressures, and microchip shortage.
Key Takeaways
Ingevity Corporation reported a 3.2% increase in net sales for Q4 2021, reaching $336.0 million, and a 14.4% increase for the full year, with net sales of $1.4 billion. Despite these gains, net income for Q4 decreased by 36.3% to $29.3 million, while adjusted earnings decreased by 43.9% to $30.9 million, primarily due to the microchip shortage impacting automotive emission product volumes.
Q4 net sales increased 3.2% to $336.0 million; FY net sales increased 14.4% to $1.4 billion.
Q4 net income was $29.3 million, with diluted EPS of $0.74; adjusted earnings were $30.9 million, with diluted adjusted EPS of $0.78.
FY net income was $118.1 million, with diluted EPS of $2.95; adjusted earnings increased 3.4% to $209.5 million, with diluted adjusted EPS of $5.23.
FY adjusted EBITDA increased 6.1% to $422.2 million, though the adjusted EBITDA margin decreased to 30.3%.
Revenue by Segment
Forward Guidance
Ingevity announced its 2022 guidance of sales between $1.525 billion to $1.60 billion and adjusted EBITDA between $430 million to $460 million.
Positive Outlook
- Performance Chemicals revenue will outpace ongoing energy, logistics and raw materials inflation.
- Continue to optimize operations and inventory to provide outstanding service to customers.
- Remain committed to capturing the maximum value for our products.
- Advance our strategic growth efforts.
- Advance sustainability efforts.
Challenges Ahead
- Modest outlook for Performance Materials.
- Vehicle production will continue to be constrained by the prolonged microchip shortage.
- Vehicle production will be constrained by other automotive supply chain issues.
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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