Ingevity Corporation Reports 17% Decline in Net Sales and $430.3 Million Loss for Fiscal Year 2024

Ingevity Corporation reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with net sales of $1.41 billion, down 17% from $1.69 billion in 2023. The decrease was primarily driven by a 33% drop in the Performance Chemicals segment, which saw net sales fall to $608.2 million from $902.1 million. This decline was attributed to strategic repositioning efforts aimed at exiting lower-margin markets, particularly within the industrial specialties product line, which accounted for approximately $210 million of the sales reduction. The company also faced challenges from adverse weather conditions affecting its road technologies product line, contributing an additional $27.5 million to the sales decline.

In terms of profitability, Ingevity reported a net loss of $430.3 million for 2024, compared to a loss of $5.4 million in the previous year. This substantial loss was largely due to a goodwill impairment charge of $349.1 million related to the Performance Chemicals segment, reflecting the impact of ongoing restructuring efforts. The company also incurred restructuring and other charges totaling $186.2 million, which included costs associated with workforce reductions and the closure of manufacturing facilities in DeRidder, Louisiana, and Crossett, Arkansas. These strategic actions resulted in a 23% reduction in the global workforce.

Operationally, Ingevity's Performance Materials segment performed better, achieving record net sales of $609.6 million, up from $586.0 million in 2023. This growth was driven by increased demand for activated carbon products used in automotive applications, particularly in North America and Asia Pacific, where emissions control standards are stringent. The segment's EBITDA increased to $319.1 million, reflecting improved operational efficiencies and cost management strategies. In contrast, the Advanced Polymer Technologies segment saw a decline in net sales to $188.6 million from $204.0 million, primarily due to unfavorable pricing and product mix.

Looking ahead, Ingevity anticipates net sales for 2025 to range between $1.3 billion and $1.4 billion, with expectations of growth in the Performance Materials segment driven by increased pricing and a recovery in demand. The Performance Chemicals segment is projected to generate net sales between $160 million and $200 million, reflecting the ongoing impact of repositioning efforts. The company expects Adjusted EBITDA for 2025 to be between $400 million and $415 million, indicating a cautious optimism for improved financial performance as it continues to streamline operations and focus on higher-margin product lines.