Ingevity Corporation Reports Q1 2025 Financial Results with $284M in Net Sales

Ingevity Corporation reported its financial results for the first quarter of 2025, revealing net sales of $284.0 million, a decrease of $56.1 million or 16% compared to the same period in 2024. The decline was primarily attributed to a significant drop in the Performance Chemicals segment, which saw a reduction in sales of approximately $52 million due to repositioning actions aimed at exiting lower-margin markets. The company recorded a net income of $20.5 million, translating to earnings per share of $0.56, a notable recovery from a net loss of $56.0 million in the prior year.

The company's gross profit for the quarter was $113.4 million, an increase of $13.7 million from the previous year, driven by decreased manufacturing costs and a LIFO liquidation benefit. Selling, general, and administrative expenses decreased to $43.1 million, down from $47.2 million, reflecting cost-saving measures implemented as part of the Performance Chemicals repositioning strategy. The restructuring efforts, which included workforce reductions and the closure of certain facilities, resulted in restructuring charges of $12.3 million for the quarter.

In terms of operational developments, Ingevity's Performance Materials segment reported a slight increase in net sales, driven by higher demand for activated carbon products used in larger vehicles. However, the Advanced Polymer Technologies segment experienced a 12% decline in sales due to market weakness in Asia. The company continues to focus on improving profitability through strategic actions, including transitioning its refining operations and reducing exposure to lower-margin products.

Looking ahead, Ingevity has adjusted its full-year outlook, projecting net sales between $1.25 billion and $1.4 billion for 2025, reflecting anticipated challenges in the North American light vehicle production market. The company expects to maintain segment EBITDA margins around 50% for Performance Materials, while Performance Chemicals is anticipated to improve due to revenue growth in road technologies and further cost savings from ongoing restructuring efforts. The company remains committed to enhancing operational efficiencies and managing costs as it navigates a challenging economic landscape.