Ingevity Corporation Reports Decline in Q2 2025 Financial Performance

Ingevity Corporation reported a decline in financial performance for the second quarter of 2025, with net sales of $365.1 million, down from $390.6 million in the same period last year. For the first half of 2025, net sales totaled $649.1 million, compared to $730.7 million in the prior year. The company experienced a net loss of $146.5 million for the quarter, significantly worse than the loss of $283.7 million reported in Q2 2024. The loss for the first half of 2025 was $126.0 million, compared to a loss of $339.7 million in the same period last year. The decline in revenue was attributed to reduced performance in the Performance Chemicals segment, particularly in road technologies and industrial specialties, as well as adverse weather conditions that delayed construction projects.

Ingevity's gross profit for the second quarter was $137.9 million, a slight increase from $123.2 million in Q2 2024, driven by favorable pricing and a reduction in manufacturing costs. However, the company incurred a goodwill impairment charge of $183.8 million related to its Advanced Polymer Technologies segment, which contributed to the overall net loss. The restructuring and other charges also increased to $21.9 million in Q2 2025, compared to $13.1 million in the same quarter last year, reflecting ongoing efforts to reposition the Performance Chemicals segment and streamline operations.

The company has been actively restructuring its Performance Chemicals segment, focusing on reducing exposure to lower-margin markets and improving profitability. This initiative has resulted in a workforce reduction of approximately 23% across the company, with a significant impact on the Performance Chemicals segment. Ingevity expects to incur total charges of approximately $365 million related to these restructuring efforts, of which $335.1 million has already been recognized as of June 30, 2025.

In terms of operational metrics, Ingevity's cash flow from operating activities improved significantly, totaling $104.4 million for the first half of 2025, compared to $17.6 million in the same period last year. The company reported a decrease in capital expenditures to $22.2 million, down from $34.7 million in the prior year, indicating a more cautious approach to investment amid ongoing market challenges. As of June 30, 2025, Ingevity had cash and cash equivalents of $76.9 million, with an undrawn capacity of $400 million under its revolving credit facility.

Looking ahead, Ingevity has reaffirmed its full-year guidance for net sales between $1.25 billion and $1.4 billion, despite anticipated challenges in the macroeconomic environment, including a projected decline in North American light vehicle production. The company expects modest growth in its road technologies product line and a continued focus on improving profitability in its Performance Chemicals segment. Adjusted EBITDA is projected to be between $390 million and $415 million, reflecting anticipated improvements in operational efficiency and cost management.