By: ICN Bureau
Last updated : May 06, 2025 6:53 pm
Adjusted earnings were $36.4 million
Ingevity Corporation reported its financial results for the first quarter of 2025.
First quarter net sales of $284 million declined 17%, primarily due to lower sales in the Industrial Specialties product line as a result of the strategic repositioning of the Performance Chemicals segment, which included the exit of certain lower-margin end markets, and lower sales in the Advanced Polymer Technologies segment.
Net income of $20.5 million and diluted earnings per share (EPS) of $0.56 reflect before-tax special charges of $20.2 million, primarily related to restructuring expenses associated with the repositioning actions. Adjusted earnings were $36.4 million and diluted adjusted EPS was $0.99. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $91.3 million, an increase of 23%, with adjusted EBITDA margin of 32.1%.
The EBITDA improvement is primarily attributed to the Performance Chemicals segment, which has benefited from reduced raw material costs and improved product mix as a result of successful repositioning actions.
“This quarter’s strong results highlight the successful execution of the repositioning of our Performance Chemicals segment as well as the continued strength of our Performance Materials segment,” said David Li, Ingevity president and CEO. “I am honored to join Ingevity and energized by the opportunity to lead this world-class specialty materials company. Our focus will remain on portfolio optimization as we pursue best-in-class profitability in order to deliver superior stockholder returns.”
Full Year 2025 Guidance
“As we continue to execute on our strategic commitments of improving profitability and reducing leverage, our strong market positions and global manufacturing footprint give us the flexibility to withstand certain market disruptions. However, the current state of international trade relations has lowered expectations of global auto production, and therefore we are widening the range of our guidance to reflect this risk. Our revised guidance is sales between $1.25 billion and $1.40 billion and adjusted EBITDA of between $380 million and $415 million,” said Li.