NYSE$NGVT

Ingevity Corporation · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported a net loss due to Performance Chemicals repositioning, but Performance Materials maintained momentum.

Ingevity's first quarter 2024 net sales were $340.1 million, a 13% decrease compared to the prior year, primarily due to the repositioning of the Performance Chemicals segment. The company reported a net loss of $56.0 million, or $1.54 per share, while adjusted earnings were $19.1 million, or $0.52 per share. Adjusted EBITDA was $76.9 million, with a margin of 22.6%.

  • Net sales decreased by 13% to $340.1 million due to the repositioning of Performance Chemicals.
  • Net loss was $56.0 million, with a diluted loss per share of $1.54; adjusted earnings were $19.1 million, with diluted adjusted EPS of $0.52.
  • Adjusted EBITDA was $76.9 million, with an adjusted EBITDA margin of 22.6%.
  • Performance Materials maintained strong auto carbon volumes and pricing.

Headline financials

Total Revenue

$340M

Previous: $393M-13.4%
EPS (adj)

$0.52

Previous: $1.09-52.3%
Capital Expenditures

-$16.6M

No prior period
Free Cash Flow

-$56M

Previous: $50.7M-210.5%
Net Income

-$56M

Previous: $50.7M-210.5%
Operating Income

$76.9M

Previous: $104M-26.0%
Gross Profit

$99.7M

Previous: $130M-23.5%
Cash & Equivalents

$88.5M

Previous: $77.9M+13.6%
Total Assets

$2.57B

Previous: $2.77B-7.4%
R&D Expense

$6.8M

No prior period

Revenue & EPS history

Ingevity · Revenue · Quarterly

$340M

Q1 2024-13.4%vs Q1 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Ingevity · $446M total across 3 segments · Q3 2023

  • Performance Chemicals
    $256M-24.1%
  • Performance Materials
    $147M+1.6%
  • Advanced Polymer Tech
    $42.8M

Forward guidance

The company is reiterating its full year guidance of sales between $1.40 billion and $1.55 billion and adjusted EBITDA between $365 million and $390 million.

Tailwinds

  • Impressed with first quarter performance.
  • Encouraged by the impressive results in Performance Materials.
  • Sequential improvement in APT.
  • Progress made on the repositioning efforts in Performance Chemicals.
  • Expect industrial markets to pick up in the back half of the year.

Headwinds

  • Customer order patterns continue to reflect caution regarding the pace of recovery in industrial markets.
  • Net sales decreased by 13% primarily as a result of the repositioning of Performance Chemicals
  • Net loss of $56.0 million and diluted loss per share (EPS) of $1.54
  • Operating cash flow of negative $12.1 million with free cash flow of negative $28.7 million reflecting normal seasonal inventory build and cash losses on crude tall oil (CTO) resales of $19.8 million
  • CTO spend more than doubled compared to last year

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.9%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+2.2%

Avg return

30 days after

58%

26 / 45 earnings

Positive

+22.0%

Q1 2020

Best reaction

-15.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.9%-8.2%-15.3%
Q4 2025+0.3%+1.5%+1.4%
Q3 2025-15.8%-9.1%-2.8%
Q1 2025+0.9%+9.8%+7.3%
Q4 2024+5.3%+0.6%-7.5%
Q3 2024+16.5%+17.5%+33.5%
Q2 2024-7.5%-23.2%-14.3%
Q1 2024+7.2%+5.3%-4.5%
Q4 2023+3.1%+4.7%+3.1%
Q3 2023+5.0%-0.5%+1.1%
Q2 2023-11.2%-14.0%-12.4%
Q1 2023-8.4%-15.9%-26.3%
Q4 2022-6.8%-7.8%-21.1%
Q3 2022+3.6%+8.2%+14.1%
Q2 2022+5.0%+3.0%+4.2%
Q1 2022+9.6%+9.2%+19.7%
Q4 2021+0.9%+4.2%-0.5%
Q3 2021-0.6%-0.5%-5.6%
Q2 2021+5.4%+1.4%-1.0%
Q1 2021+4.6%+10.2%+10.4%
Q4 2020-6.6%-4.6%+6.3%
Q3 2020-1.4%+0.1%+8.9%
Q2 2020-2.1%+1.9%+1.3%
Q1 2020+22.0%+12.2%+23.8%
Q4 2019-2.9%+2.5%-24.5%
Q3 2019+1.7%+2.8%+4.6%
Q2 2019-1.2%-2.9%-26.9%
Q1 2019-10.9%-9.8%-23.7%
Q4 2018+9.8%+13.2%+3.0%
Q3 2018+2.3%-0.6%+9.8%
Q2 2018+11.3%+10.0%+14.5%
Q1 2018+2.4%+2.7%-0.2%
Q4 2017+7.3%+12.3%+3.8%
Q3 2017+2.2%+5.8%+11.0%
Q2 2017-0.7%+1.3%+8.1%
Q1 2017-6.5%-7.2%-5.4%
Q4 2014+4.3%+2.5%+6.7%
Q4 2016-4.6%-6.8%+7.0%
Q3 2015+11.0%+10.8%+22.7%
Q3 2016+7.2%+8.3%+21.1%
Q2 2015+14.3%+14.8%+17.2%
Q2 2016+15.8%+15.8%+18.4%
Q1 2016-0.3%
Q1 2015-0.3%
Q4 2015-0.3%
Q3 2014
Q2 2014
Q1 2014

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