NYSE$NGVT

Ingevity Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Ingevity's second quarter performance was driven by increased volumes and price increases across segments, leading to significant growth in net sales, net income, and adjusted EBITDA.

Ingevity reported strong second quarter results with net sales up 32.4% to $358.4 million and net income up 119.3% to $44.3 million. Adjusted EBITDA increased by 75.1% to $117.7 million. The company also increased its full year 2021 guidance for sales and adjusted EBITDA.

  • Net sales increased by 32.4% to $358.4 million.
  • Net income rose 119.3% to $44.3 million, with a net income margin of 12.4%.
  • Adjusted EBITDA increased 75.1% to $117.7 million, with an adjusted EBITDA margin of 32.8%.
  • Free cash flow was up 23.6% to $41.9 million.

Headline financials

Total Revenue

$358M

Previous: $271M+32.4%
EPS (adj)

$1.55

Previous: $0.63+146.0%
Total Adjusted EBITDA

$118M

Previous: $67.2M+75.1%
Total Adj EBITDA Margin

32.8%

Previous: 24.8%+32.3%
Free Cash Flow

$44.3M

Previous: $20.2M+119.3%
Net Income

$44.3M

Previous: $20.2M+119.3%
Operating Income

$118M

Previous: $67.2M+75.1%
Gross Profit

$140M

Previous: $83.9M+66.6%
Cash & Equivalents

$233M

Previous: $178M+31.4%
Total Assets

$2.39B

Previous: $2.2B+8.8%

Revenue & EPS history

Ingevity · Revenue · Quarterly

$358M

Q2 2021+32.4%vs Q2 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Ingevity · $358M total across 2 segments · Q2 2021

  • Performance Chemicals
    $232M+24.8%
  • Performance Materials
    $126M+49.3%

Forward guidance

Ingevity has increased its full year 2021 guidance from sales between $1.275 billion and $1.325 billion to sales between $1.320 billion to $1.360 billion, and from adjusted EBITDA between $410 million and $430 million to adjusted EBITDA between $425 million to $440 million.

Tailwinds

  • Solid performance in the first half of the year
  • Continued robust demand for our products
  • Team’s ability to deliver strong performance in the second half of the year
  • Sales between $1.320 billion to $1.360 billion
  • Adjusted EBITDA between $425 million to $440 million

Headwinds

  • Ongoing transportation and logistics headwinds
  • Raw materials inflation
  • Automotive sector input disruptions
  • Microchip shortage continues to impact automotive production on a global scale.
  • China light vehicle production declined 4.9% versus the prior year quarter

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 Q2 2021

Historical avgQ2 2021

+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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