NYSE$NGVT
Ingevity Corporation · Q4 2020 earnings
Q4 2020 earnings · · Investor relations
Briefing
Delivered strong fourth quarter results driven by continued recovery of global automotive production, an increase in demand for engineered polymers, and ongoing global paving activity.
Ingevity reported a 7.3% increase in net sales to $325.6 million and a 14.7% increase in net income to $50.8 million for the fourth quarter of 2020. Strong automotive production and sales in China and a favorable shift to trucks and SUVs in the U.S. and Canada were significant tailwinds. The company's adjusted EBITDA margin rose to a fourth quarter record.
- Net sales of $325.6 million were up 7.3%.
- Net income of $50.8 million was up 14.7%; net income margin was 15.6%, up 100 basis points.
- Adjusted EBITDA of $110.9 million were up 21.7%; adjusted EBITDA margin of 34.1%, up 410 basis points.
- Operating cash flow of $153.3 million up 79.3%; free cash flow of $122.2 million up 142.0%
Headline financials
Revenue & EPS history
Ingevity · Revenue · Quarterly
$326M
Revenue by segment
Ingevity · $326M total across 2 segments · Q4 2020
- Performance Chemicals$165M-5.9%50.6%
- Performance Materials$161M+25.4%49.4%
Forward guidance
Ingevity announced its fiscal year 2021 guidance to sales between $1.25 billion and $1.30 billion and adjusted EBITDA between $400 million and $420 million. Free cash flow will be at or above $200 million.
Tailwinds
- Anticipate moderate growth in demand for pavement technologies
- Anticipate moderate growth in demand for engineered polymers based on strong paving project backlog
- Anticipate moderate growth in demand for continued Evotherm® warm mix technology adoption
- Anticipate moderate growth in demand for increased demand for thermoplastics
- Expect increased demand for merchant rosin
Headwinds
- Expect continued demand weakness in oilfield technologies.
- EBITDA margins will likely return to more historical levels as the industry returns to a more normalized production pace.
- Economic pressure from COVID-19
- Challenging global macroeconomic conditions
- Absence of any significant new gasoline vapor emission control regulations
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 Q4 2020
+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
| Quarter | Report date | Reaction (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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