Overview

* Ingevity Q2 2025 net sales decline 7%, missing analyst expectations

* Adjusted earnings rise 39% despite $183.8 mln goodwill impairment charge

* Co raises low-end of adjusted EBITDA guidance, reflecting improved auto production outlook

Outlook

* Ingevity ( NGVT ) raises low-end of 2025 adjusted EBITDA guidance to $390-$415 mln

* Company maintains 2025 sales guidance between $1.25 bln and $1.40 bln

* Improved North America auto production forecasts boost EBITDA outlook

Result Drivers

* PERFORMANCE CHEMICALS - Sales down 10% due to repositioning actions and weather-related delays in road construction

* ADVANCED POLYMER TECHNOLOGIES - Segment sales down 10% due to softening demand and tariff impacts

* GOODWILL IMPAIRMENT - $183.8 mln charge due to global trade uncertainty affecting Advanced Polymer Technologies

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $365.10 $378.70

mln mln (3

Analysts

)

Q2 EPS -$4.02

Q2 Net -$146.50

Income mln

Q2 Gross $137.90

Profit mln

Q2 -$142.70

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the diversified chemicals peer group is "buy"

* Wall Street's median 12-month price target for Ingevity Corp ( NGVT ) is $52.00, about 22.3% above its August 1 closing price of $40.40

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)