Ingevity (NGVT) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales were $314.1 million, down 5% year-over-year due to divestitures, but up 5% excluding Road Markings; all remaining segments showed growth.

• Adjusted EBITDA from continuing operations rose 14% to $115 million, with margin expanding to 36.6% from 30.5% year-over-year.

• Net income from continuing operations was $39.8 million, or $1.13 per diluted share, compared to a loss of $141.4 million in the prior year.

• Portfolio transformation advanced with the sale of Road Markings and Industrial Specialties, focusing resources on higher-return opportunities.

• Raised full-year outlook for adjusted EBITDA ($380–$400 million) and EPS ($5.00–$5.45), reflecting robust first-half execution.

Financial highlights

• Adjusted EBITDA rose to $115 million (36.6% margin), and adjusted EPS increased to $1.74, aided by stronger operations, lower interest expense, and share repurchases.

• Free cash flow (excluding litigation settlement) was $89 million; free cash flow per share reached $2.52.

• Capital expenditures were $10 million in Q2; net leverage improved to 2.5x trailing 12-month adjusted EBITDA.

• Q2 2026 gross margin improved to 44.3% (up from 38.6% in Q2 2025); adjusted gross margin reached 49.1%.

• Net income margin from continuing operations was 12.7%.

Outlook and guidance

• Full-year 2026 net sales expected at $1.05–$1.15 billion; adjusted EBITDA guidance raised to $380–$400 million and diluted adjusted EPS to $5.00–$5.45.

• Free cash flow forecasted at $220–$245 million, excluding litigation settlement.

• Guidance incorporates planned maintenance outages and expected softer auto production in H2.

• Segment outlooks: Performance Materials expects low single-digit sales growth and mid-50% EBITDA margins; Pavement Technologies expects mid-single-digit growth (excluding Road Markings) and high-teen EBITDA margins; Advanced Polymer Technologies expects low double-digit sales growth and ~20% EBITDA margins.

• Advanced Polymer Technologies remains included in guidance; sale process is in advanced stage.