Brief: Ingevity Q2 EPS USD -4.02

Ingevity

04/08/2025 21:15

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 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/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$365.10 mln
$378.70 mln (3 Analysts)
Q2 EPS
-$4.02
Q2 Net Income
-$146.50 mln
Q2 Gross Profit
$137.90 mln
Q2 Pretax Profit
-$142.70 mln


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 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: ID:nBw2jzWya

(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.)