Ingevity (NGVT) Q4 2025 Earnings Call Transcript

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Thursday, Feb. 26, 2026 astatine 10 a.m. ET

• President and Chief Executive Officer — David H. Li

• Chief Financial Officer — Phillip Platt

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David H. Li: Thank you, Savi, and bully morning, everyone. Please crook to descent four. Before we sermon the fiscal results, I would similar to punctual everyone that successful aboriginal December, we shared the findings of our strategical portfolio reappraisal done a virtual event. During this presentation, we laid retired our plans for increasing adjusted net per stock by 10% and escaped currency travel per stock by 5% done 2027. We besides announced the determination to initiate income processes for our Advanced Polymer Technology (APT) segments and Road Markings merchandise line. If you person not had a accidental to perceive to the webcast, I would highly urge reviewing the materials connected our website nether Events and Presentations.

I americium besides pleased to corroborate that connected 01/01/2026, we completed the merchantability of our North Charleston CTO refinery and the bulk of the Industrial Specialties merchandise enactment to Mainstream Pine Products. With this transaction complete, we person reduced our portfolio volatility, strengthened our profitability and currency travel profile, and enhanced our strategical flexibility. Looking astatine our 2025 results, we are incredibly arrogant of the beardown execution by our teams globally that enabled america to turn full institution adjusted EBITDA by astir 10% implicit 2024, on with delivering industry-leading margins of implicit 30%. These results generated $274 cardinal of escaped currency flow, somewhat exceeding our commitments.

We utilized the currency to wage down indebtedness and trim leverage to 2.6x and to bargain backmost implicit 1 cardinal shares. Performance Materials continued to make EBITDA margins supra 50% and held gross level contempt little planetary car production, which was impacted by tariff uncertainty and proviso concatenation challenges, delivering different twelvemonth of adjacent record-level sales. This beardown show is simply a testament to the differentiated worth that our activated c exertion delivers to customers globally. The momentum from continued adoption of hybrids and fuel-efficient ICE vehicles is encouraging and supports our presumption of a agelong runway for this business.

We besides proceed to beryllium encouraged by the optimization of our filtration concern and spot a agleam aboriginal and bully acceptable for the institution successful this exertion space. Within the Performance Chemicals segment, we meaningfully lowered CTO vulnerability up of the Industrial Specialties divestiture. Also, Pavement Technologies grew twelvemonth implicit twelvemonth arsenic our innovative solutions facilitated the hold of the paving play into precocious autumn to let catch-up of projects delayed by adverse upwind earlier successful the year. Advanced Polymer Technologies continued to look pugnacious marketplace conditions owed to tariff uncertainty and competitory pressure, which we are addressing with disciplined commercialized actions and productivity initiatives.