Ingevity Explores Strategic Options For Performance Chemicals Segment To Strengthen Portfolio, Projects FY24 Revenue At $1.40 Billion

Ingevity Corporation NGVT is evaluating strategic options for its Performance Chemicals Industrial Specialties segment, which may include selling parts of its North Charleston, South Carolina site.

The review focuses on pine chemical-based products and the crude tall oil refinery, excluding the Road Technologies line and certain lignin-based products. This aligns with Ingevity’s goals to streamline operations, strengthen the Performance Chemicals segment, and improve earnings and cash flow. The company aims to conclude the review by year-end but cautions that a transaction is not guaranteed.

“Over the last fifteen months, we have undertaken a series of initiatives to improve the performance of our business, in particular our Performance Chemicals segment. These initiatives are already leading to improved results, as demonstrated by the sequential segment EBITDA margin improvement realized during the second half of 2024,” commented Luis Fernandez-Moreno, Ingevity interim president and CEO.

“Exiting most of the Industrial Specialties product line will strengthen the Performance Chemicals segment further and enable us to focus our attention on higher growth and higher margin opportunities within our portfolio while improving the company’s earnings and cash flow profile,” he continued. “We believe we will be well positioned for profitable growth and value creation beginning in 2025.”

Additionally, Ingevity announced unaudited preliminary financial results for fiscal year 2024, pending completion of its financial audit. The company expects net sales of approximately $1.40 billion (slightly below the $1.414 billion estimate), adjusted EBITDA of $360 million, and free cash flow exceeding $40 million.

Price Action: NGVT shares traded higher by 1.15% at $42.35 premarket at the last check Thursday.

Ingevity company photo