Key Highlights

  • Adjusted EPS was USD 1.63 against an estimate of USD 1.56; GAAP diluted EPS from continuing operations was USD 1.46.
  • Net sales were USD 305.1 million against an estimate of USD 303.91 million, with sales excluding Road Markings up 2%.
  • Adjusted EBITDA from continuing operations was USD 108.0 million, with a Margin of 35.4% against 33.1% a year earlier.
  • The 2026 adjusted EBITDA outlook was narrowed to USD 385 million to USD 395 million, with the midpoint unchanged.

Revenue

Ingevity Corporation (NYSE:NGVT) reported third quarter net sales of USD 305.1 million, compared with USD 333.1 million a year earlier and an estimate of USD 303.91 million. The company stated that sales fell 8%, mainly because the Road Markings product line was sold on April 15, 2026, and that sales excluding Road Markings rose 2%.

Performance Materials sales were USD 154.1 million against USD 155.0 million, as North American automotive Demand and higher non-auto filtration sales, driven by pricing, offset lower volumes in China and Europe. Pavement Technologies sales were USD 106.0 million against USD 139.9 million, a decline of 24% that the company tied to the Road Markings divestiture. Advanced Polymer Technologies sales were USD 45.0 million against USD 38.2 million, an increase of 18% attributed to higher pricing, including a Surcharge to offset input costs, and a mix shift toward derivative products.

Profit and Margins

Adjusted EPS was USD 1.63 against an estimate of USD 1.56 and USD 1.31 in the prior-year quarter. Net Income from continuing operations was USD 51.1 million, or USD 1.46 per diluted share, against USD 40.8 million, or USD 1.10. Total diluted EPS, including discontinued operations, was USD 1.41.

Adjusted EBITDA from continuing operations was USD 108.0 million, a decrease of USD 2.4 million, while the margin widened 230 basis points to 35.4%. Segment EBITDA was USD 83.4 million in Performance Materials at a 54.1% margin, USD 19.6 million in Pavement Technologies at 18.5% against 19.2%, and USD 11.7 million in Advanced Polymer Technologies at 26.0%. Chief executive Dave Li said softer demand and higher input and logistics costs pressured Pavement Technologies, and that the company is taking action there. He also described progress in filtration and said the timing of an announced agreement on the sale of Advanced Polymer Technologies may extend into early 2027.

Cash, Balance Sheet and the 2026 Outlook

Operating cash flow was USD 99.2 million and free cash flow was USD 85.5 million, with capital expenditures of about USD 14 million. Cash and cash equivalents were USD 85.4 million, and long-term Debt including finance Lease obligations was USD 989.1 million against USD 1,161.4 million at the end of 2025. Net Leverage stood at 2.5 times, the same as the second quarter and against 2.7 times a year earlier.

The company bought back about USD 39 million of shares in the quarter at a weighted average price of USD 71.45, bringing the year-to-date total to about USD 125 million, with about USD 172 million of authorization remaining. It intends to use free cash flow to keep leverage within its long-term target range of 2.0 to 2.5 times and to return capital to shareholders.

The 2026 outlook narrows adjusted EBITDA to USD 385 million to USD 395 million, keeping the prior midpoint. It also projects net sales of about USD 1.1 billion, diluted adjusted EPS of USD 5.25 to USD 5.45, and free cash flow of USD 220 million to USD 230 million, excluding the USD 113.2 million litigation settlement payment made in the second quarter.

Key Figures Side by Side

Adjusted EPS of USD 1.63 sits alongside GAAP diluted EPS from continuing operations of USD 1.46, and net sales of USD 305.1 million sit alongside free cash flow of USD 85.5 million. Net leverage stands at 2.5 times.

Management named continued cost pressure in Pavement Technologies, the ongoing sale process for Advanced Polymer Technologies, and filtration adoption among its stated priorities.