NGVT Q1 Earnings Top Estimates on Pricing and FX Tailwinds
Ingevity Corporation NGVT posted first-quarter 2026 adjusted earnings of $1.15 per share, up 13.9% year over year and ahead of the Zacks Consensus Estimate of 84 cents by 36.9%.
Revenues rose 4.1% year over year to $258 million, topping the consensus mark of $249.2 million by 3.6%.
NGVT’s top-line improvement was driven primarily by pricing actions in Performance Materials and the Pavement Technologies businesses, with foreign exchange also contributing favorably. These benefits were partly offset by weaker operating performance in the Road Markings business and lower asset utilization in Advanced Polymer Technologies.
Profitability stayed resilient as adjusted EBITDA held essentially flat year over year and adjusted EBITDA margin came in at 35.5%.
Ingevity Corporation Price, Consensus and EPS Surprise
Ingevity Corporation price-consensus-eps-surprise-chart | Ingevity Corporation Quote
NGVT's Segmental Review
Performance Materials delivered a solid quarter, with sales rising 5.8% year over year to $155.4 million. Segment EBITDA increased 10.2% to $92 million, aided by improved price and mix, higher volumes and higher plant utilization tied to an inventory build ahead of planned second-quarter outages.
Performance Chemicals’ sales were essentially flat at $58.3 million, but results were mixed within the segment. Pavement Technologies sales edged up 0.6% to $49.7 million, while Road Markings sales fell 9.5% to $8.6 million due to competitive pressure that hurt volumes. Segment EBITDA dropped sharply to $0.6 million from $5.8 million a year ago, reflecting lower plant utilization in Road Markings.
Advanced Polymer Technologies’ sales increased 5% to $44.3 million as higher volumes and favorable foreign exchange more than offset a decline in price tied to an unfavorable mix. Segment EBITDA fell to $7.6 million from $13.6 million, primarily due to lower plant utilization, as the year-ago quarter benefited from an inventory build ahead of a planned outage in second-quarter 2025.
NGVT's Financials
Operating cash flow was negative $2 million in the quarter, leading to negative free cash flow of $12.3 million. Share repurchases totaled $52 million during the quarter, with approximately $246 million remaining under the company’s current authorization. Net leverage held steady at 2.6x compared with the fourth quarter of 2025 and improved from 3.3x a year ago.
NGVT's 2026 Outlook
NGVT reaffirmed its full-year 2026 guidance while updating key ranges to reflect the Road Markings divestiture. The company expects net sales of $1.05-$1.15 billion and adjusted EBITDA of $370-$395 million for 2026.
Adjusted earnings are projected at $4.70-$5.20 per share. Free cash flow is expected to be $215-$245 million, excluding $113.2 million in pre-tax litigation settlement payments to BASF, while capital expenditures are still anticipated at $40-$60 million.
NGVT Stock’s Price Performance
Shares of Ingevity have gained 72.2% in a year compared with the industry’s 3.8% rise.
Image Source: Zacks Investment Research
NGVT’s Rank & Key Picks
NGVT currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Idaho Strategic Resources, Inc. IDR, NioCorp Developments Ltd. NB and Hawkins, Inc. HWKN.
Idaho is expected to report first-quarter 2026 results on May 14. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share, indicating 258.33% year-over-year growth. IDR sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NioCorp is expected to report third-quarter fiscal 2026 results on May 14. The consensus estimate for NB’s loss per share is pegged at 2 cents, indicating 83.33% year-over-year growth. NB presently flaunts a Zacks Rank #1.
Hawkins is scheduled to report fiscal fourth-quarter 2026 results on May 13. The Zacks Consensus Estimate for HWKN’s first-quarter earnings per share is pegged at 77 cents. HWKN carries a Zacks Rank #2 (Buy) at present.
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