Shares of Ingevity Corporation Rise 9.7% on News of Strategic Alternatives Review
Ingevity Corporation announced its intention to explore strategic alternatives for its Performance Industrial Specialties product line and North Charleston CTO refinery. The move aims to strengthen its Performance Chemicals segment and enhance overall earnings and cash flow.
The company’s interim president and CEO, Luis Fernandez-Moreno, emphasized the company’s commitment to shareholder value, highlighting improved segment EBITDA margins in the second half of 2024. The strategic review will focus on higher growth and higher margin opportunities, with continued support for Industrial Specialties customers.
Ingevity reported preliminary financial results for fiscal year 2024, with net sales expected to reach approximately $1.40 billion, matching consensus forecasts. Adjusted EBITDA is anticipated to be around $360 million, with free cash flow projected to exceed $40 million.
The company is confident in achieving Adjusted EBITDA of around $400 million in 2025, driven by the ongoing impact of segment repositioning and strong Performance Materials segment performance.
Ingevity will host a webcast on February 19 to discuss its fourth-quarter and full-year 2024 financial results and provide guidance for 2025.