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Ingevity (NGVT) Down 0.6% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Ingevity (NGVT - Free Report) . Shares have lost about 0.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ingevity due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Ingevity’sQ2 Earnings Beat on Pricing, Mix and Higher Volumes
Ingevity reported second-quarter 2026 adjusted earnings of $1.74 per share, up 42.6% year over year, beating the Zacks Consensus Estimate of $1.31 by 32.8%.
Revenues declined 5.2% to $314.1 million but surpassed the consensus mark of $299.4 million by 4.9%. Excluding the divested Road Markings business, sales rose 5%. Higher pricing, favorable product mix and increased volumes lifted adjusted EBITDA margin to 36.6%.
Segmental Review
Performance Materials generated net sales of $160.6 million, up 4.4% from $153.9 million in the prior-year quarter. The segment’s EBITDA increased 6.3% year over year to $86.1 million. Higher volumes, improved price and mix, and stronger plant utilization more than offset increased selling, general and administrative and other expenses.
The company’s Performance Chemicals operations are now represented by the Pavement Technologies segment following the Road Markings divestiture. Pavement Technologies’ net sales fell 22.4% year over year to $104.2 million, primarily because the Road Markings product line was sold on April 15, 2026. Segment EBITDA declined to $25.4 million from $28.8 million because the prior-year quarter included $6 million of Road Markings EBITDA. Improved pricing and volumes in the remaining business partly offset the lost contribution.
Advanced Polymer Technologies posted net sales of $49.3 million, up 13.9% from $43.3 million. Segment EBITDA jumped to $11.2 million from $2 million. Improved product mix and higher plant utilization supported the increase, as the year-ago period included extended downtime related to new boiler installations.
Financials
Net cash used in operating activities was $13.8 million in the second quarter. Free cash flow totaled $89.1 million. Ingevity repurchased approximately $35 million of common stock during the quarter at a weighted average price of $70.94 per share. Roughly $211 million remained available under the company’s existing share-repurchase authorization at the end of the period. Net leverage improved to 2.5 times from 3 times in the prior-year quarter and also declined from the first quarter of 2026. Cash and cash equivalents stood at $97.4 million as of June 30, 2026.
Outlook
Ingevity raised its full-year 2026 adjusted earnings guidance to $5-$5.45 per share from the previous projection of $4.7-$5.2. The company also increased its adjusted EBITDA forecast to $380-$400 million from $370-$395 million. The company continues to expect full-year net sales of $1.05-$1.15 billion. Free cash flow is now projected at $220-$245 million, excluding the $113.2 million litigation settlement payment, compared with the prior outlook of $215-$245 million. Ingevity intends to use its projected cash generation to reduce leverage to its long-term target range of 2-2.5 times and return capital to shareholders.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Ingevity has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Ingevity has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Ingevity belongs to the Zacks Chemical - Specialty industry. Another stock from the same industry, Element Solutions (ESI - Free Report) , has gained 2.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Element Solutions reported revenues of $977.9 million in the last reported quarter, representing a year-over-year change of +56.4%. EPS of $0.47 for the same period compares with $0.37 a year ago.
For the current quarter, Element Solutions is expected to post earnings of $0.48 per share, indicating a change of +17.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Element Solutions. Also, the stock has a VGM Score of D.
View the Zacks #1 Rank List
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Ingevity (NGVT) Down 0.6% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Ingevity (NGVT - Free Report) . Shares have lost about 0.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ingevity due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Ingevity’sQ2 Earnings Beat on Pricing, Mix and Higher Volumes
Ingevity reported second-quarter 2026 adjusted earnings of $1.74 per share, up 42.6% year over year, beating the Zacks Consensus Estimate of $1.31 by 32.8%.
Revenues declined 5.2% to $314.1 million but surpassed the consensus mark of $299.4 million by 4.9%. Excluding the divested Road Markings business, sales rose 5%. Higher pricing, favorable product mix and increased volumes lifted adjusted EBITDA margin to 36.6%.
Segmental Review
Performance Materials generated net sales of $160.6 million, up 4.4% from $153.9 million in the prior-year quarter. The segment’s EBITDA increased 6.3% year over year to $86.1 million. Higher volumes, improved price and mix, and stronger plant utilization more than offset increased selling, general and administrative and other expenses.
The company’s Performance Chemicals operations are now represented by the Pavement Technologies segment following the Road Markings divestiture. Pavement Technologies’ net sales fell 22.4% year over year to $104.2 million, primarily because the Road Markings product line was sold on April 15, 2026. Segment EBITDA declined to $25.4 million from $28.8 million because the prior-year quarter included $6 million of Road Markings EBITDA. Improved pricing and volumes in the remaining business partly offset the lost contribution.
Advanced Polymer Technologies posted net sales of $49.3 million, up 13.9% from $43.3 million. Segment EBITDA jumped to $11.2 million from $2 million. Improved product mix and higher plant utilization supported the increase, as the year-ago period included extended downtime related to new boiler installations.
Financials
Net cash used in operating activities was $13.8 million in the second quarter. Free cash flow totaled $89.1 million. Ingevity repurchased approximately $35 million of common stock during the quarter at a weighted average price of $70.94 per share. Roughly $211 million remained available under the company’s existing share-repurchase authorization at the end of the period. Net leverage improved to 2.5 times from 3 times in the prior-year quarter and also declined from the first quarter of 2026. Cash and cash equivalents stood at $97.4 million as of June 30, 2026.
Outlook
Ingevity raised its full-year 2026 adjusted earnings guidance to $5-$5.45 per share from the previous projection of $4.7-$5.2. The company also increased its adjusted EBITDA forecast to $380-$400 million from $370-$395 million. The company continues to expect full-year net sales of $1.05-$1.15 billion. Free cash flow is now projected at $220-$245 million, excluding the $113.2 million litigation settlement payment, compared with the prior outlook of $215-$245 million. Ingevity intends to use its projected cash generation to reduce leverage to its long-term target range of 2-2.5 times and return capital to shareholders.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Ingevity has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Ingevity has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Ingevity belongs to the Zacks Chemical - Specialty industry. Another stock from the same industry, Element Solutions (ESI - Free Report) , has gained 2.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Element Solutions reported revenues of $977.9 million in the last reported quarter, representing a year-over-year change of +56.4%. EPS of $0.47 for the same period compares with $0.37 a year ago.
For the current quarter, Element Solutions is expected to post earnings of $0.48 per share, indicating a change of +17.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Element Solutions. Also, the stock has a VGM Score of D.