Ingevity Q3 sales fall on Road Markings divestiture
Overview
US specialty materials firm's Q3 sales fell 8% yr/yr, mainly due to Road Markings divestiture
Q3 net income and adjusted EPS rose from prior year
Company repurchased $39 mln in shares during Q3
Outlook
Ingevity narrows 2026 adjusted EBITDA outlook to $385 mln–$395 mln, maintaining midpoint
Company expects 2026 net sales of about $1.1 bln and diluted adjusted EPS of $5.25–$5.45
Free cash flow for 2026 seen at $220 mln–$230 mln, excluding litigation settlement payment
Result Drivers
ROAD MARKINGS DIVESTITURE - Co said sales fell 8% yr/yr primarily due to the April 2026 sale of the Road Markings product line
PERFORMANCE MATERIALS DEMAND - Resilient North American demand for Performance Materials, supported by hybrid vehicle trends and higher filtration sales, offset lower volumes in China and Europe
PAVEMENT TECHNOLOGIES PRESSURE - Softer demand and higher input and logistics costs weighed on Pavement Technologies segment results
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Beat* | $305.10 mln | $304.60 mln (2 Analysts) |
Q3 EPS from Continuing Operations | $1.46 | ||
Q3 Adjusted EPS | $1.63 | ||
Q3 Net Income from Continuing Operations | $51.1 mln | ||
Q3 Gross Profit | $132.80 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the diversified chemicals peer group is "buy"
Wall Street's median 12-month price target for Ingevity Corporation is $92.00, about 24.9% above its November 3 closing price of $73.63
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)