Q2 2024 Ingevity Corp Earnings Call Transcript
Key Points
- Performance Materials delivered a fourth straight quarter of 50%-plus EBITDA margins.
- Advanced Polymer Technologies saw a third straight quarter of volume growth.
- Operational efficiencies in Performance Materials led to lower energy usage and cost savings.
- Termination of the CTO supply contract is expected to improve profitability in the Performance Chemicals segment.
- Consolidated EBITDA margins improved by 80 basis points to 26%.
- Second-quarter sales were down 19% due to repositioning actions in Performance Chemicals and adverse weather conditions.
- Performance Chemicals segment experienced a 35% decline in sales and a 79% drop in EBITDA.
- A non-cash goodwill impairment charge of $349 million was recorded for the Performance Chemicals segment.
- Free cash flow guidance for the full year was revised from $75 million to slightly positive due to the $100 million CTO contract termination fee.
- Industrial market recovery remains weaker than anticipated, impacting revenue growth.
Good morning all and thank you all for attending the Ingevity second-quarter 2024 earnings call and webcast. My name is Brika, and I will be your moderator today. (Operator instructions)
I would now like to pass the conference over to your host, John Nypaver from Ingevity to begin. So you may proceed, John.
Thank you, Brika. Good morning and welcome to Ingevity's second-quarter 2024 earnings call. Earlier this morning, we posted a presentation on our investor site that you can use to follow today's discussion. It can be found on ir.ingevity.com under Events and Presentations. Also throughout this call, we may refer to non-GAAP financial measures, which are intended to supplement, not substitute for comparable GAAP measures. Definitions of these non-GAAP financial measures and reconciliations to comparable GAAP measures are included in our earnings release and are also in our most recent Form 10-K.
We may also make forward-looking statements regarding future events
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