Ingevity Reports 1Q 2022 Financial Results

Ingevity Corporation reported its financial results for the first quarter 2022.

Record net sales of $382.8 million in the first quarter rose 19.5% versus the prior year quarter, as price increases were implemented across the company that were enabled by strong end-market demand and which helped offset inflationary cost pressures. First quarter net income of $60.8 million increased 24.8% compared to the prior year quarter.

Record first quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $119 million was up 12.9% year over year with adjusted EBITDA margin of 31.1%. First quarter operating cash flow was $24.3 million and free cash flow was negative $3.3 million, reflecting working capital increases driven by the strong sales.

“We continue to see strong end-market demand across the company which allowed us to increase prices,” said John Fortson, president and CEO. “In Performance Chemicals, this was particularly true in our Industrial Specialties and Engineered Polymers businesses. In addition, our Performance Chemicals’ Pavement Technologies business achieved record first quarter sales due to strong volume growth. We also showed excellent results throughout Performance Materials.”

Ingevity raised the top ends of its 2022 guidance ranges to sales between $1.525 billion to $1.65 billion and adjusted EBITDA between $430 million to $470 million.

“One quarter in, we see continued demand allowing us to capture value and increase prices to offset rising costs. However, the global environment remains volatile and uncertain,” said Fortson. “We’ve demonstrated our ability to respond quickly to these challenges and are taking the actions necessary to continue to drive growth and profitability, including our continued focus on operational excellence. At the same time, we are driving forward with our strategic initiatives to position the company to thrive in the long term.”