11.04.22
Ingevity Corporation reported its financial results for the third quarter 2022.
Record net sales of $482 million in the third quarter rose 27.9% versus the prior year quarter, reflecting strong demand and increased prices which offset higher input costs. Third quarter net income was $75.4 million compared to a loss of $4.2 million the prior year quarter, which included an $85.0 million pre-tax litigation expense.
Third quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $138.2 million was a record, up 15.6% versus prior year with adjusted EBITDA margin of 28.7%. Third quarter operating cash flow was $100.1 million and free cash flow was $64 million.
“Our team delivered record sales and adjusted EBITDA in the third quarter, as we saw strong demand across all the businesses, and we maintained the price discipline necessary to address inflation. We generated $64.0 million of free cash flow, allowing us to continue returning cash to shareholders as we repurchased $49.3 million of shares during the quarter,” said John Fortson, president and CEO.
Commenting on the business segments, Fortson said, “In Performance Chemicals, all three businesses posted record sales, as demand was strong for our high-value, derivatized products that deliver the unique performance characteristics required by our customers. In Performance Materials, increased global auto production drove sales up 22.7% compared to the prior year.”
Sales in the Performance Chemicals segment were a record $337.1 million, up 30.3% from prior year. Third quarter segment EBITDA was a record $77 million, up 22% versus the prior year quarter.
Third quarter sales in Performance Materials were $144.9 million, up 22.7% compared to the prior year quarter. Segment EBITDA of $61.2 million was up 8.5% versus the prior year period.
“As we approach the end of the year, we expect to deliver strong full year performance and are therefore raising our 2022 guidance to sales between $1.65 billion and $1.70 billion, and adjusted EBITDA between $460 million and $475 million,” said Fortson.
Record net sales of $482 million in the third quarter rose 27.9% versus the prior year quarter, reflecting strong demand and increased prices which offset higher input costs. Third quarter net income was $75.4 million compared to a loss of $4.2 million the prior year quarter, which included an $85.0 million pre-tax litigation expense.
Third quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $138.2 million was a record, up 15.6% versus prior year with adjusted EBITDA margin of 28.7%. Third quarter operating cash flow was $100.1 million and free cash flow was $64 million.
“Our team delivered record sales and adjusted EBITDA in the third quarter, as we saw strong demand across all the businesses, and we maintained the price discipline necessary to address inflation. We generated $64.0 million of free cash flow, allowing us to continue returning cash to shareholders as we repurchased $49.3 million of shares during the quarter,” said John Fortson, president and CEO.
Commenting on the business segments, Fortson said, “In Performance Chemicals, all three businesses posted record sales, as demand was strong for our high-value, derivatized products that deliver the unique performance characteristics required by our customers. In Performance Materials, increased global auto production drove sales up 22.7% compared to the prior year.”
Sales in the Performance Chemicals segment were a record $337.1 million, up 30.3% from prior year. Third quarter segment EBITDA was a record $77 million, up 22% versus the prior year quarter.
Third quarter sales in Performance Materials were $144.9 million, up 22.7% compared to the prior year quarter. Segment EBITDA of $61.2 million was up 8.5% versus the prior year period.
“As we approach the end of the year, we expect to deliver strong full year performance and are therefore raising our 2022 guidance to sales between $1.65 billion and $1.70 billion, and adjusted EBITDA between $460 million and $475 million,” said Fortson.