Investing.com -- Shares of Ingevity Corporation (NYSE:NGVT) climbed 9.7% as the company announced its intention to explore strategic alternatives for its Performance Chemicals Industrial Specialties product line and North Charleston CTO refinery. This move aligns with Ingevity’s efforts to fortify its Performance Chemicals segment and enhance overall earnings and cash flow.
Ingevity’s interim president and CEO, Luis Fernandez-Moreno, highlighted the company’s commitment to shareholder value, noting the improved segment EBITDA margins in the second half of 2024. The strategic review aims to concentrate on higher growth and higher margin opportunities, with the company continuing to support its Industrial Specialties customers throughout the process.
The company’s preliminary financial results for fiscal year 2024 have been positive, with expected net sales of approximately $1.40 billion, matching the consensus forecast. Adjusted EBITDA is anticipated to be around $360 million, and free cash flow is projected to exceed $40 million. These results signify the success of the company’s restructuring efforts, particularly within the Performance Chemicals segment.
Fernandez-Moreno expressed confidence in achieving an Adjusted EBITDA slightly above $400 million in 2025, driven by the ongoing positive impact of the segment’s repositioning and the consistent strong performance of the Performance Materials segment. While the strategic review’s outcome is uncertain, Ingevity plans to communicate its direction before the year’s end, with no further disclosures until deemed appropriate.
Ingevity will hold a webcast on Wednesday, February 19, at 10:00 a.m. (Eastern) to discuss the fourth-quarter and full-year 2024 financial results and provide guidance for 2025. The details for accessing the webcast will be available on the investors section of Ingevity’s website.
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