Ingevity (NGVT) Up 18.1% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for Ingevity (NGVT). Shares have added about 18.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Ingevity due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Ingevity Corporation before we dive into how investors and analysts have reacted as of late.Ingevity’s Q2 Earnings Surpass Estimates, Revenues Decline Y/YIngevity recorded a second-quarter 2025 loss of $146.5 million or a loss of $4.02 per share. This compared favorably with a loss of $283.7 million or a loss of $7.81 per share in the year-ago quarter.Excluding one-time items, adjusted earnings in the quarter were $1.39 per share, up from $1.01 a year ago. The figure beat the Zacks Consensus Estimate of $1.02 per share.Revenues fell 6.5% year over year to $365.1 million in the quarter. This decline was due to lower sales in the Performance Chemicals segment.Segmental ReviewThe Performance Chemicals division generated revenues of $167.9 million in the reported quarter, down around 9.5% year over year. Road Technologies' product line sales of $119.5 million were down 7.4%. Industrial Specialties’ product line sales of $48.4 million fell 14.2%, owing to the impact of the segment's repositioning measures, which were aimed at exiting lower-margin end markets. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the segment rose 244% to $32 million as a result of the successful implementation of the repositioning plans and cost savings, as well as lower raw material costs.Revenues in the Performance Materials unit fell around 2.1% year over year to $153.9 million. This was a result of lower sales in Asia and Europe due to tariff uncertainty. North America witnessed higher sales. Segment EBITDA was $77.1 million, down 6.2% due to investments in innovation and a few one-time employee compensation costs.Sales in the Advanced Polymer Technologies segment were down 9.6% to $43.3 million. This downside was due to reduced customer demand, particularly in Europe. Segment EBITDA was $0.9 million, down 90.8%, due to the planned extended outage in the second quarter.FinancialsThe second-quarter operating cash flow was $79 million, with free cash flow of $66.8 million. There were no share repurchases during the quarter, leaving $353.4 million remaining under the current $500 million authorization. Net leverage improved to 3x from the previous quarter’s 3.3x.2025 Outlook RevisedIngevity’s focus will be on improving profitability and reducing leverage. With the current state of trade affairs in mind, Ingevity has raised the bottom end of its EBITDA guidance to incorporate the solid first-half results and improvement in North America auto production forecasts. Per the revised guidance, adjusted EBITDA has been updated to be between $390 million and $415 million compared with the previous expectation of $380-$415 million. Sales estimates are reaffirmed at between $1.25 billion and $1.40 billion. How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.VGM ScoresCurrently, Ingevity has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook Ingevity has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerIngevity belongs to the Zacks Chemical - Specialty industry. Another stock from the same industry, Element Solutions (ESI), has gained 7.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.Element Solutions reported revenues of $625.2 million in the last reported quarter, representing a year-over-year change of +2%. EPS of $0.37 for the same period compares with $0.36 a year ago.For the current quarter, Element Solutions is expected to post earnings of $0.39 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.Element Solutions has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ingevity Corporation (NGVT): Free Stock Analysis Report Element Solutions Inc. (ESI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks