Company: NGVT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001653477-25-000108
Chunk: 61

Company: Ingevity Corp
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 net.

In general, the accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies in the Annual Consolidated Financial Statements included in our 2024 Annual Report.

35

Performance Materials

Q2 2025 Performance Summary

Performance Materials Net sales decreased two percent compared to the prior year quarter. Sales in North America was offset by declines in Europe and Asia, excluding China where sales were flat year over year. Europe’s decline was attributed to tariff related uncertainty and the decline in Asia, excluding China, was due to timing of customer orders which benefited Q2 last year. Segment EBITDA for Performance Materials decreased $5.1 million or six percent, and Segment EBITDA margin declined to 50.1 percent. Segment EBITDA declined due to lower Net sales, investments in innovation, and one-time employee compensation costs.

In millionsThree Months Ended June 30,Six Months Ended June 30,2025202420252024Total Performance Materials - Net sales$153.9 $157.2 $300.7 $302.3 Segment EBITDA$77.1 $82.2 $156.2 $160.2 

Net Sales Comparison of Three and Six Months Ended June 30, 2025 and June 30, 2024:Change vs. prior yearIn millionsPrior year Net salesVolumePrice/MixCurrency effectCurrent year Net salesThree months ended June 30, 2025 vs. 2024$157.2 (6.5)3.2 — $153.9 Six months ended June 30, 2025 vs. 2024$302.3 (5.7)4.1 — $300.7 

Three Months Ended June 30, 2025 vs. 2024

Segment net sales. The decrease of $3.3 million in 2025 was driven by a volume decline of $6.5 million (four percent), partially offset by favorable pricing and sales mix of $3.2 million (two percent).

Segment EBITDA. The decrease of $5.1 million in 2025 was driven by a volume decline of $4.0 million, increased SG&A and research and technical expenses of $3.1 million, increased foreign currency exchange and other charges of $1.7 million, LIFO charges of $0.2 million, and increased manufacturing costs of $0.2 million