Company: NGVT
Filing Date: 2025-03-19
Form Type: PRER14A
Source: 0001308179-25-000166
Chunk: 32

Company: Ingevity Corp
Filing Date: 2025-03-19
Form: PRER14A
Chunk 32
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 value creation for Ingevity stockholders. We advanced key priorities to accelerate execution and focus of business strategies, reduce leverage and evaluate our business portfolio to determine the right composition for our company, and these actions are already delivering results. We delivered adjusted EBITDA* of $363 million, exceeding analyst estimates, and improved EBITDA margins* by 350 basis points to 25.8%. We generated $51 million of free cash flow* despite approximately $200 million of cash outflows related to our repositioning actions, enabling us to reduce debt and improve our leverage ratio in the second half of the year. Our Performance Materials segment delivered a record year in both sales and segment EBITDA delivering the sixth sequential quarter of segment EBITDA margins over 50%. Revenue increased 4% to $610 million, and segment EBITDA of $319 million increased 11%, with segment EBITDA margin of 52.3%, an increase of 340 basis points. The segment continues to benefit from the increased demand for more fuel-efficient vehicles that require the advanced solutions provided by our activated carbon, and our collaboration with silicon-anode producer, Nexeon, progressed, advancing plans to supply commercial-scale volume of our activated carbon product for lithium-ion batteries. Our Advanced Polymer Technologies segment increased volumes despite continued weak industrial demand, but adverse mix and selective price concessions implemented to maintain share resulted in lower revenue. We believe the actions we've taken with respect to pricing strategy and mix upgrade will produce margins of around 20% in 2025. Strategic repositioning of Performance Chemicals accelerated throughout 2024, and included exiting lower-margin, cyclical end markets and reducing our physical footprint to optimize costs. This segment is now focused on higher-margin end markets and will continue to benefit from an improved raw material cost structure. The benefits of our repositioning actions translated to improved segment EBITDA margins in the second half of 2024. Additionally, we announced plans to explore strategic alternatives for our Industrial Specialties product line and North Charleston CTO refinery as part of our ongoing portfolio review and expect to finish that assessment by the end of 2025. For additional information on Ingevity’s performance in 2024, see the “Proxy Summary,” above. Fiscal Year 2024 Compensation Highlights The following summarizes the key compensation decisions for our NEOs for fiscal 2024: Base Salary: In July 2024, the T&C Committee approved an increase to Mr. Fisher’s base salary to $400,