Company: NGVT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001653477-25-000015
Chunk: 937

Company: Ingevity Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 6
Chunk 937
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 Materials delivered record Net sales, Segment EBITDA, and Segment EBITDA margins. Sales growth of four percent was driven by higher volume and improved price and mix. There are two components to mix that are key to understanding this reportable segment. The segment benefits from larger vehicles, such as trucks and sport utility vehicles, as well as more hybrids and internal combustion engine vehicles versus all electric vehicles, as these vehicles contain more of our activated carbon content. Regional mix is also important as North America, which is nearly 50 percent of Performance Material sales, is our most profitable region due to the typically larger size of vehicles requiring more content, and this region also has the highest emissions control standards in the world requiring more advanced forms of our activated carbon product. Asia Pacific is also an important region, representing about 40 percent of total Performance Materials net sales. Within Asia Pacific, about half of our net sales are in China and the remaining are made up primarily of South Korea and Japan. All of these countries have strict emissions control standards or strong export markets where our activated carbon plays an important role in meeting regulations. Europe is our least impactful region due to the regulatory environment favoring electric vehicles, and also because European emissions standards lag behind North America and Asia Pacific. Segment EBITDA for Performance Materials increased 11 percent to $319.1 million, with Segment EBITDA margins for the year of 52.3 percent. This record result was primarily driven by operational improvements that enabled our production operations to run more efficiently which reduced our input costs by using less natural gas and also improved yields.  

In millionsYears Ended December 31,202420232022Total Performance Materials - Net sales$609.6 $586.0 $548.5 Segment EBITDA$319.1 $286.6 $252.2 

Net Sales Comparison of Years Ended December 31, 2024, 2023, and 2022

Change vs. prior yearIn millions Prior year Net salesVolumePrice/MixCurrency effectCurrent year Net salesYear Ended December 31, 2024 vs 2023$586.0 11.2 17.3 (4.9)$609.6 Year Ended December 31, 2023 vs 2022$548.5 17.3 32.2 (12.0)$586.0 

Year Ended December 31, 2024 vs. 2023

Segment net sales. The increase of $