Financial Analysis

"Commitments and Contingencies Legal Proceedings On July 19, 2018, we filed suit against BASF Corporation (""BASF"") in the United States District Court for the District of Delaware (the ""Delaware Proceeding"") alleging BASF infringed Ingevity's patent covering canister systems used in the control of automotive gasoline vapor emissions (U.S. Patent No. RE38,844) (the ""844 Patent""). On February 14, 2019, BASF asserted counterclaims against us in the Delaware Proceeding, alleging two claims for violations of U.S. antitrust law (one for exclusive dealing and the other for tying) as well as a claim for tortious interference with an alleged prospective business relationship between BASF and a BASF customer (the ""BASF Counterclaims""). The BASF Counterclaims relate to our enforcement of the 844 Patent and our entry into several supply agreements with customers of its fuel vapor canister honeycombs. The U.S. District Court dismissed our patent infringement claims on November 18, 2020, and the case proceeded to trial on the BASF Counterclaims in September 2021. On September 15, 2021, a jury in the Delaware Proceeding issued a verdict in favor of BASF on the BASF Counterclaims and awarded BASF damages of approximately $28.3 million, which trebled under U.S. antitrust law to approximately $85.0 million. On May 18, 2023, the court in the Delaware Proceeding entered judgment on the jury's verdict, which commenced the post-trial briefing stage. On February 13, 2024, the court in the D …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt, including Finance Lease Obligations Current and long-term debt including finance lease obligations consisted of the following: In millions, except percentages June 30, 2026 December 31, 2025 Revolving Credit Facility and other lines of credit (1)(2) $ 492.0 $ 517.0 3.88% Senior Notes due 2028 550.0 550.0 Finance lease obligations (3) 98.1 98.8 Accounts receivable securitization (4) 62.7 43.9 Other notes payable 1.9 Total debt including finance lease obligations 1,202.8 1,211.6 Less: debt issuance costs 2.6 3.1 Total debt including finance lease obligations, net of debt issuance costs 1,200.2 1,208.5 Less: debt maturing within one year (5) 144.0 47.1 Long-term debt including finance lease obligations $ 1,056.2 $ 1,161.4 _______________ (1) Letters of credit outstanding under the revolving credit facility were $11.1 million and $9.0 million and available funds under the facility were $246.9 million and $474.0 million at June 30, 2026 and December 31, 2025, respectively. (2) The weighted interest rate associated with our revolving credit facility, exclusive of any floating-to-fixed interest rate instrument, was 5.16 percent and 6.40 percent for the period ended June 30, 2026 and December 31, 2025, respectively. (3) As of June 30, 2026 and December 31, 2025, $80.0 million of the finance lease obligations upon maturity will be settled utilizing liquid assets that have been placed into a trust established strictly for this purpose. The trust is presented as Restricted invest …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our Net sales disaggregated by reportable segment. Three Months Ended June 30, Six Months Ended June 30, In millions 2026 2025 2026 2025 Performance Materials segment $ 160.6 $ 153.9 $ 316.0 $ 300.7 Pavement Technologies segment (1) 104.2 134.3 162.5 193.2 Advanced Polymer Technologies segment 49.3 43.3 93.6 85.5 Net sales $ 314.1 $ 331.5 $ 572.1 $ 579.4 _______________ (1) Includes Net sales from the divested road markings product line of $4.3 million and $12.9 million for the three and six months ended June 30, 2026 and $37.5 million and $47.0 million for the three and six months ended June 30, 2025. Refer to Note 16 for more information. The following table presents our Net sales disaggregated by geography, based on the delivery address of our customer. Three Months Ended June 30, Six Months Ended June 30, In millions 2026 2025 2026 2025 North America (1) $ 178.0 $ 201.1 $ 307.2 $ 329.3 Asia Pacific (1) 77.4 74.7 150.0 143.4 Europe, Middle East, and Africa 47.3 44.2 91.4 85.5 South America 11.4 11.5 23.5 21.2 Net sales $ 314.1 $ 331.5 $ 572.1 $ 579.4 _______________ (1) Countries with Net sales in excess of 10 percent of consolidated Net sales for the three and six months ended June 30, 2026, are the U.S., which totaled $156.8 million and $269.6 million, respectively, and China, which totaled $34.1 million and $67.2 million, respectively. Countries with Net sales in excess of 10 percent of consolidated Net sales for the three and six months end …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Fair Value Measurements Recurring Fair Value Measurements The following information is presented for assets and liabilities that are recorded on the condensed consolidated balance sheets at fair value measured on a recurring basis. There were no transfers of assets and liabilities that were recorded at fair value between the three-level fair value hierarchy during the periods reported. In millions Level 1 (1) Level 2 (2) Level 3 (3) Total June 30, 2026 Assets: Deferred compensation plan investments (4) $ 1.0 $ $ $ 1.0 Total assets $ 1.0 $ $ $ 1.0 Liabilities: Deferred compensation arrangement (4) $ 13.7 $ $ $ 13.7 Total liabilities $ 13.7 $ $ $ 13.7 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total December 31, 2025 Assets: Deferred compensation plan investments (4) $ 3.9 $ $ $ 3.9 Total assets $ 3.9 $ $ $ 3.9 Liabilities: Deferred compensation arrangement (4) $ 15.9 $ $ $ 15.9 Total liabilities $ 15.9 $ $ $ 15.9 _______________ (1) Quoted prices in active markets for identical assets. (2) Quoted prices for similar assets and liabilities in active markets. (3) Significant unobservable inputs. (4) Consists of a deferred compensation arrangement through which we hold various investment securities recognized on our condensed consolidated balance sheets. Both the asset and liability related to investment securities are recorded at fair value and are included within ""Other assets"" and ""Other liabilities"" on the condensed consolidated balance sheets, respectively. In addit …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets, net Goodwill Reporting Units In millions Performance Materials Pavement Technologies Advanced Polymer Technologies Total Balance as of December 31, 2025 (1) $ 4.3 $ $ $ 4.3 Balance as of June 30, 2026 (1) $ 4.3 $ $ $ 4.3 _______________ (1) Includes accumulated impairment losses of $306.6 million and $183.8 million related to our former Performance Chemicals reporting unit, now Pavement Technologies, and our APT reporting unit, respectively. Goodwill Impairment Charge - Advanced Polymer Technologies During the second quarter of 2025, the announcements and subsequent modifications of international tariffs escalated global trade tensions and contributed to increased consumer uncertainty, which negatively impacted parts of our businesses, particularly APT. As a result, we conducted an analysis of the APT reporting units goodwill, intangible assets, and long-lived assets. Based on the results of the quantitative analysis, we concluded that the carrying value of the APT reporting unit exceeded its fair value. As a result, we recorded a non-cash goodwill impairment charge of $183.8 million, representing all of the goodwill associated with the APT reporting unit. The charge is included within Goodwill impairment charge on the condensed consolidated statements of operations for the three and six months ended June 30, 2025. There were no events or circumstances indicating that goodwill might be impaired as of June 30, 2026. Other Intangible Assets …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Income Taxes The effective tax rates, including discrete items, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Effective tax rate (1) 21.5 % (3.5) % 21.9 % (13.4) % _______________ (1) The effective tax rates for the three and six months ended June 30, 2025, were impacted by the goodwill impairment charge within the APT reporting unit during the second quarter of 2025. Refer to Note 7 for more information. We determine our interim tax provision using an Estimated Annual Effective Tax Rate methodology (""EAETR""). The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision. The determination of the EAETR is based upon a number of estimates, including the estimated annual pre-tax ordinary income in each tax jurisdiction in which we operate. As our projections of ordinary income change throughout the year, the EAETR will change period-to-period. The tax effects of discrete items are recognized in the tax provision in the period they occur. Depending on various factors, such as the item's significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter may materially impact the reported effective tax rate. As a global enterprise, our tax expense may be impacted by changes in tax rates or laws, the finalization of tax audits and …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"The Financial Accounting Standards Board (""FASB"") Accounting Standards Codification (""ASC"" or ""Codification"") is the sole source of authoritative GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standards Update (""ASU"") to communicate changes to the Codification. We consider the applicability and impact of all ASUs. Recently issued ASUs that are not listed within this Form 10-Q have been assessed and determined to be either not applicable or are not expected to have a material impact on the Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, ""Disaggregation of Income Statement Expenses,"" which is intended to enhance disclosures regarding significant expenses. The purpose of the amendment is to provide readers of the financial statements with information to better understand an entity's overall performance, assess potential future cash flows, and compare an entity's performance over time and with that of other entities. The guidance is effective beginning with our 2027 fiscal year Form 10-K. We are currently evaluating the potential impact of adopting this new guidance on our Consolidated Financial Statements and related disclosures. In May 2026, the FASB issued ASU 2026-02, ""Environmental Credits and Environmental Credit Obligations,"" which is intended to improve the financial accounting for and disclosure of environm …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Restructuring and Other (Income) Charges, net Detail on the restructuring charges and other (income) charges, net, is provided below. Three Months Ended June 30, Six Months Ended June 30, In millions 2026 2025 2026 2025 Restructuring charges $ 1.7 $ 7.2 $ 2.2 $ 9.1 Other (income) charges, net Total Restructuring and other (income) charges, net $ 1.7 $ 7.2 $ 2.2 $ 9.1 Restructuring Charges In millions Severance and other employee-related costs Other charges (income) (1) Asset disposal charges Total Performance Chemicals repositioning (2) $ $ 0.4 $ $ 0.4 Other 0.8 0.5 1.3 Three Months Ended June 30, 2026 $ 0.8 $ 0.9 $ $ 1.7 Performance Chemicals repositioning (2) $ $ 0.7 $ $ 0.7 Other 1.7 0.5 4.3 6.5 Three Months Ended June 30, 2025 $ 1.7 $ 1.2 $ 4.3 $ 7.2 In millions Severance and other employee-related costs Other charges (income) (1) Asset disposal charges Total Performance Chemicals repositioning (2) $ $ 0.8 $ 0.4 $ 1.2 Other 0.5 0.5 1.0 Six Months Ended June 30, 2026 $ 0.5 $ 1.3 $ 0.4 $ 2.2 Performance Chemicals repositioning (2) $ $ 1.4 $ $ 1.4 Other 2.5 0.8 4.4 7.7 Six Months Ended June 30, 2025 $ 2.5 $ 2.2 $ 4.4 $ 9.1 _______________ (1) Primarily represents costs associated with plant and equipment decommissioning charges and other miscellaneous exit costs. (2) The Performance Chemicals repositioning began in 2023 and resulted in the completion of the sale of the industrial specialties product line on January 1, 2026. Refer to Note 16 for more information. Restructuri …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"Net Sales Disaggregation of Net Sales The following table presents our Net sales disaggregated by reportable segment. Three Months Ended June 30, Six Months Ended June 30, In millions 2026 2025 2026 2025 Performance Materials segment $ 160.6 $ 153.9 $ 316.0 $ 300.7 Pavement Technologies segment (1) 104.2 134.3 162.5 193.2 Advanced Polymer Technologies segment 49.3 43.3 93.6 85.5 Net sales $ 314.1 $ 331.5 $ 572.1 $ 579.4 _______________ (1) Includes Net sales from the divested road markings product line of $4.3 million and $12.9 million for the three and six months ended June 30, 2026 and $37.5 million and $47.0 million for the three and six months ended June 30, 2025. Refer to Note 16 for more information. The following table presents our Net sales disaggregated by geography, based on the delivery address of our customer. Three Months Ended June 30, Six Months Ended June 30, In millions 2026 2025 2026 2025 North America (1) $ 178.0 $ 201.1 $ 307.2 $ 329.3 Asia Pacific (1) 77.4 74.7 150.0 143.4 Europe, Middle East, and Africa 47.3 44.2 91.4 85.5 South America 11.4 11.5 23.5 21.2 Net sales $ 314.1 $ 331.5 $ 572.1 $ 579.4 _______________ (1) Countries with Net sales in excess of 10 percent of consolidated Net sales for the three and six months ended June 30, 2026, are the U.S., which totaled $156.8 million and $269.6 million, respectively, and China, which totaled $34.1 million and $67.2 million, respectively. Countries with Net sales in excess of 10 percent of consolidated Net …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Information Ingevity's reportable segments are (i) Performance Materials (""PM""), (ii) Pavement Technologies (""PT""), and (iii) Advanced Polymer Technologies (""APT""). Our reportable segments were determined based upon the nature of the products produced, the nature of the production process, the type of customer for the products, the similarity of economic characteristics, and the manner in which management reviews results. Segment EBITDA is the primary measure used by the chief operating decision maker (""CODM""), the CEO and President of Ingevity, to evaluate the performance of and allocate resources among our reportable segments. The CODM utilizes Segment EBITDA for each reportable segment in the annual budgeting and forecasting process. Segment EBITDA enables the CODM to compare each business and make informed and consistent resource allocation decisions. Industrial Specialties Divestiture The historical industrial specialties product line that is classified as discontinued operations includes only direct operating expenses which the company is no longer incurring. Indirect costs, such as those related to corporate and segment shared service functions previously allocated to the industrial specialties product line, do not meet the criteria for discontinued operations and remain reported within continuing operations in Indirect costs allocated to Divestiture. Refer to Note 1 for more information. Corporate and other Effective in the fourth quarter of 2025, Cor …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Equity Common Stock Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Treasury stock Total Equity In millions, shares in thousands Shares Amount Balance at December 31, 2025 43,892 $ 0.4 $ 195.7 $ 404.9 $ 0.5 $ (571.8) $ 29.7 Net income (loss) 59.8 59.8 Other comprehensive income (loss) (2.1) (2.1) Common stock issued 171 Exercise of stock options, net 59 3.3 3.3 Tax payments related to vested restricted stock units (4.3) (4.3) Share repurchase program (52.3) (52.3) Share-based compensation plans 4.4 0.4 4.8 Balance at March 31, 2026 44,122 $ 0.4 $ 203.4 $ 464.7 $ (1.6) $ (628.0) $ 38.9 Net income (loss) $ $ $ 35.3 $ $ $ 35.3 Other comprehensive income (loss) 2.6 2.6 Common stock issued 67 Exercise of stock options, net 28 1.8 1.8 Tax payments related to vested restricted stock units (1.3) (1.3) Share repurchase program (35.1) (35.1) Share-based compensation plans 3.9 0.8 4.7 Balance at June 30, 2026 44,217 $ 0.4 $ 209.1 $ 500.0 $ 1.0 $ (663.6) $ 46.9 Common Stock Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Treasury stock Total Equity In millions, shares in thousands Shares Amount Balance at December 31, 2024 43,630 $ 0.4 $ 176.8 $ 572.0 $ (41.4) $ (512.6) $ 195.2 Net income (loss) 20.5 20.5 Other comprehensive income (loss) 17.4 17.4 Common stock issued 155 Tax payments related to vested restricted stock units (2.6) (2.6) Share-based compensation plans 4.1 4.1 Balance at March 31, 2025 4 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing