Ingevity CorpNGVT
Ingevity Corp Segments Disclosure
Segment Information
Ingevity's reportable segments are (i) Performance Materials ("PM"), (ii) Performance Chemicals ("PC"), 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 will no longer incur upon the close of the Divestiture. 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. See Note 1 for more information.
Corporate and other
Effective in the fourth quarter of 2025, Corporate and other costs have been excluded from segment EBITDA. These costs are recorded within "Selling, general, and administrative expenses" on our Consolidated Statements of Operations and are associated with corporate administrative functions (e.g., executive office, corporate finance, legal, human resources) and other compliance costs to operate as a NYSE listed entity. Additionally, these costs are managed at a corporate level and not directly attributable to our reportable segments. Reporting these costs separately will provide greater transparency into our segment results and cost structure.We have recast the data below to reflect the changes in our reportable segments to conform to the current year presentation.
| Years Ended December 31, | |||||||||||||||||
| In millions | 2025 | 2024 | 2023 | ||||||||||||||
Segment EBITDA (1)(2) | |||||||||||||||||
| Performance Materials | $ | 326.3 | $ | 333.2 | $ | 303.1 | |||||||||||
| Performance Chemicals | 60.3 | 53.7 | 71.1 | ||||||||||||||
| Advanced Polymer Technologies | 32.1 | 39.0 | 49.0 | ||||||||||||||
Total Segment EBITDA (1)(2) | $ | 418.7 | $ | 425.9 | $ | 423.2 | |||||||||||
| Interest expense | (78.3) | (97.8) | (93.3) | ||||||||||||||
| Interest income | 5.2 | 7.7 | 6.3 | ||||||||||||||
| (Provision) benefit for income taxes on continuing operations | (8.2) | 19.1 | (24.2) | ||||||||||||||
| Depreciation and amortization | (105.2) | (99.6) | (97.4) | ||||||||||||||
Restructuring and other income (charges), net (3) | (12.8) | (18.1) | (53.4) | ||||||||||||||
Goodwill impairment charge (4) | (183.8) | (306.6) | — | ||||||||||||||
Acquisition and other-related income (costs), net (5) | — | (0.3) | (4.5) | ||||||||||||||
Gain (loss) on sale of strategic investment (6) | (19.6) | (2.1) | 19.3 | ||||||||||||||
Long lived asset impairment charge (7) | (109.3) | — | — | ||||||||||||||
Proxy contest charges (8) | (8.2) | — | — | ||||||||||||||
Portfolio realignment costs (9) | (3.1) | — | — | ||||||||||||||
Pension, postretirement settlement and curtailment income (charges), net (10) | — | (0.2) | — | ||||||||||||||
Indirect costs allocated to Divestiture (11) | (14.5) | (22.1) | (37.9) | ||||||||||||||
Corporate and other (12) | (31.2) | (27.3) | (32.3) | ||||||||||||||
| Net income (loss) from continuing operations | $ | (150.3) | $ | (121.4) | $ | 105.8 | |||||||||||
_______________
(1) Segment EBITDA is defined as segment net sales less segment operating expenses (segment operating expenses consist of costs of sales, selling, general and administrative expenses, research and technical expenses, other (income) expense, net, excluding depreciation and amortization). We have excluded the following items from segment EBITDA: interest expense associated with corporate debt facilities, interest income, income taxes, depreciation, amortization, restructuring and other income (charges), net, goodwill impairment charges, long lived asset impairment charge, acquisition and other-related income (costs), gain (loss) on strategic investments, proxy contest charges, portfolio realignment costs, pension and postretirement settlement and curtailment income (charges), net, indirect costs allocated to Divestiture, and Corporate and other costs.
(2) Segment expenses included within the primary measure used by our CODM are included within the below table.
| Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| In millions, except per share data | PM | PC | APT | PM | PC | APT | PM | PC | APT | ||||||||||||||||||||||||||||||||||||||||||||
Net sales (1) | $ | 606.9 | $ | 400.5 | $ | 160.2 | $ | 609.6 | $ | 401.9 | $ | 188.6 | $ | 586.0 | $ | 425.5 | $ | 204.0 | |||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales (2) | 235.7 | 289.7 | 108.1 | 233.9 | 300.2 | 129.9 | 254.2 | 309.5 | 135.2 | ||||||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative expenses (2) (3) (5) | 48.7 | 51.3 | 21.0 | 42.7 | 44.2 | 18.5 | 29.6 | 44.8 | 17.6 | ||||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net (2) (4) | 3.8 | 0.8 | 1.0 | 0.2 | (3.8) | (1.2) | 0.9 | (0.1) | (2.2) | ||||||||||||||||||||||||||||||||||||||||||||
| Segment EBITDA | $ | 326.3 | $ | 60.3 | $ | 32.1 | $ | 333.2 | $ | 53.7 | $ | 39.0 | $ | 303.1 | $ | 71.1 | $ | 49.0 | |||||||||||||||||||||||||||||||||||
| _______________ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (1) Relates to external customers only. Refer to Note 4 for a reconciliation to consolidated Net sales. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (2) Excludes Depreciation and amortization. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (3) Includes Research and technical expenses. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (4) We have excluded the following items from Other (income) expense, net: gain (loss) on strategic investments, proxy contest charges, portfolio realignment costs, depreciation, and amortization. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (5) Excludes Corporate and other costs. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) We regularly perform strategic reviews and assess the return on our operations, which sometimes results in a plan to restructure the business. These costs are excluded from our reportable segment results. The table below provides an allocation of Restructuring and other income (charges), net between our three reportable segments to provide investors, potential investors, securities analysts and others with the information, should they choose, to apply such (income) charges to each respective reportable segment for which the charges relate.
| Years Ended December 31, | |||||||||||||||||
| In millions | 2025 | 2024 | 2023 | ||||||||||||||
| Performance Materials | $ | 0.1 | $ | 0.9 | $ | 9.0 | |||||||||||
| Performance Chemicals | 1.5 | 10.2 | 9.9 | ||||||||||||||
Advanced Polymer Technologies (1) | 9.2 | 0.2 | 16.7 | ||||||||||||||
Indirect costs allocated to Divestiture (2) | 2.0 | 6.8 | 17.8 | ||||||||||||||
Restructuring and other (income) charges, net (3) | $ | 12.8 | $ | 18.1 | $ | 53.4 | |||||||||||
| _________________ | |||||||||||||||||
(1) Included in the charges for the year ended December 31, 2023 was $13.3 million of accelerated depreciation associated with Advanced Polymer Technologies polyol production assets located at the DeRidder Plant. | |||||||||||||||||
(2) Includes indirect costs previously allocated to the Divestiture that are not eligible for discontinued operations accounting treatment. | |||||||||||||||||
| (3) Refer to Note 15 for more information. | |||||||||||||||||
(4) For the year ended December 31, 2025, charge relates to the Advanced Polymer Technologies reportable segment. For the year ended
December 31, 2024, charge relates to the Performance Chemicals reportable segment. Refer to Note 8 for more information.
(5) Charges represent costs incurred to complete and integrate acquisitions and other strategic investments, and include the expensing of the inventory fair value step-up resulting from the application of purchase accounting for acquisitions, and certain legal and professional fees associated with the completion of acquisitions and strategic investments. For all years presented, the charges related to the Performance Chemicals reportable segment.
| Years Ended December 31, | |||||||||||||||||
| In millions | 2025 | 2024 | 2023 | ||||||||||||||
| Legal and professional service fees | $ | — | $ | 0.3 | $ | 3.6 | |||||||||||
| Acquisition-related costs | — | 0.3 | 3.6 | ||||||||||||||
Inventory fair value step-up amortization (1) | — | — | 0.9 | ||||||||||||||
| Acquisition and other-related (income) costs, net | $ | — | $ | 0.3 | $ | 4.5 | |||||||||||
_______________
(1) Fair value of finished goods inventories acquired included a step-up in the value of $1.8 million, of which $0.9 million was expensed during each of the years ended December 31, 2023 and 2022, respectively. The expense is included within "Cost of sales" on the consolidated statement of operations. Inventories are accounted for on a FIFO basis of accounting.
(6) We exclude gains and losses from sales of strategic investments from our segment results because we do not consider such gains or losses to be directly associated with the operational performance of the segment. We believe that the inclusion of such gains or losses, would impair the factors and trends affecting the historical financial performance of our reportable segments. We continue to include undistributed earnings or loss, distributions, amortization or accretion of basis differences, and other-than-temporary impairments for equity method investments that we believe are directly attributable to the operational performance of such investments, in our reportable segment results. Refer to Note 5, under the section: Strategic Investments, for more information.
| Years Ended December 31, | |||||||||||||||||
| In millions | 2025 | 2024 | 2023 | ||||||||||||||
| Performance Materials | $ | 17.1 | $ | (0.1) | $ | (19.3) | |||||||||||
| Performance Chemicals | — | — | — | ||||||||||||||
| Advanced Polymer Technologies | 2.5 | 2.2 | — | ||||||||||||||
| (Gain) loss on sale of strategic investment | $ | 19.6 | $ | 2.1 | $ | (19.3) | |||||||||||
(7) For the year ended December 31, 2025, charge relates to the Performance Chemicals reportable segment. Refer to Note 7 and Note 8 for more information.
(8) Charges represent legal and other professional service fees as well as incremental proxy solicitation costs related to a proxy contest.
(9) Charges represent professional service fees related to a review of the Company's portfolio.
(10) Our pension and postretirement settlement and curtailment charges (income) are related to the acceleration of prior service costs, as a result of a reduction in the number of participants within the Union Hourly defined benefit pension plan. These are excluded from our segment results because we consider these costs to be outside our operational performance. We continue to include the service cost, amortization of prior service cost, interest costs, expected return on plan assets, and amortized actual gains and losses in our segment EBITDA.
| Years Ended December 31, | |||||||||||||||||
| In millions | 2025 | 2024 | 2023 | ||||||||||||||
| Performance Materials | $ | — | $ | — | $ | — | |||||||||||
| Performance Chemicals | — | 0.2 | — | ||||||||||||||
| Advanced Polymer Technologies | — | — | — | ||||||||||||||
| Pension and postretirement settlement and curtailment (income) charges, net | $ | — | $ | 0.2 | $ | — | |||||||||||
(11) Includes indirect costs previously allocated to the Divestiture that are not eligible for discontinued operations accounting treatment.
| Years Ended December 31, | |||||||||||||||||
| In millions | 2025 | 2024 | 2023 | ||||||||||||||
| Cost of sales | $ | 7.7 | $ | 11.3 | $ | 16.8 | |||||||||||
Selling, general, and administrative expenses (1) | 7.1 | 9.8 | 20.7 | ||||||||||||||
| Other (income) expense, net | (0.3) | 1.0 | 0.4 | ||||||||||||||
| Indirect costs allocated to Divestiture | $ | 14.5 | $ | 22.1 | $ | 37.9 | |||||||||||
| _______________ | |||||||||||||||||
| (1) Excludes Corporate and other costs. | |||||||||||||||||
(12) Corporate and other costs is defined as costs associated with corporate administrative functions (e.g., executive office, corporate finance, legal, human resources) and other compliance costs to operate as a NYSE listed entity. Also includes corporate administrative function share of information technology, safety, health, accounting and human resource departments.
| Depreciation and amortization | Years Ended December 31, | ||||||||||||||||
| In millions | 2025 | 2024 | 2023 | ||||||||||||||
| Performance Materials | $ | 43.5 | $ | 38.7 | $ | 38.3 | |||||||||||
| Performance Chemicals | 23.9 | 24.3 | 22.1 | ||||||||||||||
| Advanced Polymer Technologies | 33.6 | 30.8 | 31.3 | ||||||||||||||
Indirect costs allocated to Divestiture (1) | $ | 4.2 | $ | 5.8 | $ | 5.7 | |||||||||||
| Total depreciation and amortization | $ | 105.2 | $ | 99.6 | $ | 97.4 | |||||||||||
_______________
(1) Includes indirect costs previously allocated to the Divestiture that are not eligible for discontinued operations accounting treatment.
| Capital expenditures | Years Ended December 31, | ||||||||||||||||
| In millions | 2025 | 2024 | 2023 | ||||||||||||||
| Performance Materials | $ | 32.4 | $ | 38.5 | $ | 36.4 | |||||||||||
| Performance Chemicals | 14.3 | 16.5 | 29.2 | ||||||||||||||
| Advanced Polymer Technologies | 10.7 | 16.2 | 23.8 | ||||||||||||||
| Total capital expenditures | $ | 57.4 | $ | 71.2 | $ | 89.4 | |||||||||||
| Property, plant, and equipment, net | December 31, | ||||||||||
| In millions | 2025 | 2024 | |||||||||
North America (1) | $ | 430.1 | $ | 466.3 | |||||||
Asia Pacific (1) | 62.0 | 63.3 | |||||||||
Europe, Middle East, and Africa (1) | 115.8 | 113.2 | |||||||||
| South America | 0.2 | 0.1 | |||||||||
| Property, plant, and equipment, net | $ | 608.1 | $ | 642.9 | |||||||
_______________
(1) The countries with Property, plant, and equipment, net in excess of 10 percent of consolidated Property, plant, and equipment, net at December 31, 2025 and 2024 are the U.S., which totaled $430.1 million and $466.3 million, the U.K., which totaled $115.1 million and $112.5 million, and China, which totaled $61.7 million and $63.2 million, respectively.
| Total assets | December 31, | ||||||||||
| In millions | 2025 | 2024 | |||||||||
| Performance Materials | $ | 822.7 | $ | 824.3 | |||||||
Performance Chemicals (1) | 357.7 | 498.9 | |||||||||
Advanced Polymer Technologies (2) | 380.9 | 568.2 | |||||||||
Total segment assets (3) | $ | 1,561.3 | $ | 1,891.4 | |||||||
| Corporate and other | 54.4 | 63.0 | |||||||||
| Assets of discontinued operations | 35.4 | 68.2 | |||||||||
| Total assets | $ | 1,651.1 | $ | 2,022.6 | |||||||
_______________
(1) The decline in the Performance Chemicals reportable segment in 2025, as compared to 2024, was driven by the Performance Chemicals long-lived asset impairment charge. Refer to Note 7 and Note 8 for more information.
(2) The decline in the Advanced Polymer Technologies reportable segment in 2025, as compared to 2024, was driven by the Goodwill impairment charge. Refer to note 8 for more information.
(3) Segment assets exclude assets not specifically managed as part of one specific segment herein referred to as "Corporate and other."
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Mar 2, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.