Revenue declined 14% year-over-year to $314.1M in Q2 2026, but gross margin expanded to 44.3%, the highest in ten quarters, while operating margin improved to 19.1% from 23.5% a year earlier.
Ingevity Corporation (NGVT) annual income statement — 13-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Sales/Revenue | 1.16B | 1.17B | 1.41B | 1.69B | 1.67B | 1.39B | 1.22B | 1.29B | 1.13B | 972.4M | 908.3M | 968M | 1.04B | 980M |
| Revenue Growth % | -12.42% | -16.98% | -16.88% | 1.43% | 19.89% | 14.42% | -5.94% | 14.05% | 16.58% | 7.06% | -6.17% | -7.01% | 6.22% | - |
| Cost of Goods Sold | 683.2M | 706.1M | 951.7M | 1.22B | 1.1B | 878.7M | 750.6M | 810.9M | 716.8M | 643.4M | 633.9M | 687M | 718M | 685M |
| COGS % of Revenue | - | 60.47% | 67.67% | 72.11% | 65.83% | 63.15% | 61.72% | 62.72% | 63.23% | 66.17% | 69.79% | 70.97% | 68.97% | 69.9% |
| Gross Profit | 477.1M | 461.5M | 454.7M | 471.9M | 570.1M | 512.8M | 465.5M | 482M | 416.8M | 329M | 274.4M | 281M | 323M | 295M |
| Gross Margin % | 41.12% | 39.53% | 32.33% | 27.89% | 34.17% | 36.85% | 38.28% | 37.28% | 36.77% | 33.83% | 30.21% | 29.03% | 31.03% | 30.1% |
| Gross Profit Growth % | - | 1.5% | -3.64% | -17.22% | 11.17% | 10.16% | -3.42% | 15.64% | 26.69% | 19.9% | -2.35% | -13% | 9.49% | - |
| Operating Expenses | 226.4M | 199.6M | 194.8M | 215.5M | 229.1M | 205.6M | 465.5M | 182.8M | 153.9M | 126.2M | 114M | 114M | 112M | 103M |
| OpEx % of Revenue | - | 17.09% | 13.85% | 12.74% | 13.73% | 14.78% | 38.28% | 14.14% | 13.58% | 12.98% | 12.55% | 11.78% | 10.76% | 10.51% |
| Selling, General & Admin | 165.4M | 171.2M | 166.7M | 183.7M | 198.8M | 179.3M | 149.4M | 163.1M | 132.4M | 106.4M | 114M | 114M | 112M | 103M |
| SG&A % of Revenue | - | 14.66% | 11.85% | 10.86% | 11.92% | 12.89% | 12.29% | 12.62% | 11.68% | 10.94% | 12.55% | 11.78% | 10.76% | 10.51% |
| Research & Development | 27.2M | 28.4M | 28.1M | 31.8M | 30.3M | 26.3M | 22.6M | 19.7M | 21.5M | 19.8M | 7.6M | 6.9M | 8M | 11M |
| R&D % of Revenue | - | 2.43% | 2% | 1.88% | 1.82% | 1.89% | 1.86% | 1.52% | 1.9% | 2.04% | 0.84% | 0.71% | 0.77% | 1.12% |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 293.5M | 0 | -1M | -500K | 3.2M | 10M | 4M | 5M |
| Operating Income | 250.7M | 261.9M | 259.9M | 256.4M | 341M | 307.2M | 0 | 327.9M | 262.9M | 202.8M | 160.4M | 167M | 211M | 192M |
| Operating Margin % | 21.61% | 22.43% | 18.48% | 15.15% | 20.44% | 22.08% | - | 25.36% | 23.19% | 20.86% | 17.66% | 17.25% | 20.27% | 19.59% |
| Operating Income Growth % | - | 0.77% | 1.37% | -24.81% | 11% | - | -100% | 24.72% | 29.64% | 26.43% | -3.95% | -20.85% | 9.9% | - |
| EBITDA | 348.8M | 368.3M | 368.2M | 379.2M | 449.8M | 417.1M | 382.4M | 412.9M | 319.9M | 243.2M | 199.2M | 202M | 244M | 225M |
| EBITDA Margin % | 30.06% | 31.54% | 26.18% | 22.41% | 26.96% | 29.97% | 31.44% | 31.94% | 28.22% | 25.01% | 21.93% | 20.87% | 23.44% | 22.96% |
| EBITDA Growth % | -10.59% | 0.03% | -2.9% | -15.7% | 7.84% | 9.07% | -7.39% | 29.07% | 31.54% | 22.09% | -1.39% | -17.21% | 8.44% | - |
| D&A (Non-Cash Add-back) | 98.1M | 106.4M | 108.3M | 122.8M | 108.8M | 109.9M | 100.2M | 85M | 57M | 40.4M | 38.8M | 35M | 33M | 33M |
| EBIT | 93.4M | -69M | -437.8M | 83.2M | 331.4M | 214.5M | 282.2M | 283.7M | 262.8M | 202.7M | 160.4M | 165.3M | 219M | 192M |
| Net Interest Income | -64M | -72.7M | -90.9M | -87M | -56M | -47.7M | -42.2M | -46.9M | -29.8M | -15.8M | -17.9M | -20.1M | -16.4M | -13M |
| Interest Income | 3.3M | 4.4M | 6.9M | 6.3M | 5.8M | 4M | 4.9M | 8.9M | 3.4M | 2.3M | 1.4M | 0 | 0 | 0 |
| Interest Expense | 67.3M | 77.1M | 97.8M | 93.3M | 61.8M | 51.7M | 47.1M | 55.8M | 33.2M | 18.1M | 19.3M | 20.1M | 16.4M | 13M |
| Other Income/Expense | -212.9M | -404M | -795.5M | -266.5M | -71.4M | -144.4M | 235.1M | -71.3M | -41.1M | -28M | -73.4M | -28.8M | -8.9M | -8M |
| Pretax Income | 37.8M | -142.1M | -535.6M | -10.1M | 269.6M | 162.8M | 235.1M | 227.9M | 221.8M | 174.8M | 87M | 138M | 203M | 184M |
| Pretax Margin % | 3.26% | -12.17% | -38.08% | -0.6% | 16.16% | 11.7% | 19.33% | 17.63% | 19.57% | 17.98% | 9.58% | 14.26% | 19.5% | 18.78% |
| Income Tax | 12.6M | 8.2M | -105.3M | -4.7M | 58M | 44.7M | 53.7M | 44.2M | 40M | 29.8M | 42.6M | 53M | 70M | 66M |
| Effective Tax Rate % | 33.33% | -5.77% | 19.66% | 46.53% | 21.51% | 27.46% | 22.84% | 19.39% | 18.03% | 17.05% | 48.97% | 38.41% | 34.48% | 35.87% |
| Net Income | 54M | -167.1M | -430.3M | -5.4M | 211.6M | 118.1M | 181.4M | 183.7M | 169.1M | 126.3M | 35.2M | 80M | 129M | 119M |
| Net Margin % | 4.65% | -14.31% | -30.6% | -0.32% | 12.68% | 8.49% | 14.92% | 14.21% | 14.92% | 12.99% | 3.88% | 8.26% | 12.39% | 12.14% |
| Net Income Growth % | 124.93% | 61.17% | -7868.52% | -102.55% | 79.17% | -34.9% | -1.25% | 8.63% | 33.89% | 258.81% | -56% | -37.98% | 8.4% | - |
| Net Income (Continuing) | 25.2M | -150.3M | -430.3M | -5.4M | 211.6M | 118.1M | 181.4M | 183.7M | 181.8M | 145.2M | 44.4M | 84.3M | 133M | 118M |
| Discontinued Operations | 0 | -16.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14M | 7.6M | 5M | 3M | 2M |
| EPS (Diluted) | 1.52 | -4.61 | -11.85 | -0.15 | 5.50 | 2.95 | 4.37 | 4.35 | 3.97 | 2.97 | 0.83 | 1.89 | 3.07 | 2.83 |
| EPS Growth % | 124.66% | 61.1% | -7800% | -102.73% | 86.44% | -32.49% | 0.46% | 9.57% | 33.67% | 257.83% | -56.08% | -38.44% | 8.48% | - |
| EPS (Basic) | - | -4.61 | -11.85 | -0.15 | 5.54 | 2.97 | 4.39 | 4.39 | 4.03 | 3.00 | 0.83 | 1.89 | 3.07 | 2.83 |
| Diluted Shares Outstanding | 35.6M | 36.2M | 36.32M | 36.5M | 38.47M | 40.06M | 41.55M | 42.2M | 42.6M | 42.5M | 42.3M | 42.07M | 42.07M | 42.07M |
| Basic Shares Outstanding | 35M | 36.2M | 36.32M | 36.5M | 38.47M | 39.8M | 41.3M | 41.8M | 42M | 42.1M | 42.1M | 42.07M | 42.07M | 42.07M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying NGVT stock.
For fiscal year 2025, Ingevity Corporation (NGVT) reported total revenue of $1.17B. This represents a 19.1% increase compared to $980.0M in 2013.
Ingevity Corporation (NGVT) reported a net loss of $167.1M for the fiscal year ending 2025.
Ingevity Corporation (NGVT) reported an operating income of $261.9M, resulting in an operating profit margin of 22.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Ingevity Corporation (NGVT) generated $461.5M in gross profit for the year, representing a gross profit margin of 39.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
EV transition and CTO costs
Metrics are mathematically derived from official filings.
Revenue Contraction Persists Despite Beat
Ingevity's revenue fell 14% year-over-year in Q2 2026 to $314.1M, marking the tenth consecutive quarter of decline, though the pace of contraction has slowed from the 19% drop seen in Q2 2024. According to the latest income statement data, the persistent decline suggests structural demand headwinds in automotive and industrial markets.
The revenue decline is broad-based, with Performance Materials likely impacted by softer light vehicle production and Performance Chemicals by weaker industrial demand. The sequential improvement from Q1 2026 (up 21.7% quarter-over-quarter) hints at a possible bottom, but the year-over-year trend remains negative. Investors should monitor whether the recent quarterly beat and raised guidance signal a genuine inflection or merely cost-driven efficiency gains.
Gross Margin Recovery Masks Underlying Pressures
Gross margin expanded to 44.3% in Q2 2026, up from 37.8% a year earlier, reflecting improved pricing and cost controls. As reported in the financial statements, this is the highest gross margin in the ten-quarter period, suggesting that the company is successfully navigating raw material cost pressures.
The margin expansion is notable given the revenue decline, implying that management has prioritized profitability over volume. However, the sustainability of this margin is questionable if CTO costs rise due to competition from renewable diesel producers. The gross margin improvement may also be partly due to product mix, with higher-margin Performance Materials contributing a larger share of revenue.
Operating Leverage Turns Positive
Operating income in Q2 2026 was $60.1M, down from $85.9M in Q2 2025, but operating margin improved to 19.1% from 23.5% due to a 14% revenue decline. Based on the income statement data, SG&A expenses have been held relatively flat, indicating disciplined overhead management despite lower sales.
The company appears to be leveraging its fixed cost base more efficiently as revenue stabilizes. SG&A as a percentage of revenue rose to 12.4% in Q2 2026 from 12.1% in Q2 2025, but the absolute dollar decline suggests cost-cutting measures are taking effect. The operating margin of 19.1% is still below the 24.9% achieved in Q3 2025, indicating that there is room for improvement if volumes recover.
Net Income Volatility Masks Core Profitability
Net income swung from a loss of $146.5M in Q2 2025 to a profit of $35.3M in Q2 2026, driven by the absence of large impairment charges. According to the income statement data, the negative net margins in prior quarters were primarily due to non-cash write-downs, not operational deterioration.
The quality of earnings is improving as the company moves past the impairment cycle. However, the reported EPS of $1.00 in Q2 2026 includes a $4.2M stock-based compensation expense, which is non-cash but dilutive. The effective tax rate appears to be volatile, and investors should adjust for one-time items to assess underlying profitability. The recent beat and raised guidance suggest that management sees sustained operational improvement, but the negative net margin in Q4 2025 (-33.2%) highlights the potential for further write-downs.
COGS Decline Outpaces Revenue Drop
COGS fell 22.9% year-over-year in Q2 2026 to $175.1M, compared to a 14% revenue decline, driving the gross margin expansion. As per the income statement data, this suggests that input costs, particularly CTO, have moderated or that the company has successfully passed through price increases.
The cost structure is heavily influenced by CTO prices, which have been volatile due to demand from the renewable diesel sector. The fact that COGS declined faster than revenue indicates that the company is either benefiting from lower raw material costs or from a favorable product mix. R&D and SG&A expenses have been relatively stable, indicating that the company is not cutting back on innovation or sales support, which is positive for long-term competitiveness.
Q2 2026 Marks Potential Turning Point
The Q2 2026 quarter stands out as a potential inflection point, with EPS of $1.00 versus a loss of $4.02 in Q2 2025, driven by a sharp recovery in net income and improved margins. Based on the income statement data, this quarter suggests that the company may be emerging from a period of significant restructuring and impairment charges.
The positive net income and raised guidance indicate that the company's operational performance is stabilizing. However, the revenue decline persists, and the sustainability of this inflection depends on end-market demand. The company's ability to maintain margins while volumes remain soft will be critical. If the revenue contraction continues, the recent profitability gains may prove temporary.
Revenue Decline Undermines Recovery Narrative
Despite the strong earnings beat, revenue is still down 14% year-over-year, and the company has not posted a year-over-year revenue growth in ten quarters. As reported in the income statement data, this persistent contraction raises questions about the durability of the earnings recovery, which may be driven more by cost cuts than by demand.
Short-sellers would argue that the company is shrinking its way to profitability, which is not sustainable in the long term. The negative net margin in Q4 2025 and Q2 2025 indicates that the company is still vulnerable to large non-cash charges. Additionally, the elevated debt/equity ratio of 41.8% could become a problem if interest rates remain high or if the company needs to refinance. The secular decline of ICE vehicles remains a significant overhang on the Performance Materials segment, and the company's efforts to diversify into new applications are still speculative.