Ingevity Corporation announced on January 16, 2025, its decision to explore strategic alternatives for its Performance Chemicals Industrial Specialties product line and the North Charleston, South Carolina, crude tall oil (CTO) refinery. This process includes pine chemical-based chemistries serving various industrial end-use markets, but excludes the Road Technologies product line and certain lignin-based products.
The company's management and Board are committed to aggressive actions to deliver shareholder value, with this move expected to strengthen the Performance Chemicals segment. The goal is to focus on higher growth and higher margin opportunities within the portfolio, thereby improving the company’s earnings and cash flow profile.
Ingevity also released unaudited preliminary financial results for fiscal year 2024, expecting net sales of approximately $1.40 billion, adjusted EBITDA of approximately $360 million, and free cash flow greater than $40 million. The company expressed increased confidence in delivering slightly above $400 million of adjusted EBITDA in 2025, driven by the positive impact of the Performance Chemicals repositioning and strong Performance Materials segment performance.
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