Ingevity Corp
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
NGVT$60.12-5.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0001653477-26-000047
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001653477-26-000064
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 144 previous paragraphs and 135 current paragraphs.
84 unchanged; 44 reworded; 6 added; 16 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
The gross profit decrease of $1.1 million in 2026 was driven by unfavorable sales volume of $8.0 million and increased manufacturing costs of $6.5 million. This decrease was partially offset by favorable pricing and sales mix of $12.8 million and favorable foreign currency exchange of $0.6 million.
Current report
Performance Materials Net sales were strong and nearly flat, decreasing less than one percent to $154.1 million driven by lower volumes from softness in automotive applications in China and Europe, offset by resilient North American automotive demand, supported by continued consumer preference for hybrid vehicles, and higher non-auto filtration sales driven primarily by pricing. Segment EBITDA decreased to $83.4 million as pricing actions, non-auto filtration growth and strong manufacturing performance were offset by lower volumes and higher SG&A. Segment EBITDA margin remained strong and stable at 54.1%, consistent with the prior year, demonstrating the resilient earnings power of the segment.
Current report
Segment net sales. The increase of $14.4 million in 2026 was driven by favorable pricing and sales mix of $14.3 million (three percent) and favorable foreign currency exchange of $1.4 million (zero percent). The increase was partially offset by volume decline of $1.3 million (zero percent).
Current report
Pavement Technologies Net sales declined 24 percent to $106.0 million, primarily due to the April 15, 2026 divestiture of our former Performance Chemicals' road markings product line. Excluding the divestiture, Net sales increased one percent, as higher prices offset softer demand. Persistently higher asphalt costs, driven by crude oil inflation, continued to increase project costs for our customers, pressuring demand and limiting sales growth. Segment EBITDA was $19.6 million, down $7.3 million, reflecting lower volumes, the retention of dis-synergy costs largely due to the divestiture of road markings, as well as higher input and logistics costs. Segment EBITDA margin was 18.5% compared to 19.2% in the prior year.
Current report
Advanced Polymer Technologies Net sales increased 18 percent to $45.0 million driven by higher pricing, including a price surcharge to offset increased input costs, and favorable mix toward higher-value derivative products. Segment EBITDA for the quarter increased $0.7 million to $11.7 million, primarily driven by the favorable product mix and higher pricing, partially offset by higher input costs. Segment EBITDA margin was 26.0%, down 280 basis points, as pricing surcharges helped to recover higher input costs, but carried little to no incremental margin.
Current report
Segment net sales. The increase of $6.8 million in 2026 was driven by favorable pricing and sales mix of $5.8 million (15 percent) and volume growth of $1.5 million (four percent). This increase was partially offset by unfavorable foreign currency exchange of $0.5 million (one percent).
Removed paragraphs (16)
Previous report
Reportable Segment Renaming
Previous report
During 2026, dispositions within our former Performance Chemicals reportable segment resulted in a change to the segment's name. Historically, our Performance Chemicals reportable segment consisted of the Pavement Technologies, industrial specialties, and road markings product lines. Following the sale of the industrial specialties product line on January 1, 2026, and the sale of the road markings product line on April 15, 2026, the Pavement Technologies product line became the sole remaining product line within the former Performance Chemicals segment; refer to Note 16 for additional information regarding these dispositions. Accordingly, during the second quarter of 2026, we renamed the Performance Chemicals reportable segment to Pavement Technologies to better reflect the segment's operations. The segment rename did not affect our reportable segment structure, and segment information has been updated to reflect the new segment name, where applicable.
Previous report
Long-Lived Asset Impairment Charge - Advanced Polymer Technologies Asset Group
Previous report
We periodically evaluate whether current events or circumstances indicate that the carrying value of our long-lived assets, including intangible assets, to be held and used may not be recoverable. If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived asset, or the appropriate grouping of assets, is compared to carrying value to determine whether impairment exists.
Previous report
As the sale process for the Advanced Polymer Technologies segment progressed during the second quarter of 2026, information obtained from potential buyers indicated that its carrying amount may not be recoverable. Accordingly, we determined that a triggering event had occurred and performed a recoverability assessment of the asset group's long-lived assets. The assessment indicated that the carrying amount was not recoverable. Accordingly, we performed an impairment analysis to assess the fair value of the asset group.
Previous report
Based on the results of the quantitative analysis, which was based on both quoted market prices in active markets and a discounted value of estimated future cash flows, we concluded that the carrying value of the Advanced Polymer Technologies asset group exceeded its fair value. As a result, we recorded a non-cash impairment charge of $32.1 million. The charge is included within "Long-lived asset impairment charge" on the consolidated statements of operations for the three and six months ended June 30, 2026, and was allocated between "Property, plant, and equipment, net" and "Other intangibles, net" on the condensed consolidated balance sheet as of June 30, 2026 in the amount of $13.2 million, and $18.9 million, respectively.
Previous report
Legal Proceedings
Previous report
On April 1, 2026, we paid $113.2 million to resolve matters related to the litigation with BASF Corporation, consisting of: (1) the judgment, plus post-judgment interest, in the amount of $97.0 million and (2) $16.2 million to resolve BASF's claim for attorneys' fees and costs. The litigation, including all appeals and counterclaims, is now complete. Refer to Note 13 to the condensed consolidated financial statements for additional information.
Previous report
Gross profit increase of $15.7 million in 2026 was driven by favorable pricing and sales mix of $16.5 million, and decreased manufacturing costs of $5.1 million. This increase was partially offset by unfavorable sales volume of $4.4 million, and unfavorable foreign currency exchange of $1.5 million.
Previous report
Performance Materials Net sales increased four percent to $160.6 million driven by higher volumes and favorable mix driven by a continued shift in consumer preferences from battery electric vehicles to hybrids, further supported by annual pricing actions. Segment EBITDA was up six percent to $86.1 million driven by higher volumes, improved price and mix, and higher plant utilization, which more than offset higher SG&A and other expenses. Segment EBITDA margin improved 100 basis points to 53.6% compared to 52.6% in the prior year.
Previous report
Segment net sales. The increase of $15.3 million in 2026 was driven by favorable pricing and sales mix of $8.9 million (three percent), volume growth of $5.4 million (two percent), and favorable foreign currency exchange of $1.0 million (zero percent).
Previous report
Pavement Technologies Net sales declined 22 percent to $104.2 million, primarily due to the April 15, 2026 divestiture of our former Performance Chemicals' road markings product line. Excluding the divestiture, sales increased three percent, driven by higher price and volumes with regional strength in North America partially offset by weakness in China and South America. Segment EBITDA of $25.4 million declined $3.4 million from the prior year, primarily reflecting the absence of $6.0 million of Road Markings EBITDA included in the prior-year period, partially offset by improved pricing and volumes in the remaining Pavement Technologies business. Segment EBITDA margin was 24.4% compared to 21.4% in the prior year.
Previous report
Advanced Polymer Technologies Net sales increased 14 percent to $49.3 million driven primarily by higher prices, including a price surcharge to offset increased raw material and energy cost, a favorable mix toward higher-value derivative products, and competitor supply disruptions. Segment EBITDA for the quarter was $11.2 million compared to $2.0 million in the prior year. The improvement was driven by improved product mix and higher plant utilization compared with the prior year period that included extended downtime associated with the installation of new boilers and further supported by competitor supply disruptions. Segment EBITDA margin was 22.7% compared to 4.6% in the prior year.
Previous report
Segment net sales. The increase of $6.0 million in 2026 was driven by favorable pricing and sales mix of $4.6 million (11 percent), volume growth of $1.0 million (two percent), and favorable foreign currency exchange of $0.4 million (one percent).
Previous report
(6) Charges represent legal and other professional service fees as well as incremental proxy solicitation costs related to a proxy contest.
Previous report
During the three and six months ended June 30, 2025, we repurchased no common stock.
Reworded paragraphs (44)
Previous wording
Investors are cautioned that the forward-looking statements contained in this section and other parts of this Quarterly Report on Form 10-Q involve both risk and uncertainty. Several important factors could cause actual results to differ materially from those anticipated by these statements. Many of these statements are macroeconomic in nature and are, therefore, beyond the control of management. See "Cautionary Statements About Forward-Looking Statements" below and at the beginning of our 2025 Annual Report.
Current wording
Investors are cautioned that the forward-looking statements contained in this section and other parts of this Quarterly Report on Form 10-Q involve both risk and uncertainty. Several important factors could cause actual results to differ materially from those anticipated by these statements. Many of these statements are macroeconomic in nature and are, therefore, beyond the control of management. See "Cautionary Statements Regarding Forward-Looking Statements" below and at the beginning of our 2025 Annual Report.
Previous wording
Road Markings Product Line Disposition
Current wording
Performance Chemicals' Road Markings Product Line Disposition
Previous wording
On April 15, 2026, we completed the sale of our former Performance Chemicals' road markings product line to PPG Industries Inc. (the "Disposition"). We received all-cash proceeds of $63.2 million, inclusive of preliminary traditional working capital adjustments, and recorded a gain of $8.6 million within "Other (income) expense, net" on the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2026.
Current wording
On April 15, 2026, we completed the sale of our former Performance Chemicals' road markings product line to PPG Industries Inc. (the "Disposition"). We received all-cash proceeds of $63.2 million, inclusive of preliminary traditional working capital adjustments, and recorded an incremental loss of $3.0 million for the three months ended September 30, 2026, which resulted in a gain of $5.6 million for the nine months ended September 30, 2026. Amounts were recorded within "Other (income) expense, net" on the Condensed Consolidated Statement of Operations.
Previous wording
Net sales decreased five percent from the prior year driven by our former Performance Chemicals' road markings product line disposition on April 15, 2026, which more than offset increases within the Performance Materials and Advanced Polymer Technologies reportable segments.
Current wording
Net sales decreased eight percent from the prior year, driven by our former Performance Chemicals' road markings product line disposition on April 15, 2026. Excluding the road markings disposition, sales increased two percent from the prior year driven by higher pricing and favorable mix across the portfolio, partially offset by lower volumes in Performance Materials and Pavement Technologies.
Previous wording
The Net sales decrease of $7.3 million in 2026 was driven by a volume decrease of $27.8 million (five percent), partially offset by favorable pricing and sales mix of $16.5 million (three percent) and favorable foreign currency exchange of $4.0 million (one percent).
Current wording
The Net sales decrease of $28.0 million in 2026 was driven by a volume decrease of $40.4 million (twelve percent) and unfavorable foreign currency exchange of $0.4 million (zero percent), partially offset by favorable pricing and sales mix of $12.8 million (four percent).
Previous wording
The Net sales decrease of $17.4 million in 2026 was driven by a volume decrease of $28.2 million (nine percent), partially offset by favorable pricing and sales mix of $10.0 million (three percent) and favorable foreign currency exchange of $0.8 million (zero percent).
Current wording
The Net sales decrease of $35.3 million in 2026 was driven by a volume decrease of $68.2 million (seven percent), partially offset by favorable pricing and sales mix of $29.3 million (three percent) and favorable foreign currency exchange of $3.6 million (zero percent).
Previous wording
Gross profit increase of $11.2 million in 2026 was driven by favorable pricing and sales mix of $10.0 million, and decreased manufacturing costs of $9.1 million. This increase was partially offset by unfavorable sales volume of $6.6 million, and unfavorable foreign currency exchange of $1.3 million.
Current wording
The gross profit increase of $14.6 million in 2026 was driven by favorable pricing and sales mix of $29.3 million. This increase was partially offset by increased manufacturing costs of $1.4 million, unfavorable sales volume of $12.4 million, and unfavorable foreign currency exchange of $0.9 million.
Previous wording
SG&A was $39.0 million (12 percent of Net sales) and $43.6 million (13 percent of Net sales) for the three months ended June 30, 2026 and 2025, respectively. Overall, SG&A decreased by $4.6 million (11 percent), driven by decreased intangible amortization expense of $3.3 million, decreased spending on commercial activities of $1.2 million, and decreased variable incentive compensation of $0.1 million.
Current wording
SG&A was $38.1 million (12 percent of Net sales) and $44.1 million (13 percent of Net sales) for the three months ended September 30, 2026 and 2025, respectively. Overall, SG&A decreased by $6.0 million (14 percent), driven by decreased intangible amortization expense of $3.9 million, decreased spending on commercial activities of $0.2 million, and decreased variable incentive compensation of $1.9 million.
Previous wording
SG&A was $79.7 million (14 percent of Net sales) and $85.5 million (15 percent of Net sales) for the six months ended June 30, 2026 and 2025, respectively. Overall, SG&A decreased by $5.8 million (seven percent), driven by decreased intangible amortization expense of $5.6 million, and decreased spending on commercial activities of $1.6 million. The decrease was partially offset by increased variable incentive compensation of $1.4 million.
Current wording
SG&A was $117.8 million (13 percent of Net sales) and $129.6 million (14 percent of Net sales) for the nine months ended September 30, 2026 and 2025, respectively. Overall, SG&A decreased by $11.8 million (nine percent), driven by decreased intangible amortization expense of $9.5 million, decreased spending on commercial activities of $1.8 million, and decreased variable incentive compensation of $0.5 million.
Previous wording
Research and technical expenses as a percentage of Net sales remained relatively consistent period over period, totaling 1.9 percent and 2.1 percent for the three months ended June 30, 2026 and 2025, respectively. Overall, Research and technical expenses decreased by $0.9 million, compared to the prior year, primarily driven by a decrease within our Performance Materials reportable segment.
Current wording
Research and technical expenses as a percentage of Net sales remained relatively consistent period over period, totaling 2.7 percent and 2.1 percent for the three months ended September 30, 2026 and 2025, respectively. Overall, Research and technical expenses increased by $1.3 million, compared to the prior year, primarily driven by an increased investment within our Performance Materials reportable segment.
Previous wording
Research and technical expenses as a percentage of Net sales remained relatively consistent period over period, totaling 2.2 percent and 2.4 percent for the six months ended June 30, 2026 and 2025, respectively. Overall, Research and technical expenses decreased by $1.2 million, compared to the prior year, primarily driven by a decrease within our Performance Materials reportable segment.
Current wording
Research and technical expenses as a percentage of Net sales remained relatively consistent period over period, totaling 2.4 percent and 2.3 percent for the nine months ended September 30, 2026 and 2025, respectively. Overall, Research and technical expenses increased by $0.1 million, compared to the prior year.
Previous wording
For the three months ended June 30, 2026 and 2025, our effective tax rate was 21.5% and (3.5)%, respectively. Excluding discrete items, the effective rate was 26.0% compared to 21.3% in the three months ended June 30, 2026 and 2025, respectively. Refer to Note 12 for more information.
Current wording
For the three months ended September 30, 2026 and 2025, our effective tax rate was 25.8% and 34.4%, respectively. Excluding discrete items, the effective rate was 25.3% compared to 31.6% in the three months ended September 30, 2026 and 2025, respectively. Refer to Note 12 for more information.
Previous wording
For the six months ended June 30, 2026 and 2025, our effective tax rate was 21.9% and (13.4)%, respectively. Excluding discrete items, the effective rate was 26.0% compared to 21.6% in the six months ended June 30, 2026 and 2025, respectively. Refer to Note 12 for more information.
Current wording
For the nine months ended September 30, 2026 and 2025, our effective tax rate was 23.7% and (94.3)%, respectively. Excluding discrete items, the effective rate was 25.7% compared to 25.4% in the nine months ended September 30, 2026 and 2025, respectively. Refer to Note 12 for more information.
Previous wording
Income (loss) from discontinued operations, net of income taxes was $(4.5) million and $31.9 million for the three and six months ended June 30, 2026, respectively. Income (loss) from discontinued operations, net of income taxes was $(5.1) million and $(13.7) million for the three and six months ended June 30, 2025, respectively. For the six months ended June 30, 2026, the increase was driven by the gain on sale. Refer to Note 16 for more information.
Current wording
Income (loss) from discontinued operations, net of income taxes was $(1.8) million and $30.1 million for the three and nine months ended September 30, 2026, respectively. Income (loss) from discontinued operations, net of income taxes was $2.7 million and $(11.0) million for the three and nine months ended September 30, 2025, respectively. For the nine months ended September 30, 2026, the increase was driven by the gain on sale. Refer to Note 16 for more information.
Previous wording
In addition to the information discussed above, the following sections discuss the results of operations for Ingevity's reportable segments. Our segments are (i) Performance Materials, (ii) Pavement Technologies and (iii) Advanced Polymer Technologies. Segment Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") is the primary measure used by the company's chief operating decision maker to evaluate the performance of and allocate resources among our reportable segments. 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, gain on sale of business, goodwill impairment charges, long-lived asset impairment charges, acquisition and other-related income (costs), gain (loss) on strategic investments, impairment of license agreement, proxy contest charges, portfolio realignment costs, pension and postretirement settlement and curtailment income (charges), net, litigation charge, indirect costs allocated to Divestiture, and Corporate and other costs.
Current wording
In addition to the information discussed above, the following sections discuss the results of operations for Ingevity's reportable segments. Our segments are (i) Performance Materials, (ii) Pavement Technologies and (iii) Advanced Polymer Technologies. Segment Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") is the primary measure used by the company's chief operating decision maker to evaluate the performance of and allocate resources among our reportable segments. 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, gain (loss) on sale of business, goodwill impairment charges, long-lived asset impairment charges, acquisition and other-related income (costs), gain (loss) on strategic investments, impairment of license agreement, proxy contest charges, portfolio realignment costs, pension and postretirement settlement and curtailment income (charges), net, litigation charge, indirect costs allocated to Divestiture, and Corporate and other costs.
Previous wording
Segment net sales. The increase of $6.7 million in 2026 was driven by favorable pricing and sales mix of $3.7 million (two percent), volume growth of $2.6 million (two percent), and favorable foreign currency exchange of $0.4 million (zero percent).
Current wording
Segment net sales. The decrease of $0.9 million in 2026 was driven by a volume decline of $6.7 million (four percent), partially offset by favorable pricing and sales mix of $5.4 million (three percent) and favorable foreign currency exchange of $0.4 million (zero percent).
Previous wording
Segment EBITDA. The increase of $5.1 million in 2026 was driven by favorable pricing and sales mix of $3.7 million, volume growth of $1.6 million, decreased manufacturing costs of $0.3 million, and favorable foreign currency exchange and other charges of $1.5 million. The increase was partially offset by increased SG&A and research and technical expenses of $2.0 million.
Current wording
Segment EBITDA. The decrease of $0.4 million in 2026 was driven by volume decline of $5.0 million, increased SG&A and research and technical expenses of $3.0 million, and unfavorable foreign currency exchange and other charges of $0.5 million. The decrease was partially offset by favorable pricing and sales mix of $5.4 million and decreased manufacturing costs of $2.7 million.
Previous wording
Segment EBITDA. The increase of $13.6 million in 2026 was driven by favorable pricing and sales mix of $8.9 million, decreased manufacturing costs of $5.6 million, and volume growth of $4.5 million. The increase was partially offset by increased SG&A and research and technical expenses of $3.6 million, and unfavorable foreign currency exchange and other charges of $1.8 million.
Current wording
Segment EBITDA. The increase of $13.2 million in 2026 was driven by favorable pricing and sales mix of $14.3 million and decreased manufacturing costs of $8.3 million. The increase was partially offset by volume decline of $0.5 million, increased SG&A and research and technical expenses of $6.6 million, and unfavorable foreign currency exchange and other charges of $2.3 million.
Previous wording
Segment net sales. The decrease of $30.1 million in 2026 was driven by a volume decline of $31.8 million (24 percent), as a result of a decrease in our divested road markings product line ($33.0 million), offset by an increase in Pavement Technologies ($1.2 million). The overall decrease was partially offset by favorable pricing and sales mix of $1.7 million (one percent) within pavement technologies.
Current wording
Segment net sales. The decrease of $33.9 million in 2026 was driven by a volume decline of $35.2 million (25 percent), as a result of a decrease in our divested road markings product line ($35.0 million), and unfavorable foreign currency exchange of $0.3 million (zero percent). The overall decrease was partially offset by favorable pricing and sales mix of $1.6 million (one percent) within Pavement Technologies.
Previous wording
Segment EBITDA. The decrease of $3.4 million in 2026 was driven by a volume decline of $8.5 million and unfavorable foreign currency exchange and other charges of $0.4 million. The decrease was partially offset by decreased manufacturing costs of $2.7 million, favorable pricing and sales mix of $1.7 million, and decreased SG&A expenses of $1.1 million.
Current wording
Segment EBITDA. The decrease of $7.3 million in 2026 was driven by a volume decline of $3.5 million and increased manufacturing costs of $5.9 million. The decrease was partially offset by favorable foreign currency exchange and other charges of $0.3 million, favorable pricing and sales mix of $1.6 million, and decreased SG&A expenses of $0.2 million.
Previous wording
Segment net sales. The decrease of $30.7 million in 2026 was driven by a volume decline of $34.7 million (18 percent), as a result of a decrease in our divested road markings product line ($33.9 million), and Pavement Technologies ($0.8 million). The decrease was partially offset by favorable pricing and sales mix of $3.5 million (two percent) within pavement technologies, and favorable foreign currency exchange of $0.5 million (zero percent).
Current wording
Segment net sales. The decrease of $64.6 million in 2026 was driven by a volume decline of $69.9 million (21 percent), as a result of a decrease in our divested road markings product line ($69.1 million). The decrease was partially offset by favorable pricing and sales mix of $5.1 million (two percent) within Pavement Technologies, and favorable foreign currency exchange of $0.2 million (zero percent).
Previous wording
Segment EBITDA. The decrease of $8.6 million in 2026 was driven by a volume decline of $9.4 million, increased manufacturing costs of $2.7 million, and unfavorable foreign currency exchange and other charges of $0.7 million. The decrease was partially offset by favorable pricing and sales mix of $3.5 million, and decreased SG&A expenses of $0.7 million.
Current wording
Segment EBITDA. The decrease of $15.9 million in 2026 was driven by a volume decline of $12.9 million, increased manufacturing costs of $8.6 million, and unfavorable foreign currency exchange and other charges of $0.4 million. The decrease was partially offset by favorable pricing and sales mix of $5.1 million, and decreased SG&A expenses of $0.9 million.
Previous wording
Segment EBITDA. The increase of $9.2 million in 2026 was driven by favorable pricing and sales mix of $4.6 million, decreased manufacturing costs of $4.1 million, lower SG&A of $0.3 million, and volume growth of $0.3 million. The increase was partially offset by unfavorable foreign currency exchange of $0.1 million.
Current wording
Segment EBITDA. The increase of $0.7 million in 2026 was driven by favorable pricing and sales mix of $5.8 million, lower SG&A of $0.5 million, and volume growth of $0.5 million. The increase was partially offset by increased manufacturing costs of $6.1 million.
Previous wording
Segment net sales. The increase of $8.1 million in 2026 was driven by favorable pricing and sales mix of $4.1 million (five percent), favorable foreign currency exchange of $2.5 million (three percent), and volume growth of $1.5 million (two percent).
Current wording
Segment net sales. The increase of $14.9 million in 2026 was driven by favorable pricing and sales mix of $9.9 million (eight percent), favorable foreign currency exchange of $2.0 million (two percent), and volume growth of $3.0 million (two percent).
Previous wording
Segment EBITDA. The increase of $3.2 million in 2026 was driven by favorable pricing and sales mix of $4.1 million, lower SG&A of $0.8 million, and volume growth of $0.5 million. The increase was partially offset by increased manufacturing costs of $1.9 million, and unfavorable foreign currency exchange and other charges of $0.3 million.
Current wording
Segment EBITDA. The increase of $3.9 million in 2026 was driven by favorable pricing and sales mix of $9.9 million, lower SG&A of $1.3 million, and volume growth of $1.0 million. The increase was partially offset by increased manufacturing costs of $8.0 million, and unfavorable foreign currency exchange and other charges of $0.3 million.
Previous wording
Adjusted EBITDA from continuing operations is defined as net income (loss) from continuing operations plus interest expense, net, provision (benefit) for income taxes, depreciation, amortization, restructuring and other (income) charges, net, goodwill impairment charges, long-lived asset impairment charges, gain on sale of business, acquisition and other-related (income) costs, litigation charge, (gain) loss on strategic investments, impairment of license agreement, proxy contest charges, portfolio realignment costs, and pension and postretirement settlement and curtailment (income) charges, net.
Current wording
Adjusted EBITDA from continuing operations is defined as net income (loss) from continuing operations plus interest expense, net, provision (benefit) for income taxes, depreciation, amortization, restructuring and other (income) charges, net, goodwill impairment charges, long-lived asset impairment charges, gain (loss) on sale of business, acquisition and other-related (income) costs, litigation charge, (gain) loss on strategic investments, impairment of license agreement, proxy contest charges, portfolio realignment costs, and pension and postretirement settlement and curtailment (income) charges, net.
Previous wording
We are raising our full-year adjusted EBITDA outlook reflecting the strong first-half execution and results across our portfolio. Our outlook includes a full year of operating results from the Advanced Polymer Technologies reportable segment and excludes contributions from the divested industrial specialties product line, effective January 1, 2026, and the road markings product line beginning April 15, 2026.
Current wording
We are narrowing our full-year adjusted EBITDA outlook, while maintaining the midpoint of the prior range, supported by solid year-to-date performance and increased visibility into expected results for the remainder of the year. Our outlook includes a full year of operating results from the Advanced Polymer Technologies reportable segment and excludes contributions from the divested industrial specialties product line, effective January 1, 2026, and the road markings product line beginning April 15, 2026.
Previous wording
Net sales are expected to be between $1.05 billion and $1.15 billion for 2026. We expect Net sales in our Performance Materials reportable segment to grow low-single digits as increased pricing on select products partially offsets the forecasted decline in global automotive production for Internal Combustion Engine ("ICE") powertrains compared to the prior year. We expect Net sales in our Pavement Technologies reportable segment, excluding the divested road markings product line beginning April 15, 2026, to grow mid-single digits through continued adoption of our warm mix asphalt products. For our Advanced Polymer Technologies reportable segment, we expect Net sales to grow low-double digits with low-single digit volume growth, reflecting price surcharges implemented in the second quarter of 2026 to offset rising raw materials prices.
Current wording
Net sales are expected to be approximately $1.1 billion for 2026. We expect Net sales in our Performance Materials reportable segment to grow low-single digits as increased pricing on certain products partially offsets the forecasted decline in global automotive production for Internal Combustion Engine ("ICE") powertrains compared to the prior year. We expect Net sales in our Pavement Technologies reportable segment, excluding the divested road markings product line beginning April 15, 2026, to grow low-single digits, reflecting demand softness from higher asphalt costs. For our Advanced Polymer Technologies reportable segment, we expect Net sales to grow low-double digits with low-single digit volume growth, reflecting the benefit of price surcharges implemented in the second and third quarters of 2026 in response to higher raw materials costs.
Previous wording
Adjusted EBITDA is expected to be between $380 million and $400 million for 2026. We expect our Performance Materials reportable segment to maintain segment EBITDA margins around mid-50 percent, as revenue growth is partially offset by investments in selective growth opportunities. In our Pavement Technologies reportable segment, we expect segment EBITDA margins in the high-teens. The segment is expected to benefit from revenue growth but will be burdened by indirect costs from the divested road markings product line. We anticipate that our Advanced Polymer Technologies reportable segment EBITDA will improve versus prior year driven by volume growth, while maintaining segment EBITDA margins of approximately 20 percent. Corporate and Other costs are expected to be consistent with 2025.
Current wording
Adjusted EBITDA is expected to be between $385 million and $395 million for 2026. We expect our Performance Materials reportable segment to maintain segment EBITDA margins around mid-50 percent, as revenue growth is partially offset by investments in selective growth opportunities. In our Pavement Technologies reportable segment, we expect segment EBITDA margins in the mid-teens, reflecting higher input and logistics costs and the burden of dis-synergy from the divested road markings product line. We anticipate that our Advanced Polymer Technologies reportable segment EBITDA will improve versus prior year driven by volume growth, while maintaining segment EBITDA margins of around 20 percent. Corporate and other costs are expected to be consistent with 2025.
Previous wording
The divestitures of the industrial specialties and road markings product lines resulted in approximately $20 million of indirect costs caused by dis-synergies of scale. We expect to achieve run rate savings of approximately 75% of these costs by the end of 2026. Through the second quarter of 2026, we have eliminated approximately $10 million of these costs.
Current wording
The divestitures of the industrial specialties and road markings product lines resulted in approximately $20 million of stranded costs caused by dis-synergies of scale. We expect to achieve run rate savings of approximately 75% of these costs by the end of 2026. Through the third quarter of 2026, we have eliminated on an annualized run-rate basis, approximately 65% of these costs.
Previous wording
Our effective tax rate is expected to be between 22 to 24 percent. We expect to recognize approximately $90 million of depreciation and amortization, adjusted for the divested road markings product line, in 2026.
Current wording
Our effective tax rate is expected to be between 22 and 24 percent. We expect to recognize between $80 million and $90 million of depreciation and amortization, reflecting the divested road markings product line and asset impairments recognized in the second quarter of 2026.
Previous wording
The primary source of liquidity for our business is the cash flow provided by operating activities. We expect our cash flow provided by operations combined with cash on hand and available capacity under our revolving credit facility to be sufficient to fund our planned operations and meet our interest and other contractual obligations for at least the next twelve months. As of June 30, 2026, our undrawn capacity under our revolving credit facility was $246.9 million. Over the next twelve months, we expect to fund the following: debt principal repayments, interest payments, capital expenditures, income tax payments, purchases pursuant to our stock repurchase program (and related excise tax payments), and restructuring activities. In addition, we may also evaluate and consider strategic investments, joint ventures, or other transactions to create stockholder value and enhance financial performance. In connection with such transactions, or to fund other anticipated uses of cash, we may modify our existing revolving credit facility, redeem all or part of our outstanding senior notes, seek additional debt financing, issue equity securities, or some combination thereof.
Current wording
The primary source of liquidity for our business is the cash flow provided by operating activities. We expect our cash flow provided by operations combined with cash on hand and available capacity under our revolving credit facility to be sufficient to fund our planned operations and meet our interest and other contractual obligations for at least the next twelve months. As of September 30, 2026, our undrawn capacity under our revolving credit facility was $312.8 million. Over the next twelve months, we expect to fund the following: debt principal repayments, interest payments, capital expenditures, income tax payments, purchases pursuant to our stock repurchase program (and related excise tax payments), and restructuring activities. In addition, we may also evaluate and consider strategic investments, joint ventures, or other transactions to create stockholder value and enhance financial performance. In connection with such transactions, or to fund other anticipated uses of cash, we may modify our existing revolving credit facility, redeem all or part of our outstanding senior notes, seek additional debt financing, issue equity securities, or some combination thereof.
Previous wording
Cash and cash equivalents totaled $97.4 million at June 30, 2026. We continuously monitor deposit concentrations and the credit quality of the financial institutions that hold our cash and cash equivalents, as well as the credit quality of our insurance providers, customers, and key suppliers.
Current wording
Cash and cash equivalents totaled $85.4 million at September 30, 2026. We continuously monitor deposit concentrations and the credit quality of the financial institutions that hold our cash and cash equivalents, as well as the credit quality of our insurance providers, customers, and key suppliers.
Previous wording
Due to the global nature of our operations, a portion of our cash is held outside the U.S. The cash and cash equivalents balance at June 30, 2026 included $87.4 million held by our foreign subsidiaries. Cash and earnings of our foreign subsidiaries are generally used to finance our foreign operations and their capital expenditures. At December 31, 2025, we determined that the earnings of some of our subsidiaries are no longer permanently reinvested due to global volatility. We believe that our foreign holdings of cash will not have a material adverse impact on our U.S. liquidity. If these earnings were distributed, such amounts could be subject to U.S. federal income tax at the statutory rate less the available foreign tax credits, if any, and could potentially be subject to withholding taxes in the various jurisdictions. The potential tax implications of the repatriation of unremitted earnings are driven by facts at the time of distribution, therefore, it is not practicable to estimate the income tax liabilities that might be incurred if such cash and earnings were repatriated to the U.S. Refer to Note 12 for more information.
Current wording
Due to the global nature of our operations, a portion of our cash is held outside the U.S. The cash and cash equivalents balance at September 30, 2026 included $81.1 million held by our foreign subsidiaries. Cash and earnings of our foreign subsidiaries are generally used to finance our foreign operations and their capital expenditures. At December 31, 2025, we determined that the earnings of some of our subsidiaries are no longer permanently reinvested due to global volatility. We believe that our foreign holdings of cash will not have a material adverse impact on our U.S. liquidity. If these earnings were distributed, such amounts could be subject to U.S. federal income tax at the statutory rate less the available foreign tax credits, if any, and could potentially be subject to withholding taxes in the various jurisdictions. The potential tax implications of the repatriation of unremitted earnings are driven by facts at the time of distribution, therefore, it is not practicable to estimate the income tax liabilities that might be incurred if such cash and earnings were repatriated to the U.S. Refer to Note 12 for more information.
Previous wording
On July 25, 2022, our Board of Directors authorized the repurchase of up to $500.0 million of our common stock (the "2022 Authorization"), and rescinded the prior outstanding repurchase authorization with respect to the shares that remained unused under the prior authorization. Shares under the 2022 Authorization may be purchased through open market or privately negotiated transactions at the discretion of management based on its evaluation of market prevailing conditions and other factors, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act.
Current wording
On July 25, 2022, our Board of Directors authorized the repurchase of up to $500.0 million of our common stock (the "2022 Authorization"), and rescinded the prior outstanding repurchase authorization with respect to the shares that remained unused under the prior authorization. Shares under the 2022 Authorization may be purchased through open market or privately negotiated transactions at the discretion of management based on its evaluation of prevailing market conditions and other factors, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act.
Previous wording
During the three months ended June 30, 2026, we repurchased $35.1 million, inclusive of $0.2 million in excise tax, in common stock, representing 491,000 shares of our common stock at a weighted average cost per share of $70.94. During the six months ended June 30, 2026, we repurchased $87.4 million, inclusive of $0.6 million in excise tax, in common stock, representing 1,265,189 shares of our common stock at a weighted average cost per share of $68.59. At June 30, 2026, $210.7 million remained unused under the 2022 Authorization.
Current wording
During the three months ended September 30, 2026, we repurchased $38.9 million, inclusive of $0.4 million in excise tax, in common stock, representing 538,979 shares of our common stock at an average cost per share of $71.45. During the nine months ended September 30, 2026, we repurchased $126.3 million, inclusive of $1.0 million in excise tax, in common stock, representing 1,804,168 shares of our common stock at an average cost per share of $69.44. At September 30, 2026, $172.2 million remained unused under the 2022 Authorization.
Previous wording
Projected 2026 capital expenditures are $40-60 million. We have no material commitments associated with these projected capital expenditures as of June 30, 2026.
Current wording
Projected 2026 capital expenditures are expected to be between $50 and $60 million. We have no material commitments associated with these projected capital expenditures as of September 30, 2026.
Previous wording
Cash flow comparison of the Six Months Ended June 30, 2026 and 2025
Current wording
Cash flow comparison of the Nine Months Ended September 30, 2026 and 2025
Previous wording
Cash used in operating activities, inclusive of continuing and discontinued operations, consists of net income (loss) adjusted for non-cash items including the cash impact from changes in operating assets and liabilities (i.e., working capital) totaled $15.8 million for the six months ended June 30, 2026, which was inclusive of a $113.2 million cash payment for a litigation settlement, and $62.8 million of gains related to divestitures, including a $54.2 million gain related to the sale of the industrial specialties product line.
Current wording
Cash provided by operating activities, inclusive of continuing and discontinued operations, consists of net income (loss) adjusted for non-cash items and the cash impact from changes in operating assets and liabilities (i.e., working capital). Cash provided by operating activities totaled $83.4 million for the nine months ended September 30, 2026 and was inclusive of a $113.2 million cash payment for a litigation settlement and $59.6 million of non-cash gains related to divestitures, including a $54.0 million gain related to the sale of the industrial specialties product line.
Previous wording
Cash used in operating activities for the six months ended June 30, 2026 was driven by a $113.2 million cash payment for a litigation settlement, a net increase in trade working capital of $31.9 million (including accounts receivable, inventory, and accounts payable), increased employee compensation payments of $7.4 million, and a decrease in CTO resale cash inflows of $6.2 million. Partially offsetting these cash outflows was increased cash earnings of $13.8 million, lower cash interest paid of $8.7 million, lower cash taxes paid of $8.3 million, and decreased spending on restructuring initiatives of $7.7 million.
Current wording
Cash provided by operating activities for the nine months ended September 30, 2026, when compared to the nine months ended September 30, 2025, decreased by $150.7 million. The decrease was driven by a $113.2 million cash payment for a litigation settlement, a net increase in trade working capital of $56.9 million (including accounts receivable, inventory, and accounts payable), increased employee compensation payments of $6.8 million, a decrease in CTO resale cash inflows of $6.2 million and decreased cash earnings of $2.2 million. Partially offsetting these cash outflows was a decrease in cash interest paid of $12.6 million, a $4.7 million decrease in cash taxes paid, and a $17.3 million decrease in spending on restructuring activities.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
During the three and nine months ended September 30, 2025, we repurchased $25.2 million, inclusive of $0.2 million in excise tax, in common stock, representing 445,724 shares of our common stock at an average cost per share of $56.09. At September 30, 2025, $328.4 million remained unused under the 2022 Authorization.