Ingevity Corporation Common Stock

Hello, everyone. Thank you for joining us and welcome to the Ingevity second quarter 2026 earnings call and webcast. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Mickey Walsh, head of investor relations. Please go ahead.

Thank you. Good morning and welcome again to Ingevity's second quarter 2026 earnings call. Last evening, we posted a presentation on our investor site that you can use to follow today's discussion. It can be found on our website, ir.ingevity.com, under Events and Presentations. Throughout this call, we may refer to non-GAAP financial measures, which are intended to supplement, not substitute, comparable GAAP measures. Definitions of these non-gap financial measures and reconciliations to comparable gap measures are included in our earnings release. We may make forward-looking statements regarding future events and future financial performance of the company during this call. And we caution you that these statements are just projections and actual results or events may differ materially from those projections described in our earnings release. The agenda for today's call is listed on slide three. Today, you will hear from Dave Lee, our CEO and president, and Phil Platt, our CFO. Our prepared comments will focus on results from the second quarter of 2026 from continuing operations and recent business highlights. Following the prepared remarks, we will open the line for a Q&A session. I will now turn the call over to Dave.

Thank you, Mickey, and good morning, everyone. Please turn to slide four. This quarter represents another period of outstanding execution across the company and further demonstrates the progress we're making in building a stronger, higher quality in Jevity. Our businesses delivered excellent commercial and operational performance. Excluding the road markings divestiture, sales increased 5% with growth across all three segments. More importantly, adjusted EBITDA increased nearly 14% and adjusted EBITDA margins expanded to 36.6%, demonstrating the earnings power of our portfolio and the discipline with which our teams continue to operate. Performance Materials once again delivered exceptional results with EBITDA margins approaching 54%. Beyond the quarter, we continue to benefit from a structural shift in consumer buying habits toward hybrid vehicles. Thank you for joining us. While advanced polymer technologies delivered meaningful year-over-year improvement through pricing actions, product mix, and operational execution. Both businesses performed well despite facing some headwinds from the volatile geopolitical environment. Along with this strong operating performance, we also continued executing our portfolio strategy. During the quarter, we completed the sale of our road markings product line. Combined with the industrial specialties divestiture completed earlier this year, these actions continue improving the quality of our portfolio while allowing us to focus resources on our highest return opportunities. In addition, the strategic alternatives process for advanced polymer technology continues to progress well and is now in an advanced stage. Our priority remains achieving the best outcome for shareholders while continuing to sharpen our strategic focus. Our discipline and balanced capital allocation strategy also remained unchanged. During the quarter, we repurchased $35 million of shares and remain ahead of pace towards our 300 million share repurchase commitment by the end of 2027. We also continue to reduce leverage and invest in attractive organic growth opportunities. Together, these actions strengthen our financial flexibility and support our long-term value creation potential. Finally, we're beginning to see encouraging commercial validation of several organic growth initiatives, particularly filtration. where our carbon technology is demonstrating differentiated performance. I'll discuss these opportunities in more detail later in the call. Overall, I'm extremely proud of what our teams accomplished this quarter. We are executing with discipline, strengthening the business and building a stronger, higher quality Ingevity with more durable earnings power while investing in long-term growth opportunities. And with that, I'll turn it over to Phil.