The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Caleb Boehnlein - Bank of Montreal - Analyst
: This is Caleb on for John. I was just hoping you could provide a little more detail on how you're thinking of balancing the high-margin
Performance Materials business while also expanding like this -- the non-core pieces of that.
Question: Caleb Boehnlein - Bank of Montreal - Analyst
: Got you. Okay. I appreciate the extra color. And then also on like slide 13, you highlighted some like other opportunities, which I believe
you had said are not included in your 2027 numbers, but maybe just, can you talk like, where you see like -- where is the greatest opportunity
for Ingevity here to kind of further expand PM?
Question: Daniel Rizzo - Jefferies LLC - Analyst
: So I guess just with the filtration applications. I mean, have you -- given the size of what the tangible addressable market is and how
fragmented it is, I mean, how competitive it is, how should we think about just the broader opportunity there in terms of what you [can
attack]?
Question: Daniel Rizzo - Jefferies LLC - Analyst
: And then if I think about pavement technologies and activated carbon, are there -- I mean what are the production or manufacturing synergies
that exist there? Or is it more just like kind of more just general corporate stuff that -- where the cost synergies exist?
Question: Daniel Rizzo - Jefferies LLC - Analyst
: All right. And then final question. I assume the dividend is just not being considered. At this point, you're more focused on growing the
business and share repurchases. Is dividend something you guys have talked about in the past? Or I don't know.
Question: Jonathan Tanwanteng - CJS Securities Inc - Analyst
: If you could talk about the $1 billion in deployable cash target for '27, $300 million, I think you're targeting for buyback; $120 million-ish for
CapEx. Could you talk about the plans for the remainder of that other $480 million? I assume that you won't need as much to remain in that
2% to 2.5% EBITDA range continue to be pretty close right now. So what is the plan for the excess cash?
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DECEMBER 08, 2025 / 2:00PM, NGVT.N - Ingevity Corp Strategic Portfolio Update Call
Question: Jonathan Tanwanteng - CJS Securities Inc - Analyst
: Understood. And then if you could just help us with the EPS target for '27. $6.40 at the midpoint in EPS, I think the consensus estimate is
closer to $5.70, but EBITDA is going down, assuming you sell some businesses. So what's the math to get there? Is that all buybacks and
lower interest expense? Or is there something else in there that we're -- that we should be thinking about?
Question: Jonathan Tanwanteng - CJS Securities Inc - Analyst
: Got it. Thank you. And then if I could ask one more, just the expectation to sell or, I guess, explore strategic alternatives for APT and the
Road Markings business, how confident are you in getting a good price for both of those businesses? I know there's an implied price in the
cash that you're expecting.
But given both of them have faced a little bit more competitive challenge recently, can you just tell us what you're expecting there? And
kind of how do you expect to reposition them or restructure them in order to get better pricing? Or do you think the recovery is in cards for
both of those businesses in the future?
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