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: Jon Tanwanteng - CJS Securities, Inc - Analyst
: Congrats on a nice earnings quarter and the higher outlook for the year. Maybe first of all, could you give us an update on the profitability of the
InSpec stand-alone ex pavement where CTO prices are relative to a year ago and also relative to alternative OLOs and crude alternatives.
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AUGUST 05, 2025 / 2:00PM, NGVT.N - Q2 2025 Ingevity Corp Earnings Call
Question: Jon Tanwanteng - CJS Securities, Inc - Analyst
: Got it. I was wondering if you could talk about the investments that you mentioned in your prepared remarks, maybe some of the opportunities
there, if those are mostly in the carbon segment or others? And if there's any update on the already ongoing projects that you have?
Question: Jon Tanwanteng - CJS Securities, Inc - Analyst
: Okay. And just to stick one more in that. Congratulations on a really exceptional run for the segment. Any thoughts on just what you're looking for
in leadership there and if there's any tweaks you might be doing to the segment?
Question: John McNulty - BMO Capital Markets - Analyst
: So on performance chemicals, obviously, a really big jump in the margins, maybe bigger than what we were looking for, but a lot of things going
on in there. I guess, can you help us to think about what the margin would have been if you didn't have this high-cost CTO running through the
P&L? The presumption would be it would have been even higher and probably in the 20s, but can you help us to maybe think about that?
Question: John McNulty - BMO Capital Markets - Analyst
: Yes, definitely gives us a little bit of color on it at least. Okay. And then maybe we can --
Question: John McNulty - BMO Capital Markets - Analyst
: Okay. Fair enough. Okay. That helps. And then on the free cash flow side. So 2Q is normally kind of just about a breakeven-type free cash quarter
this time, noticeably better than that. I guess, can you help us to think about some of the levers that you're pulling to drive incremental free cash
flow as we look forward? Are there some new kind of initiatives or things that you're focused on to kind of tighten things up or push the profitability
and the improvement on the cash flow a little bit harder?
Question: Daniel Rizzo - Jefferies LLC - Analyst
: You mentioned doing a strategic review, just kind of for the whole portfolio. Is it going to be like an earlier process that once you're done with what
you're thinking about with industrial specialties that you'll then move on to the next? Or is it something that could happen all at once? I mean, is
there ongoing conversations with others about different parts of your business that haven't been previously mentioned?
Question: Daniel Rizzo - Jefferies LLC - Analyst
: And then you mentioned that CTO prices now as you purchase them in the open market, I think it's $550 to $600 a ton. I was just wondering what
that is as comparing to what your high cost one was from the beginning of the year and late last year. And how we should think about it going
forward? Is the market long CTO now just given what you've done? How we should just think about these costs versus your other inputs in the
back half of the year?
Question: Daniel Rizzo - Jefferies LLC - Analyst
: And going forward?
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AUGUST 05, 2025 / 2:00PM, NGVT.N - Q2 2025 Ingevity Corp Earnings Call
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