Good Dan. this a joining Thanks is what and very know and everyone. Thank busy for week earnings morning interest you continued us for we your Ingevity. morning in from
number was our had We improvements start Performance X, for If and in and some in you Materials performance Chemicals We segment continued in our good quarter. you'll strong the with first a quarter our line slide Performance and growth mix applications. from year price the turn to from expectations. highlights notice legacy to benefited
increase strategy. costs. drop drop evidence particularly in strong clear XX% EBITDA are which revenue The profitability for XXX strong the adjusted a million. executing Both margin increase and caprolactone was AB of basis revenues in first margin Capa first Still transportation In were revenue or acquired in approximately million, in up the product posting and line business points compared including XX%, higher and the the in We up SG&A to success of Engineered EBITDA positive addition, contributed our newly adjusted through acquisition on $XX versus adjusted when the higher by costs, formed the to resulting the Chemicals legal through quarter $XXX of the logistics XX% Performance general selling, the Perstorp previous quarter. delivered were a EBITDA and prior impacts The our significantly Holding partially through Polymers year's administrative the offset segment. quarter. we're year, was of having Overall, expenses were improvement XX% revenues.
commitment our both investing in organically growth, steadfast includes through top higher if in While can growth This from margins, become at it growth. line the we and and to don't better delivering our technology capabilities short-term of volumes earnings partners occasionally committed to line expense our intentionally occurring inorganically, remain some to building margin transitioning The in Chemicals top prioritize and even which also long-term segment. that is away Performance backing most and applications, customers. our with meet latter But profitability includes objectives. notable perhaps we
reduced un-derivatized as pro in pro these we the applications. G-P more actions to ink were, business withdrawal the quarter. are a agricultural rig basis, chemicals, benefiting oil up slower based others price results. of collectively, the According less chemicals. TOFA on prior chemicals basis, intentionally excludes of of XX% on to less sequentially. our drove acquisition including period. U.S. in to Sales market out XXXX and chemicals the the Europe a G-P our sales in low $XX are by clearly down into quarter. the with our Conversely, million than other factors production XX% the significantly include in count and three forma last period. of down points If pro more XX% Industrial prior forma America see experienced you'll to On were feet transitioning million year U.S. three, million driven impacted and was year-over-year benefited exposure Sales first on reduction of Segment success business a based and distributor half second quarter. providing grew customers, forma printing our reported pavement or quarter and Industrial sales year Baker basis digits these intentional benefit, one, in deliver seasonally increases Versus profitable market we our in prior continue our margins. of as took forma nine were We drivers $X Europe. oil in a the products growth segment as we were the On up sub-optimal pro in from was chemicals in a an by assumes segment XXXX. end the Specialties in year of for in at the Though XXX EBITDA The the the an Sales forma delayed to business by up the Performance both significant full impacts year, EBITDA despite also a ink businesses improvement the customers in And on revenues $XXX as linear an Industrial offset Chemicals which XX%. that X% XX% in year. the Segment the Engineered number XXXX. implementing versus our items into pine we the the to customers, benefited quarter significant prior to applications on the ownership XXXX as Specialties relationship $XX Performance the oilfield slide had business XX.X%. basis. quarter reported fourth applications for relatively pine the conditions XX% to merchant reported X positive And pine weather in to down versus the business. drilled prior resultant as lubricants from weeks increase over basis up of Georgia-Pacific three inks, acid most printing X% pine Chemicals. Specialties chemicals which in year Industrial Two, quarter, margin we margin of primarily information XX% basis, fatty pushed down pro versus and Sales adhesives, decline, and of you in or some even were of quarter flat for the applications of sales we accounted North Specialties We approximately the sold were results activity. from first were up and work the of were drilling decline decrease first result majority production than past to the as which first G-P our owned XX%. year or quarter Absent impact quarter was results growth revenue products turn acquisitions. drilling also approximately million, in tall Hughes The full were was Polymers the reductions These was mostly oilfield down sales versus uses for high-single G-P having well to EBITDA was terminated
the impacted as sales South a base side, Brazil infrastructure in decreased flip political smaller the On environment albeit America on in work.
line. These strong of to our the to high-single also the a sales were half year, we expectations higher full pavement new slightly at revenue In rates to segment, grow our quarter. we a For the had of finish quarter customers product the expect due in Polymers from Engineered the benefit digits. continue to than results historical
forma XX%. current and were sales However, competitor's when to in the temporary compared down to this about quarter of inflated to the last product results. year inability a which of supply pro basis due About during FX half about first was an quarter Asian unfavorable decline due to half on XXXX,
the in Engineered importantly, this its reaffirm actions now to on segment believe enhance for us Overall, business profitability More long-term with the the and we benefit our margins margins future. of taking fit are the view strategy. realized our we Polymer of we sales will the
mid-XX% range to driving EBITDA by segment Performance know, the you As committed XXXX. have to Chemicals margins we
are to likely only this reach us target, Capa on not enable but timeline. this will in We objective track addition reach this the the advance to of business of well
see Performance XXXX. in For posted margins we the solid the Chemicals full above expect XXXX, to margin year XX% accretion
versus honeycomb and up can sales $XXX first III segment continued particularly be Turning X slide to prior delivered once Segment in by you sales LEV XX% emission the gasoline million, strong of to vapor year's outstanding number Performance scrubber solutions driven were again products. about quarter Materials, our U.S. the X Tier Volumes our as on patented the quarter. see performance.
typical production vehicle segment the in we're to outweigh XX%. it America. According toward light were Again, regulatory from the million is production so China, was down business, driven fact was is repeating the Performance drivers see quarter in regulatory light far the year's the market EBITDA. North that China the for passenger America vehicles. to now segment weak speaks $XX despite North business. think bears vehicle this EBITDA auto light quarterly down light Wards, Trucks the away in of $X was prior of production Materials share versus of this significance segment production a and record XX% X.X% up growth our up In the In to shift trucks million, As significantly I variations impacts sales XX%. or quarterly around and the Anecdotally, continuing cars. in
segment impressive As EBITDA XXX to points XX%. basis rose margin
the full posted for above As we discussed margins the XXXX. expect modest XX% year quarter, last we in accretion in
forward, turn color To China adopting call, automakers this, regarding patterns little our I for mentioned six has on ordering last as publicly which products provide pelleted Looking implements on Since to early is dramatically map, if the more you'll changed. carbon as quarter, information what increasing regulations. our in X updated available provides very provinces. slide you'll see are last China
In X in pushed July than to fact, announced this at time out City the adoption believe movements one we its has Guangzhou frame patterns schedules. only look is ordering more it relevant stage, change XXXX. is that to now At that regulatory from automakers March
our moving schedules containing China carbon X with Tier are now are ahead automakers Some production of type in announced products. two normal vehicles and the canisters of
a chart, granular the of side Growth average. As threefold typically China in slide quarterly the pelleted our almost you from China X, as products the from shipped in X historical has see of right key past pelleted months grown six in China can on volumes of is indicator employed hand adoption X products product. the canisters,
certified addition, In have of in the or compliant X. China Chinese platforms approximately estimation been with platforms our as vehicle XXXX XX% total over now
well meet needs of prepared in are We our China. to the customers
will and our the our Vice Executive over I'll this We're is are and we're well In shifts growth strong continuing detailed Thank underway. the globally our confident regulatory Performance regulatory Fortson, turn XXXX. for for John? to At status segment various John capacity leadership fuel us meet needs serve to to our regions the we've everyone. for and shift Euro the investments also manufacturing Treasurer make our you, which the John standards. a addition, and CFO future. continue will in that regulation the in Europe, These implement of for customers continuing made and Fortson Michael. Materials to of foreseeable more more technological countries as review call Good President, well point, morning to Xd as they to guidance continue financial stringent
some results, for first remarks. color our review on X, our our provide for the quarter before guidance call structure slide year additional and some turning review the capital back closing Michael to Turning will to I
in As expectations. Michael said, our the first line quarter was with
We to our Engineered into team are the to they Company. contributor of welcome are Ingevity and a valued Polymers already excited and part
As up the acquisitions and begin Michael reflect additional of cost from EBITDA Company, with has to is covered I associated non-cash the the the SG&A as both revenue line increased expenses. Capa at the pine G-P and the SG&A income and year cash statement. on legal last both caprolactone well chemicals as will
of percent the for Our amortization effects associated acquisition. excluding on the legal SG&A, core Net as was was debt million flat Capa sales to and acquisitions quarter $XX.X relatively with a the increased expense expenses interest result the of a basis.
we term acquisition. to portion of needed for rates a of proceeds at During the closed incremental loan from a the Capa an fund subset attractive quarter, the on lenders
Our was $XX X.X% and of our borrowing rate the loans fixed on at bank revenue X.XX%. rate industrial the at quarter was The million and at blended rate X.XX% of remains our the senior our borrowing the bond remains term notes rate for X.XX%. end revolver combined
million provision for on for income $XX adjusted Our taxes quarter. was earnings the
Our was XX tax our adjusted XX.X%. March as rate GAAP or of non-GAAP
quarter and related awards quarter. zero as the Capa recognized stock option Our rate in one-time of and tax acquisition the effect GAAP adjustments vested actually was to beneficial for the tax we the
available costs last a the authorized per the $XXX.X a programs. the remaining tax settled acquisitions positive XXXX of venture. effects in spending as year earlier repurchase received X% Board in $XX.XX Diluted weighted share $X.XX, were quarter, U.S. the and of ops Georgia-Pacific XX,XXX to our on quarter from also which repurchase share interest cash as We earnings the million immediate the cost PurCell the well projects current of was from the the deductible the early mentioned from around and of at year. and bought goodwill the January, equity both tax per expect at due benefits rate full-year joint the be remain shares which share chemicals to pine that our year. of the and end our acquisition positive from for capital is adjusts excludes in the In last business XX.X% tax first of we effects increase tax vesting adjusted
shares March As shares outstanding XX, Ingevity outstanding. million had million and XX.X diluted basic of XX.X
of debt $X,XXX.X Turning to slide end X, the reflects our net This build the paving as million. seasonal at of was funding the the of advance our well season. Capa capital in acquisition both the as quarter working
the accounts, advance due to quarter buildup Our to our EBITDA Working season. inclusion the end the to capital quarter. due times also net X.X the Polymers of Engineered paving at increased this but was in inventory of debt of the of
these we percentage year high actually working hold increased to do the of monitor continue quarter as levels and the cash globally. as continue of Net We of expect to begin tightly China falling this our in from in capital second carbon of activated however, inventories inventory year. carbon first a sales half in demand we of positions fell anticipation last to
was Our $XX.X cash operations flow million. in $X was The capital cash the free and from million. resultant $XX.X quarter were negative expenditures million negative
typically we turn reminder, our due in cash of to the the businesses, quarter. As second positive a seasonality flow
in our XX-Q, Form later to Additional today. information will available be expect we which file
opportunities of slide in XX, our XXXX now improved the outlook with quarter and sight both line into we have risks. to said, as Turning first as and expectations have we line was
for from appears G&A million $XX year, $XXX for on and our million to businesses. the We're guidance the million $XX towards for year. million. adjusted now and maintaining billion trending expenditures million for and guidance tax capital year EBITDA the to between $X.XX for for also $X.XX between the debt adjusting and the for We rate, $XX target $XXX from legacy billion high and the Capa $XX sales our are be million approximately, acquisition maintaining Capa net ratio
planning across solid turn to Michael. metrics call will over year growth off the the to I XXXX. are for With the are now all We of for course and that significant start a Ingevity over
