Activated Carbon Demand Will Lead A Transformed Company

Research evidence excerpt

Activated Carbon Demand Will Lead A Transformed Company

USA | Chemicals

Ingevity EquityJuneResearch24, 2026

COMPANY UPDATEActivated Carbon Demand Will Lead A

RATING BUYTransformed Company

PRICE $72.74^

Ingevity is transitioning to a higher-margined specialty materials company,

underpinned by relatively resilient end markets and supportive regulatory PRICE TARGET | % TO PT $92.00 | +26%

trends. The near-term macro environment remains mixed, particularly within 52W HIGH-LOW $79.29 - $39.74

automotive, where production volumes are largely flat. The secular growth FLOAT (%) | ADV MM (USD) 95.3% | 18.97

drivers remain; a durable shift toward hybrid vehicles likely will support ongoing MARKET CAP $2.6B

demand for activated carbon. The APT divestiture remains on track. TICKER NGVT ^Prior trading day's closing price unless otherwise

noted.

Secular Trends Will Drive Activated Carbon Growth: The increase in HEV sales volumes has

bolstered demand for activated carbon despite the sluggish automotive production environment.

FY (Dec) CHANGE TO JEFe JEF vs CONS

Moreover, tightening emissions standards, most notably the anticipated move to China 7 and

2026 2027 2026 2027

similar regulatory progression in India, creates a meaningful long-term tailwind through increased

content per vehicle. We expect increased contend per vehicle to add 100-200bps in annual revenue REV NA NA -1% +2%

growth through the beginning of the next decade. The company also has pricing power, and EPS NA NA -3% +2%

we estimate higher prices will add another 100-200bps to annual sales growth. In Pavement

Technologies, infrastructure spending and maintenance demand support steady growth, while the 2026 () Q1A Q2 Q3 Q4 FY

shift toward more sustainable paving solutions provides incremental upside.