revenue
355–370 $million
Q2 2022
official guidance
INGEVITY CORPORATION
Last · NYSE$70.14+0.06 (+0.09%)close · yahoo · 19h ago
Market cap$2.41B34.4M sh
P/E · TTM100fwd 11.7 · eps 0.70
Beta1.14vs S&P 500
Div yield0.00%annual · TTM
52w range
$45.85$79.29
Volume274.2Ksession
| Revenue | $572.1M |
|---|---|
| Operating income | $178.1M |
| Net income | $95.1M |
| Free cash flow | $-36.4M |
| Operating margin | 31.1% |
| Net margin | 16.6% |
| Return on equity | 202.8% |
| Period | 2026 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Improving utilization and substantial liquidity outweigh near-term execution risks.
Buy: Valaris is entering a potentially sharp earnings inflection, with Q2 revenue guided to $355 million-$370 million and adjusted EBITDA to approximately $25 million versus negative $31 million in Q1; full-year adjusted EBITDA is guided to $160 million-$190 million. The bull case is four floaters returning to work, $2.4 billion of backlog, strong floater pricing and $578 million of cash against $550 million of secured notes, but the thesis still depends on completing reactivations without further overruns and converting market strength into higher day rates.
Themes
- Floater Reactivation
- Offshore Drilling Upcycle
- Day Rates
- Brazil Demand
- Aro Drilling
- Fleet Rationalization
Near term
Completion and ramp-up of the four floater reactivations should drive the expected Q2-to-Q3 earnings step-up; floater operating days are expected to rise approximately 45% sequentially in Q2.
Reactivation spending is expected to fall from $62 million in Q1, supporting the Q2 adjusted EBITDA recovery.
Contract awards for DS-7, DS-8 or DS-17 could provide additional upside, but incremental 2022 reactivations would initially pressure EBITDA and CapEx.
The $97 million CARES Act tax refund could improve liquidity, although timing remains uncertain.
Brazil tender activity and improving floater day rates, including awards around or above $300,000 per day, are key catalysts for backlog and valuation.
Longer term
The $2.4 billion backlog, up from just over $1 billion at the beginning of 2021, improves earnings visibility and supports a multi-year recovery.
Three uncontracted high-spec drillships provide operating leverage to a tightening floater market; management says new reactivations could pay back costs within the first contract year.
ARO Drilling offers an additional structural asset through Valaris's 50% interest, $443 million of notes receivable and long-term Saudi Aramco-backed contracts.
Incumbency and critical mass in Brazil may be a competitive advantage because Petrobras has specific rig requirements and entering the market requires capital expenditure.
Fleet rationalization and sales of older stacked jackups can unlock value, while the disciplined reactivation hurdle rate limits uneconomic growth spending.
Red flags
Q1 adjusted EBITDA was negative $31 million, while contract drilling expense rose to $331 million as reactivation costs reached $62 million; management's earnings recovery remains execution-dependent.
Reactivation costs averaged above prior expectations, including a $4 million DS-16 incident and additional work scopes; management acknowledged future floater reactivations will likely cost more than $40 million-$45 million per rig.
The DS-11 backlog includes approximately $428 million tied to a project that TotalEnergies withdrew from; Equinor assumed the contract, but termination remains possible if the project does not receive FID.
Harsh-environment jackups remain soft, with short contract durations and competitive bidding, while benign jackups still face fragmented supply and local-contractor competition.
ARO's 2022 EBITDA guidance was reduced to $80 million-$90 million from $90 million-$100 million because of delayed rig start-up and newbuild delivery.
The analyst's debt question highlighted a capital-allocation tension: despite $125 million of rig-sale proceeds, Valaris is prioritizing liquidity and potential stacked-fleet investment over early debt retirement because of the note's non-call period.
Forward outlook
adjusted eps
—
Q2 2022
official guidance
ebitda
25 $million
Q2 2022
official guidance
revenue
1500–1550 $million
FY 2022
official guidance
ebitda
160–190 $million
FY 2022
official guidance
operating margin
325–350 $million
FY 2022
official guidance
operating margin
410–435 $million
FY 2022
official guidance
ebitda
80–90 $million
FY 2022
official guidance
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
$1.59
Est. revenue
305.4M
Earnings transcripts
- Motley Fool
Ingevity (NGVT) Q2 2026 Earnings Call Transcript
INGEVITY CORPORATION
- Issuer IR
Q2 2026 earnings call transcript
INGEVITY CORPORATION
- Issuer IR
Q2 2025 earnings call transcript
INGEVITY CORPORATION
- Issuer IR
Q4 2025 earnings call transcript
INGEVITY CORPORATION
- Issuer IR
Q3 2025 earnings call transcript
INGEVITY CORPORATION
- Issuer IR
Q1 2025 earnings call transcript
INGEVITY CORPORATION
Documents
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