Raw Material Cost Volatility: Ingevity relies on crude tall oil and other specialty chemicals as key inputs, the costs of which can fluctuate significantly due to market dynamics, supply chain issues, and demand from other industries, impacting profit margins.

Automotive Market Dependence and EV Transition: A significant portion of Ingevity's Performance Materials segment revenue comes from activated carbon for automotive evaporative emissions control systems. A slowdown in automotive production or a rapid global transition to electric vehicles could reduce demand for these products.

Regulatory and Environmental Compliance Risks: Operating in the chemical and materials industries exposes Ingevity to stringent environmental regulations, including air emissions, wastewater discharge, and hazardous waste management. Non-compliance could lead to fines, operational shutdowns, and reputational damage.