Shares of Ingevity Corporation (NGVT) are soaring 12.06% in pre-market trading on Tuesday, following the company's release of better-than-expected second-quarter results. The specialty chemicals manufacturer reported adjusted earnings that surpassed analyst estimates and raised its full-year guidance, despite a decline in sales.

Ingevity announced Q2 adjusted earnings of $1.39 per diluted share, significantly higher than the $1.16 expected by analysts and up from $1.01 in the same quarter last year. This 37.6% year-over-year increase in adjusted EPS came despite a 6.5% decline in net sales to $365.1 million. The company's performance was bolstered by improved profitability, with adjusted gross profit margin expanding by 600 basis points to 42.0% and adjusted EBITDA rising 8.6% to $110.0 million.

Looking ahead, Ingevity has raised the low-end of its full-year EBITDA guidance range, citing solid performance in the first half of 2025 and improved forecasts for North American auto production. The company also increased the mid-point of its free cash flow guidance, demonstrating confidence in its financial outlook. These positive factors, combined with the company's progress in strategic initiatives such as the planned sale of its Industrial Specialties business, appear to be driving investor optimism and contributing to the stock's significant pre-market rally.