ENGLEWOOD, Colo., Oct. 01, 2025 (GLOBE NEWSWIRE) -- Innospec Inc. (NASDAQ: IOSP) today announced that it will release third quarter 2025 earnings on Tuesday, November 4, 2025 after market close. Following the release of its results, Patrick S. Williams, President and Chief Executive Officer, and Ian Cleminson, Executive Vice President and Chief Financial Officer, will host an interactive conference call on Wednesday, November 5, 2025, at 10:00 a.m. ET. The public is invited to listen to the conference call ...

Core Insights - Innospec Inc. has entered the second year of its partnership with International Justice Mission (IJM) to enhance protections for palm oil workers in Indonesia and combat forced labor and human trafficking [1][2] - The partnership, initiated in 2024, has made significant progress in improving labor conditions and will expand to additional provinces, including Sumatra and the Riau Islands, with new initiatives planned for 2025 [2][3] Company Overview - Innospec Inc. is a global specialty chemicals company with approximately 2,450 employees across 22 countries, providing a wide range of specialty chemicals for various markets [4] - The Performance Chemicals division focuses on innovative technology-based solutions for sectors such as Personal Care, Home Care, Agrochemical, Mining, and Industrial markets [4] Partnership Initiatives - Key initiatives from the partnership include training over 50 law enforcement and government officials on human rights and business practices, promoting a digital complaint system for reporting labor violations, and launching a national awareness campaign on safe migration and human trafficking [6] - The partnership aims to implement aftercare systems for survivors of forced labor, further enhancing support for vulnerable workers [2][3]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $439.7 million, a 1% increase from $435 million a year ago [10] - Overall gross margin decreased by 1.2 percentage points to 28% [11] - Adjusted EBITDA for the quarter was $49.1 million compared to $54.1 million last year [11] - Net income for the quarter was $23.5 million, down from $31.2 million a year ago [11] - GAAP earnings per share were $0.94, including special items that decreased earnings by $0.32 per share [11] - Adjusted EPS for the quarter was $1.26 compared to $1.39 a year ago [11] Business Line Data and Key Metrics Changes - **Performance Chemicals**: Revenues were $173.8 million, up 9% from $160.1 million last year; however, gross margins decreased by 5.1 percentage points to 17.5% [12] - **Fuel Specialties**: Revenues were $165.1 million, down 1% from $166.6 million; gross margins improved by 3.5 percentage points to 38.1% [13] - **Oilfield Services**: Revenues were $101 million, down 7% from $108.3 million; operating income improved sequentially but decreased 15% from $7.3 million a year ago [14] Market Data and Key Metrics Changes - The company does not anticipate any resumption of Latin America activity for the remainder of the year [8] - The oilfield services segment has seen better diversification in other countries, particularly in the Middle East [35] Company Strategy and Development Direction - The immediate priority is margin improvement in Performance Chemicals and Oilfield Services, focusing on sales, cost actions, and new technology [15] - The company has significant balance sheet flexibility for further organic investment, complementary M&A, and shareholder returns through dividend growth and buybacks [16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about achieving sequential gross margin improvement and operating growth in the second half of the year [6] - There is a noted hesitancy in the market due to geopolitical factors, leading to a consumer shift towards lower-margin products [21] - The company expects to see a lag in pricing recovery, particularly in oleochemicals, affecting margins in Q3 [24] Other Important Information - Corporate costs for the quarter were $20.9 million, including a $2.3 million legacy environmental provision [14] - Cash from operating activities was $9.3 million before capital expenditures of $16.2 million; the company repurchased almost 90,000 shares at a cost of $8.2 million [14] Q&A Session Summary Question: Insights on Performance Chemicals business and margin trends - Management noted a shift to lower-margin products due to market hesitancy and emphasized the need for better pricing control internally [21][23] Question: Drivers of strong gross margin performance in Fuel Specialties - The strong performance was attributed to price discipline, product mix, and non-fuel applications, though some normalization is expected in Q3 [25][26] Question: Update on oilfield customer base diversification and Latin America - Management does not foresee orders from the Latin American customer in Q3, citing internal issues within the customer’s operations [33][35] Question: Capital allocation and M&A updates - The company is opportunistically buying back shares and remains focused on long-term shareholder value, with potential M&A opportunities being considered after resolving margin issues [39][43]

PART I FINANCIAL INFORMATION [Item 1 Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited interim condensed consolidated financial statements and accompanying detailed notes Condensed Consolidated Statements of Income (Three Months Ended June 30) | Metric | 2025 (Millions $) | 2024 (Millions $) | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net sales | 439.7 | 435.0 | 4.7 | 1.1% | | Gross profit | 123.2 | 126.9 | (3.7) | -2.9% | | Operating income | 34.3 | 40.7 | (6.4) | -15.7% | | Income before income tax expense | 31.9 | 43.7 | (11.8) | -27.0% | | Net income | 23.5 | 31.2 | (7.7) | -24.7% | | Basic EPS | 0.94 | 1.25 | (0.31) | -24.8% | | Diluted EPS | 0.94 | 1.24 | (0.30) | -24.2% | Condensed Consolidated Statements of Income (Six Months Ended June 30) | Metric | 2025 (Millions $) | 2024 (Millions $) | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net sales | 880.5 | 935.2 | (54.7) | -5.8% | | Gross profit | 248.3 | 282.6 | (34.3) | -12.1% | | Operating income | 76.8 | 91.2 | (14.4) | -15.8% | | Income before income tax expense | 76.3 | 99.0 | (22.7) | -22.9% | | Net income | 56.3 | 72.6 | (16.3) | -22.4% | | Basic EPS | 2.26 | 2.91 | (0.65) | -22.3% | | Diluted EPS | 2.24 | 2.89 | (0.65) | -22.5% | Condensed Consolidated Balance Sheets (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (Millions $) | Dec 31, 2024 (Millions $) | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total current assets | 969.7 | 956.6 | 13.1 | 1.4% | | Total assets | 1,806.1 | 1,734.7 | 71.4 | 4.1% | | Total current liabilities | 337.4 | 371.4 | (34.0) | -9.2% | | Total liabilities | 504.6 | 518.6 | (14.0) | -2.7% | | Total equity | 1,301.5 | 1,216.1 | 85.4 | 7.0% | Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric | 2025 (Millions $) | 2024 (Millions $) | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | 37.6 | 85.3 | (47.7) | -55.9% | | Net cash used in investing activities | (31.7) | (29.7) | (2.0) | 6.7% | | Net cash used in financing activities | (32.5) | (18.4) | (14.1) | 76.6% | | Net change in cash and cash equivalents | (22.6) | 36.5 | (59.1) | -161.9% | | Cash and cash equivalents at end of period | 266.6 | 240.2 | 26.4 | 11.0% | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) [Condensed Consolidated Statements of Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) [Notes To The Unaudited Interim Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20To%20The%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1 – BASIS OF PRESENTATION](index=11&type=section&id=NOTE%201%20%E2%80%93%20BASIS%20OF%20PRESENTATION) The financial statements are prepared per GAAP, with reclassifications made to conform to the 2025 presentation - Reclassification of **$3.8 million (2025 YTD)** and **$4.0 million (2024 YTD)** from selling, general and administrative expenses to research and development expenses, with no impact on previously reported total net revenue, operating income, or net income[24](index=24&type=chunk) [NOTE 2 – SEGMENT REPORTING](index=11&type=section&id=NOTE%202%20%E2%80%93%20SEGMENT%20REPORTING) The company reports financial performance across its Performance Chemicals, Fuel Specialties, and Oilfield Services segments Net Sales by Segment (Three Months Ended June 30) | Segment | 2025 (Millions $) | 2024 (Millions $) | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Performance Chemicals | 173.8 | 160.1 | 13.7 | 8.6% | | Fuel Specialties | 165.1 | 166.6 | (1.5) | -0.9% | | Oilfield Services | 100.8 | 108.3 | (7.5) | -6.9% | | **Total Net Sales** | **439.7** | **435.0** | **4.7** | **1.1%** | Net Sales by Segment (Six Months Ended June 30) | Segment | 2025 (Millions $) | 2024 (Millions $) | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Performance Chemicals | 342.2 | 320.9 | 21.3 | 6.6% | | Fuel Specialties | 335.4 | 343.5 | (8.1) | -2.4% | | Oilfield Services | 202.9 | 270.8 | (67.9) | -25.1% | | **Total Net Sales** | **880.5** | **935.2** | **(54.7)** | **-5.8%** | Operating Income by Segment (Six Months Ended June 30) | Segment | 2025 (Millions $) | 2024 (Millions $) | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Performance Chemicals | 34.1 | 42.3 | (8.2) | -19.4% | | Fuel Specialties | 72.3 | 63.8 | 8.5 | 13.3% | | Oilfield Services | 10.3 | 24.2 | (13.9) | -57.4% | | Corporate costs | (38.6) | (37.8) | (0.8) | 2.1% | | **Total Operating Income** | **76.8** | **91.2** | **(14.4)** | **-15.8%** | [NOTE 3 – EARNINGS PER SHARE](index=13&type=section&id=NOTE%203%20%E2%80%93%20EARNINGS%20PER%20SHARE) This note details the calculation of basic and diluted earnings per share for the six months ended June 30 EPS Calculation (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net income available to common stockholders (millions $) | 56.3 | 72.6 | | Weighted average common shares outstanding (thousands) | 24,954 | 24,918 | | Dilutive effect of stock options and awards (thousands) | 143 | 173 | | Denominator for diluted EPS (thousands) | 25,097 | 25,091 | | Net income per share, basic ($) | 2.26 | 2.91 | | Net income per share, diluted ($) | 2.24 | 2.89 | [NOTE 4 – GOODWILL](index=13&type=section&id=NOTE%204%20%E2%80%93%20GOODWILL) Goodwill increased by $15.1 million in H1 2025, primarily due to foreign exchange rate effects - Goodwill increased from **$382.5 million** at January 1, 2025, to **$397.6 million** at June 30, 2025[33](index=33&type=chunk) - The increase was driven by a **$15.1 million exchange effect**, with **$14.9 million** related to Performance Chemicals and **$0.2 million** to Fuel Specialties[33](index=33&type=chunk) [NOTE 5 – OTHER INTANGIBLE ASSETS](index=13&type=section&id=NOTE%205%20%E2%80%93%20OTHER%20INTANGIBLE%20ASSETS) Other intangible assets increased, primarily from capitalized software development for a new ERP system - Net book amount of other intangible assets was **$78.3 million** at June 30, 2025, up from **$65.4 million** at December 31, 2024[17](index=17&type=chunk)[34](index=34&type=chunk) - Additions of **$10.8 million** in 2025 were capitalized for internally developed software for a new Enterprise Resource Planning ("ERP") system, expected to complete in 2026[34](index=34&type=chunk)[35](index=35&type=chunk) - Amortization expense for the six months ended June 30, 2025, was **$5.9 million**[34](index=34&type=chunk) [NOTE 6 – PENSION AND POST EMPLOYMENT BENEFITS](index=15&type=section&id=NOTE%206%20%E2%80%93%20PENSION%20AND%20POST%20EMPLOYMENT%20BENEFITS) The UK defined benefit pension plan was wound up, leaving only a German unfunded defined benefit plan - The UK defined benefit pension plan was bought out in Q4 2024 and fully wound up on July 29, 2025, **eliminating future obligations**[37](index=37&type=chunk) - The German unfunded defined benefit pension plan liability was **$10.1 million** at June 30, 2025, an increase from **$9.0 million** at December 31, 2024[38](index=38&type=chunk) - Net periodic benefit cost for the six months ended June 30, 2025, was **$(2.5) million**, compared to **$1.6 million** in the prior year[38](index=38&type=chunk) [NOTE 7 – INCOME TAXES](index=16&type=section&id=NOTE%207%20%E2%80%93%20INCOME%20TAXES) The company had no unrecognized tax benefits and expects no significant changes in the next twelve months - **No unrecognized tax benefits** as of January 1, 2025, and no change during the six months ended June 30, 2025[40](index=40&type=chunk) - U.S. subsidiaries are open to examination by the IRS for years **2021 onwards**; foreign jurisdictions like Brazil (2020 onwards), Germany (2020 onwards), and the U.K. (2023 onwards) are also open[41](index=41&type=chunk) [NOTE 8 – LONG-TERM DEBT](index=16&type=section&id=NOTE%208%20%E2%80%93%20LONG-TERM%20DEBT) The company had no outstanding debt under its $250.0 million multicurrency revolving credit facility - A **$250.0 million** multicurrency revolving credit facility is available until May 30, 2028[42](index=42&type=chunk) - **No debt was drawn down** or repaid on the revolving credit facility during the first six months of 2025 or 2024[42](index=42&type=chunk) [NOTE 9 – PLANT CLOSURE PROVISIONS](index=16&type=section&id=NOTE%209%20%E2%80%93%20PLANT%20CLOSURE%20PROVISIONS) Plant closure provisions increased by $8.5 million, primarily for legacy operations in the United States - Total plant closure provisions increased to **$68.8 million** at June 30, 2025, from **$60.3 million** at January 1, 2025[45](index=45&type=chunk) - The charge for the six months ended June 30, 2025, was **$4.1 million**, including a **$2.3 million** increase for legacy operations in the United States[45](index=45&type=chunk) [NOTE 10 – FAIR VALUE MEASUREMENTS](index=17&type=section&id=NOTE%2010%20%E2%80%93%20FAIR%20VALUE%20MEASUREMENTS) This note details the fair value measurements for various financial assets and liabilities Fair Value of Financial Instruments (June 30, 2025) | Instrument | Carrying Amount (Millions $) | Fair Value (Millions $) | | :--- | :--- | :--- | | Emissions Trading Scheme credits | 2.2 | 2.2 | | Foreign currency forward exchange contracts | 1.7 | 1.7 | | Acquisition-related contingent consideration | 24.5 | 24.5 | [NOTE 11 – DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT](index=17&type=section&id=NOTE%2011%20%E2%80%93%20DERIVATIVE%20INSTRUMENTS%20AND%20RISK%20MANAGEMENT) The company uses foreign currency forward exchange contracts to manage currency exposure, resulting in a loss in H1 2025 - Foreign currency forward exchange contracts resulted in a **loss of $6.4 million** for the first six months of 2025, compared to a **gain of $1.6 million** in the first six months of 2024[49](index=49&type=chunk) [NOTE 12 – CONTINGENCIES](index=18&type=section&id=NOTE%2012%20%E2%80%93%20CONTINGENCIES) The company is involved in various legal proceedings and has issued guarantees for affiliated companies - An ongoing civil and criminal legal claim related to inventory misappropriation in Brazil has seen **no significant developments**[52](index=52&type=chunk) - Guarantees for certain obligations of affiliated companies amounted to **$8.3 million** as of June 30, 2025, up from **$6.8 million** at December 31, 2024[54](index=54&type=chunk) [NOTE 13 – STOCK-BASED COMPENSATION PLANS](index=19&type=section&id=NOTE%2013%20%E2%80%93%20STOCK-BASED%20COMPENSATION%20PLANS) Stock-based compensation expense decreased in H1 2025, with $25.3 million in unrecognized costs remaining - Total stock-based compensation expense for the six months ended June 30, 2025, was **$4.6 million**, compared to **$8.2 million** in the prior year[57](index=57&type=chunk) - As of June 30, 2025, there was **$25.3 million** of total unrecognized compensation cost related to nonvested share-based compensation arrangements, expected to be recognized over a weighted-average period of **2.1 years**[60](index=60&type=chunk) [NOTE 14 – RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS](index=19&type=section&id=NOTE%2014%20%E2%80%93%20RECLASSIFICATIONS%20OUT%20OF%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS) This note details reclassifications out of accumulated other comprehensive loss, primarily from translation adjustments - Changes in Accumulated Other Comprehensive Loss (AOCL) for the first six months of 2025, net of tax, were **$57.6 million**, primarily due to cumulative translation adjustments[62](index=62&type=chunk) [NOTE 15 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS](index=21&type=section&id=NOTE%2015%20%E2%80%93%20RECENTLY%20ISSUED%20ACCOUNTING%20PRONOUNCEMENTS) The company reviewed and found no recently issued accounting pronouncements relevant to its financial statements - **No recently issued accounting pronouncements** were deemed relevant to the Company's financial statements[64](index=64&type=chunk) [NOTE 16 – RELATED PARTY TRANSACTIONS](index=22&type=section&id=NOTE%2016%20%E2%80%93%20RELATED%20PARTY%20TRANSACTIONS) This note discloses transactions with entities affiliated with company directors, which were minimal in H1 2025 - **No product purchases** from AdvanSix Inc (where Mr Patrick S Williams is a director) in the six months ended June 30, 2025 or 2024[65](index=65&type=chunk) - Incurred **$0.2 million** in fees from Smith, Gambrell & Russell, LLP (where former director Mr Robert I Paller held a position) in the six months ended June 30, 2024[66](index=66&type=chunk) - Sold **less than $0.1 million** of scrap metal to European Metal Recycling Limited (where Mr David F Landless is a director) in the six months ended June 30, 2025 and 2024[67](index=67&type=chunk) [Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations for the Three and Six months ended June 30, 2025](index=23&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20for%20the%20Three%20and%20Six%20months%20ended%20June%2030,%202025) Management discusses the company's financial performance, condition, and critical accounting estimates for the reporting periods [Critical Accounting Estimates](index=23&type=section&id=Critical%20Accounting%20Estimates) The company's most critical accounting estimates relate to plant closure provisions, income taxes, and goodwill - The most critical accounting estimates are related to **plant closure provisions, income taxes, and goodwill**[70](index=70&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Net sales increased for Q2 2025 but decreased for H1 2025, with declines in gross profit and operating income for both periods [Three Months Ended June 30, 2025](index=24&type=section&id=Three%20Months%20Ended%20June%2030,%202025) Net sales increased 1% to $439.7 million, while gross profit and operating income decreased by 3% and 16% respectively [Performance Chemicals](index=24&type=section&id=Performance%20Chemicals_Q2) Net sales increased 9% to $173.8 million, driven by higher volumes, though gross margin decreased due to pricing erosion - Net sales increased by **$13.7 million (+9%)** to $173.8 million[72](index=72&type=chunk) - Higher sales volumes in the **Americas (+11%)** and **ASPAC (+13%)** were key drivers[73](index=73&type=chunk) - Gross margin **decreased by 5.1 percentage points**, primarily due to pricing erosion and higher demand for lower-priced products[74](index=74&type=chunk) [Fuel Specialties](index=26&type=section&id=Fuel%20Specialties_Q2) Net sales decreased 1% to $165.1 million due to lower volumes, but gross margin improved significantly - Net sales decreased by **$1.5 million (-1%)** to $165.1 million[72](index=72&type=chunk) - Sales volumes decreased in the **Americas (-5%)**, **ASPAC (-21%)**, and **AvGas (-19%)**[76](index=76&type=chunk) - Gross margin **increased by 3.5 percentage points**, driven by an improved sales mix, disciplined pricing, and reduced raw material costs[77](index=77&type=chunk) [Oilfield Services](index=26&type=section&id=Oilfield%20Services_Q2) Net sales decreased 7% to $100.8 million, and gross margin also declined due to reduced demand and a weaker sales mix - Net sales decreased by **$7.5 million (-7%)** to $100.8 million[72](index=72&type=chunk)[78](index=78&type=chunk) - Sales in EMEA were lower due to **reduced demand**, outweighing higher sales in the Americas[78](index=78&type=chunk) - Gross margin **decreased by 1.0 percentage point** due to a weaker sales mix[78](index=78&type=chunk) [Other Income Statement Captions](index=26&type=section&id=Other%20Income%20Statement%20Captions_Q2) Corporate costs rose, other net expense increased due to currency losses, and the adjusted effective tax rate decreased - Corporate costs increased by **$3.3 million (+19%)** due to increased provisions for environmental remediation and additional investment in IT infrastructure[72](index=72&type=chunk)[80](index=80&type=chunk) - Other net income/(expense) shifted from a **$0.9 million income** in Q2 2024 to a **$(5.1) million expense** in Q2 2025, primarily due to foreign currency forward contract losses of **$(4.1) million**[81](index=81&type=chunk) - Adjusted effective tax rate **decreased to 23.5%** in Q2 2025 from 28.4% in Q2 2024, primarily due to a higher proportion of profits being generated in lower tax jurisdictions[82](index=82&type=chunk) [Six Months Ended June 30, 2025](index=28&type=section&id=Six%20Months%20Ended%20June%2030,%202025) Net sales decreased 6% to $880.5 million, with gross profit and operating income declining 12% and 16% respectively [Performance Chemicals](index=28&type=section&id=Performance%20Chemicals_H1) Net sales increased 7% to $342.2 million driven by higher volumes, while gross margin decreased due to pricing erosion - Net sales increased by **$21.3 million (+7%)** to $342.2 million[84](index=84&type=chunk) - Higher sales volumes in the **Americas (+11%)** and **ASPAC (+21%)** were key drivers[85](index=85&type=chunk) - Gross margin **decreased by 3.8 percentage points**, primarily due to pricing erosion and higher demand for lower-priced products[86](index=86&type=chunk) [Fuel Specialties](index=29&type=section&id=Fuel%20Specialties_H1) Net sales decreased 2% to $335.4 million on lower volumes, but gross margin improved due to better sales mix and pricing - Net sales decreased by **$8.1 million (-2%)** to $335.4 million[84](index=84&type=chunk) - Sales volumes decreased in the **Americas (-2%)**, **ASPAC (-19%)**, and **AvGas (-8%)**[88](index=88&type=chunk) - Gross margin **increased by 2.5 percentage points**, driven by an improved sales mix, disciplined pricing, and reduced raw material costs[89](index=89&type=chunk) [Oilfield Services](index=29&type=section&id=Oilfield%20Services_H1) Net sales significantly decreased 25% to $202.9 million, primarily due to the absence of activity in Latin America - Net sales decreased by **$67.9 million (-25%)** to $202.9 million[84](index=84&type=chunk)[90](index=90&type=chunk) - Sales volumes were adversely impacted by the **absence of production chemical activity in Latin America**[90](index=90&type=chunk) - Gross margin **decreased by 4.4 percentage points** due to an unfavorable sales mix[91](index=91&type=chunk) [Other Income Statement Captions](index=29&type=section&id=Other%20Income%20Statement%20Captions_H1) Corporate costs rose slightly, other net expense increased due to currency losses, and the adjusted tax rate decreased - Corporate costs increased by **$0.8 million (+2%)** due to increased provisions for environmental remediation and additional investment in IT infrastructure[84](index=84&type=chunk)[92](index=92&type=chunk) - Other net income/(expense) shifted from a **$3.6 million income** in H1 2024 to a **$(5.6) million expense** in H1 2025, primarily due to foreign currency forward contract losses of **$(6.4) million**[93](index=93&type=chunk) - Adjusted effective tax rate **decreased to 24.0%** in H1 2025 from 26.2% in H1 2024, primarily due to a higher proportion of profits being generated in lower tax jurisdictions[94](index=94&type=chunk) [Liquidity and Financial Condition](index=31&type=section&id=Liquidity%20and%20Financial%20Condition) Working capital increased, while operating cash flows and total cash decreased in the first six months of 2025 [Working Capital](index=31&type=section&id=Working%20Capital) Working capital increased, driven by higher inventories and lower accounts payable, partially offset by lower receivables - Working capital increased by **$47.1 million**, and adjusted working capital by **$42.9 million**, in the six months ended June 30, 2025[96](index=96&type=chunk) - Inventories increased by **$35.8 million**, including a $3.1 million increase in allowances, driven by higher finished goods and raw materials in the Fuel Specialties segment[99](index=99&type=chunk) - Accounts payable and accrued liabilities decreased by **$20.0 million**, related to lower activity in the Oilfield Services segment[101](index=101&type=chunk) [Operating Cash Flows](index=32&type=section&id=Operating%20Cash%20Flows) Net cash from operating activities decreased by $47.7 million due to lower operating income and unfavorable working capital changes - Net cash provided by operating activities decreased to **$37.6 million** in the six months ended June 30, 2025, from **$85.3 million** in the prior year period[102](index=102&type=chunk) - The decrease was primarily related to **decreased operating income**, less favorable working capital cash flows, and increased income tax payments[102](index=102&type=chunk) [Cash](index=32&type=section&id=Cash) Cash and cash equivalents decreased by $22.6 million due to capital investments, dividends, and stock repurchases - Cash and cash equivalents at June 30, 2025, were **$266.6 million**, down from **$289.2 million** at December 31, 2024[103](index=103&type=chunk) - The decrease was primarily driven by continued investments in capital projects, the payment of semi-annual dividends, and repurchases of common stock[104](index=104&type=chunk) [Debt](index=32&type=section&id=Debt) The company maintains a $250.0 million credit facility but had no outstanding debt as of June 30, 2025 - The company has a **$250.0 million** multicurrency revolving credit facility available[105](index=105&type=chunk) - **No debt was outstanding** under the revolving credit facility at June 30, 2025, or December 31, 2024[105](index=105&type=chunk) [Item 3 Quantitative and Qualitative Disclosures about Market Risk](index=33&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages market risks from interest rates, currency exchange, and commodity prices using derivatives - The company uses derivatives, including interest rate swaps, commodity swaps, and foreign currency forward exchange contracts, as risk management tools, **not for trading purposes**[108](index=108&type=chunk)[109](index=109&type=chunk) - There have been **no significant changes** in the company's exposure to market risk since the 2024 Form 10-K[110](index=110&type=chunk) [Item 4 Controls and Procedures](index=34&type=section&id=Item%204%20Controls%20and%20Procedures) Disclosure controls were deemed effective, and the ongoing ERP system implementation has led to updated internal controls - The company's disclosure controls and procedures were **effective** as of June 30, 2025[111](index=111&type=chunk) - The ongoing development and implementation of a new, company-wide, information system platform (ERP system) has led to **updated internal controls** over financial reporting[113](index=113&type=chunk) - **No material changes** to internal control over financial reporting were identified in connection with the evaluation[114](index=114&type=chunk) PART II OTHER INFORMATION [Item 1 Legal Proceedings](index=35&type=section&id=Item%201%20Legal%20Proceedings) The company is involved in various legal claims, with no significant new developments in the Brazil inventory case - An ongoing civil and criminal legal claim related to a misappropriation of inventory in Brazil has had **no significant developments** to report[117](index=117&type=chunk) [Item 1A Risk Factors](index=35&type=section&id=Item%201A%20Risk%20Factors) There have been no material changes in the company's risk factors since the 2024 Form 10-K filing - **No material changes** in the risk factors facing the Company have occurred since those disclosed in the 2024 Form 10-K[119](index=119&type=chunk) [Item 2 Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 93,353 shares in Q2 2025 under a new $50 million stock repurchase program - **No unregistered sales** of equity securities occurred[120](index=120&type=chunk) - A new **$50 million stock repurchase program** was announced on March 10, 2025, allowing for repurchases over a three-year period[121](index=121&type=chunk) Stock Repurchases (Three Months Ended June 30, 2025) | Period | Total Shares Purchased | Average Price Paid Per Share ($) | Approximate Dollar Value Remaining Under Program (Millions $) | | :--- | :--- | :--- | :--- | | April 1, 2025 through April 30, 2025 | 22,178 | 92.7 | 44.6 | | May 1, 2025 through May 31, 2025 | 48,575 | 91.8 | 40.5 | | June 1, 2025 through June 30, 2025 | 22,600 | 87.1 | 38.5 | | **Total** | **93,353** | **90.9** | **38.5** | [Item 3 Defaults Upon Senior Securities](index=36&type=section&id=Item%203%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - **No defaults** upon senior securities were reported[123](index=123&type=chunk) [Item 4 Mine Safety Disclosures](index=36&type=section&id=Item%204%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - This item is **not applicable** to the company[124](index=124&type=chunk) [Item 5 Other Information](index=36&type=section&id=Item%205%20Other%20Information) No other information was reported under this item for the period - **No other information** was reported under this item[125](index=125&type=chunk) [Item 6 Exhibits](index=37&type=section&id=Item%206%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications and XBRL documents - Exhibits include certifications of the Chief Executive Officer and Chief Financial Officer pursuant to **Sections 302 and 906 of the Sarbanes-Oxley Act of 2002**[127](index=127&type=chunk) - XBRL Instance Document and Cover Page Interactive Data File are **embedded within the inline XBRL document**[127](index=127&type=chunk) [SIGNATURES](index=38&type=section&id=SIGNATURES) The report is duly signed by the President and CEO, and the Executive Vice President and CFO - The report was signed by Patrick S Williams, President and Chief Executive Officer, and Ian P Cleminson, Executive Vice President and Chief Financial Officer, on **August 6, 2025**[129](index=129&type=chunk)

Q2 2025 Overall Performance - The company reported GAAP EPS of 94 cents and adjusted non-GAAP EPS of $1.26[5] - Revenue increased by 1 percent[11] - The company has $266.6 million in net cash[5, 25] - $20.8 million semi-annual dividend was paid in the quarter and $8.2 million was spent on buybacks[5, 25] Segment Performance - Performance Chemicals revenue increased by 9 percent, but operating income decreased by 33 percent[12, 14, 15] - Fuel Specialties operating income increased by 16 percent, despite a 1 percent decrease in revenue[16, 18] - Oilfield Services revenue decreased by 7 percent and operating income decreased by 15 percent[19, 21] Financial Focus - Gross margin decreased by 1.2 percentage points[11] - Adjusted EBITDA decreased by 9 percent[11] - The company's effective tax rate was 26.3 percent[22, 24]

[Q2 2025 Financial Results Overview](index=1&type=section&id=Q2%202025%20Financial%20Results%20Overview) Innospec Inc. reported Q2 2025 financial results with a 1% increase in total revenues to $439.7 million, a decrease in net income, and a strong net cash position [Executive Summary](index=1&type=section&id=Executive%20Summary) Innospec Inc. reported Q2 2025 financial results with a 1% increase in total revenues to $439.7 million, a decrease in net income, and a strong net cash position Q2 2025 Key Financial Highlights (GAAP & Non-GAAP): | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | | Total Revenues | $439.7M | $435.0M | +1% | | Net Income | $23.5M | $31.2M | -24.7% | | GAAP Diluted EPS | $0.94 | $1.24 | -24.2% | | Adjusted Non-GAAP EPS | $1.26 | $1.39 | -9.35% | | Adjusted EBITDA | $49.1M | $54.1M | -9.24% | | Cash from Operating Activities | $9.3M | $4.7M | +97.87% | | Net Cash (as of June 30, 2025) | $266.6M | N/A | N/A | | Share Repurchases | $8.2M | N/A | N/A | | Semi-annual Dividend | $0.84/share | N/A | N/A | - The company closed the quarter with a debt-free balance sheet and over **$266.6 million in net cash**[2](index=2&type=chunk)[6](index=6&type=chunk) [GAAP vs. Non-GAAP Reconciliation](index=1&type=section&id=GAAP%20vs.%20Non-GAAP%20Reconciliation) The company provides adjusted non-GAAP financial measures to offer a clearer view of underlying performance by excluding special items Q2 2025 GAAP to Adjusted Non-GAAP Reconciliation: | (in millions, except share and per share data) | Q2 2025 (GAAP) | Adjustments | Q2 2025 (Adjusted Non-GAAP) | | :--------------------------------------------- | :------------- | :---------- | :-------------------------- | | Income before income taxes | $31.9 | $10.6 | $42.5 | | Net income | $23.5 | $8.2 | $31.7 | | Diluted EPS | $0.94 | $0.32 | $1.26 | Q2 2024 GAAP to Adjusted Non-GAAP Reconciliation: | (in millions, except share and per share data) | Q2 2024 (GAAP) | Adjustments | Q2 2024 (Adjusted Non-GAAP) | | :--------------------------------------------- | :------------- | :---------- | :-------------------------- | | Income before income taxes | $43.7 | $4.7 | $48.4 | | Net income | $31.2 | $3.7 | $34.9 | | Diluted EPS | $1.24 | $0.15 | $1.39 | [Management Commentary and Business Segment Performance](index=2&type=section&id=Management%20Commentary%20and%20Business%20Segment%20Performance) Management discusses Q2 2025 performance, highlighting Fuel Specialties' growth offsetting declines in Performance Chemicals and Oilfield Services, and outlines strategic priorities [CEO's Overall Remarks](index=2&type=section&id=CEO's%20Overall%20Remarks) CEO characterized Q2 2025 as balanced, with Fuel Specialties' growth offsetting weaker results in other segments - The diversified portfolio benefited from **strong growth in Fuel Specialties operating income**, which offset lower results in Performance Chemicals and Oilfield Services[9](index=9&type=chunk) [Segmental Performance Review](index=2&type=section&id=Segmental%20Performance%20Review) Review of Performance Chemicals, Fuel Specialties, and Oilfield Services, detailing revenue, margin, and operating income changes [Performance Chemicals](index=2&type=section&id=Performance%20Chemicals) Performance Chemicals saw strong sales growth but declining gross margins and operating income Performance Chemicals Q2 2025 Performance: | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :---------------- | :------ | :------ | :----------- | | Revenues | $173.8M | $160.1M | +9% | | Volumes | N/A | N/A | +4% | | Price/Mix | N/A | N/A | +2% | | Currency Impact | N/A | N/A | +3% | | Gross Margins | 17.5% | 22.6% | -5.1 ppts | | Operating Income | $14.3M | $21.2M | -33% | - Gross margins fell short of expectations, with improvement being a key priority for the coming quarters, focusing on margin-accretive opportunities[10](index=10&type=chunk) [Fuel Specialties](index=2&type=section&id=Fuel%20Specialties) Fuel Specialties delivered a robust quarter with double-digit operating income growth despite a slight revenue decrease Fuel Specialties Q2 2025 Performance: | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :---------------- | :------ | :------ | :----------- | | Revenues | $165.1M | $166.6M | -1% | | Volumes | N/A | N/A | -7% | | Price/Mix | N/A | N/A | +4% | | Currency Impact | N/A | N/A | +2% | | Gross Margins | 38.1% | 34.6% | +3.5 ppts | | Operating Income | $35.4M | $30.4M | +16% | - The business continued to deliver consistent results through economic uncertainty, with a focus on achieving full-year operating income growth and margin improvement[11](index=11&type=chunk) [Oilfield Services](index=2&type=section&id=Oilfield%20Services) Oilfield Services improved sequentially but declined year-over-year, with no expected resumption of Latin America activity Oilfield Services Q2 2025 Performance: | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :---------------- | :------ | :------ | :----------- | | Revenues | $100.8M | $108.3M | -7% | | Gross Margins | 29.6% | 30.6% | -1.0 ppts | | Operating Income | $6.2M | $7.3M | -15% | - Operating income improved sequentially but declined against the prior year, with no expectation for resumption of Latin America activity for the remainder of the year[12](index=12&type=chunk) [Strategic Priorities and Outlook](index=2&type=section&id=Strategic%20Priorities%20and%20Outlook) Innospec prioritizes margin improvement in Performance Chemicals and Oilfield Services, expects continued strong Fuel Specialties results, and maintains balance sheet flexibility - Prioritizing gross margin and operating income improvement in Performance Chemicals and Oilfield Services in the second half of 2025 through sales, cost actions, and new technology commercialization[16](index=16&type=chunk) - Fuel Specialties is expected to continue delivering good results[16](index=16&type=chunk) - The company has significant balance sheet flexibility for M&A, dividend growth, organic investment, and buybacks, continuing its record of returning value to shareholders[17](index=17&type=chunk) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) This section defines and explains the company's non-GAAP financial measures, their components, and their purpose in evaluating performance [Definition and Reconciliation](index=3&type=section&id=Definition%20and%20Reconciliation) Innospec defines and reconciles non-GAAP measures like adjusted EBITDA and adjusted net income to provide clearer performance insights - Non-GAAP measures include adjusted EBITDA, income before income taxes excluding special items, net income excluding special items and related per share amounts, and net cash[18](index=18&type=chunk) - Adjusted EBITDA is net income adjusted for interest income, income taxes, depreciation and amortization, foreign currency exchange losses/(gains), legacy costs of closed operations, and adjustment to fair value of contingent consideration[18](index=18&type=chunk) - The company believes these non-GAAP measures provide useful information to investors for evaluating underlying performance and identifying operating trends, despite not being a substitute for GAAP measures[18](index=18&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) Provides an overview of Innospec Inc., its business segments, forward-looking statement disclaimers, and investor contact details [About Innospec Inc.](index=3&type=section&id=About%20Innospec%20Inc.) Innospec Inc. is an international specialty chemicals company operating in 22 countries with approximately 2,450 employees - Innospec Inc. is an international specialty chemicals company with approximately **2,450 employees** in **22 countries**[19](index=19&type=chunk) - The company's business segments include Performance Chemicals (Personal Care, Home Care, Agrochemical, Mining, Industrial), Fuel Specialties (fuel additives), and Oilfield Services (specialty chemicals for oil and gas exploration and production)[19](index=19&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) Standard disclaimer regarding forward-looking statements, noting potential material differences in actual results due to risks - The press release contains forward-looking statements subject to risks, uncertainties, and assumptions, which may cause actual performance or results to differ materially[20](index=20&type=chunk) - Innospec undertakes no obligation to publicly update or revise any forward-looking statements[20](index=20&type=chunk) [Contacts](index=4&type=section&id=Contacts) Provides investor relations contact information for Innospec Inc - Contact for Innospec Inc. is Corbin Barnes, reachable at **+44-151-355-3611** or **corbin.barnes@innospecinc.com**[21](index=21&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Presents the company's condensed consolidated statements of income, segmental analysis, balance sheets, and cash flows for the reported periods [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Details net sales, gross profit, operating income, and net income for the three and six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Income (in millions, except share and per share data): | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $439.7 | $435.0 | $880.5 | $935.2 | | Cost of goods sold | ($316.5) | ($308.1) | ($632.2) | ($652.6) | | Gross profit | $123.2 | $126.9 | $248.3 | $282.6 | | Operating income | $34.3 | $40.7 | $76.8 | $91.2 | | Income before income taxes | $31.9 | $43.7 | $76.3 | $99.0 | | Net income | $23.5 | $31.2 | $56.3 | $72.6 | | Diluted EPS | $0.94 | $1.24 | $2.24 | $2.89 | [Segmental Analysis of Results](index=6&type=section&id=Segmental%20Analysis%20of%20Results) Provides a detailed breakdown of net sales, gross profit, and operating income by business segment, including Adjusted EBITDA reconciliation Segmental Net Sales (in millions): | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Performance Chemicals | $173.8 | $160.1 | $342.2 | $320.9 | | Fuel Specialties | $165.1 | $166.6 | $335.4 | $343.5 | | Oilfield Services | $100.8 | $108.3 | $202.9 | $270.8 | | **Total Net Sales** | **$439.7** | **$435.0** | **$880.5** | **$935.2** | Segmental Gross Profit (in millions): | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Performance Chemicals | $30.5 | $36.2 | $65.8 | $73.9 | | Fuel Specialties | $62.9 | $57.6 | $123.7 | $118.2 | | Oilfield Services | $29.8 | $33.1 | $58.8 | $90.5 | | **Total Gross Profit** | **$123.2** | **$126.9** | **$248.3** | **$282.6** | Segmental Operating Income (in millions): | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Performance Chemicals | $14.3 | $21.2 | $34.1 | $42.3 | | Fuel Specialties | $35.4 | $30.4 | $72.3 | $63.8 | | Oilfield Services | $6.2 | $7.3 | $10.3 | $24.2 | | Corporate costs | ($20.9) | ($17.6) | ($38.6) | ($37.8) | | **Total Operating Income** | **$34.3** | **$40.7** | **$76.8** | **$91.2** | Adjusted EBITDA Reconciliation (in millions): | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $23.5 | $31.2 | $56.3 | $72.6 | | Interest income, net | ($2.7) | ($2.1) | ($5.1) | ($4.2) | | Income taxes | $8.4 | $12.5 | $20.0 | $26.4 | | Depreciation and amortization | $11.4 | $11.0 | $22.3 | $21.3 | | Foreign currency exchange losses/(gains) | $4.7 | $0.1 | $4.3 | ($1.0) | | Legacy costs of closed operations | $3.0 | $0.8 | $3.8 | $1.6 | | Adjustment to fair value of contingent consideration | $0.8 | $0.6 | $1.5 | $1.4 | | **Adjusted EBITDA** | **$49.1** | **$54.1** | **$103.1** | **$118.1** | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents the company's financial position, including assets, liabilities, and equity, as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (in millions): | Asset/Liability | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :------------ | :---------------- | | **Assets:** | | | | Cash and cash equivalents | $266.6 | $289.2 | | Total current assets | $969.7 | $956.6 | | Net property, plant and equipment | $295.8 | $269.7 | | Goodwill | $397.6 | $382.5 | | Total assets | $1,806.1 | $1,734.7 | | **Liabilities and Stockholders' Equity:** | | | | Total current liabilities | $337.4 | $371.4 | | Acquisition-related contingent consideration | $24.5 | $20.1 | | Equity | $1,301.5 | $1,216.1 | | Total liabilities and equity | $1,806.1 | $1,734.7 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Outlines cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Cash Flows (in millions): | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $37.6 | $85.3 | | Net cash used in investing activities | ($31.7) | ($29.7) | | Net cash used in financing activities | ($32.5) | ($18.4) | | Net change in cash and cash equivalents | ($22.6) | $36.5 | | Cash and cash equivalents at end of period | $266.6 | $240.2 | - Cash provided by operating activities decreased significantly from **$85.3 million in 2024 to $37.6 million in 2025** for the six-month period[31](index=31&type=chunk) - Repurchase of common stock increased substantially from **$0.7 million in 2024 to $13.3 million in 2025** for the six-month period[31](index=31&type=chunk)

Company Performance - Innospec reported quarterly earnings of $1.26 per share, exceeding the Zacks Consensus Estimate of $1.17 per share, but down from $1.39 per share a year ago, representing an earnings surprise of +7.69% [1] - The company posted revenues of $439.7 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.78% and showing a slight increase from $435 million year-over-year [2] - Over the last four quarters, Innospec has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Innospec shares have declined approximately 27.9% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.28 on revenues of $452.1 million, and for the current fiscal year, it is $5.47 on revenues of $1.82 billion [7] Industry Context - The Chemical - Diversified industry, to which Innospec belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Innospec's stock performance [5]

Core Insights - Innospec Inc. reported a total revenue of $439.7 million for Q2 2025, reflecting a 1% increase from $435.0 million in Q2 2024. However, net income decreased to $23.5 million or $0.94 per diluted share, down from $31.2 million or $1.24 per diluted share in the same period last year [3][4][19] - The company maintained a debt-free balance sheet with over $266 million in net cash and executed share repurchases totaling $8.2 million [5][14] - The performance of the Fuel Specialties segment was strong, with a 16% increase in operating income, while Performance Chemicals saw a 9% revenue increase but a decline in gross margins [9][10][11] Financial Performance - Total revenues for Q2 2025 were $439.7 million, a slight increase of 1% from the previous year. Net income was $23.5 million, down from $31.2 million in Q2 2024 [3][19] - Adjusted EBITDA for the quarter was $49.1 million, compared to $54.1 million in the same period last year [4][23] - The effective tax rate for the quarter was 26.3%, a decrease from 28.6% in the same period last year [13] Segment Analysis - **Performance Chemicals**: Revenues increased by 9% to $173.8 million, but operating income decreased by 33% to $14.3 million due to lower gross margins of 17.5%, down 5.1 percentage points from the previous year [10][22] - **Fuel Specialties**: Revenues were $165.1 million, a slight decrease of 1% from $166.6 million last year. Operating income increased by 16% to $35.4 million, with gross margins improving by 3.5 percentage points to 38.1% [11][22] - **Oilfield Services**: Revenues decreased by 7% to $100.8 million, with operating income declining by 15% to $6.2 million. Gross margins were 29.6%, down 1.0 percentage point from the previous year [12][22] Cash Flow and Shareholder Returns - Cash from operating activities was $9.3 million before capital expenditures of $16.2 million. The company paid a semi-annual dividend of $0.84 per share and repurchased 89,778 shares at a cost of $20.8 million [5][14] - The company ended the quarter with $266.6 million in cash and cash equivalents, maintaining a strong liquidity position for potential M&A, dividend growth, and organic investments [14][25]

Core Viewpoint - Innospec Inc. has published its 2024 Sustainability Report, showcasing significant progress in sustainability commitments, growth, innovation, and community engagement [1][2]. Company Overview - Innospec Inc. is an international specialty chemicals company with approximately 2,450 employees across 22 countries, providing a wide range of specialty chemicals for various markets [3]. Sustainability Achievements - A 23% reduction in scope 1 & 2 greenhouse gas (GHG) emissions since the baseline year of 2014 [5] - Avoided CO₂e emissions of 20.8 million metric tons through the use of fuel additives, which is over 200 times Innospec's own operational emissions [5] - Completion of product carbon footprint assessments for over 90 products, enhancing insights into GHG reduction efforts [5] - US$47.8 million spent on Research & Technology, resulting in a 22% increase in total patent filings [5] - A total social value of $791,000 delivered in 2024, benefiting 210 global charities and local good causes [5] - Over $1.6 million raised and 3,889 volunteer hours contributed through the Innospec Cares program since its launch in 2016 [5] - Launch of two new social partnerships: one with International Justice Mission (IJM) to combat modern slavery in the palm industry and another with UNESCO to support Indigenous STEM education in Brazil [5] - EcoVadis Gold rating for sustainability management practices maintained for the fourth consecutive time [5] - Over 90% of employees received careers and skills training, totaling more than 19,000 hours [5].

Core Viewpoint - Innospec Inc. will release its second quarter 2025 earnings results on August 5, 2025, followed by an interactive conference call on August 6, 2025, at 10:00 a.m. ET [1] Company Overview - Innospec Inc. is an international specialty chemicals company with approximately 2,400 employees across 22 countries [4] - The company manufactures and supplies a wide range of specialty chemicals for various markets including Personal Care, Home Care, Agrochemical, Mining, and Industrial [4] - Innospec's Fuel Specialties business focuses on fuel additives that enhance fuel efficiency, improve engine performance, and reduce harmful emissions [4] - The Oilfield Services segment provides specialty chemicals for the oil and gas exploration and production industry [4] Conference Call Details - The public can listen to the conference call by registering in advance through an online registration link [2] - Participants will receive an email confirmation with dial-in numbers and a unique Personal PIN for joining the conference [2] - An audio webcast of the conference call will be available on the company's website, along with a slide presentation [3] - A replay of the webcast will be accessible for 30 days following the call [3]