Financial Performance Overview - Q1 2025 consolidated revenue decreased by 12 percent[12] - Q1 2025 gross margin decreased by 2.7 percentage points[12] - Q1 2025 operating income decreased by 16 percent[12] - Q1 2025 adjusted EBITDA decreased by 16 percent[12] - Q1 2025 adjusted EPS was $1.42[12] - The company has $299.8 million in net cash[6, 28] Segment Performance - Performance Chemicals revenue increased by 5 percent, with volumes up 5 percent and price/mix up 3 percent; operating income decreased by 6 percent[15] - Fuel Specialties revenue decreased by 4 percent, but operating income increased by 10 percent; gross margin increased by 1.4 percentage points[16, 18] - Oilfield Services revenue decreased by 37 percent, with operating income down 76 percent; gross margin decreased by 6.9 percentage points[19, 21] Corporate & Balance Sheet - Corporate costs decreased due to lower performance-related remuneration[25] - The effective tax rate was 26.1 percent[25] - Operating cash inflow was $28.3 million, with capital expenditures of $15.5 million[28]

[Q1 2025 Financial & Operational Highlights](index=1&type=section&id=INNOSPEC%20REPORTS%20FIRST%20QUARTER%202025%20FINANCIAL%20RESULTS) Innospec reported a 12% revenue decrease and 21% net income decline in Q1 2025, alongside strong cash generation and increased shareholder returns [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) In Q1 2025, Innospec reported a 12% revenue decrease to $440.8 million and a 21% net income decline to $32.8 million, with balanced segment performance Financial Performance Overview | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $440.8 million | $500.2 million | -12% | | Net Income | $32.8 million | $41.4 million | -21% | | GAAP Diluted EPS | $1.31 | $1.65 | -21% | | Adjusted non-GAAP EPS | $1.42 | $1.75 | -19% | | Adjusted EBITDA | $54.0 million | $64.0 million | -16% | - The quarter's results were balanced, with **strong Fuel Specialties growth** offsetting weaker Performance Chemicals and Oilfield Services performance[1](index=1&type=chunk)[6](index=6&type=chunk) [Cash Flow and Capital Allocation](index=1&type=section&id=Cash%20Flow%20and%20Capital%20Allocation) Innospec generated **$28.3 million** in operating cash flow, maintained a **debt-free balance sheet** with **$299.8 million net cash**, and enhanced shareholder returns through dividends and buybacks - Operating cash flow was **$28.3 million**, with the quarter ending in a **$299.8 million net cash position** and a **debt-free balance sheet**[1](index=1&type=chunk)[4](index=4&type=chunk)[13](index=13&type=chunk) - The semi-annual dividend increased by **10% to $0.84 per common share**[1](index=1&type=chunk)[2](index=2&type=chunk)[15](index=15&type=chunk) - A new **$50 million share buyback program** was initiated, with **34,100 shares repurchased for $3.3 million** during the quarter[1](index=1&type=chunk)[4](index=4&type=chunk)[15](index=15&type=chunk) [Management Commentary & Outlook](index=2&type=section&id=Management%20Commentary%20%26%20Outlook) Management noted a balanced quarter with strong Fuel Specialties performance offsetting other segments, anticipating delayed recovery in Performance Chemicals and Oilfield Services due to market volatility, while maintaining confidence in overall stability and strategic flexibility - **Performance Chemicals:** Initial momentum slowed due to customer caution regarding tariff announcements, delaying the return to 2022 operating income and margin levels[7](index=7&type=chunk) - **Fuel Specialties:** The segment achieved **double-digit operating income growth** driven by margin improvement, with a focus on full-year operating income growth[8](index=8&type=chunk) - **Oilfield Services:** Results were below expectations due to no recovery in Latin America and lower US activity, with no Latin American recovery anticipated next quarter[9](index=9&type=chunk) - **Overall Outlook:** Fuel Specialties is expected to remain stable, while sequential recovery in Performance Chemicals and Oilfield Services may be delayed by the economic environment, with the strong balance sheet supporting M&A, dividends, and buybacks[14](index=14&type=chunk)[15](index=15&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Q1 2025 segment performance was mixed, with Fuel Specialties achieving **10% operating income growth** despite revenue decline, while Performance Chemicals saw a **6% operating income drop** and Oilfield Services a **76% plunge** due to revenue decrease and weaker sales mix [Performance Chemicals](index=2&type=section&id=Performance%20Chemicals) Performance Chemicals revenues grew **5% to $168.4 million** driven by volume and price/mix, but a **2.4 percentage point gross margin decrease** led to a **6% decline in operating income to $19.8 million** Performance Chemicals Segment Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $168.4 million | $160.8 million | +5% | | Gross Margin | 21.0% | 23.4% | -2.4 p.p. | | Operating Income | $19.8 million | $21.1 million | -6% | [Fuel Specialties](index=2&type=section&id=Fuel%20Specialties) Fuel Specialties revenues decreased **4% to $170.3 million**, yet operating income grew **10% to $36.9 million**, driven by a **1.4 percentage point increase in gross margin to 35.7%** Fuel Specialties Segment Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $170.3 million | $176.9 million | -4% | | Gross Margin | 35.7% | 34.3% | +1.4 p.p. | | Operating Income | $36.9 million | $33.4 million | +10% | [Oilfield Services](index=2&type=section&id=Oilfield%20Services) Oilfield Services revenues fell **37% to $102.1 million**, with gross margins contracting **6.9 percentage points to 28.4%**, leading to a **76% decrease in operating income to $4.1 million** Oilfield Services Segment Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $102.1 million | $162.5 million | -37% | | Gross Margin | 28.4% | 35.3% | -6.9 p.p. | | Operating Income | $4.1 million | $16.9 million | -76% | [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the company's Q1 2025 consolidated income, balance sheet, cash flow statements, and segmental analysis, along with non-GAAP reconciliations [Condensed Consolidated Statements of Income](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) This statement details the company's Q1 2025 income, showing a decline in net sales from **$500.2 million to $440.8 million** and net income from **$41.4 million to $32.8 million** Condensed Consolidated Statements of Income | (in millions, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net sales** | **$ 440.8** | **$ 500.2** | | Gross profit | 125.1 | 155.7 | | Operating income | 42.5 | 50.5 | | **Net income** | **$ 32.8** | **$ 41.4** | | **Diluted EPS** | **$ 1.31** | **$ 1.65** | [Segmental Analysis of Results](index=6&type=section&id=SEGMENTAL%20ANALYSIS%20OF%20RESULTS) This schedule provides a detailed breakdown of net sales and operating income for Performance Chemicals, Fuel Specialties, and Oilfield Services segments for Q1 2025 versus Q1 2024 Segmental Analysis of Results | (in millions) | Q1 2025 Net Sales | Q1 2024 Net Sales | Q1 2025 Operating Income | Q1 2024 Operating Income | | :--- | :--- | :--- | :--- | :--- | | Performance Chemicals | $ 168.4 | $ 160.8 | $ 19.8 | $ 21.1 | | Fuel Specialties | 170.3 | 176.9 | 36.9 | 33.4 | | Oilfield Services | 102.1 | 162.5 | 4.1 | 16.9 | | **Total** | **$ 440.8** | **$ 500.2** | **$ 43.1** | **$ 51.2** | [Reconciliation of Non-GAAP Measures (Adjusted EBITDA)](index=6&type=section&id=NON-GAAP%20MEASURES) This schedule reconciles GAAP Net Income to Adjusted EBITDA, showing Q1 2025 Net Income of **$32.8 million** reconciled to an Adjusted EBITDA of **$54.0 million** Reconciliation of Non-GAAP Measures (Adjusted EBITDA) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income | $ 32.8 | $ 41.4 | | Interest income, net | (2.4) | (2.1) | | Income taxes | 11.6 | 13.9 | | Depreciation and amortization | 10.9 | 10.3 | | Other adjustments | 1.1 | 0.5 | | **Adjusted EBITDA** | **$ 54.0** | **$ 64.0** | [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This statement presents the company's financial position as of March 31, 2025, showing total assets increased to **$1,774.6 million** and a strong liquidity position with **$299.8 million in cash** and no debt Condensed Consolidated Balance Sheets | (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | **$ 299.8** | **$ 289.2** | | Total current assets | 977.1 | 956.6 | | **Total assets** | **$ 1,774.6** | **$ 1,734.7** | | Total current liabilities | 357.6 | 371.4 | | **Total liabilities** | **508.9** | **518.6** | | **Total equity** | **1,265.7** | **1,216.1** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This statement details Q1 2025 cash flows, showing **$28.3 million** from operations, **$15.5 million** used in investing, and a net cash increase of **$10.6 million** Condensed Consolidated Statements of Cash Flows | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$ 28.3** | **$ 80.6** | | Net cash used in investing activities | (15.5) | (14.3) | | Net cash (used in)/provided by financing activities | (3.8) | 0.5 | | **Net change in cash and cash equivalents** | **10.6** | **66.4** | | Cash and cash equivalents at end of period | $ 299.8 | $ 270.1 |

Company Performance - Innospec reported quarterly earnings of $1.42 per share, exceeding the Zacks Consensus Estimate of $1.40 per share, but down from $1.75 per share a year ago, indicating an earnings surprise of 1.43% [1] - The company posted revenues of $440.8 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.03%, and down from $500.2 million year-over-year [2] - Over the last four quarters, Innospec has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Future Outlook - The sustainability of Innospec's stock price movement will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.38 on revenues of $460.45 million, and for the current fiscal year, it is $5.93 on revenues of $1.9 billion [7] - The estimate revisions trend for Innospec is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] Industry Context - The Chemical - Diversified industry, to which Innospec belongs, is currently in the bottom 18% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Core Insights - Innospec Inc. reported a balanced quarter with strong growth in Fuel Specialties offsetting declines in Performance Chemicals and Oilfield Services [2][8][10] - The company generated $28.3 million in cash from operations, leading to a net cash position of $299.8 million [2][5][14] - A 10% increase in the semi-annual dividend to $0.84 per share was announced, along with a $50 million share buyback program [3][14] Financial Performance - Total revenues for Q1 2025 were $440.8 million, down 12% from $500.2 million in Q1 2024 [4][21] - Net income for the quarter was $32.8 million, or $1.31 per diluted share, compared to $41.4 million, or $1.65 per diluted share, in the same period last year [4][21] - Adjusted EBITDA for the quarter was $54.0 million, down from $64.0 million a year ago [5][25] Segment Analysis - Performance Chemicals generated revenues of $168.4 million, a 5% increase year-over-year, but operating income decreased by 6% to $19.8 million [10][23] - Fuel Specialties reported revenues of $170.3 million, down 4% from the previous year, but operating income increased by 10% to $36.9 million [11][23] - Oilfield Services revenues fell 37% to $102.1 million, with operating income declining 76% to $4.1 million [12][23] Market Outlook - The company anticipates that uncertainty surrounding tariff policies will delay recovery in Performance Chemicals and Oilfield Services, while Fuel Specialties is expected to remain stable [8][13] - Despite current market conditions, the company is focused on growth and margin improvement across all business segments [10][14]

ENGLEWOOD, Colo., April 03, 2025 (GLOBE NEWSWIRE) -- Innospec Inc. (NASDAQ: IOSP) today announced that it will release first quarter 2025 earnings results on Thursday, May 8, 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 Friday, May 9, 2025, at 9:00 a.m. ET. The public is invited to listen to the conference call by r ...

Innospec Inc. (IOSP) recently announced that its board has approved a new $50 million share repurchase program. The company's earlier $50 million program expired in the first quarter of 2025.With more than $289 million in net cash, the company retains considerable flexibility and balance sheet strength for future M&A, organic investment, dividend growth and share repurchases under this renewed repurchase program.The company reported fourth-quarter adjusted earnings of $1.41 per share, which exceeded the Zac ...

Group 1 - Innospec Inc. has announced a new $50 million share repurchase program, following the expiration of its previous program in Q1 2025 [1] - The company has over $289 million in net cash, indicating strong balance sheet strength and flexibility for future mergers and acquisitions, organic investments, dividend growth, and share repurchases [1] - Share repurchases will be conducted at management's discretion [1] Group 2 - Innospec Inc. is an international specialty chemicals company with approximately 2,450 employees across 22 countries [2] - The company manufactures and supplies a diverse range of specialty chemicals for various markets, including Personal Care, Home Care, Agrochemical, Mining, and Industrial sectors [2] - Innospec's Fuel Specialties business focuses on fuel additives that enhance fuel efficiency, engine performance, and reduce harmful emissions [2] - The Oilfield Services segment provides specialty chemicals for the oil and gas exploration and production industry [2]

Group 1 - The article expresses a bullish outlook on Innospec's long-term prospects as a small specialty chemical company [1] - There are concerns regarding Innospec's exposure to increasingly turbulent end-markets [1]

Core Viewpoint - Innospec Inc. is expanding its production capacity for Drag Reducing Agent (DRA) technologies at its Pleasanton, TX plant to meet increasing domestic and international demand, enhancing operational efficiency for pipeline operators [1]. 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 including Personal Care, Home Care, Agrochemical, Mining, and Industrial [2]. - The company’s Fuel Specialties business focuses on fuel additives that improve fuel efficiency, boost engine performance, and reduce harmful emissions, while its Oilfield Services division supplies specialty chemicals for the oil and gas exploration and production industry [2]. Production Capacity Expansion - The new production capacity for DRA technology is expected to come online in the fourth quarter of 2025, reflecting the company's commitment to delivering best-in-class technology and service to global midstream customers [1]. - The expansion aims to support the increasing demand for DRA technology, which provides benefits such as increased throughput, lower operating costs, and reduced capital equipment upgrade requirements for pipeline operators [1]. Management Statements - Joe Dupree, Senior Vice President of Innospec Oilfield Services Midstream, expressed satisfaction with customer response to the DRA technology and emphasized the investment's role in enhancing customer value [1]. - Tom Entwistle, President of Innospec Oilfield Services, highlighted the company's position to positively impact customer operations by improving efficiency and protecting assets through the new capacity expansion [1].

Group 1 - Innospec announces a partnership with UNESCO IESALC to launch an educational program aimed at improving access to STEM education for indigenous students in Brazil, directly training 40 students and benefiting an additional 200 individuals [1] - The program will co-design a course on sustainable development and STEM, integrating indigenous knowledge and science to empower diverse voices in STEM education [1][3] - The initiative aligns with the UN's new Pact for the Future, which emphasizes the protection and enhancement of indigenous knowledge [3] Group 2 - Data from IBGE and INEP indicates that over 46,000 indigenous people were enrolled in higher education in 2022, nearly five times the number in 2011, although indigenous voices remain underrepresented [2] - The collaboration with the Federal University of Minas Gerais (UFMG) responds to indigenous students' calls for greater involvement in STEM education, as expressed during the Regional Conference on Higher Education [3] - Innospec has been operating in Brazil since 2011 and employs over 300 people, highlighting its commitment to broadening STEM education and professional opportunities for indigenous students [4]