Innospec(US:IOSP)2025-11-05 11:02Financial Performance - Total revenues for Q3 2025 were $441.9 million, slightly down from $443.4 million in Q3 2024[3] - Net income for the quarter was $12.9 million, or $0.52 per diluted share, compared to $33.4 million, or $1.33 per diluted share, in the same period last year[3] - Adjusted non-GAAP EPS for Q3 2025 was $1.12, down from $1.35 in Q3 2024[6] - Adjusted EBITDA for the quarter was $44.2 million, compared to $50.5 million in the same period a year ago[5] - Total operating income decreased to $5.9 million in Q3 2025 from $45.6 million in Q3 2024, a decline of 87.0%[24] - Net income for the nine months ended September 30, 2025, was $69.2 million, down from $106.0 million in the same period of 2024, a decrease of 34.7%[25] - Adjusted EBITDA for the nine months ended September 30, 2025, was $147.3 million, down from $168.6 million in the same period of 2024, a decrease of 12.5%[25] - The company reported a gross profit of $116.7 million in Q3 2025, down from $124.1 million in Q3 2024, a decrease of 5.9%[24] Revenue Breakdown - Performance Chemicals revenues were $170.8 million, up 4% year-over-year, but gross margins decreased by 7.0 percentage points to 15.1%[11] - Fuel Specialties revenues increased by 4% to $172.0 million, with gross margins improving by 2.0 percentage points to 35.6%[12] - Oilfield Services revenues decreased by 13% to $99.1 million, with operating income down 32% to $4.8 million[13] - Net sales for Performance Chemicals increased to $170.8 million in Q3 2025, up from $163.6 million in Q3 2024, representing a growth of 7.4%[24] Cash Flow and Assets - Cash generated from operating activities was $39.3 million, down from $73.5 million a year ago, with net cash position at $270.8 million[15] - Cash and cash equivalents decreased to $270.8 million as of September 30, 2025, from $289.2 million at the end of 2024, a decline of 6.0%[28] - Total assets increased to $1,799.4 million as of September 30, 2025, compared to $1,734.7 million at the end of 2024, an increase of 3.7%[28] - Total current liabilities decreased to $356.1 million as of September 30, 2025, from $371.4 million at the end of 2024, a reduction of 4.1%[28] Corporate Costs and Dividends - Corporate costs for the quarter were $18.2 million, up from $11.8 million a year ago, which included an $8.4 million recovery of historic pension costs[14] - The company announced a 10% increase in the semi-annual dividend to $0.87 per share, bringing the annual dividend to $1.71 per share[17] Capital Expenditures and Impairments - Capital expenditures for the nine months ended September 30, 2025, were $35.7 million, compared to $29.3 million in the same period of 2024, an increase of 21.8%[30] - The company incurred an impairment of property, plant, and equipment amounting to $22.9 million in the nine months ended September 30, 2025[30]