Innospec(US:IOSP)2026-02-18 11:03Financial Performance - Total revenues for Q4 2025 were $455.6 million, a decrease of 2% from $466.8 million in Q4 2024[4] - Net income for Q4 2025 was $47.4 million, or $1.91 per diluted share, compared to a net loss of $70.4 million, or $2.80 per diluted share, in the prior year[4] - Adjusted non-GAAP EPS for Q4 2025 was $1.50 per diluted share, up from $1.41 per diluted share a year ago[5] - Full year 2025 total revenues were $1.78 billion, a decrease of 4% from $1.85 billion in 2024[8] - Full year net income for 2025 was $116.6 million, or $4.67 per diluted share, compared to $35.6 million, or $1.42 per diluted share, in 2024[8] - Net income for Q4 2025 was $47.4 million, a significant recovery from a net loss of $70.4 million in Q4 2024[26] - Earnings per share (EPS) for Q4 2025 were $1.91, compared to a loss per share of $2.82 in Q4 2024[26] - Net income for the twelve months ended December 31, 2025, was $116.6 million, a significant increase from $35.6 million in 2024, representing a growth of 227%[34] Revenue Breakdown - Revenues in Performance Chemicals for Q4 2025 were $168.4 million, consistent with $169.2 million in Q4 2024, despite a 7% volume reduction[11] - Revenues in Fuel Specialties for Q4 2025 were $194.1 million, up 1% from $191.8 million in Q4 2024, with operating income increasing by 7%[14] - Revenues in Oilfield Services for Q4 2025 were $93.1 million, down 12% from $105.8 million in Q4 2024, but operating income increased by 9%[15] - Performance Chemicals segment reported net sales of $168.4 million in Q4 2025, slightly down from $169.2 million in Q4 2024[28] - Fuel Specialties segment achieved net sales of $194.1 million in Q4 2025, up from $191.8 million in Q4 2024[28] - Oilfield Services segment saw a decline in net sales to $93.1 million in Q4 2025 from $105.8 million in Q4 2024[28] Operating Metrics - Adjusted EBITDA for Q4 2025 was $55.7 million, slightly down from $56.6 million in Q4 2024[4] - Operating income increased to $46.8 million in Q4 2025, compared to $41.1 million in Q4 2024, representing a growth of 9.1%[26] - Gross profit for Q4 2025 was $127.4 million, down from $136.2 million in Q4 2024, reflecting a gross margin of 27.9%[26] Cash Flow and Investments - Cash generated from operating activities in Q4 2025 was $61.4 million, with net cash improving to $292.5 million[5] - Net cash provided by operating activities decreased to $138.3 million in 2025 from $184.5 million in 2024, a decline of 25%[34] - Capital expenditures increased to $50.3 million in 2025, compared to $41.4 million in 2024, reflecting a rise of 22.8%[34] - Net cash used in investing activities rose to $75.1 million in 2025 from $62.0 million in 2024, an increase of 21%[34] - Cash and cash equivalents at the end of the period were $292.5 million in 2025, slightly up from $289.2 million in 2024[34] Shareholder Returns - Dividend paid increased to $42.4 million in 2025, up from $38.8 million in 2024, marking a growth of 9.3%[34] - The company repurchased common stock amounting to $23.9 million in 2025, compared to $0.7 million in 2024, indicating a substantial increase[34] Asset Management - Total assets increased to $1,832.4 million as of December 31, 2025, compared to $1,734.7 million as of December 31, 2024[32] Other Financial Adjustments - The effect of foreign currency exchange rate changes on cash resulted in a positive impact of $4.0 million in 2025, contrasting with a negative impact of $1.7 million in 2024[34] - Adjustments for impairment of property, plant, and equipment totaled $22.9 million in 2025, with no such adjustments reported in 2024[34] - The company reported a non-cash movement on defined benefit pension plans of $2.7 million in 2025, a significant decrease from $151.9 million in 2024[34]