IOSP
Innospec Inc.77.99
-0.39-0.5%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q&A details Q1 storm hit, segment outlooks
Q&A quantified the late-January storm's Q1 2026 punch: Oilfield Services operating income at $5-6 million ($2 million shy), Performance Chemicals at $10-11 million ($5-6 million short), with lost Perf Chem production unrecoverable but Oilfield eyeing partial makeup via Middle East/DRA ramps and 5-7% revenue growth. Fuel Specialties hit record Q4 revenue on richer mix and new tech; management expects another consistent year amid M&A interest. Perf Chem Q4 volumes dipped on tariffs and consumer trading down to commoditized goods, with growth pegged flat for 2026 before rebound. Corporate costs set at $20 million quarterly. Storm killed momentum. Investors track Q3/Q4 execution on efficiencies and new products.
Key Stats
Market Cap
1.94BP/E (TTM)
-Basic EPS (TTM)
-0.04Dividend Yield
0.02%Recent Filings
8-K
Q4 profit surge, strong cash
Innospec reported Q4 revenues of $455.6M, down 2% yet swinging to $47.4M net income ($1.91 GAAP EPS) from last year's $70.4M loss tied to UK pension buyout. Fuel Specialties operating income rose 7% to $37.2M on margin gains, while Performance Chemicals and Oilfield Services showed sequential improvement amid cost cuts. Net cash hit $292.5M. Management eyes 2026 growth in margins and new products.
10-K
FY2025 results
Innospec's FY2025 net sales fell 4% y/y to $1.78B, with Fuel Specialties flat at $702M and 36.0% gross margin (up 1.8 pts) driving 12% operating income growth to $145M, while Performance Chemicals grew 4% to $681M yet saw margins slip to 17.9% from higher costs and mix, and Oilfield Services plunged 19% to $395M with $23M operating income amid Mexico weakness. Q4 showed sequential margin gains in Performance Chemicals from price actions, but impairments hit $42M. Free cash flow held at $63.9M (derived); no debt, $293M cash, dividends up 10% to $1.71/share, $24M buybacks. Outlook eyes 2026 growth via margins and DRA ramp. Oil price swings threaten Oilfield momentum.
8-K
Q3 mixed; impairments hit EPS
Innospec reported Q3 revenues flat at $441.9M but net income fell to $12.9M ($0.52/share) from $33.4M ($1.33/share), hit by $42.9M impairments in Oilfield Services offset by $18.5M contingent consideration gain. Fuel Specialties drove 14% operating income growth to $35.3M; Performance Chemicals and Oilfield Services declined. Board hiked semi-annual dividend 10% to $0.87/share. Net cash hit $270.8M.
10-Q
Q3 FY2025 results
Innospec's Q3 sales held flat at $441.9M y/y while dropping 4% YTD to $1,322.4M, with Oilfield Services plunging 13% q/q and 22% YTD on weak Mexico and US stimulation demand. Gross margin slipped to 26.4% from 28.0%, yet Fuel Specialties gained 2.0 points to 35.6% on better mix; operating income cratered to $5.9M from $45.6M due to $42M impairments in Oilfield and $19.1M intangibles plus restructuring. Contingent consideration gain of $17.7M from QGP helped net income to $12.9M ($0.52 diluted EPS, confirmed vs 24,909K shares). Cash sits at $270.8M with $76.9M operating cash flow less $35.7M capex; $250M revolver undrawn. Impairments hit hard. Oilfield stays volatile.
10-Q
Q2 FY2025 results
Innospec's Q2 revenue edged up 1% y/y to $439.7M, buoyed by 9% growth in Performance Chemicals amid stronger personal care demand, yet tempered by a 7% drop in Oilfield Services from softer EMEA volumes. Gross margins slipped 1.2 points to 28.0%, with operating income down 16% y/y to $34.3M as pricing erosion hit Performance Chemicals harder. YTD, revenue fell 6% to $880.5M, operating income declined 16% to $76.8M, and diluted EPS dropped 23% to $2.24, reconciling cleanly with 25,097K shares. Cash stood at $266.6M with no debt drawn on the $250M facility, while free cash flow came in at $5.4M after $21.4M capex. The ERP rollout continues smoothly. Inventory misappropriation in Brazil lingers as a key risk.
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