Innospec Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 18 February 2026: press release. The quarter’s numbers.

Key takeaways

Sales and operating income in quarter: Net sales were $455.6 million, down 2 percent. Operating income rose to $46.8 million from $41.1 million, with lower selling, general and administrative expense. Full-year net sales were $1.78 billion, down 4 percent. Source
Full-year adjusted EBITDA down 10 percent: Fourth-quarter adjusted EBITDA was $55.7 million, against $56.6 million. Full-year adjusted EBITDA fell to $203.0 million from $225.2 million, with Performance Chemicals and Oilfield Services operating income down for the year. Source
Operating income down 14 percent: Operating income was $17.7 million, down from $20.6 million. Third-quarter operating income was $9.2 million, so fourth-quarter operating income rose sequentially, which management linked to margin actions. Source
Operating income up 7 percent: Revenue was $194.1 million, up 1 percent. Volumes rose 8 percent, offset by price/mix down 10 percent and currency up 3 percent. Operating income was $37.2 million. Source
Sales down, operating income up: Revenue was $93.1 million, down 12 percent. Operating income rose 9 percent to $8.2 million, and gross margin reached 31.9 percent, up 1.8 points on a richer sales mix. Source
Net cash rose to $292.5 million: Net cash was $292.5 million at December 31, 2025, up from $289.2 million a year earlier and from $270.8 million at September 30. Source
Priorities for 2026 unchanged: Management said its 2026 focus is margin and operating income improvement in Performance Chemicals and Oilfield Services, with Fuel Specialties expected to remain consistent. Source

“Entering 2026, our focus remains unchanged. We will continue to prioritize margin and operating income improvement in Performance Chemicals and Oilfield Services.”
Patrick S. Williams, President and Chief Executive Officer

What changed from last quarter

New guidance: The fourth-quarter release gives a 2026 directional view for Performance Chemicals and Oilfield Services. The third-quarter release addressed the fourth quarter and coming quarters only. Source
Guidance kept: The exclusion of Mexico sales from the 2026 view was repeated from the third-quarter release. Source
New: Lower overheads from reduced personnel related costs are cited for Oilfield Services and Corporate costs. The third-quarter release did not cite personnel reductions. Source

Results and growth drivers

Sales and operating income in quarter: Net sales were $455.6 million, down 2 percent. Operating income rose to $46.8 million from $41.1 million, with lower selling, general and administrative expense. Full-year net sales were $1.78 billion, down 4 percent. Source
Adjusted EPS higher, GAAP EPS positive: GAAP diluted EPS was $1.91, against a loss of $2.80 a year earlier that included the UK pension scheme buyout. Adjusted EPS was $1.50, against $1.41. Full-year adjusted EPS was $5.27, against $5.92. Source
Full-year adjusted EBITDA down 10 percent: Fourth-quarter adjusted EBITDA was $55.7 million, against $56.6 million. Full-year adjusted EBITDA fell to $203.0 million from $225.2 million, with Performance Chemicals and Oilfield Services operating income down for the year. Source
Special items excluded from adjusted figures: Fourth-quarter special items are listed in a table and excluded from adjusted measures. Full-year special items include $22.9 million of PP&E impairment, $19.1 million of intangible impairment and a $15.9 million contingent consideration gain. Source

Performance Chemicals

Revenue flat, gross margin down year on year: Revenue was $168.4 million against $169.2 million a year earlier. Gross margin was 18.1 percent, down 4.6 points, and up from 15.1 percent in the third-quarter release. Source
Operating income down 14 percent: Operating income was $17.7 million, down from $20.6 million. Third-quarter operating income was $9.2 million, so fourth-quarter operating income rose sequentially, which management linked to margin actions. Source
Full-year sales up, operating income down: Full-year revenue rose 4 percent to $681.4 million. Full-year operating income fell 26 percent to $61.0 million. Source
Margin actions beginning to take effect: Management said margin improvement actions began to take effect, together with lower overheads from reduced personnel related costs. The third-quarter release had said margin actions were beginning to take effect. Source

“We enter 2026 with significant balance sheet flexibility for M&A, dividend growth, organic investment and buybacks.”
Patrick S. Williams, President and Chief Executive Officer

Fuel Specialties

Operating income up 7 percent: Revenue was $194.1 million, up 1 percent. Volumes rose 8 percent, offset by price/mix down 10 percent and currency up 3 percent. Operating income was $37.2 million. Source
Full-year operating income higher: Full-year revenue was unchanged at $701.5 million, while operating income rose 12 percent to $144.8 million. Third-quarter operating income was $35.3 million. Source
Gross margin up on year, below third quarter: Gross margin was 34.7 percent, up 0.3 points from a year earlier and below the 35.6 percent reported in the third-quarter release. Source

Oilfield Services

Sales down, operating income up: Revenue was $93.1 million, down 12 percent. Operating income rose 9 percent to $8.2 million, and gross margin reached 31.9 percent, up 1.8 points on a richer sales mix. Source
Lower activity and personnel costs cited: Management attributed lower sales to reduced activity in US completions and in the Middle East. Overheads were lower because of reduced personnel related costs. Source
Full-year sales and profit down: Full-year revenue fell 19 percent to $395.1 million. Full-year operating income fell 40 percent to $23.3 million. Source
Third-quarter charges tied to recovery view: Third-quarter charges of $42.9 million covered asset, intangible and restructuring items, offset by an $18.5 million reduction in contingent consideration.

“In addition, we expect Fuel Specialties to continue to deliver consistent results.”
Patrick S. Williams, President and Chief Executive Officer

Costs, margins and tax

Corporate costs lower on personnel: Corporate costs were $16.0 million, down $4.6 million from last year. Third-quarter corporate costs were $18.2 million. Source
Full-year tax rate lower: The full-year adjusted effective tax rate was 24.1 percent, down from 26.4 percent, due to the geographical mix of taxable profits. The third-quarter rate was 22.5 percent. Source
Third-quarter Performance Chemicals margin pressure: In the third quarter, management attributed lower Performance Chemicals gross margins to higher costs, price management and product mix, which it said were below expectations.

Cash, net cash and dividend

Quarterly cash after capex higher: Cash from operations after capital expenditures was $40.9 million, against $5.1 million a year earlier. Operating cash before capital expenditures was $61.4 million, with capital expenditures of $20.5 million. Source
Full-year cash after capex lower: Full-year cash from operations after capital expenditures was $63.9 million, against $122.7 million in 2024. Full-year capital expenditures were $50.3 million. Source
Net cash rose to $292.5 million: Net cash was $292.5 million at December 31, 2025, up from $289.2 million a year earlier and from $270.8 million at September 30. Source
Semi-annual dividend payment made: The company made its semi-annual dividend payment of $21.6 million. The third-quarter release had approved a further 10 percent increase in the semi-annual dividend to 87 cents per share. Source
Share repurchases: Third-quarter share repurchases were $10.7 million. The cash flow statement shows $23.9 million of common stock repurchases for the full year, the same as the nine-month figure.

2026 priorities and pipeline

Priorities for 2026 unchanged: Management said its 2026 focus is margin and operating income improvement in Performance Chemicals and Oilfield Services, with Fuel Specialties expected to remain consistent. Source
New product pipeline accelerating: Management said it is accelerating its new product pipeline across all end markets and expects its combined efforts to drive further improvement in 2026. Source
Oilfield drivers for 2026: Management cited Middle East activity returning, sales from the recent DRA expansion and continued margin focus as drivers of Oilfield Services operating income growth in 2026. Source

Coming up, as management said on 18 February 2026

Margin opportunities still being executed: Management said it continues to execute topline, cost and other margin opportunities identified in the business. No dated milestone was given. Source
Oilfield activity and DRA sales in 2026: Management expects Oilfield Services operating income growth in 2026 as Middle East activity returns and sales from the recent DRA expansion take effect. Source

Figures management reported

Figure	Reported
Fuel Specialties volumes Source	up 8 percent
Performance Chemicals volumes Source	down 7 percent

Risks management discussed

Financial: Management tied third-quarter impairments and restructuring to an expected lack of near-term recovery in three oilfield businesses.
Demand: Oilfield Services sales were lower on reduced activity in US completions and in the Middle East. Source
Demand: The 2026 view excludes any resumption of Mexico sales, which management said it did not assume. Source
Operational: Performance Chemicals gross margin declined 4.6 points from a year earlier, a margin pressure the company is working to address. Source
Demand: Fuel Specialties price/mix was adverse by 10 percent in the quarter, offsetting an 8 percent volume increase. Source

Earlier plans management reported on

Met: The third-quarter release expected sequential improvement in Performance Chemicals in the fourth quarter. The fourth-quarter release says sequential operating income growth was delivered. Source
Not stated: The third-quarter release expected sequential operating income and margin improvement in the fourth quarter. The fourth-quarter release reports improved margins and operating income but does not state the earlier expectation was met. Source
Met: The third-quarter release approved a further 10 percent increase in the semi-annual dividend. The fourth-quarter release reports the $21.6 million payment made. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

INNOSPEC REPORTS FOURTH QUARTER AND FULL YEAR 2025

FINANCIAL RESULTS

Continued strength in Fuel Specialties with 7 percent operating income growth and improved margins

Sequentially improving results in Performance Chemicals and Oilfield Services

Excellent quarterly cash flow of $61.4 million generated from operations; Net cash improves to $292.5 million

GAAP EPS $1.91 and adjusted non-GAAP EPS $1.50

Englewood, CO - February 17, 2026 - Innospec Inc. (NASDAQ: IOSP) today announced its financial results for the fourth quarter and full year ended December 31, 2025.

Total revenues for the fourth quarter were $455.6 million, a decrease of 2 percent from $466.8 million in the corresponding period last year. Net income for the quarter 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, recorded last year which was impacted by the buyout of the UK pension scheme. Adjusted EBITDA for the quarter was $55.7 million compared to $56.6 million reported in the same period a year ago.

Results for this quarter include some special items, which are summarized in the table below. Excluding these items, adjusted non-GAAP EPS in the fourth quarter was $1.50 per diluted share, compared to $1.41 per diluted share a year ago.

Innospec generated cash from operating activities of $61.4 million before capital expenditures of $20.5 million in the quarter and closed the year with net cash of $292.5 million.

Adjusted EBITDA, income before income taxes excluding special items, net income excluding special items, and related per-share amounts, together with net cash, are non-GAAP financial measures that are defined and reconciled with GAAP results herein and in the schedules below.

	Quarter ended December 31, 2025			Quarter ended December 31, 2024
(in millions, except share and per share data)	Income before income taxes	Net income	Per diluted share	(Loss)/ income before income taxes	Net (loss)/ income	Per diluted share
Reported GAAP amounts	$50.3	$47.4	$1.91	$(102.6)	$(70.4)	$(2.80)
Impact of internal reorganizations	-	(9.5)	(0.38)	0.6	1.1	0.04
Foreign currency exchange gains	(2.7)	(2.0)	(0.08)	(8.0)	(5.7)	(0.23)
Amortization of acquired intangible assets	1.0	0.8	0.03	2.3	1.7	0.07
Adjustment to fair value of contingent consideration	0.3	0.3	0.01	1.3	2.0	0.08
Legacy costs of closed operations	0.3	0.2	0.01	1.4	1.1	0.04
Settlement charge on UK pension scheme buy-out	-	-	-	155.6	116.7	4.65
Adjustment of income tax provisions	-	-	-	-	(11.0)	(0.44)
	(1.1)	(10.2)	(0.41)	153.2	105.9	4.21
Adjusted non-GAAP amounts	$49.2	$37.2	$1.50	$50.6	$35.5	$1.41

For the full year, total revenues of $1.78 billion decreased by 4 percent from $1.85 billion in the prior year. Net income for 2025 was $116.6 million or $4.67 per diluted share, compared to the prior year net income of $35.6 million, or $1.42 per diluted share, which was impacted by the buy out of the UK pension scheme. Adjusted EBITDA for the year was $203.0 million down 10 percent from $225.2 million in 2024.

Results for the full year include some special items, which are summarized in the table below. Excluding these items, adjusted non-GAAP EPS for the full year was $5.27 per diluted share, compared to $5.92 per diluted share a year ago.

	Year ended December 31, 2025			Year ended December 31, 2024
(in millions, except share and per share data)	Income before income taxes	Net income	Diluted EPS	Income before income taxes	Net income	Diluted EPS
Reported GAAP amounts	$138.1	$116.6	$4.67	$41.2	$35.6	$1.42
Impairment of property, plant and equipment	22.9	18.1	0.72	-	-	-
Adjustment to fair value of contingent consideration	(15.9)	(15.9)	(0.64)	3.4	3.4	0.14
Impairment of intangible assets	19.1	14.0	0.56	-	-	-
Impact of internal reorganizations	-	(9.5)	(0.38)	0.6	1.1	0.04
Amortization of acquired intangible assets	7.3	5.5	0.22	11.3	8.6	0.34
Legacy costs of closed operations	5.1	3.8	0.15	4.0	3.0	0.12
Foreign currency exchange gains	(1.6)	(1.2)	(0.05)	(4.9)	(3.6)	(0.14)
Restructuring charge	0.9	0.6	0.02	-	-	-
Settlement charge on UK pension scheme buy out	-	-	-	155.6	116.7	4.65
Adjustment of income tax provisions	-	-	-	-	(11.4)	(0.45)
Recovery of historical pension costs	-	-	-	(8.4)	(6.3)	(0.25)
Settlement of historical tax audits	-	-	-	-	1.3	0.05
	37.8	15.4	0.60	161.6	112.8	4.50
Adjusted non-GAAP amounts	$175.9	$132.0	$5.27	$202.8	$148.4	$5.92

Commenting on the fourth quarter results, Patrick S. Williams, President and Chief Executive Officer, said,

“This was a good quarter for Innospec with continued strong operating income growth and margin expansion in Fuel Specialties combined with improving results in Performance Chemicals and Oilfield Services.

Performance Chemicals delivered strong sequential operating income growth as our margin improvement actions began to take effect together with lower overheads driven by a reduction in personnel related costs. We continue to execute multiple topline, cost and other margin opportunities identified in the business. In addition, we are accelerating our strong pipeline of new products across all our end markets. We expect these combined efforts to drive further improvement in 2026.

Fuel Specialties had another strong quarter with sales growth and margin improvement, driving a seven percent increase in operating income over the prior year. As expected, the business has continued to deliver consistently strong results.

Oilfield Services operating income and margins improved this quarter on a richer sales mix and lower overheads due to lower personnel related costs while sales were down on reduced activity in US completions and in the Middle East. We remain focused on delivering operating income growth in 2026 as Middle East activity returns, sales from our recent DRA expansion takes effect, and our focus on margin improvement continues. Our outlook does not assume any resumption of Mexico sales in 2026.”

Revenues in Performance Chemicals of $168.4 million were consistent with $169.2 million in the fourth quarter of last year, as volume reductions of 7 percent were offset by a positive price/mix of 3 percent and a positive currency impact of 4 percent. Gross margins of 18.1 percent decreased by 4.6 percentage points from the same quarter last year. Operating income of $17.7 million decreased 14 percent from $20.6 million in the prior year period. For the full year, revenues were up 4 percent to $681.4 million and operating income decreased 26 percent to $61.0 million.

Revenues in Fuel Specialties of $194.1 million were up 1 percent from $191.8 million in the fourth quarter of last year. Volumes were up 8 percent with an adverse price/mix of 10 percent and a positive currency impact of 3 percent. Gross margins of 34.7 percent increased by 0.3 percentage points over last year. Operating income of $37.2 million was up 7 percent from $34.9 million a year ago. For the full year, revenues were unchanged at $701.5 million and operating income increased 12 percent to $144.8 million.

Revenues in Oilfield Services of $93.1 million for the quarter were down 12 percent from $105.8 million in the fourth quarter of last year. Gross margins of 31.9 percent increased by 1.8 percentage points from the same quarter last year on a richer sales mix. Operating income of $8.2 million increased 9 percent from $7.5 million in the prior year period. For the full year, revenues were down 19 percent to $395.1 million and operating income decreased 40 percent to $23.3 million.

Corporate costs of $16.0 million decreased by $4.6 million from last year driven by lower personnel related costs. The full year adjusted effective tax rate for 2025 was 24.1 percent compared to 26.4 percent last year, due to the geographical mix of taxable profits.

For the quarter, cash provided by operating activities after capital expenditures was $40.9 million compared to $5.1 million a year ago. For the full year, cash from operations after capital expenditures was $63.9 million compared to $122.7 million in 2024. As of December 31, 2025, Innospec had net cash of $292.5 million compared to net cash of $289.2 million a year ago.

Mr. Williams concluded,

“Entering 2026, our focus remains unchanged. We will continue to prioritize margin and operating income improvement in Performance Chemicals and Oilfield Services. In both segments, we have margin enhancement, new technology commercialization and other opportunities which we expect to drive growth in 2026. In addition, we expect Fuel Specialties to continue to deliver consistent results.

Operating cash generation was excellent in the quarter, and our net cash position closed at over $292 million after making our semi-annual dividend payment of $21.6 million. We enter 2026 with significant balance sheet flexibility for M&A, dividend growth, organic investment and buybacks.”

Use of Non-GAAP Financial Measures

The information presented in this press release includes financial measures that are not calculated or presented in accordance with Generally Accepted Accounting Principles in the United States (GAAP). These non-GAAP financial measures comprise adjusted EBITDA, income before income taxes excluding special items, net income excluding special items and related per share amounts together with net cash. Adjusted EBITDA is net income/(loss) per our consolidated financial statements adjusted for the exclusion of interest income, net, income taxes, depreciation and amortization, pension scheme settlement charge, recovery of historical pension costs, foreign currency exchange gains, legacy costs of closed operations, adjustment to fair value of contingent consideration, restructuring charge, impairment of property, plant and equipment and impairment of intangible assets. Income before income taxes, net income and diluted EPS, excluding special items, per our consolidated financial statements are adjusted for the exclusion of impairment of property, plant and equipment, adjustment to fair value of contingent consideration, impairment of intangible assets, impact of internal reorganizations, amortization of acquired intangible assets, legacy costs of closed operations, foreign currency exchange gains, restructuring charge, settlement charge on UK pension scheme buy out, adjustment of income tax provisions, recovery of historical pension costs and settlement of historical tax audits. Net cash is cash and cash equivalents less total debt. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are provided herein and in the schedules below.

The Company believes that such non-GAAP financial measures provide useful information to investors and may assist them in evaluating the Company’s underlying performance and identifying operating trends. In addition, these non-GAAP measures address questions the Company routinely receives from analysts and investors and the Company has determined that it is appropriate to make this data available to all investors. While the Company believes that such measures are useful in evaluating the Company’s performance, investors should not consider them to be a substitute for financial measures prepared in accordance with GAAP. In addition, these non-GAAP financial measures may differ from similarly titled non-GAAP financial measures used by other companies and do not provide a comparable view of the Company’s performance relative to other companies in similar industries. Management uses adjusted EPS (the most directly comparable GAAP financial measure for which is GAAP EPS) and net income excluding special items and adjusted EBITDA (the most directly comparable GAAP financial measure for which is GAAP net income/(loss)) to allocate resources and evaluate the performance of the Company’s operations and has provided a reconciliation of adjusted EBITDA and net income excluding special items, and related per share amounts, to GAAP net income/(loss) herein and in the schedules below.

About Innospec Inc.

Innospec Inc. is an international specialty chemicals company with approximately 2,450 employees in 22 countries. Innospec manufactures and supplies a wide range of specialty chemicals to markets in the Americas, Europe, the Middle East, Africa and Asia-Pacific. The Performance Chemicals business creates innovative technology-based solutions for our customers in the Personal Care, Home Care, Agrochemical, Mining and Industrial markets. The Fuel Specialties business specializes in manufacturing and supplying fuel additives that improve fuel efficiency, boost engine performance and reduce harmful emissions. Oilfield Services provides specialty chemicals to all elements of the oil and gas exploration and production industry.

Forward-Looking Statements

Forward-looking statements notice

This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Such forward-looking statements include statements (covered by words like “expects,” “estimates,” “anticipates,” “may,” “could,” “believes,” “feels,” “plans,” “intends,” “outlook” or similar words or expressions, for example) which relate to earnings, growth potential, operating performance, events or developments that we expect or anticipate will or may occur in the future. Although forward-looking statements are believed by management to be reasonable when made, they are subject to certain risks, uncertainties and assumptions, and our actual performance or results may differ materially from these forward-looking statements. Additional information regarding risks, uncertainties and assumptions relating to Innospec and affecting our business operations and prospects are described in Innospec’s Annual Report on Form 10-K for the year ended December 31, 2024, Innospec’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 and other reports filed with the U.S. Securities and Exchange Commission. You are urged to review our discussion of risks and uncertainties that could cause actual results to differ from forward-looking statements under the heading “Risk Factors” in such reports. Innospec undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

INNOSPEC INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Schedule 1

(in millions, except share and per share data)	Three Months Ended December 31				Twelve Months Ended December 31
	2025		2024		2025		2024
Net sales		$455.6		$466.8		$1,778.0		$1,845.4
Cost of goods sold		(328.2)		(330.6)		(1,285.6)		(1,302.5)
Gross profit		127.4		136.2		492.4		542.9
Operating expenses:
Selling, general and administrative		(69.3)		(78.9)		(285.1)		(305.3)
Research and development		(11.0)		(14.9)		(51.0)		(56.5)
Adjustment to fair value of contingent consideration		(0.3)		(1.3)		15.9		(3.4)
Restructuring charge		-		-		(0.9)		-
Impairment of property, plant and equipment		-		-		(22.9)		-
Impairment of intangible assets		-		-		(19.1)		-
Profit on disposal of property, plant and equipment		-		-		0.2		0.2
Total operating expenses		(80.6)		(95.1)		(362.9)		(365.0)
Operating income		46.8		41.1		129.5		177.9
Other income/(expense), net		1.6		9.5		(0.6)		9.6
Pension scheme settlement charge		-		(155.6)		-		(155.6)
Interest income, net		1.9		2.4		9.2		9.3
Income/(loss) before income taxes		50.3		(102.6)		138.1		41.2
Income taxes		(2.9)		32.2		(21.5)		(5.6)
Net income/(loss)		$47.4		$(70.4)		$116.6		$35.6
Earnings/(loss) per share:
Basic		$1.91		$(2.82)		$4.69		$1.43
Diluted		$1.91		$(2.80)		$4.67		$1.42
Weighted average shares outstanding (in thousands):
Basic		24,778		24,949		24,880		24,932
Diluted		24,837		25,115		24,993		25,119

INNOSPEC INC. AND SUBSIDIARIES

Schedule 2A

SEGMENTAL ANALYSIS OF RESULTS	Three Months Ended December 31		Twelve Months Ended December 31
(in millions)	2025	2024	2025	2024
Net sales:
Performance Chemicals	$168.4	$169.2	$681.4	$653.7
Fuel Specialties	194.1	191.8	701.5	701.1
Oilfield Services	93.1	105.8	395.1	490.6
	455.6	466.8	1,778.0	1,845.4
Gross profit:
Performance Chemicals	30.4	38.4	122.0	148.4
Fuel Specialties	67.3	66.0	252.2	239.9
Oilfield Services	29.7	31.8	118.2	154.6
	127.4	136.2	492.4	542.9
Operating income:
Performance Chemicals	17.7	20.6	61.0	82.9
Fuel Specialties	37.2	34.9	144.8	129.6
Oilfield Services	8.2	7.5	23.3	38.8
Corporate costs	(16.0)	(20.6)	(72.8)	(70.2)
	47.1	42.4	156.3	181.1
Adjustment to fair value of contingent consideration	(0.3)	(1.3)	15.9	(3.4)
Restructuring charge	-	-	(0.9)	-
Impairment of property, plant and equipment	-	-	(22.9)	-
Impairment of intangible assets	-	-	(19.1)	-
Profit on disposal of property, plant and equipment	-	-	0.2	0.2
Total operating income	$46.8	$41.1	$129.5	$177.9

Schedule 2B

NON-GAAP MEASURES	Three Months Ended December 31		Twelve Months Ended December 31
(in millions)	2025	2024	2025	2024
Net income/(loss)	$47.4	$(70.4)	$116.6	$35.6
Interest income, net	(1.9)	(2.4)	(9.2)	(9.3)
Income taxes	2.9	(32.2)	21.5	5.6
Depreciation and amortization	9.4	11.3	43.6	43.6
Pension scheme settlement charge	-	155.6	-	155.6
Recovery of historical pension costs	-	-	-	(8.4)
Foreign currency exchange gains	(2.7)	(8.0)	(1.6)	(4.9)
Legacy costs of closed operations	0.3	1.4	5.1	4.0
Adjustment to fair value of contingent consideration	0.3	1.3	(15.9)	3.4
Restructuring charge	-	-	0.9	-
Impairment of property, plant and equipment	-	-	22.9	-
Impairment of intangible assets	-	-	19.1	-
Adjusted EBITDA	$55.7	$56.6	$203.0	$225.2

Schedule 3

INNOSPEC INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions)	December 31, 2025	December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$292.5	$289.2
Trade and other accounts receivable	342.3	341.7
Inventories	329.3	301.0
Prepaid expenses	20.1	21.0
Prepaid income taxes	13.1	3.1
Other current assets	7.3	0.6
Total current assets	1,004.6	956.6
Net property, plant and equipment	286.1	269.7
Operating lease right-of-use assets	52.7	44.8
Goodwill	399.0	382.5
Other intangible assets	67.7	65.4
Deferred tax assets	13.6	9.4
Pension asset	-	2.4
Other non-current assets	8.7	3.9
Total assets	$1,832.4	$1,734.7
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$174.7	$163.8
Accrued liabilities	152.3	169.1
Current portion of operating lease liabilities	15.9	13.9
Current portion of plant closure provisions	4.9	5.0
Current portion of acquisition-related contingent consideration	7.0	-
Accrued income taxes	5.3	19.6
Total current liabilities	360.1	371.4
Operating lease liabilities, net of current portion	36.8	31.0
Plant closure provisions, net of current portion	60.2	55.3
Deferred tax liabilities	19.1	23.5
Pension liabilities and post-employment benefits	13.2	13.1
Acquisition-related contingent consideration, net of current portion	1.3	20.1
Other non-current liabilities	8.8	4.2
Equity	1,332.9	1,216.1
Total liabilities and equity	$1,832.4	$1,734.7

Schedule 4

INNOSPEC INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Twelve Months Ended December 31
(in millions)		2025		2024
Cash Flows from Operating Activities
Net income	$116.6		$35.6
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	43.6		43.5
Adjustment to fair value of contingent consideration	(15.9)		3.4
Impairment of property, plant and equipment	22.9		-
Impairment of intangible assets	19.1		-
Deferred taxes	(10.2)		(39.3)
Profit on disposal of property, plant and equipment	(0.2)		(0.2)
Non-cash movements on defined benefit pension plans	2.7		151.9
Stock option compensation	8.1		8.5
Changes in working capital	(16.0)		(14.8)
Movements in plant closure provisions	(1.9)		0.9
Movements in income taxes	(21.8)		6.3
Movements in unrecognized tax benefits	-		(14.8)
Movements in other assets and liabilities	(8.7)		3.5
Net cash provided by operating activities	138.3		184.5
Cash Flows from Investing Activities
Capital expenditures	(50.3)		(41.4)
Proceeds on disposal of property, plant and equipment	1.1		0.5
Business combinations, net of cash acquired	(0.7)		(0.2)
Internally developed software	(25.2)		(20.9)
Net cash used in investing activities	(75.1)		(62.0)
Cash Flows from Financing Activities
Non-controlling interest	1.9		2.4
Refinancing costs	-		(0.3)
Dividend paid	(42.4)		(38.8)
Issue of treasury stock	0.5		2.1
Repurchase of common stock	(23.9)		(0.7)
Net cash used in financing activities	(63.9)		(35.3)
Effect of foreign currency exchange rate changes on cash	4.0		(1.7)
Net change in cash and cash equivalents	3.3		85.5
Cash and cash equivalents at beginning of period	289.2		203.7
Cash and cash equivalents at end of period	$292.5		$289.2

Contacts
Corbin Barnes
Innospec Inc.
+44-151-355-3611 corbin.barnes@innospecinc.com