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IOSP

Innospec Inc.

IOSP

Innospec Inc. • NASDAQ
$74.76 ▲ 0.28% (+0.21)
Market Cap $1.85 B
52w High $120.69
52w Low $70.10
Dividend Yield 1.71%
P/E -1869
Volume 77.86K
Outstanding Shares 24.78M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $441.9M ▲ $85.6M ▼ $12.9M ▼ 2.919% ▼ $0.519 ▼ $23.4M ▼
Q2-2025 $439.7M ▼ $88.9M ▲ $23.5M ▼ 5.345% ▼ $0.94 ▼ $46.1M ▼
Q1-2025 $440.8M ▼ $82.6M ▼ $32.8M ▲ 7.441% ▲ $1.31 ▲ $53.9M ▲
Q4-2024 $466.8M ▲ $95.1M ▲ $-70.4M ▼ -15.081% ▼ $-2.82 ▼ $48.3M ▼
Q3-2024 $443.4M $78.5M $33.4M 7.533% $1.34 $59M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $270.8M ▲ $1.799B ▼ $496.5M ▼ $1.297B ▲
Q2-2025 $266.6M ▼ $1.806B ▲ $504.6M ▼ $1.295B ▲
Q1-2025 $299.8M ▲ $1.775B ▲ $508.9M ▼ $1.26B ▲
Q4-2024 $289.2M ▼ $1.735B ▼ $518.6M ▼ $1.211B ▼
Q3-2024 $303.8M $1.798B $550.1M $1.243B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $12.9M ▼ $39.3M ▲ $-24.2M ▼ $-10.8M ▲ $4.2M ▲ $25M ▲
Q2-2025 $23.5M ▼ $9.3M ▼ $-16.2M ▼ $-28.7M ▼ $-33.2M ▼ $-3.7M ▼
Q1-2025 $32.8M ▲ $28.3M ▲ $-15.5M ▲ $-3.8M ▲ $10.6M ▲ $19.9M ▲
Q4-2024 $-70.4M ▼ $25.7M ▼ $-20.6M ▼ $-17.8M ▼ $-14.6M ▼ $4.9M ▼
Q3-2024 $33.4M $73.5M $-11.7M $900K $63.6M $65.8M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Fuel Specialties
Fuel Specialties
 $190.00M ▲$170.00M ▼$170.00M ▲$170.00M ▲
Oilfield Services
Oilfield Services
 $110.00M ▲$100.00M ▼$100.00M ▲$100.00M ▲
Performance Chemicals
Performance Chemicals
 $170.00M ▲$170.00M ▲$170.00M ▲$170.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has plateaued in recent years after a solid rebound from the pandemic period, suggesting a mature business rather than a fast‑growing one. Gross and operating profitability look reasonably healthy and fairly steady, which points to decent pricing power and cost control. The standout issue is the sharp drop in net income and earnings per share in the most recent year, likely reflecting one‑off items, mix shifts, or higher below‑the‑line costs rather than a collapse in the core business. Overall, the income statement shows a stable, moderately profitable specialty chemicals company, but with a recent setback in bottom‑line results that deserves closer attention to its causes and durability.

Balance Sheet

Balance Sheet The balance sheet appears conservative and resilient. Total assets have grown gradually, supported by steady reinvestment, while shareholders’ equity has also trended upward, indicating the business has been building its capital base over time. Cash holdings have increased, giving the company a stronger liquidity cushion. Debt levels are very low relative to the size of the business, which reduces financial risk and provides flexibility for future investments or to weather downturns in cyclical end markets.

Cash Flow

Cash Flow The company consistently generates positive cash flow from operations, though the amounts have moved up and down year to year, reflecting normal volatility in working capital and demand. Free cash flow has stayed positive throughout the last five years and has generally improved, showing that the business can fund itself after capital spending. Investment in property and equipment is modest and relatively stable, which helps support free cash flow. Overall, the cash flow profile looks solid and self‑sustaining, with enough room to support ongoing innovation and selective growth initiatives.

Competitive Edge

Competitive Edge Innospec operates in niche areas of specialty chemicals where performance, reliability, and technical support matter more than pure volume or lowest price. Its strength comes from proprietary additives and formulations, deep technical relationships with customers, and the ability to tailor solutions across fuel specialties, performance chemicals, and oilfield services. The company benefits from global reach and a broad portfolio, which helps offset weakness in any one region or segment. Key risks include exposure to cyclical industries like energy and industrial production, as well as structural shifts away from internal combustion engines and potential regulatory changes in fuels and chemicals. Still, the combination of technology, customer intimacy, and global scale gives it a defensible, if not unassailable, competitive position.

Innovation and R&D

Innovation and R&D Innovation is clearly one of Innospec’s main levers: it has built branded additive families, advanced oilfield chemicals, and sustainable performance ingredients that target specific, high‑value problems for customers. The company invests in R&D centers and technical service teams, not just to create new molecules but also to help customers with formulation and application support, which deepens relationships and differentiation. Recent moves, such as the deepwater LaZuli line and a new technology center for performance chemicals, show a focus on more specialized, higher‑margin, and sustainability‑aligned niches. Future upside depends on how effectively it can extend its capabilities beyond traditional fuel applications, grow in areas like personal care and agriculture, and turn its innovation pipeline into consistent, profitable revenue streams.

Summary

Innospec looks like a disciplined, niche specialty chemicals company with a strong balance sheet, reliable free cash flow, and a business model anchored in technical expertise and customer collaboration. Growth has cooled, with revenue roughly flat lately, and the most recent dip in net income stands out as a key area to investigate further. Financial risk is low thanks to minimal debt and rising cash, which supports ongoing investment in R&D and cushions against cyclical swings in energy and industrial markets. Strategically, the firm’s focus on proprietary technologies, sustainable ingredients, and specialized solutions positions it reasonably well for long‑term trends, but it must continue to adapt to declining dependence on combustion‑engine fuels and variability in oilfield and performance chemical demand. Overall, the story is one of steady, innovation‑driven specialization with moderate growth and low leverage, rather than rapid expansion or high financial risk.

NEWS

October 1, 2025 · 4:45 PM UTC

Innospec Schedules Third Quarter 2025 Earnings Release and Conference Call

Read more