Innospec Inc. Q4 FY2025 earnings call

• Patrick Williams noted good quarter with strong operating income growth in Fuel Specialties, improving Performance Chemicals and Oilfield Services. In Performance Chemicals, margin improvement actions and new products drove growth. Fuel Specialties had sales growth and margin expansion. Oilfield Services had improved operating income but lower sales. - Ian Cleminson reviewed financial results, including revenues, margins, EBITDA, net income, EPS for quarter and full year, and cash flow details.

Performance Chemicals: Fourth quarter revenues $168.4M, flat vs last year; volumes down 7%, offset by price/mix 3% and currency 4%; gross margin 18.1%, down 4.6 ppts; operating income $17.7M, down 14%. Full year revenues $681.4M, up 4%; operating income $61M, down 26%. Fuel Specialties: Fourth quarter revenues $194.1M, up 1%; volumes up 8%, offset by price/mix -10% and currency 3%; gross margin 34.7%, up 0.3 ppts; operating income $37.2M, up 7%. Full year revenues $701.5M, unchanged; operating income $144.8M, up 12%. Oilfield Services: Fourth quarter revenues $93.1M, down 12%; gross margin 31.9%, up 1.8 ppts; operating income $8.2M, up 9%. Full year revenues $395.1M, down 19%; operating income $23.3M, down 40%.

• Performance Chemicals and Oilfield Services results negatively impacted by historic winter storm in late Jan; optimistic for full-year improvements in 2026. - Fuel Specialties expected to continue consistent results. - Oilfield Services outlook includes DRA expansion taking effect and Middle East activity return, but no Mexico sales assumed in 2026. - Full-year effective tax rate expected around 26% in 2026.

• Forward-looking statements subject to risks and uncertainties detailed in SEC filings. - Weather event in late Jan had negative impact on Performance Chemicals and Oilfield Services operations and expected first quarter results. - Uncertainty in marketplace and tariffs affecting Performance Chemicals volumes. - Political and market conditions in Latin America and Venezuela impacting Oilfield Services business opportunities.

Q: Jonathan E. Tanwanteng asked about oilfield business mix evolution and weather impact.

A: Patrick Williams and Ian Cleminson discussed oilfield business progress, weather-related production issues, and expected impacts on Q1 results.

Q: Michael Joseph Harrison asked about Performance Chemicals volume decline, pricing actions, and Oilfield Services top-line growth and Latin America/Venezuela opportunities.

A: Patrick Williams and Ian Cleminson responded on Performance Chemicals volume factors, pricing, Oilfield Services growth expectations, and Latin America/Venezuela prospects.

Q: David Silver asked about Fuel Specialties record revenue and operating profit, and Performance Chemicals new technology commercialization.

A: Patrick Williams answered on Fuel Specialties performance drivers and Performance Chemicals new product commercialization and growth outlook.