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Innospec's Earnings Surpass Estimates in Q1, Revenues Miss

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Innospec Inc. (IOSP - Free Report) recorded a profit of $32.8 million or $1.31 per share in first-quarter 2025, down from a profit of $41.4 million or $1.65 per share in the year-ago quarter.

Barring one-time items, earnings came in at $1.42 per share, down from $1.75 per share a year ago. It topped the Zacks Consensus Estimate of $1.40.

The company’s revenues fell roughly 12% year over year to $440.8 million in the quarter. It missed the Zacks Consensus Estimate of $459.3 million. 

IOSP saw strong results in the Fuel Specialties unit with higher margins driving a double-digit year-over-year increase in operating income. This was offset by weaker year-over-year operating income in Performance Chemicals and Oilfield Services.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Innospec Inc. Price, Consensus and EPS Surprise

Innospec Inc. Price, Consensus and EPS Surprise

Innospec Inc. price-consensus-eps-surprise-chart | Innospec Inc. Quote

IOSP’s Segment Highlights

The Performance Chemicals unit logged sales of $168.4 million in the reported quarter, up around 5% year over year, aided by higher volumes and favorable price/mix, partly offset by unfavorable currency swings. It was below the consensus estimate of $174 million.

Revenues in the Fuel Specialties segment fell roughly 4% year over year to $170.3 million in the reported quarter on unfavorable price/mix and currency impact. The figure was lower than the consensus estimate of $180 million.

Revenues in the Oilfield Services division fell around 37% year over year to $102.1 million. It was lower than the consensus estimate of $113 million. The segment’s results were hurt by the lack of recovery in Latin America orders and weaker-than-expected activity in U.S. completions and production businesses.

Innospec’s Financials

Innospec ended the quarter with cash and cash equivalents of $299.8 million, up around 4% sequentially.

Net cash provided by operating activities was $28.3 million for the reported quarter, down from $80.6 million in the year-ago period.

IOSP increased its semi-annual dividend by 10% and initiated a $50 million buyback. 

IOSP’s Outlook

Innospec said that it is well-placed to manage the tariff impacts with its diversified global supply chain and manufacturing locations. IOSP expects the prevailing economic environment to delay the recovery in Performance Chemicals and Oilfield Services on a sequential quarterly basis. It, however, anticipates Fuel Specialties to be relatively stable. It remains focused on positioning all businesses for growth and margin improvement as market conditions recover.

Innospec’s Price Performance

Shares of Innospec have lost 31.3% over a year compared with the Zacks Chemicals Diversified industry’s 24.9% decline.

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IOSP’s Zacks Rank & Other Chemical Releases

IOSP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ingevity Corporation (NGVT - Free Report) logged adjusted earnings of 99 cents per share in the first quarter,  up from 47 cents a year ago. NGVT expects 2025 sales to be between $1.25 billion and $1.40 billion, and adjusted EBITDA between $380 million and $415 million.

The Chemours Company’s (CC - Free Report) adjusted earnings were 13 cents per share for the first quarter. The metric fell short of the Zacks Consensus Estimate of 19 cents per share. CC expects full-year 2025 adjusted EBITDA between $825 million and $950 million. 

Element Solutions Inc. (ESI - Free Report) logged first-quarter adjusted earnings per share of 34 cents per share. It beat the Zacks Consensus Estimate of 33 cents. ESI anticipates adjusted EBITDA for 2025 to be between $520 million and $540 million.

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