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Innospec Inc. IOSP 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.
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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.