Innospec Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Innospec (NASDAQ: IOSP) reported second quarter 2026 revenues of $491.4 million, up 12% from $439.7 million, with operating income of $39.7 million versus $34.3 million. Net income attributable to Innospec rose to $30.8 million, or $1.25 diluted EPS, compared with $23.5 million, or $0.94.
Adjusted non-GAAP EPS was $1.27, essentially flat versus $1.26, and adjusted EBITDA was $50.1 million versus $49.1 million. Performance Chemicals revenue grew 9% to $190.3 million, Fuel Specialties 12% to $185.7 million, and Oilfield Services 14% to $115.4 million. Oilfield Services operating income increased 40% to $8.7 million.
The company ended the quarter with $250.2 million in cash and no debt, generated $7.2 million in operating cash flow, invested $16.5 million in capital expenditures, paid a $0.92 per share semi-annual dividend, and repurchased 87,089 shares for $6.4 million.
Positive
- Revenue growth 12% YoY to $491.4 million in Q2 2026
- Operating income up to $39.7 million from $34.3 million
- GAAP diluted EPS $1.25 vs. $0.94 in prior-year quarter
- Oilfield Services operating income up 40% to $8.7 million
- Net cash position $250.2 million with no debt at June 30, 2026
- Shareholder returns: $0.92 dividend plus $6.4 million share repurchases in Q2
Negative
- Adjusted EBITDA nearly flat at $50.1 million vs. $49.1 million
- Performance Chemicals gross margin down 0.2 pts to 17.3%
- Fuel Specialties gross margin down 1.5 pts to 36.6%
- Operating cash flow down to $7.2 million from $10.5 million in prior-year quarter
- Selling, general and administrative expenses up to $84.3 million from $74.6 million
News Explained
The quarter’s
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 07 | Q1 earnings | Positive | +5.1% | Revenue grew while management raised the dividend and authorized a new buyback. |
| Feb 17 | Q4/FY earnings | Neutral | +0.3% | Mixed quarterly and full-year trends accompanied solid cash generation and net cash. |
| Nov 04 | Q3 earnings | Negative | +2.4% | Adjusted EPS declined despite lower special charges and improved operating cash flow. |
| Aug 05 | Q2 earnings | Negative | -3.1% | Performance Chemicals and Oilfield Services reported operating income declines. |
| Feb 18 | Q4/FY earnings | Negative | -7.0% | Revenue declined and the company reported a net loss from a pension charge. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were mixed, averaging -0.46%, with four of five selected events directionally aligned with their dominant reported developments.
Key Terms
gaap financial
non-gaap financial
adjusted ebitda financial
diluted eps financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Strong contributions from all businesses with revenues up 12 percent and operating income up 16 percent
Continued strength in Fuel Specialties and further improvement in Performance Chemicals and Oilfield Services
Debt-free balance sheet with over
GAAP EPS
ENGLEWOOD, Colo., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Innospec Inc. (NASDAQ: IOSP) today announced its financial results for the second quarter ended June 30, 2026.
Total revenues for the second quarter were
Results for this quarter include some special items, which are summarized in the table below. Excluding these items, adjusted non-GAAP EPS in the second quarter was
Cash from operating activities was
Adjusted EBITDA and net income attributable to Innospec 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 June 30, 2026 | Quarter ended June 30, 2025 | |||||||||
| (in millions, except share and per share data) | Net income attributable to Innospec | Diluted EPS | Net income attributable to Innospec | Diluted EPS | ||||||
| Reported GAAP amounts | $ | 30.8 | $ | 1.25 | $ | 23.5 | $ | 0.94 | ||
| Foreign currency exchange (gains)/losses | (0.9) | (0.04) | 3.5 | 0.14 | ||||||
| Amortization of acquired intangible assets | 0.8 | 0.03 | 1.6 | 0.06 | ||||||
| Legacy costs of closed operations | 0.7 | 0.03 | 2.3 | 0.09 | ||||||
| Adjustment to fair value of contingent consideration | 0.1 | - | 0.8 | 0.03 | ||||||
| 0.7 | 0.02 | 8.2 | 0.32 | |||||||
| Adjusted non-GAAP amounts | $ | 31.5 | $ | 1.27 | $ | 31.7 | $ | 1.26 | ||
Commenting on the second quarter results, Patrick S. Williams, President and Chief Executive Officer, said,
“This was a strong quarter for Innospec with all businesses contributing to double digit operating income growth.
Performance Chemicals operating leverage drove a 15 percent operating income increase over last year. In North Carolina we continue to advance our plant repairs, process improvements and upgrades to meet customer requirements. In parallel, we continue to execute on a range of other topline and margin opportunities identified in the business. We expect these combined efforts to drive further improvement in the second half of 2026.
Fuel Specialties had another strong quarter delivering revenue and operating income growth with margins that remained within our target range. As expected, the business continued to deliver consistently as our team advances on a broad set of regional and end-market opportunities in traditional fuel, renewable fuel and non-fuel applications.
Oilfield Services operating income and margins improved sequentially and on the prior year, driven by our recent DRA plant expansion and growing opportunities to deliver this industry-leading technology to our customers. In addition, we remain focused on driving growth and margin improvement in our US and Middle East completions and production business. We are confident that these combined efforts will drive further sequential improvement in the second half of 2026.”
Revenues in Performance Chemicals of
Revenues in Fuel Specialties of
Revenues in Oilfield Services of
Corporate costs for the quarter were
The effective tax rate for the quarter was 25.0 percent compared to 26.0 percent in the same period last year, reflecting the geographical location of taxable profits.
For the quarter, cash provided by operating activities was
Mr. Williams concluded,
“This was a strong quarter for Innospec driven by improved performance in all our businesses. We remain focused on further technology development, topline growth and margin improvement opportunities, and we are optimistic about the impact that these actions will have on future results.
Operating cash generation was positive in the quarter, and our net cash position closed at over
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, net income attributable to Innospec excluding special items and related per share amounts together with net cash. Adjusted EBITDA is net income attributable to Innospec per our consolidated financial statements adjusted for the exclusion of interest income, net, income taxes, depreciation and amortization, foreign currency exchange (gains)/losses, legacy costs of closed operations and adjustment to fair value of contingent consideration. Net income attributable to Innospec and diluted EPS, excluding special items, per our consolidated financial statements are adjusted for the exclusion of foreign currency exchange (gains)/losses, amortization of acquired intangible assets, legacy costs of closed operations and adjustment to fair value of contingent consideration. 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 attributable to Innospec excluding special items and adjusted EBITDA (the most directly comparable GAAP financial measure for which is GAAP net income attributable to Innospec) to allocate resources and evaluate the performance of the Company’s operations and has provided a reconciliation of adjusted EBITDA and net income attributable to Innospec excluding special items, and related per share amounts, to GAAP net income attributable to Innospec 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
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, 2025, Innospec’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 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.
Contacts:
Corbin Barnes
Innospec Inc.
+1-303-792-5554
corbin.barnes@innospecinc.com
| INNOSPEC INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||
| Schedule 1 | |||||||||
| (in millions, except share and per share data) | Three Months Ended June 30 | Six Months Ended June 30 | |||||||
| 2026 | 2025 | 2026 | 2025 | ||||||
| Net sales | $ | 491.4 | $ | 439.7 | $ | 944.6 | $ | 880.5 | |
| Cost of goods sold | (353.1) | (316.5) | (682.8) | (632.2) | |||||
| Gross profit | 138.3 | 123.2 | 261.8 | 248.3 | |||||
| Operating expenses: | |||||||||
| Selling, general and administrative | (84.3) | (74.6) | (162.8) | (143.9) | |||||
| Research and development | (14.2) | (13.6) | (27.4) | (26.3) | |||||
| Adjustment to fair value of contingent consideration | (0.1) | (0.8) | 4.6 | (1.5) | |||||
| Profit on disposal of property, plant and equipment | - | 0.1 | - | 0.2 | |||||
| Total operating expenses | (98.6) | (88.9) | (185.6) | (171.5) | |||||
| Operating income | 39.7 | 34.3 | 76.2 | 76.8 | |||||
| Other income/(expense), net | 1.1 | (4.7) | 3.7 | (4.4) | |||||
| Interest income, net | 0.8 | 2.7 | 1.6 | 5.1 | |||||
| Income before income taxes | 41.6 | 32.3 | 81.5 | 77.5 | |||||
| Income taxes | (10.4) | (8.4) | (19.5) | (20.0) | |||||
| Net income | 31.2 | 23.9 | 62.0 | 57.5 | |||||
| Net income attributable to non-controlling interests | (0.4) | (0.4) | (0.8) | (1.2) | |||||
| Net income attributable to Innospec | $ | 30.8 | $ | 23.5 | $ | 61.2 | $ | 56.3 | |
| Earnings per share: | |||||||||
| Basic | $ | 1.25 | $ | 0.94 | $ | 2.48 | $ | 2.26 | |
| Diluted | $ | 1.25 | $ | 0.94 | $ | 2.47 | $ | 2.24 | |
| Weighted average shares outstanding (in thousands): | |||||||||
| Basic | 24,644 | 24,937 | 24,710 | 24,954 | |||||
| Diluted | 24,707 | 25,042 | 24,807 | 25,097 | |||||
| INNOSPEC INC. AND SUBSIDIARIES | ||||||||
| Schedule 2A | ||||||||
| SEGMENTAL ANALYSIS OF RESULTS | Three Months Ended June 30 | Six Months Ended June 30 | ||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | ||||
| Net sales: | ||||||||
| Performance Chemicals | $ | 190.3 | $ | 173.8 | $ | 359.7 | $ | 342.2 |
| Fuel Specialties | 185.7 | 165.1 | 367.3 | 335.4 | ||||
| Oilfield Services | 115.4 | 100.8 | 217.6 | 202.9 | ||||
| 491.4 | 439.7 | 944.6 | 880.5 | |||||
| Gross profit: | ||||||||
| Performance Chemicals | 33.0 | 30.5 | 61.4 | 65.8 | ||||
| Fuel Specialties | 68.0 | 62.9 | 132.3 | 123.7 | ||||
| Oilfield Services | 37.3 | 29.8 | 68.1 | 58.8 | ||||
| 138.3 | 123.2 | 261.8 | 248.3 | |||||
| Operating income: | ||||||||
| Performance Chemicals | 16.4 | 14.3 | 27.1 | 34.1 | ||||
| Fuel Specialties | 36.3 | 35.4 | 74.1 | 72.3 | ||||
| Oilfield Services | 8.7 | 6.2 | 14.3 | 10.3 | ||||
| Corporate costs | (21.6) | (20.9) | (43.9) | (38.6) | ||||
| 39.8 | 35.0 | 71.6 | 78.1 | |||||
| Adjustment to fair value of contingent consideration | (0.1) | (0.8) | 4.6 | (1.5) | ||||
| Profit on disposal of property, plant and equipment | - | 0.1 | - | 0.2 | ||||
| Total operating income | $ | 39.7 | $ | 34.3 | $ | 76.2 | $ | 76.8 |
| Schedule 2B | ||||||||
| NON-GAAP MEASURES | Three Months Ended June 30 | Six Months Ended June 30 | ||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | ||||
| Net income attributable to Innospec | $ | 30.8 | $ | 23.5 | $ | 61.2 | $ | 56.3 |
| Interest income, net | (0.8) | (2.7) | (1.6) | (5.1) | ||||
| Income taxes | 10.4 | 8.4 | 19.5 | 20.0 | ||||
| Depreciation and amortization | 9.9 | 11.4 | 19.8 | 22.3 | ||||
| Foreign currency exchange (gains)/losses | (1.2) | 4.7 | (3.7) | 4.3 | ||||
| Legacy costs of closed operations | 0.9 | 3.0 | 3.2 | 3.8 | ||||
| Adjustment to fair value of contingent consideration | 0.1 | 0.8 | (4.6) | 1.5 | ||||
| Adjusted EBITDA | $ | 50.1 | $ | 49.1 | $ | 93.8 | $ | 103.1 |
| INNOSPEC INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
| Schedule 3 | ||||
(in millions) | June 30, 2026 | December 31, 2025 | ||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 250.2 | $ | 292.5 |
| Trade and other accounts receivable | 408.6 | 342.3 | ||
| Inventories | 337.3 | 329.3 | ||
| Prepaid expenses | 13.3 | 20.1 | ||
| Prepaid income taxes | 5.7 | 13.1 | ||
| Other current assets | 9.6 | 7.3 | ||
| Total current assets | 1,024.7 | 1,004.6 | ||
| Net property, plant and equipment | 293.3 | 286.1 | ||
| Operating lease right-of-use assets | 47.9 | 52.7 | ||
| Goodwill | 398.2 | 399.0 | ||
| Other intangible assets | 65.3 | 67.7 | ||
| Deferred tax assets | 13.3 | 13.6 | ||
| Other non-current assets | 3.5 | 8.7 | ||
| Total assets | $ | 1,846.2 | $ | 1,832.4 |
| Liabilities and Stockholders’ Equity | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 169.4 | $ | 174.7 |
| Accrued liabilities | 170.0 | 152.3 | ||
| Current portion of operating lease liabilities | 14.3 | 15.9 | ||
| Current portion of plant closure provisions | 4.9 | 4.9 | ||
| Current portion of acquisition-related contingent consideration | 2.8 | 7.0 | ||
| Accrued income taxes | 6.7 | 5.3 | ||
| Total current liabilities | 368.1 | 360.1 | ||
| Operating lease liabilities, net of current portion | 33.6 | 36.8 | ||
| Plant closure provisions, net of current portion | 59.8 | 60.2 | ||
| Deferred tax liabilities | 16.0 | 19.1 | ||
| Pension liabilities and post-employment benefits | 12.7 | 13.2 | ||
| Acquisition-related contingent consideration, net of current portion | 1.3 | 1.3 | ||
| Other non-current liabilities | 3.7 | 8.8 | ||
| Equity | 1,351.0 | 1,332.9 | ||
| Total liabilities and equity | $ | 1,846.2 | $ | 1,832.4 |
| INNOSPEC INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
| Schedule 4 | ||||
| Six Months Ended June 30 | ||||
| (in millions) | 2026 | 2025 | ||
| Cash Flows from Operating Activities | ||||
| Net income | $ | 62.0 | $ | 57.5 |
| Adjustments to reconcile net income to cash provided by operating activities: | ||||
| Depreciation and amortization | 19.9 | 22.0 | ||
| Adjustment to fair value of contingent consideration | (4.6) | 1.5 | ||
| Deferred taxes | (2.7) | (0.6) | ||
| Profit on disposal of property, plant and equipment | - | (0.2) | ||
| Movements on defined benefit pension plans | 0.1 | 2.6 | ||
| Stock option compensation | 3.8 | 4.1 | ||
| Changes in working capital | (60.9) | (22.6) | ||
| Movements in plant closure provisions | 1.1 | 1.4 | ||
| Movements in income taxes | 7.2 | (22.9) | ||
| Movements in other assets and liabilities | (1.1) | (4.0) | ||
| Net cash provided by operating activities | 24.8 | 38.8 | ||
| Cash Flows from Investing Activities | ||||
| Capital expenditures | (26.6) | (21.4) | ||
| Proceeds on disposal of property, plant and equipment | 1.5 | 0.5 | ||
| Internally developed software | (5.1) | (10.8) | ||
| Net cash used in investing activities | (30.2) | (31.7) | ||
| Cash Flows from Financing Activities | ||||
| Dividend paid | (22.7) | (20.8) | ||
| Issue of treasury stock | 0.1 | 0.4 | ||
| Repurchase of common stock | (13.5) | (13.3) | ||
| Net cash used in financing activities | (36.1) | (33.7) | ||
| Effect of foreign currency exchange rate changes on cash | (0.8) | 4.0 | ||
| Net change in cash and cash equivalents | (42.3) | (22.6) | ||
| Cash and cash equivalents at beginning of period | 292.5 | 289.2 | ||
| Cash and cash equivalents at end of period | $ | 250.2 | $ | 266.6 |
