$IOSP

INNOSPEC INC.

CIK:0001054905|SEC Filings

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
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	0.0	0.1	0.0	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 tax expense	41.6	32.3	81.5	77.5
Income tax expense	(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

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities
Net income	$ 62.0	$ 57.5
Adjustments to reconcile net income to net 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	0.0	(0.2)
Movements on defined benefit pension plans	0.1	2.6
Stock option compensation	3.8	4.1
Changes in assets and liabilities, net of effects of acquired and divested companies:
Trade and other accounts receivable	(70.2)	28.9
Inventories	(12.0)	(13.3)
Prepaid expenses	6.7	8.3
Accounts payable and accrued liabilities	14.6	(46.5)
Plant closure provisions	1.1	1.4
Income taxes	7.2	(22.9)
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)
Internally developed software	(5.1)	(10.8)
Proceeds on disposal of property, plant and equipment	1.5	0.5
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

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 250.2	$ 292.5
Trade and other accounts receivable (less allowances of $15.4 million and $11.8 million respectively)	408.6	342.3
Inventories (less allowances of $42.5 million and $40.4 million respectively):
Finished goods	235.0	226.3
Raw materials	102.3	103.0
Total 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
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	1.3	1.3
Other non-current liabilities	3.7	8.8
Total liabilities	495.2	499.5
Equity:
Common stock, $0.01 par value, authorized 40,000,000 shares, issued 29,554,500shares	0.3	0.3
Additional paid-in capital	379.1	376.5
Treasury stock (4,923,453 and 4,776,918 shares at cost, respectively)	(127.8)	(115.2)
Retained earnings	1,137.7	1,099.2
Accumulated other comprehensive loss	(45.9)	(34.7)
Total Innospec stockholders' equity	1,343.4	1,326.1
Non-controlling interest	7.6	6.8
Total equity	1,351.0	1,332.9
Total liabilities and equity	$ 1,846.2	$ 1,832.4