Slide 1: Q4 2024 Earnings
Q4 2024 Earnings February 2025 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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. S
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures The information presented in this presentation 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, inco
Slide 4: Earnings Conference Call Agenda
Earnings Conference Call Agenda Introduction 1 David Jones - VP, General Counsel Business Commentary 2 Patrick S. Williams - President & CEO Financial Performance 3 Ian Cleminson - Executive Vice President & CFO Questions & Answers 4 Patrick S. Williams and Ian Cleminson ©2024 Innospec Inc. 4
Slide 5: Summary of 4th Quarter Performance
Summary of 4th Quarter Performance Q4 GAAP loss per share of Strength in Performance Balance sheet has $2.80 driven by non- Chemicals and Fuel $289.2 million in net cash buyout of pension Specialties continued to cash plan offset lower results in Oilfield Services Continued capital Adjusted non-GAAP
Slide 6: Financial Performance
Financial Performance innospec’>
Slide 7: Q4 2024 Consolidated Results ($ MM)
Q4 2024 Consolidated Results ($ MM) • Revenue down 6 percent • Gross margin down 2.3 percentage points • Operating income down 8 percent • Adjusted EBITDA down 8 percent • Adjusted EPS of $1.41 Q4 2023 Q4 2024 ©2024 Innospec Inc. 7
Slide 8: Q4 2024 Performance Chemicals ($ MM)
Q4 2024 Performance Chemicals ($ MM) • Revenue up 23 percent • Acquisition growth of 7 percent • Volumes up 17 percent • Price/mix down 2 percent • Gross margin up 1.4 percentage points • Operating income up 14 percent Q4 2023 Q4 2024 ©2024 Innospec Inc. 8
Slide 9: Q4 2024 Fuel Specialties ($ MM)
Q4 2024 Fuel Specialties ($ MM) • Revenue up 5 percent • Volumes up 9 percent • Price/mix down 5 percent • Gross margin up 1.5 percentage points • Operating income up 7 percent Q4 2023 Q4 2024 ©2024 Innospec Inc. 9
Slide 10: Q4 2024 Oilfield Services ($ MM)
Q4 2024 Oilfield Services ($ MM) • Revenue down 40 percent on lower Latin America activity • Core business remains strong • Gross margin down 7.9 percentage points on weaker sales mix • Operating income down 59 percent Q4 2023 Q4 2024 ©2024 Innospec Inc. 10
Slide 11: Q4 2024 Corporate Items ($ MM)
Q4 2024 Corporate Items ($ MM) • Corporate costs down; prior year includes $1.3 million in acquisition costs • Full year adjusted effective tax rate of 26.4 percent • Full year 2025 tax rate expected to be 27.0 percent Q4 2023 Q4 2024 ©2024 Innospec Inc. 11
Slide 12: Q4 2024 Balance Sheet ($ MM)
Q4 2024 Balance Sheet ($ MM) • Operating cash inflow of $25.7 million • Capital expenditures of $20.6 million • Net cash balance of $289.2 million Q4 2023 Q4 2024 ©2024 Innospec Inc. 12
Slide 13: Concluding Comments
Concluding Comments innospec’>
Slide 14: Summary of 4th Quarter Performance
Performance Chemicals revenue up 23 percent; Operating income Summary of up 14 percent with improved gross margins Fuel Specialties revenue up 5 percent; Operating income up 7 4 Quarter th percent with improved gross and operating margins Performance As expected, Oilfield Services continued at lower
Slide 15: Q&A
Q&A 2/18/2025 ©2024 Innospec Inc.
Slide 16: Final Comments
Final Comments May 2025 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Thank You for Your 18 25 19 26 20 27 21 28 22 29 23 30 24 31 Continued Support Q1 2025 Results Schedule • May 8th – Results Release After Close • May 9th – Conference Call ©2024 Innospec Inc. 16