Slide 1: Q3 2024 Earnings
Q3 2024 Earnings November 2024 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 3rd Quarter Performance
Summary of 3rd Quarter Performance Q3 GAAP EPS of $1.33 Good results in-line with Balance sheet has expectations $303.8 million in net Adjusted non-GAAP cash EPS of $1.35 Extremely strong cash generation Continued capital 10 percent dividend allocation flexibility increase Performance Chemicals Fuel
Slide 6: Financial Performance
Financial Performance innospec’>
Slide 7: Q3 2024 Consolidated Results ($ MM)
Q3 2024 Consolidated Results ($ MM) • Sales down 4 percent • Gross margin down 1.6 percentage points • Operating income up 9 percent • Adjusted EBITDA down 7 percent • Adjusted EPS of $1.35 Q3 2023 Q3 2024 ©2024 Innospec Inc. 7
Slide 8: Q3 2024 Performance Chemicals ($ MM)
Q3 2024 Performance Chemicals ($ MM) • Sales up 13 percent • Acquisition growth of 8 percent • Volumes up 9 percent • Price/mix down 4 percent • Gross margin up 1.2 percentage points • Operating income up 18 percent Q3 2023 Q3 2024 ©2024 Innospec Inc. 8
Slide 9: Q3 2024 Fuel Specialties ($ MM)
Q3 2024 Fuel Specialties ($ MM) • Sales down 2 percent • Volumes up 2 percent • Price/mix down 4 percent • Gross margin up 2.3 percentage points • Operating income up 12 percent Q3 2023 Q3 2024 ©2024 Innospec Inc. 9
Slide 10: Q3 2024 Oilfield Services ($ MM)
Q3 2024 Oilfield Services ($ MM) • Sales down 24 percent • Gross margin down 7.7 percentage points on weaker sales mix • Operating income down 57 percent • Lower sales levels will continue through the fourth quarter Q3 2023 Q3 2024 ©2024 Innospec Inc. 10
Slide 11: Q3 2024 Corporate Items ($ MM)
Q3 2024 Corporate Items ($ MM) • Corporate costs down to $11.8 million on recovery of historic pension costs • Effective tax rate of 25.4 percent • Full year 2025 tax rate expected to be 27 percent Q3 2023 Q3 2024 ©2024 Innospec Inc. 11
Slide 12: Q3 2024 Balance Sheet ($ MM)
Q3 2024 Balance Sheet ($ MM) • Operating cash inflow of $73.5 million • Capital expenditures of $11.7 million • Net cash balance of $303.8 million Q4 2023 Q3 2024 ©2024 Innospec Inc. 12
Slide 13: Concluding Comments
Concluding Comments innospec’>
Slide 14: Summary of 3rd Quarter Performance
Performance Chemicals operating income up 18 percent with Summary of improved margins Fuel Specialties operating income up 12 percent with improved 3 Quarter rd margins Performance As expected, Oilfield Services continued at lower activity levels In Q4, expect steady sequential results in Performanc
Slide 15: Q&A
Q&A 11/5/2024 ©2024 Innospec Inc.
Slide 16: Final Comments
Final Comments February 2025 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Thank You for Your 16 23 17 24 18 25 19 26 20 27 21 28 22 Continued Support Q4 2024 Results Schedule • February 18th – Results Release After Close • February 19th – Conference Call ©2024 Innospec Inc. 16