NASDAQ$IOSP

Innospec Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Innospec reported a decline in revenue and net income for Q4 2024 due to a significant pension settlement charge.

Innospec's Q4 2024 results showed a revenue decline of 6% to $466.8 million. The company reported a net loss of $70.4 million, mainly due to a non-cash settlement charge for a UK pension scheme buyout. Adjusted non-GAAP EPS was $1.41, down from $1.84 in Q4 2023. Cash from operations was $25.7 million, closing the quarter with a net cash position of $289.2 million.

  • Total revenue decreased by 6% to $466.8 million.
  • Reported GAAP loss per share was $2.80 due to a $155.6 million pension settlement charge.
  • Adjusted non-GAAP EPS was $1.41, down from $1.84 in Q4 2023.
  • Cash from operations was $25.7 million, with a strong net cash position of $289.2 million.

Headline financials

Total Revenue

$467M

Previous: $495M-5.6%
EPS (adj)

$1.41

Previous: $1.84-23.4%
Adjusted EBITDA

$56.6M

No prior period
Capital Expenditures

-$20.8M

Previous: -$21.2M+1.9%
Net Income

-$70.4M

Previous: $37.8M-286.2%
Operating Income

$41.1M

Previous: $44.5M-7.6%
Gross Profit

$136M

Previous: $156M-12.5%
R&D Expense

$12.7M

Previous: $8.9M+42.7%

Revenue & EPS history

Innospec · Revenue · Quarterly

$467M

Q4 2024-5.6%vs Q4 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Innospec · $319M total across 2 segments · Q3 2023

  • Fuel Specialties
    $169M-5.3%
  • Oilfield Services
    $150M-14.3%

Forward guidance

Innospec expects continued growth in Performance Chemicals and Fuel Specialties, while Oilfield Services is expected to remain stable due to weak demand in Latin America.

Tailwinds

  • Performance Chemicals is expected to achieve double-digit operating income growth.
  • Fuel Specialties aims to improve margins to the upper end of its 19-21% target range.
  • The company remains focused on new market opportunities in renewable fuels.
  • Net cash position of $289.2 million provides flexibility for strategic investments.
  • M&A opportunities continue to be explored to complement market footprint.

Headwinds

  • Oilfield Services remains under pressure due to weak production chemical demand in Latin America.
  • Operating margins remain below historical highs due to pricing challenges.
  • Impact of pension settlement charge affects reported profitability.
  • Higher tax rate of 26.4% compared to 23.0% last year affects net income.
  • Macroeconomic uncertainties could impact fuel and chemical demand.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+1.5%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+0.5%

Avg return

30 days after

62%

40 / 65 earnings

Positive

+14.7%

Q3 2024

Best reaction

-8.5%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.2%-0.8%+1.0%
Q4 2025-0.0%-8.3%-23.5%
Q3 2025+2.4%+3.9%+3.8%
Q1 2025-3.2%-6.0%-7.8%
Q4 2024-7.0%-7.2%-12.6%
Q3 2024+14.7%+11.7%+7.6%
Q2 2024-8.5%-8.2%-6.6%
Q1 2024+4.9%+5.0%+0.9%
Q4 2023-0.5%+3.0%+1.5%
Q3 2023+0.7%+0.8%+9.8%
Q2 2023+0.5%+1.3%-2.3%
Q1 2023+0.6%-1.3%-0.1%
Q4 2022-5.6%-5.1%-14.0%
Q3 2022-1.1%+5.8%+6.8%
Q2 2022-4.2%-7.6%-12.1%
Q1 2022+4.4%+5.4%+10.6%
Q4 2021+8.1%+8.4%+3.5%
Q3 2021+2.2%+3.3%-7.6%
Q2 2021-2.5%+1.0%+4.4%
Q1 2021+1.6%+4.2%+3.5%
Q4 2020-2.4%-0.2%+4.8%
Q3 2020+2.4%+0.6%+23.4%
Q2 2020-0.2%+2.9%-4.1%
Q1 2020+2.3%+5.2%+16.5%
Q4 2019-0.2%-8.4%-37.7%
Q3 2019+9.2%+8.8%+8.9%
Q2 2019+0.8%+2.2%+0.9%
Q1 2019+0.4%-0.3%-2.5%
Q4 2018+5.8%+9.6%+12.3%
Q3 2018+9.9%+8.3%-2.1%
Q2 2018-3.3%-4.5%-2.0%
Q1 2018+2.8%+3.4%+9.9%
Q4 2017+0.8%+2.6%+4.5%
Q3 2017+9.7%+3.6%+10.2%
Q2 2017-4.7%-9.3%-13.3%
Q1 2017-0.8%-2.6%+3.8%
Q4 2016+5.7%+1.9%-9.8%
Q3 2016-6.7%-5.5%+10.2%
Q2 2016+6.6%+16.1%+17.1%
Q1 2016+0.1%
Q4 2015-7.9%
Q3 2015+4.1%
Q2 2015+4.3%
Q1 2015-0.1%
Q4 2014+3.7%
Q3 2014+8.0%
Q2 2014+2.3%
Q1 2014-1.4%
Q4 2013+5.4%
Q3 2013-2.6%
Q2 2013+0.4%
Q1 2013-3.6%
Q4 2012+0.2%
Q3 2012+4.9%
Q4 2011-3.0%
Q2 2012-4.6%
Q1 2011+7.5%
Q1 2012+8.5%
Q4 2009-2.5%
Q3 2010-2.5%
Q3 2011+7.4%
Q2 2011+4.4%
Q2 2010+4.4%
Q4 2010+4.4%
Q1 2010+7.8%

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