Innospec | 10-Q: FY2025 Q2 Revenue Beats Estimate at USD 439.7 M

Revenue: As of FY2025 Q2, the actual value is USD 439.7 M, beating the estimate of USD 433.35 M.

EPS: As of FY2025 Q2, the actual value is USD 0.94, missing the estimate of USD 1.18.

EBIT: As of FY2025 Q2, the actual value is USD 31.9 M.

Performance Chemicals

• Net Sales: $173.8 million for Q2 2025, up 9% from $160.1 million in Q2 2024.
• Gross Profit: $30.5 million for Q2 2025, down 16% from $36.2 million in Q2 2024.
• Operating Income: $14.3 million for Q2 2025, down from $21.2 million in Q2 2024.
• Gross Margin: Decreased by 5.1 percentage points YoY due to pricing erosion and higher demand for lower-priced products.

Fuel Specialties

• Net Sales: $165.1 million for Q2 2025, a decrease of 1% from $166.6 million in Q2 2024.
• Gross Profit: $62.9 million for Q2 2025, up 9% from $57.6 million in Q2 2024.
• Operating Income: $35.4 million for Q2 2025, up from $30.4 million in Q2 2024.
• Gross Margin: Increased by 3.5 percentage points YoY due to improved sales mix and disciplined pricing.

Oilfield Services

• Net Sales: $100.8 million for Q2 2025, down 7% from $108.3 million in Q2 2024.
• Gross Profit: $29.8 million for Q2 2025, down 10% from $33.1 million in Q2 2024.
• Operating Income: $6.2 million for Q2 2025, down from $7.3 million in Q2 2024.
• Gross Margin: Decreased by 1.0 percentage points YoY due to a weaker sales mix.

Cash Flow

• Operating Cash Flow: $37.6 million for the six months ended June 30, 2025, compared to $85.3 million for the same period in 2024.

Future Outlook and Strategy

• Core Business Focus: The company continues to see potential growth opportunities in its oilfield markets, particularly in the Americas region.
• Non-Core Business: The company is investing in IT infrastructure and a new ERP system to improve operational efficiency.