Innospec Inc. (NASDAQ: IOSP) has reported its financial results for the fourth quarter and full year ended December 31, 2025. The company's total revenues for the fourth quarter were $455.6 million, representing a 2 percent decrease from the corresponding period last year. However, net income for the quarter saw a significant turnaround, reaching $47.4 million, or $1.91 per diluted share, compared to a net loss of $70.4 million, or $2.80 per diluted share, in the same period the previous year.
Adjusted EBITDA for the quarter was $55.7 million, slightly down from $56.6 million reported in the same period a year ago. Excluding special items, adjusted non-GAAP EPS in the fourth quarter was $1.50 per diluted share, compared to $1.41 per diluted share a year ago.
For the full year, total revenues of $1.78 billion decreased by 4 percent from $1.85 billion in the prior year. However, net income for 2025 was $116.6 million, or $4.67 per diluted share, a significant improvement from the prior year net income of $35.6 million, or $1.42 per diluted share.
Adjusted EBITDA for the year was $203.0 million, down 10 percent from $225.2 million in 2024. Excluding special items, adjusted non-GAAP EPS for the full year was $5.27 per diluted share, compared to $5.92 per diluted share a year ago.
Commenting on the results, Patrick S. Williams, President and Chief Executive Officer, highlighted the company's continued strong operating income growth and margin expansion in fuel specialties, combined with improving results in performance chemicals and oilfield services. He also emphasized the company's focus on margin and operating income improvement in performance chemicals and oilfield services.
In terms of specific business segments, revenues in performance chemicals remained consistent with the previous year, while operating income decreased. Fuel specialties saw a 1 percent increase in revenues and a 7 percent increase in operating income for the quarter, and oilfield services experienced a 12 percent decrease in revenues but a 9 percent increase in operating income.
Innospec's quarterly cash flow was strong, with $61.4 million generated from operations, contributing to the company's net cash position of $292.5 million at the close of the year.
The company's full year adjusted effective tax rate for 2025 was 24.1 percent compared to 26.4 percent in the previous year, attributed to the geographical mix of taxable profits.
Today the company's shares have moved -2.48% to a price of $79.86. For more information, read the company's full 8-K submission here.
