Specialty chemicals firm Innospec Q3 adjusted EPS misses estimates on gross margins decline

Innospec

04/11/2025 21:53

Overview

Innospec Q3 sales slightly beat analyst expectations, reaching $441.9 mln

Adjusted EPS for Q3 missed analyst expectations at $1.12

Company increased semi-annual dividend by 10% and repurchased $10.7 mln in shares

Outlook

Innospec expects sequential operating income growth in Performance Chemicals and Oilfield Services

Innospec does not assume resumption of Mexican sales in its outlook

Result Drivers

FUEL SPECIALTIES - Strong operating income growth and margin expansion offset weaker results in other segments

PERFORMANCE CHEMICALS - Sales grew but gross margins declined due to higher costs and weaker product mix

OILFIELD SERVICES - Operating income declined due to lower Middle East activity and customer timing issues

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$441.90 mln
$439.63 mln (3 Analysts)
Q3 Adjusted EPS
Miss
$1.12
$1.18 (3 Analysts)
Q3 EPS
$0.52
Q3 Net Income
$12.90 mln
Q3 Gross Profit
$116.70 mln
Q3 Operating Income
$5.90 mln
Q3 Pretax Profit
$11.50 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the specialty chemicals peer group is "buy"

Wall Street's median 12-month price target for Innospec Inc is $107.50, about 31.5% above its November 3 closing price of $73.65

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX4NvMzy

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)