Innospec (IOSP) Q4 2024 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Mon, April 20, 2026 astatine 9:20 AM CDT 12 min read

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Wednesday, February 19, 2025 astatine 9 a.m. ET

• President & Chief Executive Officer — Patrick S. Williams

• Executive Vice President & Chief Financial Officer — Ian P. Cleminson

Patrick Williams: Thank you, David, and welcome, everyone, to Innospec 4th fourth and afloat twelvemonth 2024 league call. This was different bully 4th for Innospec arsenic we exceeded net expectations contempt the reduced Oilfield Services enactment successful Latin America. In Performance Chemicals, we delivered double-digit operating income maturation implicit the 4th fourth past twelvemonth driven by improved income and margins. We person a balanced pipeline of maturation opportunities crossed our planetary idiosyncratic care, location care, agriculture, construction, and different concern markets. In addition, the integration and show of our caller QGP acquisition successful Brazil is proceeding to program and is supporting not lone Performance Chemicals but besides Fuel Specialties maturation opportunities successful the region.

Moving to 2025, we proceed to people operating income and borderline betterment to levels accordant with afloat twelvemonth 2022. In Fuel Specialties, operating income accrued 7% implicit the aforesaid 4th past year, and operating borderline improved to conscionable beneath our people of 19% to 21%. We stay focused connected further borderline betterment successful parallel with top-line growth. With our industry-leading innovation and lawsuit work capabilities, we are well-positioned to proceed advancing our planetary customers' initiatives. Our exertion volition proceed to absorption connected cleaner fuels, lowering emissions, and improving ratio successful traditional, renewable, and non-fuel applications. In Oilfield Services, arsenic expected, results were akin to the 3rd 4th of nary retrieve successful Latin America accumulation chemic activity.

We presently bash not expect this enactment to resume successful the adjacent term. In 2025, we stay focused connected continuing to thrust sequential quarterly improvements successful our halfway businesses, including U.S. completions and production, DRA successful the Middle East. Now I volition crook the telephone to Ian Cleminson, who volition reappraisal our fiscal results successful much detail. Then I volition instrumentality with immoderate concluding comments. After that, Ian, I volition instrumentality your questions. Ian?

Ian Cleminson: Thanks, Patrick. Turning to Slide 7 successful the presentation, the company's full revenues for the 4th fourth were $466.8 million, a 6% alteration from $494.7 cardinal a twelvemonth ago. Overall gross borderline decreased by 2.3 percent points from past twelvemonth to 29.2%. Adjusted EBITDA for the 4th was $56.6 cardinal compared to $61.6 cardinal past year. In the 4th quarter, the institution concluded the buyouts of the UK pension strategy and incurred a non-cash colony complaint of $155.6 cardinal and consequently determination was a nett nonaccomplishment for the 4th of $70.4 million. Adjusting to this, the nett income was $46.3 cardinal compared to $37.8 cardinal a twelvemonth ago.