Innospec Inc (IOSP)
NASDAQ:IOSP
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Innospec
(NASDAQ:IOSP)
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Rating:73Outperform
Price Target:
$81.00
▲(8.65% Upside)
Action:UpgradedDate:02/19/26
The score is anchored by strong underlying financial strength (low leverage, net cash and positive free cash flow) and supportive technical momentum (price above key moving averages, positive MACD). It is tempered by recent top-line softness and mixed profitability/cash generation, plus a near-term Q1 2026 earnings headwind despite management’s expectation for improvement later in 2026.
Positive Factors
Strong Balance Sheet
Innospec's net-cash position and minimal leverage provide durable financial flexibility. Low debt reduces refinancing and interest risks, enabling consistent dividends, opportunistic buybacks, targeted M&A or capex to support growth. This balance-sheet strength underpins resilience through cycles and funds strategic investments.
Negative Factors
Top-line Softness
A multi-year decline in consolidated revenue signals structural demand or mix headwinds across segments. Persistent top-line erosion reduces operating leverage, constrains margin recovery and limits the scalability of fixed-cost absorption, making sustained profit and cash-flow improvement harder without clear volume or mix inflection.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Balance Sheet
Innospec's net-cash position and minimal leverage provide durable financial flexibility. Low debt reduces refinancing and interest risks, enabling consistent dividends, opportunistic buybacks, targeted M&A or capex to support growth. This balance-sheet strength underpins resilience through cycles and funds strategic investments.
Read all positive factors
Innospec (IOSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.90B
Dividend Yield2.19%
Average Volume (3M)292.20K
Price to Earnings (P/E)10.0
Beta (1Y)0.95
Revenue Growth-3.65%
EPS Growth227.47%
CountryUS
Employees2,450
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)4.68
Shares Outstanding24,890,467
10 Day Avg. Volume378,556
30 Day Avg. Volume292,198
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.44
Price to Sales (P/S)1.07
P/FCF Ratio21.64
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue0.98
Enterprise Value/Gross Profit3.54
Enterprise Value/Ebitda9.69
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.06
Revenue Forecast (FY)$1.85B
Innospec Business Overview & Revenue Model
Company Description
Innospec Inc. (IOSP) is a global specialty chemicals company that operates primarily in the personal care, fuels, and industrial sectors. The company develops and manufactures a range of innovative chemical products, including surfactants, perform...
How the Company Makes Money
Innospec makes money by selling specialty chemical products and formulations to business customers, with revenue largely tied to volumes sold, product mix (higher-value specialty formulations vs. more commoditized chemistries), and pricing that re...
Innospec Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Breaks down operating profit across Innospec’s business lines (e.g., fuel additives, oilfield chemicals, performance specialties), revealing which segments generate core earnings and which consume resources. Tracks how margin trends, cyclical exposure to oil markets, or restructuring affect overall profitability and where management is allocating capital.
Breaks down operating profit across Innospec’s business lines (e.g., fuel additives, oilfield chemicals, performance specialties), revealing which segments generate core earnings and which consume resources. Tracks how margin trends, cyclical exposure to oil markets, or restructuring affect overall profitability and where management is allocating capital.
Data provided by:
The Fly
The FlyInnospec Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral. The company showed notable positives including a strong Q4 net income turnaround, record-like Fuel Specialties results, sequential recovery in Performance Chemicals, improved corporate cost control, a clean balance sheet with no debt and increased dividends. However, these are offset by declines in total revenue and adjusted EBITDA for the year, meaningful margin and volume pressure in Performance Chemicals, significant full-year revenue declines in Oilfield Services, a sharp drop in operating cash flow after capex, and a near-term headwind from a historic winter storm expected to depress Q1 2026 results. Management expects operational improvements later in 2026 (particularly Q3–Q4), but near-term challenges and mixed full-year metrics lead to a neutral overall assessment.Positive Updates
Q4 Net Income Turnaround
Q4 net income of $47.4 million versus a net loss of $70.4 million a year ago, driven in part by the absence of the prior year's U.K. pension scheme buyout charge and favorable special-item effects (GAAP EPS $1.91, including a $0.41 per-share positive net special-item effect).
Negative Updates
Revenue Declines (Q4 and Full Year)
Total company revenues for Q4 were $455.6 million, down 2% YoY (from $466.8 million); full-year revenues were $1.8 billion, down 4% versus 2024, reflecting top-line pressure across segments.
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Net Income Turnaround
Q4 net income of $47.4 million versus a net loss of $70.4 million a year ago, driven in part by the absence of the prior year's U.K. pension scheme buyout charge and favorable special-item effects (GAAP EPS $1.91, including a $0.41 per-share positive net special-item effect).
Read all positive updates
Company Guidance
Management guided that, despite a late‑January winter storm that will pressure Performance Chemicals and Oilfield Services in Q1, they expect full‑year 2026 improvements in both businesses; specifically, Q1 operating income is forecast at roughly $10–11 million for Performance Chemicals (about $5–6 million below plan) and $5–6 million for Oilfield Services (about $2 million below plan). They said Fuel Specialties should continue to deliver consistent results, the DRA expansion will drive incremental Oilfield volumes, and the outlook assumes no resumption of Mexico sales in 2026. On the cost and tax side, corporate costs are expected to run about $20 million per quarter (≈$80 million full‑year) and the full‑year effective tax rate is expected to be around 26%. Management also highlighted a net cash position of ~$292.5 million with no debt and continued balance‑sheet flexibility for dividend growth, buybacks, organic investment and M&A.Innospec Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.78B | 1.85B | 1.95B | 1.96B | 1.48B |
| Gross Profit | 492.40M | 542.90M | 591.10M | 586.70M | 434.90M |
| EBITDA | 205.60M | 224.60M | 200.90M | 227.40M | 173.00M |
| Net Income | 116.60M | 35.60M | 139.10M | 133.00M | 93.10M |
Balance Sheet | |||||
| Total Assets | 1.83B | 1.73B | 1.71B | 1.60B | 1.57B |
| Cash, Cash Equivalents and Short-Term Investments | 292.50M | 289.20M | 203.70M | 147.10M | 141.80M |
| Total Debt | 89.50M | 44.90M | 45.20M | 45.30M | 35.60M |
| Total Liabilities | 499.50M | 518.60M | 557.80M | 563.30M | 537.90M |
| Stockholders Equity | 1.33B | 1.21B | 1.15B | 1.04B | 1.03B |
Cash Flow | |||||
| Free Cash Flow | 88.00M | 143.10M | 145.20M | 39.40M | 54.10M |
| Operating Cash Flow | 138.30M | 184.50M | 207.30M | 81.70M | 93.20M |
| Investing Cash Flow | -75.10M | -62.00M | -111.80M | -42.10M | -36.20M |
| Financing Cash Flow | -63.90M | -35.30M | -39.00M | -33.70M | -20.00M |
Innospec Technical Analysis
Positive
74.55
Price Trends
75.86
Positive
77.11
Negative
78.21
Negative
Market Momentum
0.59
Negative
58.84
Neutral
68.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IOSP, the sentiment is Positive. The current price of 74.55 is above the 20-day moving average (MA) of 73.01, below the 50-day MA of 75.86, and below the 200-day MA of 78.21, indicating a neutral trend. The MACD of 0.59 indicates Negative momentum. The RSI at 58.84 is Neutral, neither overbought nor oversold. The STOCH value of 68.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IOSP.
Innospec Risk Analysis
Innospec disclosed 28 risk factors in its most recent earnings report. Innospec reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Innospec Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.90B | 10.00 | 9.01% | 2.19% | -3.65% | 227.47% | |
71 Outperform | $2.40B | 14.58 | 9.55% | 0.74% | 2.50% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $2.60B | -6.24 | -127.78% | ― | -12.00% | 60.73% | |
60 Neutral | $2.39B | 27.35 | 0.31% | 1.37% | 6.25% | -94.37% | |
59 Neutral | $1.15B | -6.91 | -1.15% | 3.33% | 5.46% | -125.23% | |
52 Neutral | $2.41B | 39.79 | -37.54% | 2.79% | -7.23% | -594.66% |
* Basic Materials Sector Average
IOSP
Innospec
76.48
-14.08
-15.55%
ASH
Ashland
52.54
5.83
12.48%
MTX
Minerals Technologies
77.50
25.47
48.96%
KWR
Quaker Chemical
137.41
39.25
39.99%
SCL
Stepan Company
50.79
-1.13
-2.17%
NGVT
Ingevity
73.79
34.59
88.24%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.