Innospec Inc (IOSP)
NASDAQ:IOSP
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Innospec
(NASDAQ:IOSP)
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Rating:77Outperform
Price Target:
$91.00
▲(22.07% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by strong financial resilience (conservative balance sheet/net cash) and improving technical momentum (price above key moving averages with positive MACD). Offsetting this are margin compression and weaker free-cash-flow momentum, plus a cautious near-term outlook from the latest earnings call despite expectations for improvement later in the year.
Positive Factors
Conservative balance sheet and net cash
A net cash position and extremely low leverage provide durable financial flexibility to fund capex, buybacks, dividends and selective M&A without refinancing risk. This capital strength cushions commodity cyclicality and supports multi‑quarter operational plans and investments.
Negative Factors
Sustained margin compression
Operating margin erosion versus prior years indicates lasting cost, mix, or pricing pressure. If input cost pass‑through lags or negative price/mix persist, structural profitability will be lower, reducing free cash generation and limiting reinvestment or shareholder returns over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and net cash
A net cash position and extremely low leverage provide durable financial flexibility to fund capex, buybacks, dividends and selective M&A without refinancing risk. This capital strength cushions commodity cyclicality and supports multi‑quarter operational plans and investments.
Read all positive factors
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.
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The Fly
The FlyInnospec (IOSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.04B
Dividend Yield2.19%
Average Volume (3M)292.20K
Price to Earnings (P/E)18.0
Beta (1Y)0.96
Revenue Growth0.25%
EPS Growth325.27%
CountryUS
Employees2,450
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)4.60
Shares Outstanding24,631,046
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 Cap0.88
Enterprise Value/Revenue1.01
Enterprise Value/Gross Profit3.68
Enterprise Value/Ebitda10.76
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.9
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 Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: solid top-line growth (3% revenue increase), a very strong Fuel Specialties business, meaningful Oilfield Services improvement, and a debt-free $289M cash position with enhanced shareholder returns. Offsetting these positives are meaningful profitability declines (adjusted EBITDA down ~19%, adjusted EPS down ~26%), severe near-term impacts on Performance Chemicals from the U.S. winter storm (operating income down 46%), higher corporate costs, and potential short-term margin pressure in Fuel Specialties from raw material pass-through timing. Management provided clear remediation actions, optimization initiatives, and a cautious but constructive outlook with expected sequential improvement into Q3/Q4. Overall, positives and negatives are balanced.Positive Updates
Overall Revenue Growth
Total revenues of $453.2M, up 3% year-over-year (from $440.8M).
Negative Updates
Adjusted EBITDA and Adjusted EPS Declines
Adjusted EBITDA decreased to $43.7M from $54.0M (down ~19%), and adjusted EPS fell to $1.05 from $1.42 (down ~26%), indicating reduced profitability vs prior year.
Read all updates
Q1-2026 Updates
Positive
Negative
Overall Revenue Growth
Total revenues of $453.2M, up 3% year-over-year (from $440.8M).
Read all positive updates
Company Guidance
Management guided to sequential operating income growth in Q2 for Performance Chemicals and Oilfield Services while Fuel Specialties should be steady but seasonally a bit lighter (management called for a small drop-off and some gross‑margin compression in Q2 due to raw‑material pass‑through lag); they expect Q2 EPS to be broadly in line with Q1 (GAAP EPS $1.22, adjusted EPS $1.05) — "maybe a penny or two higher" — with more meaningful improvement coming in Q3/Q4. They reiterated Performance Chemicals is recovering from a Q1 9% volume decline (Q1 revenue $169.4M, GM 16.8%, operating income $10.7M) and Oilfield should build on Q1 revenue $102.2M, GM 30.1%, op income $5.6M, while Fuel Specialties (Q1 revenue $181.6M, volumes +10%, GM 35.4%, op income $37.8M) may see near‑term margin pressure; the company flagged Middle East geopolitical risk and potential short‑term raw material inflation that could be chased over a quarter or two. Balance‑sheet and capital‑allocation posture supporting the guidance: net cash >$289.1M, positive operating cash flow in Q1 $17.6M (capex $8.6M), 90K shares repurchased for $6.2M this quarter, a newly authorized $75M buyback and a 10% raise in the semiannual dividend to $0.92 per share.Innospec Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
90
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.79B | 1.78B | 1.85B | 1.95B | 1.96B | 1.48B |
| Gross Profit | 490.80M | 492.40M | 542.90M | 591.10M | 586.70M | 434.90M |
| EBITDA | 167.70M | 205.60M | 224.60M | 200.90M | 227.40M | 173.00M |
| Net Income | 114.20M | 116.60M | 35.60M | 139.10M | 133.00M | 93.10M |
Balance Sheet | ||||||
| Total Assets | 1.82B | 1.83B | 1.73B | 1.71B | 1.60B | 1.57B |
| Cash, Cash Equivalents and Short-Term Investments | 289.10M | 292.50M | 289.20M | 203.70M | 147.10M | 141.80M |
| Total Debt | 50.60M | 52.70M | 44.90M | 45.20M | 45.30M | 35.60M |
| Total Liabilities | 467.60M | 499.50M | 518.60M | 557.80M | 563.30M | 537.90M |
| Stockholders Equity | 1.34B | 1.33B | 1.21B | 1.15B | 1.04B | 1.03B |
Cash Flow | ||||||
| Free Cash Flow | 76.80M | 88.00M | 143.10M | 145.20M | 39.40M | 54.10M |
| Operating Cash Flow | 127.60M | 138.30M | 184.50M | 207.30M | 81.70M | 93.20M |
| Investing Cash Flow | -72.00M | -75.10M | -62.00M | -111.80M | -42.10M | -36.20M |
| Financing Cash Flow | -68.00M | -63.90M | -35.30M | -39.00M | -33.70M | -20.00M |
Innospec Technical Analysis
Positive
74.55
Price Trends
76.02
Positive
77.67
Positive
77.55
Positive
Market Momentum
1.53
Negative
66.28
Neutral
94.87
Negative
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 below the 20-day moving average (MA) of 79.39, below the 50-day MA of 76.02, and below the 200-day MA of 77.55, indicating a bullish trend. The MACD of 1.53 indicates Negative momentum. The RSI at 66.28 is Neutral, neither overbought nor oversold. The STOCH value of 94.87 is Negative, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.04B | 17.99 | 8.54% | 2.19% | 0.25% | 325.27% | |
70 Outperform | $2.39B | 14.77 | 9.55% | 0.74% | 2.50% | ― | |
66 Neutral | $2.49B | 583.70 | 0.31% | 1.37% | 6.25% | -94.37% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $2.36B | -18.73 | -156.14% | ― | -10.27% | 63.55% | |
58 Neutral | $1.20B | -85.05 | -1.15% | 3.33% | 5.46% | -125.23% | |
55 Neutral | $2.65B | -3.76 | -37.54% | 2.79% | -7.23% | -594.66% |
* Basic Materials Sector Average
IOSP
Innospec
82.94
-1.17
-1.40%
ASH
Ashland
57.90
10.60
22.41%
MTX
Minerals Technologies
77.02
21.45
38.60%
KWR
Quaker Chemical
143.53
40.99
39.98%
SCL
Stepan Company
52.85
1.23
2.37%
NGVT
Ingevity
67.82
27.10
66.55%
Innospec Corporate Events
Executive/Board ChangesShareholder Meetings
Innospec Shareholders Back Board, Pay Practices at Meeting
Positive
May 13, 2026
At Innospec Inc.’s 2026 Annual Meeting of Stockholders held on May 8, 2026, approximately 91% of the 24,890,467 outstanding shares were represented in person or by proxy, indicating strong shareholder participation in the company’s gov...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Innospec Q1 Results Highlight Dividend Hike, Buyback Plan
Positive
May 8, 2026
Innospec reported first-quarter 2026 revenue of $453.2 million, up 3% year on year, while net income slipped to $30.4 million, or $1.22 per diluted share, with adjusted EPS falling to $1.05 from $1.42. Results reflected strong Fuel Specialties per...
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.