Innospec Q2 2026 Earnings Report

Innospec EPS Results

• Actual EPS: $1.27
• Consensus EPS: $1.05
• Beat/Miss: Beat by +$0.22
• One Year Ago EPS: $1.26

Innospec Revenue Results

• Actual Revenue: $491.40 million
• Expected Revenue: $457.25 million
• Beat/Miss: Beat by +$34.15 million
• YoY Revenue Growth: +11.80%

Innospec Announcement Details

• Quarter: Q2 2026
• Date: 8/4/2026
• Time: After Market Closes
• Conference Call Date: Wednesday, August 5, 2026
• Conference Call Time: 10:00AM ET

Innospec (NASDAQ:IOSP) (NASDAQ: IOSP) is a global specialty chemicals company that develops, manufactures and supplies products used in the energy, transportation, personal care, household, agriculture and industrial markets. Its offerings are designed to improve product performance, support manufacturing processes and address specialized customer requirements.

The company operates through businesses focused on fuel specialties, performance chemicals and oilfield services. Its products include fuel additives and performance-enhancing chemicals for gasoline, diesel and other fuels, as well as ingredients and formulations used in personal care, home care, crop protection, construction, mining and other industrial applications. Innospec also provides chemicals and services used in oil and gas exploration, production and well treatment.

Innospec serves customers internationally through manufacturing, research and development, technical service and commercial operations in multiple regions. The company’s roots extend to the development and supply of fuel additives and related specialty chemicals, and it has expanded its portfolio over time to serve a broader range of industrial and consumer markets.

Innospec Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Second-quarter results were solid: revenue rose 12% to $491.4 million, while net income increased to $30.8 million from $23.5 million; management expects further operating-income growth in Performance Chemicals and Oilfield Services in the second half of 2026.
• Positive Sentiment: Performance Chemicals operating income increased 15%, and plant repairs and optimization work are approximately 60% complete. Management expects the improvements to add more than 10% capacity, with benefits emerging in late fourth quarter 2026 or early 2027.
• Positive Sentiment: Oilfield Services operating income grew 40% year over year, supported by the drag-reducing-agent plant expansion, which is nearly sold out and gaining customers in North America and the Middle East. Management is evaluating another expansion and expects further sequential improvement.
• Negative Sentiment: Fuel Specialties revenue grew 12%, but operating income rose only 3% as gross margin declined due mainly to sales mix and pricing lags; management expects additional margin pressure in the third quarter. Completions and production within Oilfield Services also remain below expectations, while the Mexico opportunity is not expected to contribute materially this year.
• Positive Sentiment: Innospec ended the quarter with more than $250 million in cash and no debt, enabling continued investment, acquisitions, dividend growth, and share repurchases. The company returned capital through its $0.92-per-share semiannual dividend and $6.4 million of buybacks.

Presentation

[Operator]

Good day, and thank you for standing by. Welcome to Innospec's second quarter 2026 earnings release conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please note that today's conference is being recorded. I would now like to turn the conference over to your speaker, David Jones, General Counsel and Chief Compliance Officer. Please go ahead.

[David Jones, General Counsel and Chief Compliance Officer at Innospec]

Thank you. Welcome to Innospec's second quarter earnings call. This is David Jones, and I'm Innospec's General Counsel and Chief Compliance Officer. The earnings release for the quarter and this presentation are posted on the company's website. During this call, we will make forward-looking statements, which are predictions and projections about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from the anticipated results implied by such forward-looking statements. The risks and uncertainties are detailed in Innospec's filings with the SEC. Please see the SEC site and Innospec site for these and related documents. In today's presentation, we've also included non-GAAP financial measures. A reconciliation to those directly comparable GAAP financial measures is contained in the earnings release.

[David Jones, General Counsel and Chief Compliance Officer at Innospec]

The non-GAAP financial measures should not be considered as a substitute for or superior to those prepared in accordance with GAAP. They are included as additional items to aid investor understanding of the company's performance and to show the impact these items and events had on financial results. With me today from Innospec are Patrick Williams, President and Chief Executive Officer, and Ian Cleminson, Executive Vice President and Chief Financial Officer. With that, I turn it over to you, Patrick.

[Patrick Williams, President and CEO at Innospec]

Thank you, David, and welcome everyone to Innospec's second quarter 2026 conference call. This was a strong quarter for Innospec, with all businesses contributing to double-digit sales and operating income growth. Performance Chemicals operating leverage drove a 15% operating income increase over last year. In North Carolina, we continue to prioritize plant repairs and process improvements, which will drive long-term benefits. In parallel, we are commercializing new technologies in all end markets and targeting further margin improvement opportunities across the business. We expect these combined efforts to drive further improvement in the second half of 2026. Fuel Specialties had another strong quarter, delivering revenue and operating income growth, with margins in our target range. Volume and price mix improved as the business continued to achieve consistently strong results through a range of economic cycles.

[Patrick Williams, President and CEO at Innospec]

While there may be some margin headwind in the sequential quarter because of the lag between pricing and cost inflation, we expect a continued strong performance. Oilfield Services operating income and margins improved sequentially and on the prior year, driven by a recent DRA plant expansion and growing opportunities for this technology in the markets we serve. However, performance is below our expectations in our completions and production business, where opportunities remain for growth and margin improvement. Furthermore, our Middle East business is positioned for growth as onshore completions activity levels recover. We are confident that these combined efforts will drive further sequential improvements in the second half of 2026. I will turn the call over to Ian Cleminson, who will review our financial results in more detail. Then I will return with some concluding comments. After that, Ian and I will take your questions. Ian?

[Ian Cleminson, EVP and CFO at Innospec]

Thanks, Patrick. Turning to slide seven in the presentation, the company's total revenues for the second quarter were $491.4 million, a 12% increase from $439.7 million a year ago. Overall gross margin increased by 0.1 percentage points from last year to 28.1%. Adjusted EBITDA for the quarter was $50.1 million compared to $49.1 million last year, and net income attributable to Innospec for the quarter was $30.8 million compared to $23.5 million a year ago. Our GAAP earnings per share were $1.25, including special items, the net effect of which decreased our second-quarter earnings by $0.02 per share. A year ago, we reported GAAP earnings per share of $0.94, which include the negative impact from special items of $0.32 per share. Excluding special items in both years, our adjusted EPS for the quarter was $1.27 compared to $1.26 a year ago.

[Ian Cleminson, EVP and CFO at Innospec]

Turning to slide eight, revenues in Performance Chemicals for the second quarter were $190.3 million, up 9% from last year's $173.8 million. Volume reductions of 2% were offset by a positive price mix of 8% and a favorable currency impact of 3%. Gross margins of 17.3% decreased 0.2 percentage points compared to 17.5% in the same quarter in 2025. Operating income of $16.4 million increased 15% from $14.3 million last year. Moving on to slide nine, revenues in Fuel Specialties for the second quarter were $185.7 million, up 12% from the $165.1 million reported a year ago. Volumes were up 7%, with the price mix up 3% and a positive currency impact of 2%. Fuel Specialties' gross margins of 36.6% decreased one and a half percentage points compared to 38.1% in the same quarter last year on a weaker sales mix.

[Ian Cleminson, EVP and CFO at Innospec]

Operating income of $36.3 million was up 3% from $35.4 million a year ago. Moving on to slide 10, revenues in Oilfield Services for the quarter were $115.4 million, up 14% from the $100.8 million reported a year ago. Gross margins of 32.3% increased 2.7 percentage points from last year's 29.6% on an improved sales mix. Operating income of $8.7 million increased 40% from $6.2 million one year ago. Turning to slide 11, corporate costs for the quarter were $21.6 million, compared with $20.9 million a year ago. The effective tax rate for the quarter was 25% compared to last year's 26%. Moving on to slide 12, cash from operating activities was $7.2 million before capital expenditures of $16.5 million. In the second quarter, we bought back just over 87,000 shares at a cost of $6.4 million.

[Ian Cleminson, EVP and CFO at Innospec]

As of June 30th, Innospec had $250.2 million in cash and cash equivalents and no debt. Now I'll turn it back over to Patrick for some final comments. Patrick?

[Patrick Williams, President and CEO at Innospec]

Thanks, Ian. With our diversified global supply chain and manufacturing footprint, our teams continue to manage through the direct impacts of geopolitical disruptions, delivering sales, margin, and operating income improvements. We remain focused on security of supply and innovative solutions for our customers. We will continue to implement improvements across all our businesses that will position us for further growth and margin improvement. Our short-term expectations are for further operating income growth in Performance Chemicals and Oilfield Services in the second half of 2026 and steady performance in Fuel Specialties. Our strong, debt-free balance sheet continues to allow for significant flexibility in the current environment to pursue further organic investment, M&A, dividend growth, and buybacks. Operating cash generation was again positive in the quarter, and our net cash position closed at over $250 million.

[Patrick Williams, President and CEO at Innospec]

Our teams are focused on opportunities to improve working capital efficiency, and we expect these actions will support increased operating cash flow in the second half of 2026. This quarter, we continued our record of returning value to shareholders with our semiannual dividend of $0.92 per share and $6.4 million in share repurchases. I will turn the call over to the operator, and Ian and I will take your questions.

[Operator]

Thank you. As a reminder to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Once again, please press star one one and wait for your name to be announced. To withdraw your question, please press star one one again. We are now going to proceed with our first question, the question's come from the line of Mike Harrison from Seaport Research Partners. Please ask your question.

[Mike Harrison, Analyst at Seaport Research Partners]

Hi. Good morning.

[Patrick Williams, President and CEO at Innospec]

Go ahead, Mike.

[Mike Harrison, Analyst at Seaport Research Partners]

First question is on the Performance Chemicals business. I was hoping you could give us an update on the repair and upgrading process at your facilities. Would you say that that's mostly complete at this point, or where do we stand on that?

[Patrick Williams, President and CEO at Innospec]

Mike, it's Patrick. I would say we're probably about 60% of the way through it. We've still got some minor repairs, and now it's doing a little more pipe work for more expansion, but we're getting close. I think by the end of Q4, we should be fully repaired and fully optimized at that point.

[Mike Harrison, Analyst at Seaport Research Partners]

All right. In terms of just what you're seeing in the pricing versus raw material realm on Performance Chemicals, the price mix there was up 8%. Did that keep pace with raw material cost inflation that you saw in the quarter? It looks like some of the oleochemicals are coming a little bit lower. Is that something that's helping to maybe provide a little bit of margin benefit?

[Ian Cleminson, EVP and CFO at Innospec]

Yeah, Mike, it's Ian. The team have done a really good job, actually, with keeping up with the price increases. They've been pretty creative around the edges as well about putting new formulations into customers' hands. Where we've needed certain price action, we have. You can see year-over-year that the margins are pretty comparable, and they've obviously improved sequentially over Q1 as well. We are seeing price inflation. We're handling it pretty well at the moment, and we continue to expect to be able to handle it, and we'll pass through where we need to. The markets are pretty choppy at the moment. Prices are moving up and down pretty rapidly; we've got a good handle on it, and the team are doing well.

[Mike Harrison, Analyst at Seaport Research Partners]

All right, a similar question on Fuel Specialties. I think that gross margin number for Q2 came in maybe a little bit better than you had anticipated; it sounds like maybe you're anticipating some margin pressure sequentially into Q3. Can you just give us a little bit of sense of how you're seeing the raw material flow through and that contractual pricing pass-through mechanism?

[Ian Cleminson, EVP and CFO at Innospec]

Yeah, sure, Mike. It's Ian again. As you know, in Fuels, we have the pricing lag up and down. Fuels is mostly crude derivatives-based. The team, again, are chasing prices up at the moment. You've seen a little bit of margin compression in Q2. Some of that is pricing; some of that is also sales mix in the quarter. We're actually quite pleased with what the team have done there. They're on top of it. As we move into Q3, I would expect a little bit more pressure on the gross margins because of the lag. Again, there's nothing here that is really concerning us. It's a well-trodden path. The team are well-versed in what they need to do, and the market is responding correctly to our actions. We're in good shape.

[Ian Cleminson, EVP and CFO at Innospec]

I think as we move through Q3 and into Q4, we're hopeful that if we get stability in prices, we'll start to see some stability in margins.

[Mike Harrison, Analyst at Seaport Research Partners]

All right. Thanks for that. Last question from me is just on the Oilfield business. I was hoping you could give some additional detail on what you're seeing in the drag-reducing agent portion of that business. It sounds like you guys have added capacity, and you've started to see some good uptake of that additional capacity. How much growth are you seeing in that business overall, and how much of that is coming in the Middle East as a result of some of the, I guess, crude logistics issues they're facing in the wake of the Iran war?

[Patrick Williams, President and CEO at Innospec]

Yeah. We added capacity, and the majority of that capacity is almost sold out. We added new customers in North America; again, as you just alluded to, we have shipped a lot to the Middle East. More importantly for the East-West pipeline and other pipelines that go along that corridor. I've always said, and we said it in the last quarter, that where there's chaos, there's opportunity. We see this as not just a short-term fix. We think that they're going to move more products to that pipeline over time, even if the Strait of Hormuz are open in the near term. Our product is extremely good product. I think that it's been taken very well in the Middle East, and we'll continue to ship products as we go.

[Patrick Williams, President and CEO at Innospec]

There is another opportunity for us to do another expansion of DRA down the road that's being discussed as we speak.

[Mike Harrison, Analyst at Seaport Research Partners]

All right. Thank you very much.

[Patrick Williams, President and CEO at Innospec]

Thank you.

[Ian Cleminson, EVP and CFO at Innospec]

Thank you, Mike.

[Operator]

As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. We are now going to proceed with our next question. The question comes from the line of David Silver from Freedom Capital Markets. Please ask your question.

[David Silver, Analyst at Freedom Capital Markets]

Yeah. Hi, good morning. Thanks very much. I'll apologize. I think my feed was cutting in and out just a little bit, so apologies if I make you repeat yourself here. I'd like to go back to Mike's question about the work done with your Performance Chemicals facilities in the wake of the unplanned outages and the disruptions earlier this year. Patrick, you did mention that the discretionary upgrading work should be done by the end of the year. In a qualitative basis, have you guys thought about what kind of benefits should we expect to result from the project once it's complete? Is it capacity related? Is it efficiency related? Just what kind of benefits, and if you could ballpark them, that'd be great. Thank you.

[Patrick Williams, President and CEO at Innospec]

Yeah, David. Sure, David. The number one priority was to get the plant repairs up and moving so we could provide products to our customers. That was the number one priority on our list, and we've accomplished that. We still have a ways to go. We're still tight. I think as these efficiencies come on, it will give us more capacity. It'll give us better yield rates, and it'll also improve safety, everything along that plant that we needed to improve. It's hard to put a number on yet on how much volume it's going to help increase. It is a pretty good number that we're looking at, probably north of 10% at least, moving forward for next year.

[David Silver, Analyst at Freedom Capital Markets]

10% on capacity, that is. Is that correct?

[Patrick Williams, President and CEO at Innospec]

On capacity, yeah.

[David Silver, Analyst at Freedom Capital Markets]

Okay, great. Thank you for that. I did want to go back to Oilfield and maybe just pick your brain, Patrick, for your approach to investing and taking advantage of some opportunities. You certainly touched on the DRA opportunity emerging in the Middle East. What do you sense the opportunities are or how you want to be positioned in the shale basins here? In other words, will production be structurally higher for some period of time because of the geopolitics, as you mentioned, or are we still in a phase where the industry is a little more careful with their CapEx than maybe they have been in the past? What are the broader opportunities in the global oil market beyond DRAs in the Middle East?

[Patrick Williams, President and CEO at Innospec]

Yeah, you can follow the rig count and see it hasn't spiked like you thought it would. We've always said that E&P companies are taking a more disciplined approach now. You have to remember, you have longer laterals, more stages; you're getting more volume of oil through wells than you have in the past. There's really not a need to have a large uptick on drilling. What we're seeing is still a very disciplined approach by E&P companies, and we just have to be prepared with new technologies, which we should be launching here within the next six months. That'll help us propel in that area, as well as other areas like South America and Mexico. We're watching things over in Mexico. We're seeing some things starting to turn, and hopefully we'll have some opportunities there over the next six months.

[David Silver, Analyst at Freedom Capital Markets]

Oh, wow, Mexico. I wasn't expecting that. Okay, interesting. Maybe just to go back to Fuel Specialties. The revenues were up double digits. Operating income was up 3%. There was some margin effect there. Was that all due to raw material costs, or was there kind of a notable mix effect? More broadly, it seems like that segment is on track for another record year. Just wondering if you had any thoughts about that record revenue and operating income. Thank you.

[Ian Cleminson, EVP and CFO at Innospec]

Yeah, let me take that one, David. It's Ian. As we said previously to Mike, the gross margin compression that we saw year-over-year, most of that was from sales mix. There was a little bit of pricing in there; most of it was the mix at the top line. The business is progressing really nicely, as you said. At the half-year point, it's pretty much where we expected it to be. We expect the business in Q3 to be a very similar set of results to what we did in Q2; we're into the winter season. The business is very well set for a very strong second half of the year.

[Ian Cleminson, EVP and CFO at Innospec]

That is built on great technology, great service to the customers, a really dedicated team that's out there executing day in, day out, and we're really pleased with where they got to. Yeah, they're all well set. It's not easy, but they will drive really hard for a record year.

[David Silver, Analyst at Freedom Capital Markets]

Last question from me, and this is kind of a big picture question, but your results were very strong here in absolute terms, but I think even in relative terms, you surprised me, and I guess the consensus a little bit in terms of your ability to produce and ship in the wake of the disruptions that you suffered in the first quarter. Maybe just a comment on how you were able to kind of reposition or react so effectively and seemingly not miss a beat in terms of shipments and driving revenue growth, I think across your businesses, several of which did suffer some mechanical disruptions.

[David Silver, Analyst at Freedom Capital Markets]

Just broadly speaking, is there a lot of flexibility inherent in your system, and is there still a lot of flexibility, assuming you're producing at the 2Q level, or is that something that incremental growth might have to be addressed through additional CapEx or other types of resourcing?

[Patrick Williams, President and CEO at Innospec]

I think we first have to give credit to the management team and the individuals at the plant. This has been a very difficult process for us to go through. You had the winter storm hit. We found out a lot of weaknesses within the system. We worked night and day, seven days a week, to get it fixed, to make sure we're not missing loads to customers. That's been very difficult without claiming a force majeure. We fought our way through that. I think, as I said earlier, the efficiencies that are coming about and coming through now and that'll hit the fourth quarter, is going to give us additional capacity without more CapEx once we spend this original CapEx. We're in a really good position. I think that you'll see over the coming quarters; you'll see improvements

[Patrick Williams, President and CEO at Innospec]

We could have had some nice volume improvement in the quarter, but we just couldn't make it. We were at capacity. I think we will start seeing volume improvements as the quarters come. It's been a lot of work, David, and I got to give credit to credit due is we put ourselves in this position, but we fought like hell to get out of it. We're not going to ever go there again. We're sitting in a good spot. We can see the light at the end of the tunnel, and we're very confident moving forward.

[David Silver, Analyst at Freedom Capital Markets]

Okay, great. I appreciate all the color. Thank you.

[Patrick Williams, President and CEO at Innospec]

Thanks, David.

[Operator]

Thank you. As a reminder to ask a question, please press star one one and wait for your name to be announced. To withdraw your question, please press star one one again. We are now going to proceed with our next question.

[Operator]

The question comes from the line of Jon Tanwanteng from CJS Securities. Please ask your question.

[Jon Tanwanteng, Analyst at CJS Securities]

Hi, good morning. Thank you for taking my questions, and really nice quarter.

[Patrick Williams, President and CEO at Innospec]

Good morning, Jon.

[Jon Tanwanteng, Analyst at CJS Securities]

Thank you.

[Ian Cleminson, EVP and CFO at Innospec]

Good morning.

[Jon Tanwanteng, Analyst at CJS Securities]

I was wondering if you could quantify the impact in Q2 from the repair and upgrade activity. It sounds like you're taking a little bit longer to get back where you want to be. What do you think you might be leaving on the table in heading into Q3 and maybe Q4, and do you make it up on the back end when things are up and running, or are those sales gone?

[Ian Cleminson, EVP and CFO at Innospec]

Yeah, let me take that first, Jon; then Patrick will come over the top a little bit. As Patrick alluded to on previous questions, we were really supply-constrained in Q2. We got as much volume out of North Carolina as we could. There could have been more in there. Our expectation is that broadly, Q3 will be very similar to Q2 across Performance Chemicals. The additional volume, the additional capacity won't really come on till Q4 at the earliest, probably more likely into Q1 next year. I think you're going to see us, I don't mean plateaued, it's probably the wrong word, but I think we're probably operating towards the top end of what we're capable of now. I think Q3 will be very similar. Q4 might see a little bit more of an uptick, sequentially. That's sort of how we see it right now.

[Patrick Williams, President and CEO at Innospec]

Yeah, I think as we said, Jon, the number one priority was to get that plant up and running to meet the contractual volumes that we had in place, and we've done that. Now it's more putting better efficiencies in place so that we can increase yield and increase volume moving forward. As Ian said, I think you'll see that towards the latter part of Q4 and then for sure in Q1. We have missed some volume. Will we pick some of that back up in Q4, Q1 next year? Yes. You won't pick it up in Q3.

[Jon Tanwanteng, Analyst at CJS Securities]

Okay, great. Thank you. I was wondering if you could go into a little bit more detail on just the improved price and mix in this segment. I think you called out that you're doing a good job in getting new formulations to customers. Could you go into a little more detail on where exactly you're winning, what's driving that, and how sustainable that is as you get more capacity online?

[Ian Cleminson, EVP and CFO at Innospec]

Are you asking, Jon, about in the future, or are you asking about Q2?

[Jon Tanwanteng, Analyst at CJS Securities]

Both.

[Ian Cleminson, EVP and CFO at Innospec]

Yeah, we did a good job on pricing in Q2 in Performance Chemicals. The mix was pretty flat year-over-year. I think sequentially, obviously, the winter storm impacted Q1, so it's not a really good comparison because of the volume interruptions that we had. As we move into Q3, our expectation is that the business will continue to manage pricing, potentially swap out some formulations with customers where we can. Where we can't, we'll take pricing action. I don't think we'll really see the benefit of the improvements that we're making until back part of Q4, early 2027, because we just won't have the capacity, Jon, to change the sales mix and the profile there. Additionally to that, we're also expecting new products to come online as well, which will help the margin profile.

[Ian Cleminson, EVP and CFO at Innospec]

I think overall, the way we're managing raw materials, you'll see us do the same again in Q3 to what we've done in Q2. That's responsibly manage it through our customers and through our supply chains.

[Patrick Williams, President and CEO at Innospec]

Yeah, just to add a little color to Ian's comments. In all of our businesses, we've had to manage extremely tight timelines on raw materials. There's been force majeure on some raw materials, we've had to reformulate a way. There's been a tightness in the market in general, timing of shipments has been extremely difficult. Our supply chain, our management team, and all the businesses have done a really good job dealing with not only the inflationary pricing, but obviously the tightness of the market. We feel confident that we have a handle on it, I think that we'll just continue to see those general improvements as we move forward.

[Jon Tanwanteng, Analyst at CJS Securities]

Great. Thank you. I think you mentioned earlier that you have some confidence that Mexico might come back later this year. I was wondering if you could just talk about what's going on there, and if you can size or time the ramp-up of potential return of business there.

[Patrick Williams, President and CEO at Innospec]

Yeah, it's interesting. They've had some public announcements about spending capital in certain areas. Some was on polyethylene, some was on crude, some was on nat gas plants, petrochemical plants. That's filtering through now to saying that they realize that they actually need, now's the time that the country needs to get more crude out of the system. It's never going to be what it was. I think technology's changing a little bit, but it's going to be a slow process. As we always told you, we're not going to sell products that we're not going to get paid on for six months to a year. Until that environment changes, we're just going to slow-play it. In saying that there's opportunities, we have had some people come to us and said, "We've got opportunities. Here's our payment." It's not large volumes.

[Patrick Williams, President and CEO at Innospec]

I don't think you'll see any effect this year. We're not counting on it even for next year. If it comes, it comes. It's more putting ourselves in a position that when they have to return back to using chemicals, that we're one of their first choice, and that's what we're doing. We're seeing more activity and having more conversations.

[Jon Tanwanteng, Analyst at CJS Securities]

Got it. No, that's helpful. Just to be clear, they're now reaching out to you as opposed to just waiting for something to happen.

[Patrick Williams, President and CEO at Innospec]

Correct.

[Jon Tanwanteng, Analyst at CJS Securities]

Got it. Thank you.

[Patrick Williams, President and CEO at Innospec]

Thank you.

[Ian Cleminson, EVP and CFO at Innospec]

Thanks, Jon.

[Operator]

We have no further questions at this time. I'll now hand back to you to Patrick Williams, for closing remarks. Thank you.

[Patrick Williams, President and CEO at Innospec]

Thank you all for joining us today, and thanks to all our shareholders, customers, and Innospec employees for your interest and support. If you have any further questions about Innospec or matters discussed today, please give us a call. We look forward to meeting up with you again to discuss our third quarter 2026 results in November. Have a great day.

[Operator]

This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you.

Participants

Executives

• David Jones, General Counsel and Chief Compliance Officer
• Patrick Williams, President and CEO
• Ian Cleminson, EVP and CFO

Analysts

• Mike Harrison, Analyst at Seaport Research Partners
• David Silver, Analyst at Freedom Capital Markets
• Jon Tanwanteng, Analyst at CJS Securities