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Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

NOTE 2 – SEGMENT REPORTING

The Company reports its financial performance based on three reportable segments, which are Performance Chemicals, Fuel Specialties and Oilfield Services.

The Chief Operating Decision Maker (“CODM”) is the President and Chief Executive Officer (the Principal Executive Officer) and is a Director of Innospec Inc.. The CODM evaluates the performance of the Company’s segments and makes strategic decisions relating to the Company's allocation of resources, based on the segments' gross profit and operating income.

The following table analyzes sales and other financial information by the Company’s reportable segments:

 

 

Three Months Ended
March 31,

 

(in millions)

 

2025

 

 

2024

 

Net Sales:

 

 

 

 

 

 

Personal Care

 

$

100.6

 

 

$

94.8

 

Home Care

 

 

26.3

 

 

 

26.4

 

Other

 

 

41.5

 

 

 

39.6

 

Performance Chemicals

 

 

168.4

 

 

 

160.8

 

Refinery and Performance

 

 

129.4

 

 

 

145.1

 

Other

 

 

40.9

 

 

 

31.8

 

Fuel Specialties

 

 

170.3

 

 

 

176.9

 

Oilfield Services

 

 

102.1

 

 

 

162.5

 

 

$

440.8

 

 

$

500.2

 

Gross profit:

 

 

 

 

 

 

Performance Chemicals

 

$

35.3

 

 

$

37.7

 

Fuel Specialties

 

 

60.8

 

 

 

60.6

 

Oilfield Services

 

 

29.0

 

 

 

57.4

 

Total gross profit

 

$

125.1

 

 

$

155.7

 

Operating income/(loss):

 

 

 

 

 

 

Performance Chemicals

 

$

19.8

 

 

$

21.1

 

Fuel Specialties

 

 

36.9

 

 

 

33.4

 

Oilfield Services

 

 

4.1

 

 

 

16.9

 

Corporate costs

 

 

(17.7

)

 

 

(20.2

)

Adjustment to fair value of contingent consideration

 

 

(0.7

)

 

 

(0.8

)

Profit on disposal of property, plant and equipment

 

 

0.1

 

 

 

0.1

 

Total operating income

 

$

42.5

 

 

$

50.5

 

 

The difference between net sales and gross profit is defined as cost of goods sold. The difference between segmental gross profit and operating income/(expense) is split between selling, general and administrative expenses and research and development expenses.

 


The following table analyzes cost of goods sold by the Company’s reportable segments:

 

(in millions)

 

2025

 

 

2024

 

Performance Chemicals

 

$

133.1

 

 

$

123.1

 

Fuel Specialties

 

 

109.5

 

 

 

116.3

 

Oilfield Services

 

 

73.1

 

 

 

105.1

 

Total cost of goods sold

 

$

315.7

 

 

$

344.5

 

 

The following table analyzes selling, general and administrative expenses and research and development expenses by the Company’s reportable segments:

 

(in millions)

 

2025

 

 

2024

 

Performance Chemicals

 

$

15.5

 

 

$

16.6

 

Fuel Specialties

 

 

23.9

 

 

 

27.2

 

Oilfield Services

 

 

24.9

 

 

 

40.5

 

Corporate

 

 

17.7

 

 

 

20.2

 

Total selling, general and administrative expenses and research and development expenses

 

$

82.0

 

 

$

104.5