INNOSPEC INC.

RESULTS OF OPERATIONS

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

The following table provides sales, gross profit and operating income by reporting segment:

Three Months Ended September 30, 2026

The following table shows the changes in sales, gross profit and operating expenses by reporting segment for the three months ended September 30, 2026, and the three months ended September 30, 2025:

Performance Chemicals

The Americas volumes were lower due to continued supply constraints and reduced demand for our personal care products, being offset by a favorable price and product mix due to pricing improvements and higher raw material costs.

EMEA volumes were lower due to decreased demand for our personal care products, being offset by a favorable price and product mix, driven by higher demand for our higher priced products and higher raw material costs.

ASPAC volumes were higher due to increased demand for certain products, together with a favorable price and product mix, driven by higher demand for our higher priced products and higher raw material costs.

EMEA was impacted by adverse foreign currency exchange rate movements.

Gross margin: the year-over-year increase of 3.7 percentage points was primarily due to pricing improvements in the current year, and improved manufacturing variances compared to the prior year.

Operating expenses: the year-over-year increase of $0.5 million was primarily due to higher selling expenses and higher provisions for performance-related remuneration accruals, being partly offset by lower administrative costs.

Fuel Specialties

Sales volumes in the Americas were higher year-over-year due to the increase and timing of demand from customers, while partly offset by an adverse price and product mix.

Sales volumes in EMEA decreased year-over-year primarily due to the timing of demand from customers, being partly offset by a favorable price and product mix.

Sales volumes in ASPAC decreased year-over-year primarily due to the timing of demand from customers, being partly offset by a favorable price and product mix.

AvGas sales volumes were lower than the prior year due to changing demand from customers, partly offset by a favorable customer mix.

The favorable impact of foreign currency exchange rate movements in the Americas was offset in EMEA.

Gross margin: the year-over-year decrease of 0.5 percentage points was due to an adverse sales mix in the Americas from increased sales of lower-margin products, being partly offset by sales in EMEA of higher margin products.

Operating expenses: the year-over-year increase of $1.9 million was primarily due to adverse movements to the provisions for doubtful debts, together with increased employee-related costs, including higher provisions for performance-related remuneration accruals.

Oilfield Services

Net sales: have increased year-over-year by $13.3 million, driven by our DRA plant expansion and associated demand. The majority of the segment's sales are concentrated in the Americas region.

Gross margin: the year-over-year decrease of 1.8 percentage points was primarily due to higher raw materials costs and pricing pressures.

Operating expenses: the year-over-year increase of $0.1 million was primarily due to an increase in research and development expenses and selling expenses, being partly offset by lower performance-based remunerations accruals.

Other Income Statement Captions

Corporate costs: the year-over-year increase of $0.4 million was primarily due to higher provisions for performance-related remuneration accruals, being partly offset by a favorable revaluation for our U.K. emissions trading scheme credits.

Adjustment to fair value of contingent consideration: is a credit in the current year of $1.1 million compared to a credit in the prior year of $17.7 million. The adjustment relates to the acquisition of QGP within our Performance Chemicals segment and a small acquisition in our Oilfield Services segment. The credits in both years relate to a reduction in the expected payables, together with the lower accretion charge calculated on the lower expected consideration payable. See Note 10 of the Notes to the Condensed Consolidated Financial Statements for additional information.

Other net income/(expense): for the three months ended September 30, 2026, was $0.5 million of income compared to $3.2 million of income in the three months ended September 30, 2025, primarily driven by the revaluation of foreign currency forward contracts, and the foreign currency translation of non-USD balances in the group.

Interest income/(expense), net: in the three months ended September 30, 2026, was $0.4 million of income compared to $2.2 million of income in the three months ended September 30, 2025, driven by lower interest rates and lower cash balances in the current year.

Income taxes: the effective tax rate was 25.8% and (12.4)% in the third quarter of 2026 and 2025, respectively. The adjusted effective tax rate, once adjusted for the items set out in the following table, was 24.7% in 2026 compared with 22.7% in 2025. The 2.0% increase in the adjusted effective rate was primarily due to the fact that a higher proportion of the Company’s profits are being generated in higher tax jurisdictions. The Company believes that this adjusted effective tax rate, a non-GAAP financial measure, provides useful information to investors and may assist them in evaluating the Company’s underlying performance and identifying operating trends. In addition, management uses this non-GAAP financial measure internally to evaluate the performance of the Company’s operations and for planning and forecasting in subsequent periods.

The following table shows a reconciliation of the GAAP effective tax charge to the adjusted effective tax charge:

Nine Months Ended September 30, 2026

The following table shows the changes in sales, gross profit and operating expenses by reporting segment for the nine months ended September 30, 2026, and the nine months ended September 30, 2025:

Performance Chemicals

The Americas volumes were lower due to some supply constraints and reduced demand for our personal care products, being offset by a favorable price and product mix driven by improved pricing and higher raw material costs.

EMEA volumes were unchanged, combined with a favorable price and product mix driven by improved pricing and higher raw material costs.

ASPAC volumes were lower driven by some supply constraints and decreased demand for certain products, being partly offset by a favorable price and product mix driven by improved pricing and higher raw material costs.

EMEA and ASPAC benefited from the favorable foreign currency exchange rate movements.

Gross margin: the year-over-year decrease of 0.2 percentage points was primarily due to negative manufacturing variances in North America including the impact of the severe weather conditions in the first quarter, being partly offset by pricing improvements.

Operating expenses: the year-over-year increase of $3.1 million was primarily due to increased research and development expenses, together with higher provisions for performance-related remuneration accruals and adverse provisions for doubtful debts, being partly offset by the reductions for other expenses.

Fuel Specialties

The Americas and EMEA volumes increased year-over-year due to higher customer demand.

ASPAC volumes declined due to the timing of demand from customers, while benefiting from a favorable price and product mix with increased sales of higher priced products.

AvGas volumes were lower than the prior year due to changing demand from customers, being partly offset by a favorable customer mix.

All our regions benefited from favorable foreign currency exchange rate movements.

Gross margin: the year-over-year decrease of 0.7 percentage points was due to an adverse sales mix in the Americas from increased sales of lower-margin products, being partly offset by sales in EMEA of higher margin products.

Operating expenses: the year-over-year increase of $8.7 million was primarily due to increased operating expenses, including increased employee-related costs and adverse provisions for doubtful debts.

Oilfield Services

Net sales: have increased year-over-year by $28.0 million, driven by our DRA plant expansion and associated demand. The majority of the segment's sales are concentrated in the Americas region.

Gross margin: the year-over-year increase of 0.9 percentage points was primarily due to a favorable sales mix, being partly offset by pricing pressures.

Operating expenses: the year-over-year increase of $5.4 million was primarily due to increased selling administration and research expenses, together with adverse provisions for doubtful debts, being partly offset by lower performance-related remuneration accruals.

Other Income Statement Captions

Corporate costs: the year-over-year increase of $5.7 million was primarily due to higher information technology costs including additional amortization for our new ERP system, higher provisions for performance-related remuneration accruals and higher legal and compliance expenses, being partly offset by lower legacy costs of closed operations and favorable revaluations for our U.K. emissions trading scheme credits.

Adjustment to fair value of contingent consideration: is a credit in the current year of $5.7 million compared to a credit in the prior year of $16.2 million. The adjustment relates to the acquisition of QGP within our Performance Chemicals segment and a small acquisition in our Oilfield Services segment. The credits in both years relate to a reduction in the expected payables, together with the lower accretion charge calculated on the lower expected consideration payable. See Note 10 of the Notes to the Condensed Consolidated Financial Statements for additional information.

Other net income/(expense): for the nine months ended September 30, 2026, was $4.2 million of income compared to $1.2 million of expense in the nine months ended September 30, 2025, primarily driven by the revaluation of foreign currency forward contracts, and the foreign currency translation of non-USD balances in the group.

Interest income/(expense), net: in the nine months ended September 30, 2026, was $2.0 million of income compared to $7.3 million of income in the nine months ended September 30, 2025, driven by lower interest rates and lower cash balances in the current year.

Income taxes: the effective tax rate was 24.6% and 20.9% in the first nine months of 2026 and 2025, respectively. The adjusted effective tax rate, once adjusted for the items set out in the following table, was 23.6% in 2026 compared with 23.4% in 2025. The 0.2% increase in the adjusted effective rate was primarily due to the fact that a higher proportion of the Company’s profits are being generated in higher tax jurisdictions. The Company believes that this adjusted effective tax rate, a non-GAAP financial measure, provides useful information to investors and may assist them in evaluating the Company’s underlying performance and identifying operating trends. In addition, management uses this non-GAAP financial measure internally to evaluate the performance of the Company’s operations and for planning and forecasting in subsequent periods.

The following table shows a reconciliation of the GAAP effective tax charge to the adjusted effective tax charge: