Innospec Inc.

I'm InnoSpec's General Counsel and Chief Compliance Officer. The earnings released 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 about future events. These statements are based on current expectations and assumptions that are subject to risk and uncertainties that could cause actual results to differ from the anticipated results implied by such forward-looking statements. These risks and uncertainties are detailed in InnoSpec's 10-K, 10-Qs, and other filings with the SEC. Please see the SEC site and Inspec site for these and related documents. In today's presentation, we have also included non-GAAP financial measures. A reconciliation to the most directly comparable GAAP financial measure is contained in the earnings release. The non-GAAP financial measure should not be considered as a substitute for or superior to those prepared in accordance with that. They are included to aid investor understanding of the company's performance in addition to the impact these items and events had on financial results. With me today from Innspec are Patrick Williams, President and Chief Executive Officer, and Ian Clemmensen, Executive Vice President and Chief Financial Officer. And with that, I turn it over to you, Patrick.

Thank you, David, and welcome everyone to Innspec's third quarter 2025 conference call. This was a mixed quarter for Innspec with continued strong operating income growth and margin expansion in fuel specities, offsetting lower results in performance chemicals and oilfield services. Performance Chemicals continued to deliver sales growth over the prior year, where gross margins declined as expected on higher cost, price management, and weaker product mix. These combined factors drove results below our expectations, but we are executing on multiple top-line cost and other margin improvement opportunities identified in the business. Late the third quarter, we began to see a positive impact from our initial actions and we're optimistic that we will deliver sequential operating income and margin improvement in the fourth quarter. Over the medium term, we have a strong pipeline of margin accretive opportunities across all our end markets, and we are working to accelerate these actions. Hill Specialties had another strong quarter with double-digit operating income growth and improved margins. Margins continue to track at the upper end of our expected range, and our outlook is for steady performance in the fourth quarter. Oilfield services operating income declined sequentially and versus the prior year on lower than anticipated Middle East activity due to customer timing and phasing. We are optimistic that we will deliver sequential operating income and margin improvement in the fourth quarter as Middle East activity returns and our new DRA expansion comes online. We remain focused on margin improvement in all segments. Our outlook does not assume any resumption of Mexico sales. Now I will turn the call over to Ian Clementson, 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? Thanks, Patrick.

Turning to slide seven in the presentation, the company's total revenues for the third quarter were $441.9 million. similar to the $443.4 million reported a year ago. Overall gross margin decreased by 1.6 percentage points from last year to 26.4%. Adjusted EBITDA for the quarter was $44.2 million compared to $50.5 million last year, and net income for the quarter was $12.9 million compared to $33.4 million a year ago. Our gap earnings per share were 52 cents compared to $1.33 recorded last year. Our headline results for the quarter include 24.4 million in charges which had a negative EPS impact of 57 cents. These charges are composed of 42.9 million of assets and intangible impairments and restructuring charges related to the expected lack of near-term recovery in our QGP business in Brazil, our Mexican oilfield production business, and our US oilfield stimulation business. These charges were offset by an 18.5 million reduction to the fair value of contingent consideration associated with the 2023 acquisition of QGP. Excluding these and other special items in both years, our adjusted EPS for the quarter was $1.12 compared to $1.35 a year ago. Turning to slide 8, revenues in performance chemicals for the third quarter were $170.8 million, up 4% from last year's $163.6 million. Volumes fell by 2%, offset by a positive price mix of 3% and favourable currency impact of 3%. Gross margin of 15.1% decreased seven percentage points compared to 22.1% in the same quarter in 2024 due to higher costs, price management, and weaker product mix. Operating income of 9.2 million decreased 54% from 20 million last year. Moving on to slide nine, revenues in fuel specialties for the third quarter were 172 million, up 4% from the 165.8 million reported a year ago. Volumes were down 7% with price mix up 7% and a positive currency impact of 4%. Fuel Specialty's gross margins of 35.6% were up two percentage points above the same quarter last year, benefiting from a stronger sales mix and disciplined pricing. Operating income of 35.3 million was up 14% from 30.9 million a year ago. Moving on to slide 10, revenues in oilfield services for the quarter were 99.1 million, down 13% from 114 million in the third quarter last year. Gross margins of 30% increased 1.7 percentage points from last year's 28.3% due to a better sales mix. Operating income of 4.8 million decreased 32% from 7.1 million a year ago. Turning to slide 11, corporate costs for the quarter were 18.2 million compared with 11.8 million a year ago, which included an 8.4 million recovery of historic pension costs. The adjusted effective tax rate for the quarter was 22.5% compared to 24.6% in the same period last year due to the geographical mix of taxable profits. We expect the full year adjusted tax rate to be around 25%. Moving on to slide 12, cash flow from operating activities was 39.3 million before capital expenditures of 22.2 million. In the third quarter, we bought back almost 123,000 shares at a cost of 10.7 million. As of September 30th, Interspec had 270.8 million in cash and cash equivalents and no debt. And now I'll turn it back over to Patrick for some final comments.