Good day, and thank you for standing by. Welcome to Innospec Inc.'s first quarter 2026 earnings release and conference call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, please press star-1-1 on your telephone keypad. You will not hear an automated message advising your hand is raised. To withdraw a question, please press star-1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, David Jones. Please go ahead, sir.

Thank you. Welcome to Innospec Inc.'s first quarter earnings call. I am David Jones, Innospec Inc.'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 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 from the anticipated results implied by such forward-looking statements. These risks and uncertainties are detailed in Innospec Inc.'s 10-Ks, 10-Qs, and other filings with the SEC. Please see the SEC site and Innospec Inc.'s 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. Non-GAAP financial measures should not be considered as a substitute for, or superior to, those prepared in accordance with GAAP. They are included to aid investor understanding of the company's performance in addition to the impact that these items and events had on financial results. With me today are Patrick Williams, President and Chief Executive Officer, and Ian Cleminson, Executive Vice President and Chief Financial Officer. With that, I will turn it over to you, Patrick.

Thank you, David, and welcome, everyone, to Innospec Inc.'s first quarter 2026 conference call. Before discussing the results, I want to recognize the focus and determination being demonstrated by our employees around the world, and especially those in the Middle East. Volatile environments like this bring a unique set of challenges and opportunities. We are seeing increased chances to deliver innovative solutions and security of supply to all our customers, and we continue to execute on these initiatives. This was a mixed quarter for Innospec Inc., with continued strong results in Fuel Specialties partially offsetting the impacts of the January 2026 U.S. winter storm, which affected Performance Chemicals and Oilfield Services. Performance Chemicals sales were broadly flat with last year, but margins and operating income were significantly impacted by the shutdown of our North Carolina plants due to the U.S. winter storm. We are continuing to prioritize plant repairs in order to meet customer requirements. Additionally, and without slowing the pace of these critical plant repairs, we have elected to pull forward multiple plant optimization projects which will drive long-term benefits. In parallel, we continue to execute on a range of top-line and margin opportunities identified in the business which we expect to drive sequential growth in the second quarter. Fuel Specialties had another strong quarter with sales growth and margins that remained at the upper end of our target range. The business has continued to deliver consistent strong results through a range of economic cycles. With a diverse pipeline and a number of non-fuel opportunities across all regions, we expect a continued strong performance in this business. Oilfield Services operating income and margins improved on the prior year, but sequential results were impacted by the U.S. winter storm. While the Middle East conflict may delay some activity in the region, it is also creating new opportunities that we are aggressively pursuing. In parallel, we remain focused on driving incremental growth from our recent DRA expansion and other opportunities in our Completions and Production segments. We are cautiously optimistic that this combination will deliver sequential operating improvement in the second quarter and leave us well-positioned for further improvement in 2026. Now 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?

Thanks, Patrick. Turning to slide seven in the presentation, the company's total revenues for the first quarter were 453.2 million dollars, a 3% increase from 440.8 million dollars a year ago. Overall gross margin decreased by 1.1 percentage points from last year to 27.3%. Adjusted EBITDA for the quarter was 43.7 million dollars compared to 54 million dollars last year. Net income attributable to Innospec Inc. for the quarter was 30.4 million dollars compared to 32.8 million dollars a year ago. Our GAAP earnings per share were 1.22 dollars, including special items, the net effect of which increased our first quarter earnings by 0.17 dollars per share. A year ago, we reported GAAP earnings per share of 1.31 dollars, which included a negative impact from special items of 0.11 dollars per share. Excluding special items in both years, our adjusted EPS for the quarter was 1.05 dollars compared to 1.42 dollars a year ago. Turning to slide eight. Revenues in Performance Chemicals for the first quarter were 169.4 million dollars, up 1% from last year's 168.4 million dollars. Volume reductions of 9% were offset by a positive price/mix of 1% and a favorable currency impact of 9%. Gross margins of 16.8% decreased 4.2 percentage points compared to 21% in the same quarter in 2025 due to the impact of the U.S. winter storm at the start of the quarter. Operating income of 10.7 million dollars decreased 46% from 19.8 million dollars last year. Moving on to slide nine. Revenues in Fuel Specialties for the first quarter were 181.6 million dollars, up 7% from the 170.3 million dollars reported a year ago. A 10% increase in volumes and a favorable currency impact of 6% were offset by a negative price/mix of 9%. Fuel Specialties gross margins of 35.4% were broadly flat with the same quarter last year. Operating income of 37.8 million dollars was up 2% from 36.9 million dollars a year ago. Moving on to slide 10. Revenues in Oilfield Services for the quarter were 102.2 million dollars, flat with the first quarter last year. Gross margins of 30.1% increased 1.7 percentage points from last year's 28.4% on an improved sales mix. Operating income of 5.6 million dollars increased 37% from 4.1 million dollars a year ago. Turning to slide 11. Corporate costs for the quarter were 22.3 million dollars compared with 17.7 million dollars a year ago, driven by higher legacy costs of closed operations, higher legal and compliance expenses, and additional amortization for our ERP system. The effective tax rate for the quarter was 22.8% compared to 25.7% a year ago. Moving on to slide 12. Cash generated from operating activities was 17.6 million dollars before capital expenditures of 8.6 million dollars. In the first quarter, we bought back 90 thousand shares at a cost of 6.2 million dollars. As of March 31, Innospec Inc. had 289.1 million dollars in cash and cash equivalents and no debt. I will now turn it back over to Patrick for some final comments.

Thanks, Ian. With our diversified global supply chain and manufacturing footprint, we believe that we are well-positioned to manage the direct impacts of near-term geopolitical disruptions. We are monitoring closely the potential for further raw material inflation and supply disruption as the Middle East conflict extends. During this period, we remain focused on our continued commitment to security of supply and innovative solutions for our customers. We will continue to implement improvements across all our businesses that will position us for growth and margin expansion as market conditions recover. Our short-term expectation is for sequential operating income growth in Performance Chemicals and Oilfield Services and steady performance in Fuel Specialties. Our strong debt-free balance sheet continues to allow for significant flexibility in the current environment to preserve further dividend growth, buybacks, organic investment, and M&A. Cash generation was again positive this quarter, and our net cash position held at over 289 million dollars after repurchasing 90 thousand shares at a cost of 6.2 million dollars. In addition, this quarter, our Board approved a further 10% increase in our semiannual dividend to 0.92 dollars per share, which together with the newly announced 75 million dollars buyback further enhances shareholder returns. We will now open the call for questions.

Thank you. To withdraw a question, please press star-1-1 again. We will now take our first question, which comes from the line of Mike Harrison from Seaport Research Partners. Your line is open. Please ask your question.

Good morning, and thanks for taking my questions. I wanted to start with the Performance Chemicals business. How much of the 9% volume decline was related to the weather or outage impact, and what are you seeing in terms of underlying market dynamics given consumer sentiment remains a little weak? Should we see volumes start to recover in the second quarter, or is that more of a second-half dynamic? And as a follow-up, can you walk us through the repairs and upgrades or optimizations that you are making at the High Point and Salisbury plants in North Carolina, what is happening at each plant, the timeline to get fully back up and running, and the potential benefits of the optimizations?

Yes, Michael, I will go in reverse. You should start seeing improvement in the second half of the year. It is not orders that are the issue—our order pattern is very strong right now. The issue is the plants and the effect from the winter storm that we had late in the season. It is about getting product manufactured and out the door. You will probably see a similar, maybe a little better, quarter in Q2 with a significantly better increase in Q3. On the repairs and upgrades, priority number one was to get the plants up and running so we could meet most of the orders we have in place today, and we have achieved the majority of that. Along the way, we decided to start optimizing to improve yields, efficiencies, and automation. But the critical part was getting product to customers. As we move through that stage, we are moving into the automation and other optimization projects. It is a process and takes time—you have frozen pipes, replacements of pipes and boilers, and timelines on everything. When plants go down, as you fix one thing, another thing can pop up. It is a little frustrating, but we are seeing light at the end of the tunnel. The order pattern remains extremely strong. Priority number two is making sure we do not have these problems again, and then improving efficiency, yield, and quality, which should come in the latter part of the year.

Thank you. And then on the Middle East conflict and raw materials, I am a bit concerned about Fuel Specialties given the pass-through mechanism and lag. What are you anticipating in terms of margin pressure, and with pricing negative in the quarter, should we assume price/mix turns positive in the second quarter or not until the second half?

Fuel Specialties has operated through many different economic cycles. We have seen serious spikes in raw material costs and crude derivatives. You are correct that we have a pass-through mechanism for most of our business, and it does have a time lag. Our expectation is that we will see some gross margin compression in the second quarter; that is not unexpected. Depending on how long this continues, we may be chasing some of those price increases for a quarter or two. If prices stabilize or drop, we will see the benefits in due course. Demand is really good, and the business is operating at the top end of where we expect it to be. With the seasonal impact in Q2 and some timing on gross margins, we expect operating income to be a little lighter than Q1, potentially a little tighter as well.

We have managed through these cycles extremely well. The key watch item is demand destruction from high crude, jet, diesel, and gasoline prices. We are not seeing it yet. Typically, you might see slight demand destruction, but the margin profile stays steady. This business tends to march along, and we remain confident Fuel Specialties will continue on this path.

Understood. Lastly, tying it together: you mentioned a sequential decline in Fuel Specialties and sequential growth in Performance Chemicals and Oilfield Services. Net-net, is Q2 earnings similar to Q1 or a little lower?

You called it right. We are expecting a small drop-off in fuels compared to Q1, seasonally driven, a small sequential increase in Performance Chemicals, and the same in Oilfield. Net-net, EPS should be very similar to Q1, maybe a penny or two higher. We do need to see the impacts of the war coming through, but that is how we see it today.

On Oilfield, where there is chaos there are opportunities. The DRA expansion is creating a lot of opportunities, which should help Oilfield in Q2 and Q3. With higher crude prices, and even if prices come down, we feel better positioned than in the past. Expect a little improvement in Q2 and bigger improvements in Q3 and Q4.

Thank you. We will take our next question from John Tanwanteng from C Securities. Your line is open.

Good morning, and thank you for taking my questions. You mentioned more opportunities in Oilfield even with delays and expansions in the Middle East. Are those net positive opportunities for the full year versus what you thought two or three months ago?

It is definitely net positive. We are seeing positions for our product lines with specific customers in the Middle East and potentially in Argentina, Venezuela, and Mexico where there is heavy crude. We think these are potentially long-term opportunities. There is opportunity in chaos, and our technology has provided us a lot of it. For example, we are looking at helping the East-West pipeline with DRA. Once the straits open up, you should see fracking pick up again, which will help our business. We are also seeing bids tied to heavy crude. We believe we are positioned properly with great technology, and now it is about execution. That is why we expect sequential improvement over Q1 in Oilfield throughout the rest of the year.

Are you seeing any DRA opportunities pushed out of this year due to delays and the conflict? And any update on your prior large Latin American client—do higher prices spur action sooner?

On DRA, we are seeing more opportunities. The plant expansion we put together is pretty much going to be maxed out in Q2 and Q4. On Latin America, specifically Mexico, there is activity, and with their heavy crude and Gulf Coast refinery needs, activity is increasing. Until Pemex decides how to fix paying vendors, there will be a lag, but we are seeing increased activity. It will never be the magnitude we had before, but we hope to see something coming out of there. We also see opportunities in Venezuela that we will pursue.

Lastly on capital allocation: you bought back a lot of shares and authorized a new 75 million dollars buyback. Previously you talked about increased M&A opportunities this year. Has that changed, and can you do both with your cash flow and cash balance?

We can do both. We tapped the brakes a little until we get Performance Chemicals righted, and we are starting to see light at the end of that tunnel. We expect a similar quarter in Q2 as in Q1, then the bigger improvements we anticipated in Q3 and Q4. Once we see that turnaround in actual numbers, you will see us aggressively going after M&A. We have not stopped looking; we just have not found the right thing yet. Ideally, the right deal shows up in Q3 when we see those numbers improve.

Is a deal dependent on the facility being fixed, or is that just a target?

It is a target.

You are welcome.

Thank you. We will take our next question from David Silva from Freedom Capital Markets. Your line is open.

Good morning, and thank you. I would like to drill down on Fuel Specialties. According to my records, both revenues and especially operating income were at or near all-time highs, and three of the last four quarters have been exceptionally strong historically. With 10% volume growth this quarter and the overall trend, it looks like share gains or new products may be making an impact. Can you comment on what is moving more positively than historical trends would indicate?

Good question. Some of it has been market improvements, volume gains, and price/mix. We have also started to grow business in adjacent markets outside of fuels—polyethylene, polypropylene, and others—so we have moved into other segments that are offshoots of Fuel Specialties, with nice margins. The team has a solid strategy and is executing well. As you know, that business is extremely steady; I know it well, having run it before becoming CEO. We have a good product pipeline, and that is why we feel confident we can continue to grow or sustain performance this year and beyond. It is a little bit of everything, which is what you want to see—not one factor driving all of the positive results. Remember there is usually a seasonal drop-off in the second quarter, but the sequential improvement has been very impressive.

As a follow-up, diesel markets have been rattled on cost and availability, and some airlines are having trouble operating in the current environment. Diesel and jet are important to Fuel Specialties—what has been your strategy to continue performing well despite these disruptions?

Diversification of the portfolio. Within specialties, we treat marine bunker, jet, gasoline, and diesel, and we have expanded into adjacent markets outside of core fuels and heavy fuels. Creativity in the organization and diversification of the portfolio help us sustain performance. We are watching demand destruction closely—it has not hit us yet. The consumer remains strong and usage is strong, but we are monitoring. Diversification has always helped us overcome chaotic markets.

One bigger picture question: disruptions in the Persian Gulf and elsewhere seem to create greater opportunities, especially in Oilfield. From a resourcing standpoint, what do you need to do to take advantage of greater interest in U.S. petroleum and product exports? Do you have spare capacity now, or do you need to increase investments in capacity or talent?

We are properly positioned. Security of supply is top of mind for everyone, and we are well-positioned there. In chaotic times like this, innovation is on the forefront—developing technologies that are sustainable long term even if raw materials or sources shift. Those are things we are consistently bringing to market. When market dynamics change, innovation and security of supply are critical, and that will be our focus now and for sustainability when things return to normal, if and when they do.

Thank you. There are no further questions for today. I would now like to hand the conference back to Patrick Williams for any closing remarks.

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

This concludes today's conference call. Thank you for participating. You may now disconnect. Have a nice day.