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DATE

Wednesday, Aug. 5, 2026 at 10 a.m. ET

CALL PARTICIPANTS

• General Counsel and Chief Compliance Officer - David Bentley Jones
• President and Chief Executive Officer - Patrick S. Williams
• Executive Vice President and Chief Financial Officer - Ian Philip Cleminson

TAKEAWAYS

• Total Revenue -- $491.4 million, representing a 12% increase from $439.7 million in the prior year quarter.
• Net Income -- $30.8 million, or $1.25 per diluted share, up from $23.5 million, or $0.94 per diluted share, in the same period last year.
• Adjusted EPS -- $1.27, excluding special items, compared to $1.26 in the second quarter of 2025.
• Adjusted EBITDA -- $50.1 million, a slight increase from $49.1 million reported in the corresponding quarter last year.
• Performance Chemicals Revenue -- $190.3 million, up 9% due to an 8% positive price/mix and a 3% favorable currency impact, which offset a 2% volume reduction.
• Performance Chemicals Operating Income -- $16.4 million, rising 15% year over year driven by operating leverage despite a 0.2-percentage-point decline in gross margin to 17.3%.
• Fuel Specialties Revenue -- $185.7 million, growing 12% from $165.1 million last year on a 7% increase in volumes and 3% improvement in price/mix.
• Fuel Specialties Operating Income -- $36.3 million, up 3% year over year, though gross margins fell 1.5 percentage points to 36.6% partly due to a weaker sales mix.
• Oilfield Services Revenue -- $115.4 million, a 14% increase from $100.8 million in the second quarter of 2025.
• Oilfield Services Operating Income -- $8.7 million, representing a 40% increase driven by improved sales mix and the expansion of the drag reducing agent (DRA) business.
• Oilfield Services Gross Margin -- 32.3%, an improvement of 2.7 percentage points from 29.6% in the prior year quarter.
• Cash and Debt -- $250.2 million in cash and cash equivalents with zero debt as of June 30, 2026.
• Shareholder Returns -- $6.4 million in share repurchases for 87,089 shares and a semi-annual dividend payment of $0.92 per share, totaling $22.7 million.
• Operating Cash Flow -- $7.2 million for the quarter, compared to $10.5 million in the prior year, primarily impacted by working capital changes.
• Capital Expenditures -- $16.5 million for the quarter and $26.6 million for the first half of the year, focused on plant repairs and expansions.
• Corporate Costs -- $21.6 million, increasing from $20.9 million a year ago.
• Effective Tax Rate -- 25%, a decrease from 26% in the same period last year, reflecting the geographical mix of profits.
• DRA Capacity -- Management reported that the recently added capacity for drag reducing agents is almost sold out due to high demand in North America and the Middle East.
• Performance Chemicals Repair Status -- Patrick S. Williams noted the company is approximately 60% through the repair and upgrading process at its facilities.
• Projected Capacity Expansion -- The company anticipates a capacity increase of at least 10% in its Performance Chemicals plant once repairs are fully optimized by the end of the fourth quarter.
• Price/Mix and Raw Materials -- Positive price/mix of 8% in Performance Chemicals helped offset raw material cost inflation during the quarter.
• Working Capital Guidance -- Management expects increased operating cash flow in the second half of 2026 through improved working capital efficiency.
• Oilfield Technology Outlook -- The company plans to launch new technologies within the next six months to drive further growth in the completions and production business.
• Performance Chemicals Guidance -- Operating income is expected to show further improvement in the second half of 2026 as plant efficiencies increase.
• Fuel Specialties Guidance -- The company anticipates steady performance in the third quarter with some potential gross margin pressure due to a pricing lag relative to raw material costs.

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RISKS

• CFO Cleminson stated, "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," indicating that facility issues limited potential revenue growth in the quarter.
• CEO Williams stated, "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," acknowledging that rising input costs may pressure near-term profitability in Fuel Specialties.

SUMMARY

Innospec (IOSP -0.53%) management reported growth across all three business segments, driven by pricing actions and volume increases in the Fuel Specialties and Oilfield Services divisions. The company maintained a debt-free balance sheet while executing share repurchases and distributing a semi-annual dividend. Operations in Performance Chemicals were impacted by supply constraints related to ongoing plant repairs in North Carolina, which management expects to complete by the end of the fourth quarter. Strategic focus remains on commercializing new technologies and expanding capacity in drag reducing agents to serve market opportunities in the Middle East and North America.

• CEO Williams noted that the company added drag reducing agent capacity that is "almost sold out," specifically citing opportunities in the Middle East related to the East West pipeline.
• CFO Cleminson indicated that significant volume improvements in Performance Chemicals are unlikely until the first quarter of 2027, as additional capacity will not be fully online until the end of 2026.
• Management is monitoring activity in Mexico for potential Oilfield Services recovery, though Williams clarified that they are "slow playing it" until the payment environment for chemicals improves.
• The company identified and is addressing system weaknesses exposed by a winter storm earlier in the year, with 60% of the necessary facility repairs and process improvements now completed.
• Oilfield Services operating income grew 40% year over year, which management attributed to a higher-margin product mix and increased demand for stimulations and completions technologies.
• Management emphasized its disciplined approach to the shale market, noting that longer laterals and more stages are driving higher oil volumes without requiring a spike in the rig count.

INDUSTRY GLOSSARY

• Drag Reducing Agents (DRA): Specialized chemicals injected into pipelines to reduce turbulence and increase the flow rate of fluids, allowing for higher throughput.
• Performance Chemicals: A segment focused on technology-based solutions for personal care, household, agrochemical, and industrial markets.
• Fuel Specialties: A division that manufactures chemical additives used to improve fuel efficiency and reduce emissions in engines and heating systems.
• Oilfield Services: The business unit providing chemicals for the fracturing, stimulation, and completion of oil and gas wells.
• Adjusted EBITDA: Earnings before interest, taxes, depreciation, and amortization, adjusted for one-time or non-recurring items such as legacy costs or foreign exchange gains/losses.
• Force Majeure: A legal clause that allows a party to be released from contractual obligations due to extraordinary events beyond their control, such as severe weather.
• E&P: Exploration and Production, the stage of the energy industry focused on finding and extracting oil and gas.

Full Conference Call Transcript

Operator: Thank you. Welcome to Innospec's Second Quarter Earnings call.

David Bentley Jones: This is David Bentley Jones, and I am Innospec's General Counsel and Chief Compliance Officer. 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 risk 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 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 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 the impact these items and events had on financial results. With me today from Innospec are Patrick S. Williams, president and chief executive officer and Ian Philip Cleminson, executive vice president and chief financial officer. And with that, I will turn it over to you, Patrick.

Patrick S. Williams: Thank you, David. Welcome everyone to Innospec's second quarter 26 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, 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. 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 in March improved sequentially and on the prior year driven by recent DRA plant expansion and growing opportunities for this technology in the markets we serve. However, performance is below our expectations and 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. Now I will turn the call over to Ian Cleminson 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 Philip Cleminson: Thanks, Patrick. Turning to slide 7 in the presentation. 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. Turning to slide 8, 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 9.

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 price mix up 3% and a positive currency impact of 2%. Pure Specialties gross margins of 36.6% decreased 1.5 percentage points compared to 38.1% in the same quarter last year. On a weaker sales mix. 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 1 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 thousand shares at a cost of $6.4 million. As of June 30, Innospec had $250.2 million in cash and cash equivalents and no debt. And now I will turn it back over to Patrick for some final comments. Patrick?

Patrick S. Williams: Thanks, Ian. With our diversified global supply chain and manufacturing footprint, our teams continue to manage through the direct impacts of geopolitical disruption delivering in 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 26, 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 Our teams are focused on opportunities to improve working capital efficiency and we expect these actions will support increased operating cash flow the second half of 26. 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. Now I will turn the call over to the operator and Ian and I will take your questions.

Operator: 1 and wait for your name to be announced to withdraw your question. Please press 1-1 again. We are now going to proceed with our first question. And the questions come from the line of Mike Harrison from Seaport Research Partners. Please ask your question.

Michael Harrison: Hi. Good morning. Morning. 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 is mostly complete at this point, or where do we stand on that?

Patrick S. Williams: Mike, I would say it is Patrick. I would say we are probably about 60% of the way through it. We have still got some minor repairs and now it is due into a more pipe work for more expansion. But we are getting close. I think by the end of Q4, we should be fully repaired and fully optimized at that point.

Michael Harrison: Alright. And then, in terms of just what you are seeing in the pricing versus raw material realm on performance chemicals that the price mix there was up 8%. Did that keep pace with raw material cost inflation that you saw in the quarter? And I guess, it looks like some of the OLEO chemicals are coming a little bit lower Is that something that is helping to maybe provide a little bit of margin benefit Yeah.

Ian Philip Cleminson: Mike, it is Ian. The team has done a really good job, with keeping up with the price increases. They have been pretty creative around the edges as well about putting new formulations into customers hands. Where we would need to set price action we have, and you can see year over year that the margins are pretty comparable and they have obviously been improved sequentially over Q1 as well. So we are seeing price inflation. We are handling it pretty well at the moment. And we continue to expect to be able to handle it and we will pass through where we need to. So the markets are pretty choppy at the moment.

Prices are moving up and down pretty rapidly. But we have got a good handle on it and the team are doing well.

Michael Harrison: Alright. And then similar question on fuel specialties. I think that gross margin number for Q2 came in maybe a little bit better than you had anticipated. But it sounds like maybe you are anticipating some margin pressure sequentially into Q3. Can you give us a little bit of sense of how you are seeing the raw material flow through and that contractual pricing pass through mechanism?

Ian Philip Cleminson: Yes. Sure, Mark. it is Ian again. You know, in fuels, we have the sort of pricing lag up and down. Fuels is mostly crude derivatives based. So the team again, chasing prices up at the moment. You have seen a little bit of margin compression in Q2, Some of that is pricing, but some of that is also sales mix in the quarter. We are actually quite pleased with what the team have done there. They are 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 But again, there is nothing here that is really concerning us. it is a well trodden path The team are well versed in what they need to do and the market is responding correctly to our actions. So we are in good shape. So I think as we move through Q3 and into Q4, we are hopeful that if we get stability in prices, we will start to see some stability in margins.

Michael Harrison: Alright. Thanks for that. And then last question for me is just on the oilfield business. I was hoping you could give some additional detail on what you are seeing in the drag reducing agent Portion of that business. It sounds like you guys have added capacity and you have started to see some good uptake of that additional capacity. But 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 are facing, in the wake of the Iran war.

Patrick S. Williams: Yeah. So we added capacity in the majority of that capacity is almost sold out. We added new customers in North America. But 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 have always said, and we said it in the last quarter, that where there is chaos, there is opportunity. And we see this as not just a short term fix. We think that they are going to move more products to that pipeline over time. Even if the Strait of Hormuz are open in the near term. And so our product is extremely good product.

And I think that it is been taken very well. in The Middle East. And we will continue to ship products as we go. There is another opportunity for us to do another expansion of DRA down the road and that is being discussed as we speak. Alright. Thanks very much.

Operator: Thank you. Thank you, man. We are now going to proceed with our next question. And the questions come from the line of David Silva from Freedom Capital Markets. Please answer your question.

David Silver: Thanks very much. I will apologize. I think my feed was cutting in and out just a little bit. So apologies if I make you repeat yourself here. I would like to go back to my question about the work done in your with your performance chemicals facilities in the wake of the unplanned outages and the disruptions earlier this year. So, Patrick, you did mention that the work the discretionary upgrading work should be done by the end of the year. And on a qualitative basis, I mean, have you guys kind of thought about what or what kind of benefits should we expect to result from, you know, the project once it is complete? Is it capacity-related?

Is it efficiency-related? Just what kind of benefits and, you know, if you could ballpark them, that would be great. Thank you.

Patrick S. Williams: Yeah. David, Sure, David. The number 1 priority was to get the plant repairs up and moving so we could provide products to our customers. That was number 1 priority on our list. And we have accomplished that. We still have a ways to go. We are still tight. But I think as these efficiencies come on, it will give us more capacity. It will give us better yield rates. And it will also improve safety, everything along that plant that we needed to improve. it is hard to put a number on yet on how much volume it is going to help increase.

But it is a pretty good it is a pretty good number that we are looking at probably north of 10% at least. Moving forward for next year, 10% on capacity, that is.

David Silver: Is that correct?

Patrick S. Williams: Yeah. Yep.

David Silver: Great. Thanks. Thank you for that And I did want to kind of go back to oilfield and, you know, maybe just pick your brain, Patrick, for your approach to, you know, investing and taking advantage of some opportunities. So you certainly touched on the DRA opportunity emerging in The Middle East You know, what do you sense you know, the opportunities are or how you wanna be positioned you know, in the in the shale basins here.

In other words, you know, will production be structurally higher for some period of time because of you know, the geopolitics, as you mentioned, or you know, are we still in kind of a phase where the industry is a little more careful with their CapEx than maybe they have been in the past. But what are the broader you know, opportunities in the global oil market beyond, you know, DRAs in The Middle East?

Patrick S. Williams: Yeah. I mean, you can follow the rig count and see it has not spiked like you thought it would. And we have always said that E and P companies are taking a more disciplined approach now. But you have to remember, you have longer laterals, more stages, so you are getting more volume of oil through well than you have in the past. So there is really not a need to have a large uptick on drilling. But what we are seeing is still a very disciplined approach by E and P companies.

And we just have to be prepared with new technologies, which we should be launching here within the next 6 months that will help us propel in that area. As well as other areas like South America and Mexico. And we are watching things over in Mexico. We are seeing some things start to turn. And hopefully we will have some opportunities there over the next 6 months.

David Silver: Oh, wow. Mexico I was not expecting that. Okay. Interesting. You know, maybe just to go back to fuel specialties. I mean, the revenues were up you know, double digits. Operating income was up, you know, 3%. So there was, you know, some margin effect there. Was that all due to raw material costs? Or was there kind of a notable mixed effect And then more broadly, it seems like that segment is on track for another record year just wondering if you had any had any thoughts about that record revenue and operating income. Thank you.

Ian Philip Cleminson: Yeah. Let me take that 1, David. it is Ian. So 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. But most of it was the mix at the top line. And the businesses progressing really nicely as you said. So at the half year point, is 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. Then we are into the winter season.

So the business is very well set for a very strong second half of the year. And that is built on great technology great service to the customers, a really dedicated team that is out there executing day in and day out. And we are really pleased with where they have got to So yeah, they are all well set. it is not easy. But they will drive really hard for a record year. Okay.

David Silver: And then last from me, and this is kind of a big picture question. But you know, your results were very strong here in absolute terms. But I think even in relative terms, you know, you surprised me. And I guess the consensus a little bit in terms of your ability to produce and ship you know, in the wake of the, disruption that you suffered in the first quarter. Maybe just to 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, you know, driving revenue growth, I think, across your businesses, you know, several of which you know, did suffer some mechanical disruptions.

So, you know, just broadly speaking, is there a lot of flexibility inherent in your system? And you know, is there still a lot of flexibility, you know, assuming you are producing at, you know, the 2Q level? Or is that something that incremental growth might have to be addressed through additional you know, CapEx or other types of resourcing.

Patrick S. Williams: No. I think I think we first have to give credit to the management team and the individuals at the plant I mean, this has been a very, very difficult process for us to go through. You had winter storm hit. We found out a lot of weaknesses within the system. We worked night and day, 7 days a week to get it fixed, to make sure we are not missing load to customers. And that is been very difficult without claiming a force majeure. So we fought our way through that.

I think, as I said earlier, the efficiencies that are coming about and coming through now that will hit the fourth quarter, is going to give us additional capacity without more CapEx once we spend this original CapEx. So we are in a really good position. I think that you will see over the coming quarters, you will see improvements. We could have had some nice volume improvement in the quarter, but we just could not make it. We were at capacity. So I think we will start seeing volume improvements as the quarters come. But it is been a lot of work, David.

And I got to give credit to where credit's due is we put ourselves in this position, but we fought like hell to get out of it. And we are not gonna ever go there again. But we are sitting in a good spot. We can see the light at the end of the tunnel. And we are very confident moving forward. Okay.

Operator: Great. I appreciate all the color. Thank you. Thanks, David. Thanks, David. Thank you. We are now going to proceed with our next question. And the questions come from the line of John Tanwanteng from CJS Securities. Please ask your question.

Jonathan Tanwanteng: Hi, good morning. Thank you for taking my questions and really nice quarter. Good morning, John. Thank you, John. Good morning. I was wondering if you could quantify the impact in Q2 from the repair and upgrade activity And it sounds like you are 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 Philip Cleminson: Yeah. Let me take that first, John, and 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 with the cross performance chemicals. That volume, additional volume, the additional capacity will not really come on till Q4 at the earliest, probably more likely into Q1 next year.

So I think you are gonna see us I do not mean plateaued, it is probably the wrong word, but I think we are probably operating towards top end of what we are capable of now. So I think Q3 will be very similar. Q4 might see a little bit more of an uptick sequentially. Well, that is sort of how we see it right now.

Patrick S. Williams: Yeah. I think as we said, John, it is the number 1 priority was to get that plant up and running to meet the volumes contractual volumes that we had in place. And we have done that. And now it is more putting better efficiencies in place so that we can increase yields and increase volume moving forward. And as Ian said, I think you will see that towards the latter part of Q4 and then for sure in Q1.

Jonathan Tanwanteng: So we have missed some volume Will we pick some of that back up in Q4, Q1 next year? Yes. But you will not pick it up in Q3. Okay. Great. Thank you. And then I was wondering if you could go into a little bit more detail on just the improved price and mix in this segment.

Ian Philip Cleminson: I think you called out that, you know, you are doing a good job in getting you formulations customers. but could you go into a little more detail on where exactly you are winning what is driving that, and kinda how sustainable that is as you get more capacity online? Are you asking, John, about in the future or are asking about Q2?

Jonathan Tanwanteng: Both. Both.

Ian Philip Cleminson: Okay. So yeah. We did a good job on pricing in Q2 in Performance Chemicals. The mix was pretty flat year over year. And I think sequentially, obviously, the winter storm impacts Q1, so it is 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, But where we cannot, we will take pricing action.

I do not think we will really see the benefit of the improvements that we are making until part of Q4, early 2027, because just will not have the capacity, John, to change the sales mix and the profile there. Additionally to that, we are also expecting new products to come online as well, which will help the margin profile. But I think overall, the way we are managing raw materials you will see us do the same again in Q3. that is what we have done in Q2. that is responsibly manage it through our customers and through our supply chains.

Patrick S. Williams: Yeah. Just to add a little color to Ian's comments. In all of our businesses, we have had to manage extremely tight timelines on raw materials. You know, there is been force majeure on some raw materials, so we have had to reformulate away. there is been a tightness in the market in general. And timing of shipments has been extremely difficult. So 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. So we are we are you know, we feel confident that we have a handle on it.

And I think that, you know, we will just continue to see those general improvements as we move forward.

Jonathan Tanwanteng: Great. Thank you. And then 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 the what is going on there, and if you can size or time the, ramp up of potential, return of business there.

Patrick S. Williams: Yeah. it is, you know, it is interesting. there is you know, they have 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 is filtering through now to saying that they realized they actually need now's the time that the country needs to get more crude out of the system. it is never going to be what it was. I think technology is changing a little bit. But it is gonna be a slow process.

You know, as we always told you, we are not going to sell products that we are not gonna get paid on for 6 months to a year. And so until that environment changes, we are just going to slow play it. But in saying that there is opportunities, we have had some people come to us and said, we have got opportunities. Here's our payment. it is not large volumes. I do not think you will see any effect this year. We are not counting on it even for next year. If it comes, it comes.

So it is more putting ourselves in a position that when they have to return back to using chemicals, that were 1 of their first choice. And that is what we are doing. But we are just seeing we are seeing more activity and having more conversations.

Jonathan Tanwanteng: Got it. No. that is helpful. Just to be clear, they are not reaching out to you as opposed to just waiting for something to happen. Correct.

Operator: Got it. Thank you. Thank you. Thanks, John. We have no further questions at this time. So I will now hand back to you to Patrick S. Williams for closing remarks.

Patrick S. Williams: Thank you. 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 26 results in November. Have a great day.

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