NewMarket Corp

Latest Results (26.12.2024):

Net Income Growth

NewMarket Corporation reported a net income of $132.3 million for the third quarter of 2024, translating to earnings per share of $13.79. This marks an increase from the previous year's third quarter net income of $111.2 million, or $11.60 per share. For the first nine months of 2024, net income reached $351.7 million, or $36.66 per share, compared to $308.5 million, or $32.05 per share, for the same period in 2023.

Petroleum Additives Performance

In the third quarter of 2024, NewMarket Corp's petroleum additives sales were $663.0 million, slightly down from $663.7 million in the same quarter of 2023. However, the operating profit for this segment increased to $157.5 million from $139.8 million in the previous year, primarily due to reduced raw material and operating costs, despite lower selling prices.

First Nine Months Sales Consistency

For the first nine months of 2024, petroleum additives sales remained steady at $2.0 billion, matching the sales figures from the same period in 2023. The operating profit for this period rose to $456.2 million from $404.0 million in 2023, driven by lower costs and increased shipments, although selling prices were lower.

AMPAC Acquisition Impact

Following the acquisition of American Pacific Corporation (AMPAC) in January 2024, NewMarket Corp reported specialty materials sales of $59.1 million for the third quarter and $114.2 million for the first nine months of 2024. The operating profit for this segment was $16.0 million, reflecting the sale of acquired inventory at fair value, which generated no margin.

Financial Management and Outlook

NewMarket Corp achieved strong cash flows in the first nine months of 2024, paying $72.0 million in dividends and funding $42.7 million in capital expenditures. The company reduced its debt by $259.0 million since the AMPAC acquisition, achieving a Net Debt to EBITDA ratio of 1.4, below the target range. The company remains focused on margin management and long-term value creation for stakeholders.