NewMarket Corp

Latest Results (04.04.2026):

NewMarket Corporation reported results for the fourth quarter and full year 2025. For the fourth quarter of 2025 NewMarket reported income before income tax of $113.2 million and net income of $81.3 million ($8.65 per share). For full year 2025 the company reported net income of $418.7 million ($44.44 per share). Petroleum additives remained the largest segment (2025 operating profit $520.1 million) while specialty materials delivered improved results (2025 operating profit $47.0 million). The company cited higher effective tax rate, market softness in petroleum additives, strategic portfolio actions, acquisitions (AMPAC and Calca), solid operating cash flow, and a Net Debt to EBITDA ratio of 1.1 at year-end.

Fourth Quarter 2025 results

Q4 2025 net sales were $635.4 million (vs. $654.6M a year ago). Income before tax was $113.2 million and net income was $81.3 million, or $8.65 per share (down from $110.7M, $11.56 per share in Q4 2024). Petroleum additives operating profit in Q4 was $106.8 million and specialty materials operating profit was $7.3 million.

Full Year 2025 results

For the twelve months ended December 31, 2025, NewMarket reported net sales of $2.725 billion, net income of $418.7 million ($44.44 per share) versus $462.4 million ($48.22) in 2024. The company attributes the year-over-year decline largely to a higher effective income tax rate and lower segment profitability in petroleum additives.

Petroleum Additives (Q4 & FY 2025)

Petroleum additives Q4 sales were $585.1 million (Q4 2024: $626.1M) with operating profit of $106.8 million (Q4 2024: $135.7M). Full-year petroleum additives sales were $2.534 billion and operating profit was $520.1 million (2024 operating profit was $591.9M). Management cites a ~6% shipment decline in Q4 (4.9% for the year), lower selling prices, higher unit costs from reduced production, softness in lubricant additives, one-time charges tied to manufacturing network optimization, and increased technology investment.

Specialty Materials (Q4 & FY 2025)

Specialty materials sales in Q4 were $48.5 million (Q4 2024: $27.1M) with operating profit of $7.3 million (Q4 2024: $1.5M). Full-year specialty materials sales were $182.5 million and operating profit was $47.0 million (2024: $17.5M). Growth was driven by AMPAC volumes and the October 1, 2025 Calca acquisition; the company has committed ~ $1 billion to expand capacity in this segment.

Cash flow, capital allocation and balance sheet

Operations generated solid cash flows in 2025. The company paid $105.9 million in dividends, repurchased $77.2 million of common stock, and invested $77.6 million in capital expenditures. NewMarket invested over $200 million in the Calca acquisition and reduced long-term debt by $87.9 million during the year. Cash and cash equivalents were $77.6 million; Net Debt was $805.8 million and Net Debt to EBITDA was 1.1 as of December 31, 2025.

Shareholder returns

Dividends declared were $3.00 per share in the quarter and $11.25 per share for the full year 2025. The company continued share repurchases totaling $77.2 million in 2025.

Outlook and management priorities

Management expects continued solid results from petroleum additives despite market softness, will invest in technology, control costs and optimize its global manufacturing network, and expects expanded specialty materials capacity to come online toward the end of 2026. The company notes ongoing monitoring of macroeconomic, trade, and tariff risks.