Business
NewMarket Corporation Reports Second Quarter and First Half 2026 Results
NewMarket Corporation Reports Second Quarter and First Half 2026
About this update from Newmarket Corp
NewMarket Corporation (NYSE:NEU) Chairman and Chief Executive Officer, Thomas E. Gottwald, released the following earnings report of the Company’s operations for the second quarter and first half of 2026. Net income for the second quarter of 2026 was $133.8 million, or $14.54 per share, compared to net income of $111.2 million, or $11.84 per share, for the second quarter of 2025. For the first half of 2026, net income was $251.8 million, or $27.14 per share, compared to $237.2 million, or $25.11 per share, for the same period in 2025. Petroleum additives sales for the second quarter of 2026 were $675.6 million, compared to $653.9 million for the same period in 2025. Petroleum additives operating profit for the second quarter of 2026 was $149.4 million, compared to $139.8 million for the second quarter of 2025. Petroleum additives operating profit increased due to surcharges implemented in response to higher costs incurred due to the supply chain disruptions in the Middle East. These actions, together with our continued focus on operational efficiency, resulted in improved operating profit during the quarter. Petroleum additives sales were $1.3 billion for both the first half of 2026 and 2025. Petroleum additives operating profit for the first half of 2026 was $284.4 million, compared to $281.9 million in the same period last year. Specialty materials sales were $67.2 million for the second quarter of 2026, compared to $42.0 million for the second quarter of 2025. Specialty materials operating profit was $22.3 million for the second quarter of 2026, compared to operating profit of $10.5 million for the second quarter of 2025. The 2025 period excludes Calca's results as the acquisition was completed on October 1, 2025. As previously stated, we expect variation in quarterly results for the specialty materials segment on an ongoing basis due to the nature of its business. Specialty materials sales were $125.3 million for the first half of 2026, compared to $95.8 million for the first half of 2025. Specialty materials operating profit was $34.8 million for the first half of 2026, compared to $33.7 million in the same period last year. We are especially pleased with the performance of our Specialty Materials segment and we are also excited about our investments to expand production capacity for both ammonium perchlorates and high purity hydrazine to support the domestic production of critical aerospace and defense chemicals. We expect to see this additional capacity come online towards the end of 2026. Our operations generated solid cash flow during the first half of 2026. We funded capital expenditures of $51.7 million, paid dividends of $55.6 million, and repurchased over 200 thousand shares of common stock for $126.4 million, while reducing our Net Debt to EBITDA ratio to 1.0x. The cash flow generated by operations enables us to continue to provide value to our customers and shareholders through reinvestment in our businesses for growth and efficiency, acquisitions, dividends and share repurchases. We continue to monitor the impact of the conflict in the Middle East, the uncertain macroeconomic environment, and the changes in international trade relations and tariffs. Within petroleum additives, the surcharges and operational actions implemented earlier this year to address higher raw materials, utility, and logistics costs remain in place, and we continue to evaluate and adjust our approach as market conditions evolve. While the operating environment remains dynamic, we believe these actions position us well to continue delivering solid results. We are pleased with the performance of both our petroleum additives and specialty materials segments during the first half of 2026. We will continue to invest in technology to serve our customers, focus on cost control and margin management, and advance our initiatives to strengthen our global manufacturing network to enable more efficient product delivery to our customers in the years ahead. Our dedicated team makes decisions to promote long-term value for our shareholders and customers, and remains focused on our long-term objectives. We believe the fundamentals of how we run our business - a long-term view, safety-first culture, customer-focused solutions, technology-driven product offerings, and world-class supply chain capability - will continue to benefit all our stakeholders. Sincerely, Thomas E. Gottwald The petroleum additives segment consists of the North America (the United States and Canada), Latin America (Mexico, Central America, and South America), Asia Pacific, and Europe/Middle East/Africa/India (Europe or EMEAI) regions. The specialty materials segment operates primarily in North America. The Company has disclosed the non-GAAP financial measures EBITDA, Net Debt, and Net Debt to EBITDA, as well as the related calculations in the schedules included with this earnings release. EBITDA is defined as income from continuing operations before the deduction of interest and financing expenses, net, income taxes, depreciation (on property, plant, and equipment) and amortization (on intangible assets and lease right-of-use assets). Net Debt is defined as long-term debt, including current maturities, less cash and cash equivalents. Net Debt to EBITDA is defined as Net Debt divided by EBITDA for the rolling four quarters ended as of the specified date. The Company believes that even though these items are not required by or presented in accordance with United States generally accepted accounting principles (GAAP), these additional measures enhance understanding of the Company’s performance and period to period comparability. The Company believes that these items should not be considered an alternative to our results determined under GAAP. As a reminder, a conference call and webcast is scheduled for 3:00 p.m. ET on Thursday, July 30, 2026, to review second quarter 2026 financial results. You can access the conference call live by dialing 1-888-506-0062 (domestic) or 1-973-528-0011 (international) and requesting the NewMarket conference call or using the participant access code 726865. To avoid delays, callers should dial in five minutes early. A teleconference replay of the call will be available until Thursday, August 13, 2026 at 3:00 p.m. ET by dialing 1-877-481-4010 (domestic) or 1-919-882-2331 (international). The replay passcode is 54208. The call will also be broadcast via the internet and can be accessed through the Company's website at www.NewMarket.com or https://www.webcaster5.com/Webcast/Page/2001/54208 . A webcast replay will be available for 30 days. NewMarket Corporation is a holding company operating through its subsidiaries, Afton Chemical Corporation (Afton), Ethyl Corporation (Ethyl), American Pacific Corporation (AMPAC), and Calca Solutions, LLC (Calca). The Afton and Ethyl companies develop, manufacture, blend, and deliver chemical additives that enhance the performance of petroleum products. AMPAC is a manufacturer of specialty materials primarily used in solid rocket motors for the aerospace and defense industries. Calca is the nation’s leading producer of Ultra Pure and high-purity hydrazine – essential, mission-critical propellants that enable advanced aerospace and defense applications. The NewMarket family of companies has a long-term commitment to its people, to safety, to providing innovative solutions for its customers, and to making the world a better place. Some of the information contained in this press release constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although NewMarket’s management believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from expectations. Factors that could cause actual results to differ materially from expectations include, but are not limited to, the availability of raw materials and distribution systems; disruptions at production facilities, including single-sourced facilities; hazards common to chemical businesses; the ability to respond effectively to technological changes in our industries; failure to protect our intellectual property rights; sudden, sharp, or prolonged raw material price increases; competition from other manufacturers; current and future governmental regulations; the loss of significant customers; termination or changes to contracts with contractors and subcontractors of the U.S. government or directly with the U.S. government; failure to attract and retain a highly-qualified workforce; an information technology system failure or security breach; the occurrence or threat of extraordinary events, including natural disasters, terrorist attacks, wars or other conflicts, and health-related epidemics; risks related to operating outside of the United States, including tariffs and trade policy; political, economic, and regulatory factors concerning our products; the impact of substantial indebtedness on our operational and financial flexibility; the impact of fluctuations in foreign exchange rates; resolution of environmental liabilities or legal proceedings; limitation of our insurance coverage; our inability to realize expected benefits from investment in our infrastructure or from acquisitions, or our inability to successfully integrate acquisitions into our business; the underperformance of our pension assets resulting in additional cash contributions to our pension plans; and other factors detailed from time to time in the reports that NewMarket files with the Securities and Exchange Commission, including the risk factors in Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025, which is available to shareholders at www.newmarket.com . Any forward-looking statement made by NewMarket in the foregoing discussion speaks only as of the date on which such forward-looking statement is made. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. We have no duty to, and do not intend to, update or revise the forward-looking statements in this discussion after the date hereof, except as may be required by law. In light of these risks and uncertainties, the events described in any forward-looking statement made in this discussion, or elsewhere, might not occur. NEWMARKET CORPORATION AND SUBSIDIARIES SEGMENT RESULTS AND OTHER FINANCIAL INFORMATION (In thousands, except per-share amounts, unaudited) Second Quarter Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net sales: Petroleum additives $ 675,573 $ 653,875 $ 1,285,391 $ 1,299,429 Specialty materials 67,165 42,037 125,306 95,758 All other 4,356 2,597 6,114 4,268 Total $ 747,094 $ 698,509 $ 1,416,811 $ 1,399,455 Segment operating profit: Petroleum additives $ 149,370 $ 139,835 $ 284,369 $ 281,942 Specialty materials 22,346 10,547 34,768 33,734 Segment operating profit 171,716 150,382 319,137 315,676 All other (212 ) (1,171 ) (1,322 ) (1,652 ) Corporate unallocated expense (7,816 ) (6,414 ) (10,869 ) (11,300 ) Interest and financing expenses, net (8,818 ) (10,735 ) (17,589 ) (21,435 ) Other income (expense), net 15,468 15,626 32,635 30,512 Income before income tax expense $ 170,338 $ 147,688 $ 321,992 $ 311,801 Net income $ 133,752 $ 111,244 $ 251,819 $ 237,193 Earnings per share - basic and diluted $ 14.54 $ 11.84 $ 27.14 $ 25.11 NEWMARKET CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per-share amounts, unaudited) Second Quarter Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net sales $ 747,094 $ 698,509 $ 1,416,811 $ 1,399,455 Cost of goods sold 504,665 477,555 953,503 942,478 Gross profit 242,429 220,954 463,308 456,977 Selling, general, and administrative expenses 48,376 45,428 94,390 88,406 Research, development, and testing expenses 30,388 32,374 62,024 65,550 Operating profit 163,665 143,152 306,894 303,021 Interest and financing expenses, net 8,818 10,735 17,589 21,435 Other income (expense), net 15,491 15,271 32,687 30,215 Income before income tax expense 170,338 147,688 321,992 311,801 Income tax expense 36,586 36,444 70,173 74,608 Net income $ 133,752 $ 111,244 $ 251,819 $ 237,193 Earnings per share - basic and diluted $ 14.54 $ 11.84 $ 27.14 $ 25.11 Cash dividends declared per share $ 3.00 $ 2.75 $ 6.00 $ 5.50 NEWMARKET CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts, unaudited) June 30, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 93,599 $ 77,598 Trade and other accounts receivable, less allowance for credit losses 480,725 422,084 Inventories 523,546 502,257 Prepaid expenses and other current assets 52,494 57,773 Total current assets 1,150,364 1,059,712 Property, plant, and equipment, net 792,483 775,480 Intangibles (net of amortization) and goodwill 923,182 941,156 Prepaid pension cost 605,366 586,053 Operating lease right-of-use assets, net 86,048 78,267 Deferred charges and other assets 63,568 51,797 Total assets $ 3,621,011 $ 3,492,465 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 341,645 $ 238,384 Accrued expenses 95,201 109,774 Dividends payable 23,971 23,805 Income taxes payable 25,011 17,190 Operating lease liabilities 17,973 16,205 Other current liabilities 6,954 13,921 Total current liabilities 510,755 419,279 Long-term debt 854,833 883,391 Operating lease liabilities - noncurrent 67,124 62,045 Other noncurrent liabilities 349,955 349,507 Total liabilities 1,782,667 1,714,222 Shareholders' equity: Common stock and paid-in capital (with no par value; issued and outstanding shares - 9,196,406 at June 30, 2026 and 9,397,364 at December 31, 2025) 549 2,386 Accumulated other comprehensive income 98,142 106,823 Retained earnings 1,739,653 1,669,034 Total shareholders' equity 1,838,344 1,778,243 Total liabilities and shareholders' equity $ 3,621,011 $ 3,492,465 NEWMARKET CORPORATION AND SUBSIDIARIES SELECTED CONSOLIDATED CASH FLOW DATA (In thousands, unaudited) Six Months Ended June 30, 2026 2025 Net income $ 251,819 $ 237,193 Depreciation and amortization 63,461 57,270 Cash pension and postretirement contributions (5,022 ) (4,871 ) Working capital changes (3,567 ) (828 ) Deferred income tax expense (benefit) 4,486 4,604 Capital expenditures (51,734 ) (29,295 ) Cash received from acquisition-related adjustment 1,131 0 Net borrowings (repayments) under revolving credit facility 21,000 (30,000 ) Payment on term loan 0 (50,000 ) Principal payment on 3.78% senior note (50,000 ) (50,000 ) Dividends paid (55,551 ) (51,898 ) Repurchases of common stock (126,427 ) (77,218 ) All other (33,595 ) (12,176 ) Increase (decrease) in cash and cash equivalents $ 16,001 $ (7,219 ) NEWMARKET CORPORATION AND SUBSIDIARIES NON-GAAP FINANCIAL INFORMATION (In thousands, unaudited) Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) Second Quarter Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net Income $ 133,752 $ 111,244 $ 251,819 $ 237,193 Add: Interest and financing expenses, net 8,818 10,735 17,589 21,435 Income tax expense 36,586 36,444 70,173 74,608 Depreciation and amortization 31,468 28,107 62,798 56,501 EBITDA $ 210,624 $ 186,530 $ 402,379 $ 389,737 Net Debt and Net Debt to EBITDA June 30, 2026 December 31, 2025 Long-term debt $ 854,833 $ 883,391 Less: Cash and cash equivalents 93,599 77,598 Net Debt $ 761,234 $ 805,793 Rolling Four Quarters Ended June 30, 2026 December 31, 2025 Net Income 433,373 $ 418,747 Add: Interest and financing expenses, net 35,847 39,693 Income tax expense 137,380 141,815 Depreciation and amortization 127,167 120,870 EBITDA-Rolling Four Quarters $ 733,767 $ 721,125 Net Debt to EBITDA 1.0 1.1 View source version on businesswire.com: https://www.businesswire.com/news/home/20260728612414/en/