NewMarket Corporation Reports Third Quarter and First Nine Months 2025 Results

• Nine Months Petroleum Additives Operating Profit of $413 Million
• Nine Months Specialty Materials Operating Profit of $40 Million
• Third Quarter Net Income of $100 Million and Earnings per Share of $10.67
• Strong Operating Cash Flows During the First Nine Months
• Quarterly Dividend Increased by 9% to $3.00 per Share

RICHMOND, Va.–(BUSINESS WIRE)–NewMarket Corporation (NYSE:NEU) Chairman and Chief Executive Officer, Thomas E. Gottwald, released the following earnings report of the Company’s operations for the third quarter and first nine months of 2025.

Net income for the third quarter of 2025 was $100.3 million, or $10.67 per share, compared to net income of $132.3 million, or $13.79 per share, for the same period last year. For the first nine months of 2025, net income was $337.5 million, or $35.78 per share, compared to $351.7 million, or $36.66 per share, for the same period in 2024.

Petroleum additives sales for the third quarter of 2025 were $649.1 million, compared to $663.0 million for the same period in 2024. Petroleum additives operating profit for the third quarter of 2025 was $131.3 million, compared to $157.5 million for the third quarter of 2024, which was a record quarter for this segment. The decrease in petroleum additives operating profit was primarily driven by one-time charges during the quarter, including those related to optimizing our global manufacturing network to become more efficient. A 4.1% decline in shipments between quarterly periods and an increase in technology investments also contributed to the decrease in petroleum additives operating profit. The decline in shipments was mainly driven by lubricant additives shipments, partially offset by an increase in fuel additives shipments.

Petroleum additives sales were $1.9 billion for the first nine months of 2025, compared to $2.0 billion for the same period in 2024. Petroleum additives operating profit for the first nine months of 2025 was $413.2 million, compared to $456.2 million in the same period last year. The drivers for the decrease in operating profit between these periods were consistent with those affecting the third quarter comparison discussed above. Shipments decreased 4.6% when comparing the first nine months of 2025 with the same period in 2024, driven by softness in the market and our strategic decision to examine and reduce low-margin business.

Specialty materials sales were $38.2 million for the third quarter of 2025, compared to $59.1 million for the third quarter of 2024. Specialty materials operating profit was $6.0 million for the third quarter of 2025, compared to operating profit of $16.0 million for the third quarter of 2024. The decrease in specialty materials operating profit was primarily driven by decreased volumes. As previously stated, we will see substantial variation in quarterly results for the specialty materials segment on an ongoing basis due to the nature of its business.

Specialty materials sales were $133.9 million for the first nine months of 2025, compared to $114.2 million for the first nine months of 2024. Specialty materials operating profit for the first nine months of 2025 was $39.7 million, compared to $16.0 million in the same period last year. Specialty materials sales and operating profit for the first nine months of 2024 reflect financial results since the acquisition of American Pacific Corporation (AMPAC) on January 16, 2024.

As previously announced, we expanded our investment in the specialty materials segment through the October 1, 2025 acquisition of Calca Solutions, LLC (Calca). Calca is the nation’s leading producer of UltraPure and high-purity hydrazine, mission-critical propellants used in advanced aerospace and defense applications. Since 2024, through our acquisitions of AMPAC and Calca and our investments to expand capacity at both operations, we have committed approximately $1 billion to this resilient, high-technology specialty materials segment.

Our operations generated solid cash flows during the first nine months of 2025. We paid dividends of $77.7 million, repurchased common stock for $77.2 million, and funded capital expenditures of $49.6 million. Additionally, we reduced our long-term debt by $188.2 million (Net Debt by $213.2 million) during the first nine months of 2025, driving our Net Debt to EBITDA ratio down to 0.9 as of September 30, 2025.

The cash flows generated by operations enable us to continue to provide value to our shareholders through reinvestment in our businesses for growth and efficiency, acquisitions, share repurchases, and dividends. Earlier today, the Company’s Board of Directors approved raising the quarterly dividend 9% from $2.75 per share on our common stock to $3.00 per share for the dividend that is payable January 2, 2026.

We are pleased with the performance of both our petroleum additives and specialty materials segments during the first nine months of 2025. We are experiencing impacts to the petroleum additives segment due to market softness and the uncertain global economic environment in which we operate. Nonetheless, we anticipate continued solid results from this segment. We will continue to focus on cost control and margin management, while advancing our initiatives to build a global manufacturing network that will enable more efficient product delivery to our customers in the years ahead. We are also excited about expanding production in the specialty materials segment to provide more capacity and a stronger supply chain for our customers, and we expect to see that capacity come online in the second half of 2026.

We continue to monitor the uncertain macroeconomic environment, particularly the changes in international trade relations and tariffs, and assess the potential impacts to our operations. 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 be beneficial for 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, income taxes, depreciation (on property, plant, and equipment) and amortization (on intangibles 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 Friday, October 31, 2025, to review third quarter 2025 financial results. You can access the conference call live by dialing 1-877-545-0523 (domestic) or 1-973-528-0016 (international) and requesting the NewMarket conference call. To avoid delays, callers should dial in five minutes early. A teleconference replay of the call will be available until Friday, November 7, 2025, at 3:00 p.m. ET by dialing 1-877-481-4010 (domestic) or 1-919-882-2331 (international). The replay passcode number is 53053. The call will also be broadcast via the internet and can be accessed through the Company’s website at www.newmarket.com or www.webcaster5.com/Webcast/Page/2001/53053. 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 UltraPure 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 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, 2024, which is available to shareholders at www.newmarket.com.

You should keep in mind that 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, you should keep in mind that 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)
		Third Quarter Ended September 30,								Nine Months Ended September 30,
			2025				2024				2025				2024
Net Sales:
Petroleum additives		$	649,085			$	663,014			$	1,948,514			$	2,010,104
Specialty materials			38,178				59,094				133,936				114,151
All other			3,048				2,839				7,316				7,656
Total		$	690,311			$	724,947			$	2,089,766			$	2,131,911
Segment operating profit:
Petroleum additives		$	131,307			$	157,468			$	413,249			$	456,196
Specialty materials			5,985				15,962				39,719				15,967
All other			(576	)			(93	)			(2,228	)			(1,548	)
Segment operating profit			136,716				173,337				450,740				470,615
Corporate unallocated expense			(5,692	)			(3,953	)			(16,992	)			(13,495	)
Interest and financing expenses			(8,374	)			(14,157	)			(29,809	)			(45,721	)
Other income (expense), net			12,959				13,944				43,471				38,459
Income before income tax expense		$	135,609			$	169,171			$	447,410			$	449,858
Net income		$	100,269			$	132,322			$	337,462			$	351,674
Earnings per share – basic and diluted		$	10.67			$	13.79			$	35.78			$	36.66

NEWMARKET CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per-share amounts, unaudited)
		Third Quarter Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
Net sales		$	690,311		$	724,947		$	2,089,766		$	2,131,911
Cost of goods sold			480,667			481,107			1,423,145			1,453,251
Gross profit			209,644			243,840			666,621			678,660
Selling, general, and administrative expenses			43,944			42,124			132,350			129,329
Research, development, and testing expenses			35,024			32,193			100,574			92,056
Operating profit			130,676			169,523			433,697			457,275
Interest and financing expenses, net			8,374			14,157			29,809			45,721
Other income (expense), net			13,307			13,805			43,522			38,304
Income before income tax expense			135,609			169,171			447,410			449,858
Income tax expense			35,340			36,849			109,948			98,184
Net income		$	100,269		$	132,322		$	337,462		$	351,674
Earnings per share – basic and diluted		$	10.67		$	13.79		$	35.78		$	36.66
Cash dividends declared per share		$	2.75		$	2.50		$	8.25		$	7.50

NEWMARKET CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts, unaudited)
		September 30, 2025			December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents		$	102,455		$	77,476
Trade and other accounts receivable, less allowance for credit losses			438,789			395,450
Inventories			512,168			505,426
Prepaid expenses and other current assets			47,731			51,203
Total current assets			1,101,143			1,029,555
Property, plant, and equipment, net			739,742			735,361
Intangibles (net of amortization) and goodwill			731,463			750,424
Prepaid pension cost			527,147			490,418
Operating lease right-of-use assets, net			78,868			71,253
Deferred charges and other assets			55,827			52,530
Total assets		$	3,234,190		$	3,129,541
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	265,778		$	225,874
Accrued expenses			83,228			89,277
Dividends payable			21,573			22,037
Income taxes payable			18,529			15,798
Operating lease liabilities			16,908			15,337
Other current liabilities			4,471			6,155
Total current liabilities			410,487			374,478
Long-term debt			783,104			971,281
Operating lease liabilities – noncurrent			61,928			54,754
Other noncurrent liabilities			288,275			267,445
Total liabilities			1,543,794			1,667,958
Shareholders’ equity:
Common stock and paid-in capital (with no par value; issued and outstanding shares – 9,397,122 at September 30, 2025 and 9,524,789 at December 31, 2024)			1,614			0
Accumulated other comprehensive income			72,842			32,870
Retained earnings			1,615,940			1,428,713
Total shareholders’ equity			1,690,396			1,461,583
Total liabilities and shareholders’ equity		$	3,234,190		$	3,129,541

NEWMARKET CORPORATION AND SUBSIDIARIES SELECTED CONSOLIDATED CASH FLOW DATA (In thousands, unaudited)
		Nine Months Ended September 30,
			2025				2024
Net income		$	337,462			$	351,674
Depreciation and amortization			90,371				84,894
Cash pension and postretirement contributions			(7,189	)			(8,940	)
Working capital changes			4,517				(81,866	)
Deferred income tax expense (benefit)			12,198				(10,468	)
Capital expenditures			(49,639	)			(42,700	)
Acquisition of business, net of cash acquired			0				(681,479	)
Net borrowings under revolving credit facility			11,000				191,000
Principal payment on 3.78% senior note			(50,000	)			0
(Payment) proceeds on term loan			(150,000	)			250,000
Dividends paid			(77,739	)			(71,959	)
Repurchases of common stock			(77,218	)			0
Debt issuance costs			0				(2,251	)
All other			(18,784	)			(9,531	)
Increase (decrease) in cash and cash equivalents		$	24,979			$	(31,626	)

NEWMARKET CORPORATION AND SUBSIDIARIES NON-GAAP FINANCIAL INFORMATION (In thousands, unaudited)
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
		Third Quarter Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
Net Income		$	100,269		$	132,322		$	337,462		$	351,674
Add:
Interest and financing expenses, net			8,374			14,157			29,809			45,721
Income tax expense			35,340			36,849			109,948			98,184
Depreciation and amortization			32,716			29,379			89,217			83,572
EBITDA		$	176,699		$	212,707		$	566,436		$	579,151
Net Debt and Net Debt to EBITDA
								September 30, 2025			December 31, 2024
Long-term debt								$	783,104		$	971,281
Less: Cash and cash equivalents									102,455			77,476
Net Debt								$	680,649		$	893,805
								Rolling Four Quarters Ended
								September 30, 2025			December 31, 2024
Net Income								$	448,201		$	462,413
Add:
Interest and financing expenses, net									41,454			57,366
Income tax expense									133,458			121,694
Depreciation and amortization									120,895			115,250
EBITDA-Rolling Four Quarters								$	744,008		$	756,723
Net Debt to EBITDA									0.9			1.2

Contacts

FOR INVESTOR INFORMATION CONTACT:
Timothy K. Fitzgerald
Investor Relations
Phone: 804.788.5555
Email: investorrelations@newmarket.com