NewMarket Corporation Reports Third Quarter and First Nine Months 2026 Results

Specialty materials quarterly operating profit increased, while petroleum additives shipments fell 8% amid lubricant additives market softness.

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• Third Quarter Net Income of $124 million and Earnings per Share of $13.50
• Nine Months Net Income of $376 million and Earnings per Share of $40.64
• Strong Cash Flow in the first Nine Months to fund stock repurchases, capital expenditures and dividends totaling almost $300 million

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 2026.

Net income for the third quarter of 2026 was $124.1 million, or $13.50 per share, compared to net income of $100.3 million, or $10.67 per share, for the third quarter of 2025. For the first nine months of 2026, net income was $375.9 million, or $40.64 per share, compared to $337.5 million, or $35.78 per share, for the same period in 2025. Higher operating profit and a reduced effective tax rate were the primary drivers behind the rise in net income for both the third quarter and the first nine months of 2026 compared to the respective periods in 2025.

Petroleum additives sales for the third quarter of 2026 were $651.0 million, compared to $649.1 million for the same period in 2025. Petroleum additives operating profit for the third quarter of 2026 was $130.9 million, compared to $131.3 million for the third quarter of 2025. Despite broader market softness in lubricant additives that resulted in an 8% decline in shipments, we successfully implemented surcharges to offset higher costs incurred due to the supply chain disruptions in the Middle East. Our continued focus on operational efficiency helped sustain strong operating profit margins in the quarter.

Petroleum additives sales were $1.9 billion for both the first nine months of 2026 and 2025. Petroleum additives operating profit for the first nine months of 2026 was $415.3 million, compared to $413.2 million in the same period last year. The drivers for the increase in operating profit between these periods were consistent with those affecting the third quarter comparison discussed above. Comparing the first nine months of 2026 to the same period in 2025, shipments fell 6%, driven by the first half effects of our strategic decision to examine and reduce low-margin business and the current quarter market softness.

Specialty materials sales were $62.0 million for the third quarter of 2026, compared to $38.2 million for the third quarter of 2025. The increase in specialty materials sales is driven by a shift in product shipment mix and the inclusion of the Calca Solutions, LLC business that was acquired on October 1, 2025. Specialty materials operating profit was $16.4 million for the third quarter of 2026, compared to operating profit of $6.0 million for the third quarter of 2025. The increase in specialty materials operating profit was driven by a shift in product shipment mix. 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 $187.3 million for the first nine months of 2026, compared to $133.9 million for the first nine months of 2025. Specialty materials operating profit was $51.2 million for the first nine months of 2026, compared to $39.7 million in the same period last year. The drivers for increases in sales and operating profit between these periods were consistent with those affecting the third quarter comparison discussed above. We continue to be pleased with the performance of our Specialty Materials segment and look forward to the capacity expansion projects for both ammonium perchlorate and high-purity hydrazine being completed by the end of 2026.

Our operations generated solid cash flow during the first nine months of 2026. We funded capital expenditures of $88.5 million, paid dividends of $83.1 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 nine months 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, October 29, 2026, to review third 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 337363. To avoid delays, callers should dial in five minutes early. A teleconference replay of the call will be available until Thursday, November 12, 2026 at 3:00 p.m. ET by dialing 1-877-481-4010 (domestic) or 1-919-882-2331 (international). The replay passcode is 54570. 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/2001/54570. 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)
		Third Quarter Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Net sales:
Petroleum additives		$	650,950			$	649,085			$	1,936,341			$	1,948,514
Specialty materials			62,009				38,178				187,315				133,936
All other			3,543				3,048				9,657				7,316
Total		$	716,502			$	690,311			$	2,133,313			$	2,089,766
Segment operating profit:
Petroleum additives		$	130,935			$	131,307			$	415,304			$	413,249
Specialty materials			16,387				5,985				51,155				39,719
Segment operating profit			147,322				137,292				466,459				452,968
All other			(352	)			(576	)			(1,674	)			(2,228	)
Corporate unallocated expense			(4,018	)			(5,692	)			(14,887	)			(16,992	)
Interest and financing expenses, net			(7,984	)			(8,374	)			(25,573	)			(29,809	)
Other income (expense), net			16,180				12,959				48,815				43,471
Income before income tax expense		$	151,148			$	135,609			$	473,140			$	447,410
Net income		$	124,106			$	100,269			$	375,925			$	337,462
Earnings per share - basic and diluted		$	13.50			$	10.67			$	40.64			$	35.78

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,
		2026			2025			2026			2025
Net sales		$	716,502		$	690,311		$	2,133,313		$	2,089,766
Cost of goods sold			494,138			480,667			1,447,641			1,423,145
Gross profit			222,364			209,644			685,672			666,621
Selling, general, and administrative expenses			48,916			43,944			143,306			132,350
Research, development, and testing expenses			30,504			35,024			92,528			100,574
Operating profit			142,944			130,676			449,838			433,697
Interest and financing expenses, net			7,984			8,374			25,573			29,809
Other income (expense), net			16,188			13,307			48,875			43,522
Income before income tax expense			151,148			135,609			473,140			447,410
Income tax expense			27,042			35,340			97,215			109,948
Net income		$	124,106		$	100,269		$	375,925		$	337,462
Earnings per share - basic and diluted		$	13.50		$	10.67		$	40.64		$	35.78
Cash dividends declared per share		$	3.00		$	2.75		$	9.00		$	8.25

NEWMARKET CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts, unaudited)
		September 30, 2026			December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents		$	77,317		$	77,598
Trade and other accounts receivable, less allowance for credit losses			449,886			422,084
Inventories			576,618			502,257
Prepaid expenses and other current assets			55,509			57,773
Total current assets			1,159,330			1,059,712
Property, plant, and equipment, net			813,304			775,480
Intangibles (net of amortization) and goodwill			909,946			941,156
Prepaid pension cost			613,957			586,053
Operating lease right-of-use assets, net			85,769			78,267
Deferred charges and other assets			66,033			51,797
Total assets		$	3,648,339		$	3,492,465
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	298,136		$	238,384
Accrued expenses			96,955			109,774
Dividends payable			26,303			23,805
Income taxes payable			19,794			17,190
Operating lease liabilities			17,792			16,205
Other current liabilities			11,914			13,921
Total current liabilities			470,894			419,279
Long-term debt			830,054			883,391
Operating lease liabilities - noncurrent			67,083			62,045
Other noncurrent liabilities			350,224			349,507
Total liabilities			1,718,255			1,714,222
Shareholders' equity:
Common stock and paid-in capital (with no par value; issued and outstanding shares - 9,196,910 at September 30, 2026 and 9,397,364 at December 31, 2025)			2,002			2,386
Accumulated other comprehensive income			91,906			106,823
Retained earnings			1,836,176			1,669,034
Total shareholders' equity			1,930,084			1,778,243
Total liabilities and shareholders' equity		$	3,648,339		$	3,492,465

NEWMARKET CORPORATION AND SUBSIDIARIES
SELECTED CONSOLIDATED CASH FLOW DATA
(In thousands, unaudited)
		Nine Months Ended September 30,
		2026				2025
Net income		$	375,925			$	337,462
Depreciation and amortization			94,622				90,371
Cash pension and postretirement contributions			(7,379	)			(7,189	)
Working capital changes			(76,996	)			4,517
Deferred income tax expense (benefit)			5,753				12,198
Capital expenditures			(88,477	)			(49,639	)
Cash received from acquisition-related adjustment			1,158				0
Net (repayments) borrowings under revolving credit facility			(4,000	)			11,000
Payment on term loan			0				(150,000	)
Principal payment on 3.78% senior note			(50,000	)			(50,000	)
Dividends paid			(83,142	)			(77,739	)
Repurchases of common stock			(126,427	)			(77,218	)
All other			(41,318	)			(18,784	)
(Decrease) increase in cash and cash equivalents		$	(281	)		$	24,979

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,
		2026			2025			2026			2025
Net Income		$	124,106		$	100,269		$	375,925		$	337,462
Add:
Interest and financing expenses, net			7,984			8,374			25,573			29,809
Income tax expense			27,042			35,340			97,215			109,948
Depreciation and amortization			30,830			32,716			93,628			89,217
EBITDA		$	189,962		$	176,699		$	592,341		$	566,436
Net Debt and Net Debt to EBITDA
								September 30, 2026			December 31, 2025
Long-term debt								$	830,054		$	883,391
Less: Cash and cash equivalents									77,317			77,598
Net Debt								$	752,737		$	805,793
								Rolling Four Quarters Ended
								September 30, 2026			December 31, 2025
Net Income									457,210		$	418,747
Add:
Interest and financing expenses, net									35,457			39,693
Income tax expense									129,082			141,815
Depreciation and amortization									125,281			120,870
EBITDA-Rolling Four Quarters								$	747,030		$	721,125
Net Debt to EBITDA									1.0			1.1

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261027176633/en/

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

Source: NewMarket Corporation

Key Terms

ebitda financial

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

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net debt to ebitda financial

Net debt to EBITDA is a financial ratio that compares a company's total debt, minus any cash it has on hand, to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It indicates how many years it would take for a company to pay off its debt if all its earnings were used for that purpose. Investors use this ratio to assess the company's financial health and its ability to manage and repay its debts over time.

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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