NewMarket Reports Third Quarter and First Nine Months 2025 Results
RICHMOND, Va. — October 31, 2025 — NewMarket Corporation (NYSE: NEU) today announced financial results for the third quarter and first nine months ended September 30, 2025. Chairman and Chief Executive Officer Thomas E. Gottwald provided the following commentary on the Company’s performance.
Financial Overview
NewMarket reported net income of $100.3 million, or $10.67 per share, for the third quarter of 2025, compared with $132.3 million, or $13.79 per share, for the same period in 2024.
For the first nine months of 2025, net income totaled $337.5 million, or $35.78 per share, versus $351.7 million, or $36.66 per share, in the prior-year period.
Mr. Gottwald noted that while results declined year over year, the Company delivered solid performance amid a challenging global environment, supported by disciplined execution, strong cash generation, and continued investment in its high-technology specialty materials business.
Segment Results
Petroleum Additives
The petroleum additives segment—NewMarket’s largest business—generated sales of $649.1 million in the third quarter, down from $663.0 million in the same quarter last year. Operating profit for the segment was $131.3 million, compared to a record $157.5 million in the third quarter of 2024.
The decrease was primarily due to one-time charges associated with the Company’s efforts to optimize its global manufacturing network for improved long-term efficiency. Additional factors included a 4.1% decline in shipments and increased technology investments. Lower lubricant additives shipments were partially offset by stronger fuel additives demand.
For the first nine months of 2025, petroleum additives sales totaled $1.9 billion, compared to $2.0 billion in 2024, while operating profit decreased to $413.2 million from $456.2 million a year ago. The reduction reflected lower volumes, a more selective approach to low-margin business, and continued softness in the broader lubricant additives market. Shipments declined 4.6% year over year.
Mr. Gottwald commented, “Despite short-term pressures, we are confident in the long-term fundamentals of the petroleum additives business. Our ongoing initiatives to streamline manufacturing and manage costs will position us for future growth and improved margins.”
Specialty Materials
The specialty materials segment reported sales of $38.2 million for the third quarter, down from $59.1 million in the prior year period. Operating profit was $6.0 million, compared to $16.0 million in the third quarter of 2024. The decrease was primarily due to lower volumes, consistent with expectations for quarterly variability in this segment.
For the first nine months of 2025, specialty materials sales reached $133.9 million, up from $114.2 million in 2024. Operating profit more than doubled to $39.7 million from $16.0 million last year. The 2024 results reflect only the post-acquisition performance of American Pacific Corporation (AMPAC), which was acquired in January 2024.
NewMarket continues to strengthen its position in this high-growth, high-technology segment. On October 1, 2025, the Company completed the acquisition of Calca Solutions, LLC (Calca), the nation’s leading producer of UltraPure and high-purity hydrazine—mission-critical propellants used in advanced aerospace and defense applications.
Since 2024, NewMarket has invested approximately $1 billion in specialty materials through the acquisitions of AMPAC and Calca and capacity expansion projects at both operations.
“Our investments in specialty materials reflect our commitment to building a resilient, technology-driven business that supports long-term growth,” said Gottwald. “These strategic initiatives strengthen our ability to serve key aerospace and defense customers with reliable, high-purity products.”
Cash Flow and Financial Position
NewMarket generated strong cash flows during the first nine months of 2025, which supported a balanced approach to shareholder returns and growth investments.
During this period, the Company:
- Paid dividends of $77.7 million,
- Repurchased $77.2 million of common stock,
- Funded $49.6 million in capital expenditures, and
- Reduced long-term debt by $188.2 million (a total Net Debt reduction of $213.2 million).
As of September 30, 2025, NewMarket’s Net Debt to EBITDA ratio stood at 0.9, underscoring its strong balance sheet and financial flexibility.
Gottwald added, “Our disciplined capital management enables us to reinvest for growth while continuing to return value to shareholders through dividends and share repurchases.”
Earlier today, the Board of Directors approved a 9% increase in the quarterly dividend, from $2.75 per share to $3.00 per share, payable on January 2, 2026.
Strategic and Operational Outlook
Looking ahead, NewMarket expects its petroleum additives business to remain resilient despite near-term market softness and global economic uncertainty. The Company plans to continue focusing on cost control, margin management, and the execution of its global manufacturing optimization initiatives.
In the specialty materials segment, capacity expansions are underway to enhance production capabilities and strengthen the supply chain. New capacity is expected to come online in the second half of 2026, supporting continued growth in aerospace and defense applications.
Gottwald stated, “We are excited about the progress in specialty materials and confident that the combination of efficiency improvements and strategic investments will drive long-term value creation for all stakeholders.”
About NewMarket Corporation
NewMarket Corporation is a holding company with subsidiaries including Afton Chemical Corporation, Ethyl Corporation, American Pacific Corporation (AMPAC), and Calca Solutions, LLC (Calca).
- Afton and Ethyl develop, manufacture, and deliver advanced chemical additives that improve the performance of petroleum products.
- AMPAC produces specialty materials primarily used in solid rocket motors for aerospace and defense applications.
- Calca is the leading U.S. producer of UltraPure and high-purity hydrazine propellants essential to advanced propulsion technologies.
Together, these businesses reflect NewMarket’s long-term commitment to innovation, safety, customer collaboration, and making the world better through advanced chemistry and technology.
Use of Non-GAAP Financial Measures
This release includes non-GAAP financial measures such as EBITDA, Net Debt, and Net Debt to EBITDA.
- EBITDA is defined as income from continuing operations before interest and financing expenses, income taxes, depreciation, and amortization.
- Net Debt is long-term debt (including current maturities) less cash and cash equivalents.
- Net Debt to EBITDA is calculated as Net Debt divided by EBITDA for the trailing four quarters.
Management believes these measures, while not substitutes for U.S. GAAP results, enhance investors’ understanding of performance and period-to-period comparability.
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