NewMarket Corporation has recently released its 10-Q report, providing insights into its financial performance for the first three months of 2025. The company primarily engages in the manufacture and sale of petroleum additives, including lubricant additives, fuel additives, and specialty materials, operating across North America, Latin America, the Asia Pacific, Europe, the Middle East, Africa, India, and internationally.
In the first three months of 2025, NewMarket's consolidated net sales totaled $700.9 million, representing a slight increase of $4.2 million, or 0.6%, from the same period in 2024. The petroleum additives segment reported a decrease in net sales by 4.7%, primarily driven by lower product shipments, while the specialty materials segment witnessed a significant increase in net sales due to higher product volumes and favorable product mix.
The petroleum additives segment's operating profit decreased by 5.8% in the first three months of 2025 compared to the same period in 2024, mainly attributed to lower product shipments and higher operating costs, partially offset by lower raw material costs and favorable product mix. On the other hand, the specialty materials segment reported an operating profit of $23.2 million for the first three months of 2025, compared to an operating loss of $5.0 million for the same period in 2024, primarily due to higher product volumes and favorable product mix.
Interest and financing expenses decreased to $10.7 million for the first three months of 2025 from $15.7 million in the same period in 2024, primarily due to lower average debt outstanding and a lower average interest rate. Income tax expense increased to $38.2 million for the first three months of 2025 from $30.0 million in the same period in 2024, resulting in an effective tax rate of 23.3% compared to 21.8% in 2024.
NewMarket Corporation's cash and cash equivalents at March 31, 2025, amounted to $118.3 million, reflecting an increase of $40.8 million since December 31, 2024, with foreign subsidiaries holding $114.3 million of the total cash and cash equivalents.
The market has reacted to these announcements by moving the company's shares 4.8% to a price of $603.4. For the full picture, make sure to review NewMarket's 10-Q report.
