Newmarket Corp Reports Decline in Financial Metrics

By Chris Stiles • Thursday, February 12 13:02 • Permanent Link

Newmarket Corporation has reported its fourth quarter and full year 2025 results, indicating a decline in various financial metrics compared to the previous year.

For the full year 2025, the company reported a net income of $418.7 million, or $44.44 per share, compared to $462.4 million, or $48.22 per share, in 2024. This decline was mainly driven by a higher effective income tax rate in 2025 compared to 2024.

In the petroleum additives segment, sales for the full year 2025 were $2.5 billion, compared to $2.6 billion in 2024. The operating profit for this segment in 2025 was $520.1 million, a decrease from the all-time high of $591.9 million in 2024. The decline in operating profit was attributed to a 6 percent decrease in shipments between quarterly periods, lower production volumes, decline in selling prices, and one-time charges related to efforts to become more efficient.

Specialty materials sales were $182.5 million for the full year 2025, compared to $141.2 million for 2024. Operating profit for this segment in 2025 was $47.0 million, a significant increase from $17.5 million in the previous year. The increase in sales and operating profit was primarily driven by increased volumes at American Pacific Corporation (AMPAC) and the inclusion of the Calca Solutions, LLC business that was acquired in October 2025.

The company's operations generated solid cash flows during the full year 2025, enabling it to pay dividends of $105.9 million, repurchase common stock for $77.2 million, and fund capital expenditures of $77.6 million. Additionally, the company reduced its long-term debt by $87.9 million during 2025, driving its net debt to EBITDA ratio down to 1.1 as of December 31, 2025.

Newmarket Corporation remains focused on long-term objectives and anticipates continued solid results from its segments. It will continue to invest in technology, focus on cost control and margin management in the petroleum additives segment, and expand production in the specialty materials segment to provide more capacity and a stronger supply chain for its customers.

The company has scheduled a conference call and webcast to review its financial results on Thursday, February 12, 2026. The market has reacted to these announcements by moving the company's shares -1.1% to a price of $642.86. If you want to know more, read the company's complete 8-K report here.

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