NEWMARKET CORP recently released its 10-Q report. Through its subsidiaries, the company primarily makes and sells petroleum additives used in lubricant, engine oil, driveline, industrial, and fuel applications. It also markets antiknock compounds, provides contracted manufacturing and related services, and owns and manages a real property in Virginia.
For the three months ended March 31, 2026, consolidated net sales were $669.7 million, down $31.2 million, or 4.5%, from $700.9 million a year earlier. Petroleum additives sales fell 5.5% to $609.8 million from $645.5 million, driven mainly by lower lubricant additives shipments, which declined $38.9 million in the company’s sales bridge; fuel additives shipments added $3.1 million, while selling prices and product mix reduced sales by $9.9 million and foreign currency added $10.0 million.
Petroleum additives operating profit declined to $135.0 million from $142.1 million, while the segment’s gross profit and operating profit both fell by $7.4 million and $7.1 million, respectively. NewMarket said lower product shipments were the main pressure point, with favorable raw material costs partly offset by higher operating costs. The segment’s cost of goods sold as a percentage of net sales improved to 67.1% from 67.8%, and its operating profit margin was 22.1%, essentially unchanged from 22.0%.
Selling, general and administrative expenses in petroleum additives rose $1.2 million, and SG&A increased to 5.5% of net sales from 5.0%. Research, development and testing spending fell $1.5 million, though it still represented 5.2% of net sales versus 5.1% a year earlier.
The specialty materials segment posted $58.1 million of net sales, up from $53.7 million, largely because of Calca’s acquisition on October 1, 2025. Operating profit in that segment dropped to $12.4 million from $23.2 million, with the company pointing to a shift in quarterly product shipment mix at AMPAC.
Interest and financing expense fell to $8.8 million from $10.7 million, reflecting lower average debt and a lower average interest rate. Other income, net, rose to $17.2 million from $14.9 million, and income tax expense declined to $33.6 million from $38.2 million as the effective tax rate eased to 22.2% from 23.3%. As a result of these announcements, the company's shares have moved 1.23% on the market, and are now trading at a price of $629.12. If you want to know more, read the company's complete 10-Q report here.
