NewMarket Q1 2026 Earnings Report

NewMarket EPS Results

• Actual EPS: $12.62
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

NewMarket Revenue Results

• Actual Revenue: $669.72 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

NewMarket Announcement Details

• Quarter: Q1 2026
• Date: 4/22/2026
• Time: After Market Closes
• Conference Call Date: Thursday, April 23, 2026
• Conference Call Time: 3:00PM ET

NewMarket (NYSE:NEU) is a specialty chemicals and lubricants company headquartered in Richmond, Virginia. Through its Valvoline business, the company markets a broad portfolio of automotive aftermarket products, including engine oils, transmission fluids, greases and vehicle care solutions. Valvoline products are distributed through retail and commercial channels as well as a network of quick-lube service centers that provide oil changes, preventive maintenance and related services.

In its chemical additives segment, NewMarket develops, manufactures and sells performance additives for fuels, lubricants and industrial fluids. These additives are engineered to improve fuel economy, reduce emissions, extend equipment life and enhance engine cleanliness across on-road, off-road and marine applications. The division serves customers in transportation, energy, manufacturing and other heavy-duty industrial markets worldwide.

Founded in 1919, NewMarket has expanded its global footprint through strategic acquisitions and internal growth. The company operates manufacturing and technical centers in North America, Europe, Asia Pacific and Latin America to support local market needs and regulatory requirements. NewMarket’s leadership team emphasizes investment in research and development to advance formulation technologies that meet evolving environmental standards and performance expectations.

NewMarket Q1 2026 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: Net income declined to $118 million (or $12.62 per share) in Q1 2026 from $126 million (or $13.26 per share) a year earlier, reflecting lower overall profitability.
• Negative Sentiment: Petroleum additives sales fell to $610 million (from $646 million) and operating profit to $135 million (from $142 million), driven by a 7% shipment decline as markets softened and the company reduced low‑margin business.
• Positive Sentiment: Management says the operating profit margin remained strong in petroleum additives, they implemented price adjustments and rebalanced global production, and shipments improved late in the quarter.
• Negative Sentiment: Specialty materials sales rose to $58 million due to the Calca acquisition, but operating profit dropped to $12 million from $23 million because of AMPAC shipment mix, and the segment will see substantial quarter-to-quarter variability.
• Positive Sentiment: The company returned $154 million to shareholders (including $126 million in repurchases and $28 million in dividends) while maintaining a net debt/EBITDA of 1.2x, supporting financial flexibility.

Presentation

[Operator]

Greetings. Welcome to the NewMarket Corporation conference call and webcast to review first quarter 2026 financial results. At this time, all participants are in a listen only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Tim Fitzgerald, CFO at NewMarket. You may begin.

[Tim Fitzgerald, CFO at NewMarket]

Thank you, and thanks to everyone for joining me this afternoon. As a reminder, some of the statements made during this conference call may be forward-looking. Relevant factors that could cause actual results to differ materially from those forward-looking statements are contained in our earnings release and in our SEC filings, including our most recent Form 10-K. During this call, we will also discuss the non-GAAP financial measures included in our earnings release. The earnings release, which can be found on our website, includes a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures. We filed our 10-Q for the first quarter of 2026 today, and it contains significantly more details on the operations and performance of our company. Today, I will be referring to the data that was included in last night's press release.

[Tim Fitzgerald, CFO at NewMarket]

Net income for the first quarter of 2026 was $118 million, or $12.62 per share, compared to net income of $126 million, or $13.26 per share for the first quarter of 2025. Petroleum additives sales for the first quarter of 2026 were $610 million, compared to $646 million for the same period in 2025. Petroleum additives operating profit for the first quarter of 2026 was $135 million, compared to operating profit of $142 million in 2025. The decrease in operating profit was mainly due to the decline in shipments of 7%, due to softening in the market and our strategic decision to reduce low-margin business. However, we are encouraged by the increase in shipments we observed in the latter part of the first quarter of 2026. Despite the decline in shipments in the first quarter, our operating profit margin remained strong.

[Tim Fitzgerald, CFO at NewMarket]

We are very pleased with the performance of our petroleum additives business during the first quarter of 2026 and the work done by our team to operate within a rapidly changing environment due to the conflict in the Middle East. We have implemented price adjustments to account for the escalating cost of raw materials, utilities, and logistics, and we have rebalanced our global production to make sure we are meeting customer demands in a dynamically evolving market. Despite these challenges, we remain committed to improving efficiency and managing operating costs. Our focus continues to be on investing in technology and our supply network to meet customer demands, enhancing our operational efficiency and improving our portfolio profitability. We report the financial results of our AMPAC business and our newly acquired Calca Solutions business in our specialty materials segment.

[Tim Fitzgerald, CFO at NewMarket]

Specialty materials sales for the first quarter of 2026 were $58 million, compared to $54 million for the same period in 2025. The increase in sales was mainly due to the inclusion of the Calca business, which was acquired on October 1st, 2025, offset by a shift in shipment mix at AMPAC versus the first quarter of last year. Specialty materials operating profit for the first quarter of 2026 was $12 million, compared to $23 million for the first quarter of 2025. The decline in operating profit was mainly due to the change in quarterly shipment mix at AMPAC compared to last year. As previously stated, we will see substantial variation in quarterly results for the specialty materials segment on an ongoing basis due to the nature of the business.

[Tim Fitzgerald, CFO at NewMarket]

Our company generated solid cash flows throughout the first quarter, which allowed us to return $154 million to our shareholders through share repurchases of $126 million and dividends of $28 million. As of March 31st, 2026, our net debt to EBITDA ratio was 1.2 times. As we look ahead to 2026, we are committed to making decisions that promote long-term value for our shareholders and customers while staying focused on our long-term objectives. We believe that the core principles guiding our business, a long-term perspective, a safety-first culture, customer-focused solutions, technology-driven products, and a world-class supply chain will continue to benefit all of our stakeholders. That concludes our planned comments. We are available for questions via email or by phone, so please feel free to contact me directly. Thank you all again, and we will talk to you next quarter.

[Operator]

Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

Participants

Executives

• Tim Fitzgerald, CFO