NewMarket Q2 2026 Earnings Report

NewMarket EPS Results

• Actual EPS: $14.54
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

NewMarket Revenue Results

• Actual Revenue: $747.09 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

NewMarket Announcement Details

• Quarter: Q2 2026
• Date: 7/29/2026
• Time: After Market Closes
• Conference Call Date: Thursday, July 30, 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 Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Second-quarter net income rose to $134 million, or $14.54 per share, from $111 million, or $11.84 per share, in the prior-year period.
• Neutral Sentiment: Petroleum Additives sales increased to $676 million and operating profit reached $149 million, with the profit improvement driven mainly by surcharges implemented to offset higher costs from Middle East supply-chain disruptions.
• Positive Sentiment: Specialty Materials sales grew to $67 million from $42 million, while operating profit doubled to $22 million, supported in part by the Calca acquisition; management expects new ammonium perchlorate and high-purity hydrazine capacity to come online toward the end of 2026.
• Positive Sentiment: Strong first-half cash flow enabled $182 million of shareholder returns, including $56 million in dividends and $126 million in share repurchases, while net debt to EBITDA improved to 1.0 times.

Presentation

[Operator]

Please note, this conference call is being recorded. I will now turn the conference over to your host, Mr. Tim Fitzgerald, Chief Financial Officer with NewMarket Corporation. Sir, the floor is yours.

[Tim Fitzgerald, CFO at NewMarket Corporation]

Thank you. 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 second quarter of 2026 today. 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 Corporation]

Net income for the second quarter of 2026 was $134 million, or $14.54 per share, compared to net income of $111 million, or $11.84 per share, for the second quarter of 2025. Net income for the first half of 2026 was $252 million, or $27.14 per share, compared to net income of $237 million, or $25.11 per share, in the first half of 2025. Petroleum Additives sales for the second quarter of 2026 were $676 million, compared to $654 million for the same period in 2025. Petroleum Additives operating profit for the second quarter of 2026 was $149 million, compared to operating profit of $140 million in 2025. The increase in operating profit was mainly due to surcharges that were implemented in response to higher costs we have seen in our P&L from the supply chain disruptions in the Middle East.

[Tim Fitzgerald, CFO at NewMarket Corporation]

For the first half of 2026, sales for the Petroleum Additives segment were $1.3 billion, essentially flat compared to the same period in 2025. Petroleum Additives operating profit for the first half of 2026 was $284 million, compared to $282 million in 2025. We are very pleased with the performance of our Petroleum Additives business during the first half 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 remain committed to improving efficiency and managing operating costs while continuing to focus on investing in technology and our supply network to meet customer needs. Specialty Materials sales for the second quarter of 2026 were $67 million, compared to $42 million for the same period in 2025.

[Tim Fitzgerald, CFO at NewMarket Corporation]

Specialty Materials operating profit for the second quarter of 2026 was $22 million, compared to $11 million for the second quarter of 2025. The 2025 period excludes Calca's results as the acquisition was completed on October 1st, 2025. 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. For the first half of 2026, sales for the Specialty Materials segment were $125 million, compared to $96 million for the same period in 2025. Specialty Materials operating profit for the first half of 2026 was $35 million, essentially flat compared to the first half of 2025.

[Tim Fitzgerald, CFO at NewMarket Corporation]

We are especially pleased with the performance of our Specialty Materials segment. We are excited about our investments to expand production capacity for both ammonium perchlorate and high-purity hydrazine to support the domestic production of critical aerospace and defense chemicals. We expect to see this additional capacity come online towards the end of 2026. Our company generated solid cash flow for the first half of 2026, which allowed us to return $182 million to our shareholders through dividends of $56 million and share repurchases of $126 million. Our net debt-to-EBITDA ratio improved to 1.0x as of June 30th, 2026. As we look ahead to the second half of 2026, we are committed to making decisions that promote long-term value for our customers and shareholders while staying focused on our long-term objectives.

[Tim Fitzgerald, CFO at NewMarket Corporation]

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 our stakeholders. That concludes our planned comments. We are available for questions via email or by phone, please feel free to contact me directly. Thank you all again, we will talk to you next quarter.

[Operator]

Thank you. Ladies and gentlemen, this concludes today's conference. You may disconnect your lines at this time. We thank you for your participation.

Participants

Executives

• Tim Fitzgerald, CFO