NewMarket Corporation Reports Increased Net Sales and Income in Q1 2025

NewMarket Corporation reported a slight increase in consolidated net sales for the first quarter of 2025, totaling $700.9 million, up from $696.7 million in the same period of 2024. The company’s net income also rose to $125.9 million, compared to $107.7 million a year earlier, resulting in earnings per share of $13.26, an increase from $11.23. The growth in net income was attributed to a combination of lower costs of goods sold and improved operational efficiencies, despite a decline in sales from the petroleum additives segment.

The petroleum additives segment experienced a 4.7% decrease in net sales, falling to $645.5 million from $677.3 million in the prior year. This decline was primarily due to lower product shipments, particularly in lubricant and fuel additives, which were partially offset by a favorable product mix. In contrast, the specialty materials segment, bolstered by the acquisition of AMPAC, reported net sales of $53.7 million, a significant increase from $17.0 million in the previous year. The operating profit for the specialty materials segment also improved to $23.2 million, compared to an operating loss of $5.0 million in the same quarter of 2024.

NewMarket's operational metrics showed a positive trend, with cash and cash equivalents increasing to $118.3 million from $77.5 million at the end of 2024. The company’s total assets rose to $3.23 billion, up from $3.13 billion, while total liabilities increased to $1.71 billion from $1.67 billion. The company’s employee headcount remained stable, and it continues to focus on enhancing its operational capabilities and expanding its market presence, particularly in the specialty materials sector.

The filing also highlighted strategic developments, including the integration of AMPAC, which is expected to enhance NewMarket's position in the specialty materials market. The company plans to invest up to $100 million to expand AMPAC's production capabilities, anticipating increased demand for solid rocket motor materials. NewMarket remains committed to its long-term growth strategy, focusing on operational efficiencies and technological advancements to drive profitability.

Looking ahead, NewMarket anticipates continued strength in its specialty materials segment while managing the challenges posed by the uncertain global economic environment. The company expects the petroleum additives market to grow at an annual rate of up to 2%, and it aims to exceed this growth rate through strategic investments and cost management. NewMarket's management expressed confidence in its ability to generate significant cash flow and maintain compliance with its debt covenants, positioning the company for sustained growth and shareholder value enhancement.