NewMarket Corporation Reports 3.3% Sales Increase to $2.79 Billion for Fiscal Year 2024

NewMarket Corporation reported a consolidated net sales increase of 3.3% for the fiscal year ending December 31, 2024, totaling $2.79 billion, compared to $2.70 billion in 2023. The petroleum additives segment, which includes lubricant and fuel additives, generated $2.64 billion in sales, a slight decline of 2.0% from the previous year. This decrease was attributed primarily to lower selling prices and a minor unfavorable foreign currency impact, despite flat product shipment volumes. The specialty materials segment, which includes the recently acquired American Pacific Corporation (AMPAC), contributed $141 million in sales since its acquisition on January 16, 2024.

The company's operating profit for the petroleum additives segment rose significantly by 15.1% to $592 million, driven by lower raw material and operating costs, which offset the impact of reduced selling prices. Overall, NewMarket's operating profit increased to $590 million from $483 million in 2023, reflecting a focus on operational efficiency. The company also reported a net income of $462 million, up from $389 million in the prior year, with earnings per share rising to $48.22 from $40.44.

Strategically, NewMarket completed the acquisition of AMPAC for approximately $697 million, enhancing its presence in the specialty materials market, particularly in solid rocket motor components for defense and space applications. The acquisition is expected to provide long-term value, although the company remains focused on its core petroleum additives business. Additionally, NewMarket entered into a new $900 million revolving credit facility and a $250 million unsecured term loan to support its operations and acquisitions.

Operationally, NewMarket employed approximately 2,060 people at the end of 2024, with a diverse workforce spread across various regions, including North America, Europe, Asia, and Latin America. The company reported stable customer relationships and maintained a strong market position, being one of the largest manufacturers in the petroleum additives sector. However, it acknowledged challenges posed by the uncertain global economic environment, which may impact future performance.

Looking ahead, NewMarket anticipates continued growth in the petroleum additives market, projecting an annual growth rate of up to 2%. The company plans to focus on cost control and operational efficiency while investing in technology and infrastructure to enhance its competitive position. Despite the challenges, NewMarket remains confident in its long-term strategy and commitment to delivering value to its shareholders.