NewMarket Corporation Aktie

Greetings, and welcome to the NewMarket Corporation Scheduled Conference Call and Webcast to review Second Quarter 2026 Financial Results. [Operator Instructions] 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.

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 second 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.

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.

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. 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 1, 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 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.

We are especially pleased with the performance of our Specialty Materials segment, and 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 30, 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. 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 e-mail or by phone. So please feel free to contact me directly. Thank you all again, and we will talk to you next quarter.

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

Greetings. Welcome to the NewMarket Corporation Conference Call and Webcast to review First Quarter 2026 Financial Results. [Operator Instructions] 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.

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. 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.

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. 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 1, 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.

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 31, 2026, our net debt-to-EBITDA ratio was 1.2x.

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 e-mail or by phone. So please feel free to contact me directly. Thank you all again, and we will talk to you next quarter.

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

Greetings. Welcome to the NewMarket Corporation conference call and webcast to review our fourth quarter and full year 2025 financial results. [Operator Instructions]. 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.

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 closest comparable GAAP financial measures.

Today, I will be referring to the data that was included in last night's press release. However, our 2025 10-K contains significantly more details on the operations and performance of our company.

Pretax income for the fourth quarter of 2025 was $113 million compared to $134 million for the fourth quarter of 2024. For the full year, pretax income was $561 million in 2025 compared to $584 million for 2024, a decline of only 4%. While we don't normally call out pretax income, it's notable now due to the significantly higher income taxes booked throughout the year, impacting our net income and EPS.

Net income for the fourth quarter of 2025 was $81 million or $8.65 per share compared to net income of $111 million or $11.56 per share for the fourth quarter of 2024. Net income for the full year of 2025 was $419 million or $44.44 per share compared to our net income of $462 million or $48.22 per share for 2024.

One of the primary drivers of the decline in net income was a higher effective tax rate in 2025 compared to 2024. The factors driving the increase in our effective tax rate are outlined in the 10-K.

Petroleum additives sales for the fourth quarter of 2025 were $585 million compared to $626 million for the same period in 2024. Petroleum additives operating profit for the fourth quarter of 2025 was $107 million compared to $136 million for the fourth quarter of 2024, which was a record fourth quarter for the segment.

The decrease in operating profit compared to prior year was driven by a decline in shipments of 6%, mainly due to market softness as well as a decline in selling prices. In addition, to manage inventory levels, operating profit in the fourth quarter was impacted by higher unit costs resulting from lower production volumes at our plants.

For the full year of 2025, sales for the Petroleum Additives segment were $2.5 billion compared to $2.6 billion for 2024. Petroleum additives operating profit for 2025 was $520 million compared to $592 million in 2024. The drivers for the decrease in operating profit were consistent with those affecting the fourth quarter comparison.

Shipments were down by 4.9% compared to last year as we saw market softness throughout 2025, combined with our strategic decision to manage the profitability of our portfolio by reducing low-margin business. We are very pleased with the performance of our petroleum additives business in 2025 compared to our record performance in 2024. However, we remain challenged by the ongoing inflationary environment and the impact of tariffs as well as softness in the market impacting shipments. We continue to focus on investing in technology to meet customer needs, becoming more efficient in our operating costs, optimizing our inventory levels 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. Specialty Materials sales for the fourth quarter of 2025 were $49 million compared to $27 million for the same period in 2024. The increase in sales was mainly due to higher volume at AMPAC and the inclusion of the Calca business, which was acquired on October 1, 2025. Specialty Materials operating profit for the fourth quarter of 2025 was $7 million compared to about $2 million for the fourth quarter of 2024.

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 full year of 2025, sales for the Specialty Materials segment were $182 million compared to $141 million for 2024. Specialty Materials operating profit for 2025 was $47 million compared to $17 million for 2024.

The increase in operating profit was mainly driven by an increase in volume demand at AMPAC. As previously announced, through our acquisitions of AMPAC and Calca and our investments to expand capacity at both operations, we have committed approximately $1 billion to this resilient high-technology Specialty Materials segment.

Our company generated solid cash flows throughout the year in 2025, which allowed us to return $183 million to our shareholders through share repurchases of $77 million and dividends of $106 million. We also reduced our total debt by $88 million compared to 2024, which includes the borrowing for the Calca acquisition.

As of December 31, 2025, our net debt-to-EBITDA ratio was 1.1x, slightly down from 1.2x at the end of 2024. This strong cash flow performance enables us to continue to provide value to our shareholders through reinvestment of capital into our businesses for growth and efficiency, acquisitions, share repurchases and dividends. We anticipate continued strength in our Petroleum additives and Specialty Materials segments. 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 e-mail or by phone, so please feel free to contact me directly. Thank you all again, and we will talk to you next quarter.

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

Good day, everyone, and welcome to the NewMarket Corporation conference call and webcast to review third quarter 2025 financial results. [Operator Instructions].

It is now my pleasure to turn the floor over to your host, Tim Fitzgerald, Vice President and CFO. Sir, the floor is yours.

Thank you, Matthew, 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 third quarter of 2025 earlier 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.

Net income for the third quarter of 2025 was $100 million or $10.67 per share compared to net income of $132 million or $13.79 per share for the third quarter of 2024. Net income for the first 9 months of 2025 was $337 million, or $35.78 per share compared to net income of $352 million or $36.66 per share for the first 9 months of 2024.

Petroleum additives sales for the third quarter of 2025 were $649 million compared to $663 million for the same period in 2024. Petroleum additives operating profit for the third quarter of 2025 was $131 million compared to $157 million for the third quarter of 2024, which was a record quarter for this segment. The decrease in operating profit compared to prior year was primarily driven by onetime charges during the quarter, including those related to optimizing our global manufacturing network which will enable us to deliver products to our customers more efficiently in the years ahead. A 4.1% decline in shipments between quarterly periods and an increase in research and development investments to support our customer needs also contributed to the decrease in petroleum additives operating profit.

For the first 9 months of 2025, sales for the Petroleum Additives segment were $1.9 billion, compared to $2 billion for the same period in 2024.

Petroleum additives operating profit for the first 9 months of 2025 was $413 million compared to $456 million for the same period in 2024. The drivers for the decrease in operating profit were consistent with those affecting the third quarter comparison. Shipments were down by 4.6% when comparing the first 9 months of 2025 with the same period in 2024, driven by softness in the market and our strategic decision to manage the profitability of our portfolio by reducing low-margin business.

We are very pleased with the performance of our petroleum additives business during the first 9 months of 2025. However, we remain challenged by the ongoing inflationary environment and the impact of tariffs as well as softness in the market impacting shipments. We continue to focus on investing in technology to meet customer needs, optimizing our inventory levels and improving our portfolio profitability.

We report the financial results of our AMPAC business in our Specialty Materials segment. Specialty Materials sales for the third quarter of 2025 were $38 million, compared to $59 million for the same period in 2024. Specialty Materials operating profit for the third quarter of 2025 was $6 million compared to $16 million for the third quarter of 2024. The decrease in operating profit was mainly due to lower volume within the quarter. 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 9 months of 2025, sales for the Specialty Materials segment were $134 million compared to $114 million for the period of January 16 to September 30, 2024. Specialty Materials operating profit for the first 9 months of 2025 was $40 million compared to $16 million for the period of January 16 to September 30, 2024.

As previously announced, we expanded our investment in the Specialty Materials segment through the October 1, 2025 acquisition of Calca Solutions, LLC. Calca is the nation's leading producer of ultrapure and high-purity hydrogen mission-critical propellant used in advanced aerospace and defense applications. Since 2024 through our acquisitions of AMPAC and Calca and our investments to expand capacity at both operations, we have committed approximately $1 billion to this resilient high-technology Specialty Materials segment.

Our company generated solid cash flows throughout the first 9 months of 2025, which allowed us to return $155 million to our shareholders through share repurchases of $77 million and dividends of $78 million. We also reduced our net debt by $213 million in the first 9 months of 2025, driving our net debt-to-EBITDA ratio down to 0.9x as of September 30, 2025.

This strong cash flow performance enables us to continue to provide value to our shareholders through reinvestment of capital into our businesses for growth and efficiency, acquisitions, share repurchases and dividends. Yesterday, the company's Board of Directors approved raising the quarterly dividend by 9%, up from $2.75 per share on our common stock to $3 per share for the dividend that is payable January 2, 2026.

We anticipate continued strength in our Petroleum Additives and Specialty Materials segments. We are committed to making decisions to 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.

Matthew, that concludes our planned comments. We are available for questions via e-mail or by phone. So please feel free to contact me directly. Thank you all again, and we'll talk to you next quarter.

Thank you. Everyone this concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.