NEU · NewMarket Corporation

NewMarket Corporation reported mixed first quarter 2026 results with net income declining to $118.1 million from $125.9 million in the same quarter last year, while earnings per share decreased to $12.62 from $13.26. The petroleum additives segment experienced a 7% decline in shipments, primarily driven by lower lubricant additives shipments partially offset by an increase in fuel additives shipments, resulting in sales of $609.8 million compared to $645.6 million and operating profit of $135.0 million compared to $142.1 million. Management attributed the shipment decline to market softness and strategic decisions to reduce low-margin business, though operating profit margins remained strong due to operational efficiency focus. The specialty materials segment saw sales increase to $58.1 million from $53.7 million, driven by the inclusion of the Calca Solutions business acquired in October 2025, but operating profit decreased to $12.4 million from $23.2 million due to product shipment mix shifts at AMPAC. The company generated solid cash flows, paying $28.0 million in dividends, repurchasing over 200 thousand shares for $125.6 million, and funding $24.4 million in capital expenditures. Management noted they are monitoring the impact of Middle East conflict, macroeconomic uncertainty, and trade relations, while adjusting prices to compensate for expected raw material cost escalation and rebalancing global production to mitigate regional disruption. The company anticipates continued solid results and expects specialty materials capacity expansion to come online towards the end of 2026.