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Mar 31

NewMarket Q1 2025 Earnings Report

NewMarket reported strong profitability in Q1 2025, with significant growth in specialty materials and consistent performance in petroleum additives.

Key Takeaways

NewMarket delivered solid financial results in Q1 2025, driven by higher net income and strong EPS. While petroleum additives saw a decline in sales and shipments, the specialty materials segment posted a major turnaround. The company also reduced net debt and continued share repurchases.

Net income grew to $125.9M, with EPS of $13.26.

Specialty materials segment turned profitable with $23.2M in operating profit.

Petroleum additives sales and shipments declined vs. prior year.

Company repurchased $57M in stock and reduced net debt by $21.5M.

Total Revenue
$701M
Previous year: $697M
+0.6%
EPS
$13.3
Previous year: $11.2
+18.1%
Petroleum Additives Shipments
-7.2%
0
Gross Profit
$236M
Previous year: $216M
+9.1%
Cash and Equivalents
$118M
Previous year: $117M
+1.0%
Total Assets
$3.23B
Previous year: $3.16B
+2.4%

NewMarket

NewMarket

NewMarket Revenue by Segment

Forward Guidance

NewMarket remains focused on long-term value creation amid macroeconomic uncertainty, emphasizing operational efficiency and strategic investment.

Positive Outlook

  • Continued focus on operational efficiency.
  • Strong margin performance despite shipment declines.
  • AMPAC investment approved for expansion.
  • Debt reduction and improved Net Debt to EBITDA ratio.
  • Significant stock repurchases and dividend payout.

Challenges Ahead

  • Decline in petroleum additives shipments.
  • Lower petroleum additives revenue year-over-year.
  • Macroeconomic uncertainties including tariffs and trade.
  • Variability expected in specialty materials segment.
  • No specific geographic revenue details disclosed.

Revenue & Expenses

Visualization of income flow from segment revenue to net income