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Jun 30, 2023

NewMarket Q2 2023 Earnings Report

NewMarket's financial performance improved in Q2 2023 with increased net income and earnings per share, driven by higher selling prices in the petroleum additives segment.

Key Takeaways

NewMarket Corporation reported a strong second quarter in 2023, with net income increasing to $99.6 million and earnings per share rising to $10.36. The petroleum additives segment saw a boost in operating profit due to increased selling prices, despite lower shipments.

Net income for Q2 2023 increased to $99.6 million, up from $66.5 million in Q2 2022.

Earnings per share for Q2 2023 rose to $10.36, compared to $6.54 per share in the same period last year.

Petroleum additives operating profit for Q2 2023 increased to $132.1 million from $91.2 million in Q2 2022, driven by higher selling prices.

The company's Net Debt to EBITDA ratio improved to 1.4 as of June 30, 2023, down from 2.0 at the end of 2022.

Total Revenue
$685M
Previous year: $724M
-5.3%
EPS
$10.4
Previous year: $6.54
+58.4%
Gross Profit
$196M
Previous year: $157M
+24.2%
Cash and Equivalents
$131M
Previous year: $79.5M
+64.7%
Free Cash Flow
$138M
Previous year: $2.39M
+5688.7%
Total Assets
$2.37B
Previous year: $2.33B
+1.5%

NewMarket

NewMarket

NewMarket Revenue by Segment

Forward Guidance

NewMarket did not provide specific forward guidance in this earnings report. The report focuses on the results of the second quarter and first half of 2023 and emphasizes the company's long-term strategies and priorities.

Positive Outlook

  • Focus on long-term value for shareholders and customers.
  • Commitment to a safety-first culture.
  • Customer-focused solutions.
  • Technology-driven product offerings.
  • World-class supply chain capability.

Challenges Ahead

  • Effects of customer destocking.
  • Global economic weakness.
  • Higher operating costs due to the ongoing inflationary environment.
  • Challenges due to higher operating costs.
  • Ongoing inflationary environment.

Revenue & Expenses

Visualization of income flow from segment revenue to net income