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NewMarket Corporation Reports Second Quarter and First Half 2026 Results

NewMarket Delivers Strong H1 2026 Results; Defense-Chemical Capacity Expands

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    <h3>Information</h3>
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    <h3>AI Summary</h3>
    <p>NewMarket reported a solid first half of 2026, with Q2 net income of $133.8M and H1 net income of $251.8M, lifting EPS to $14.54 and $27.14. The company cited surcharges to offset higher raw materials and logistics costs in petroleum additives, while expanding capacity for ammonium perchlorates and high-purity hydrazine to support domestic aerospace and defense needs by late 2026. A Calca acquisition adds to Specialty Materials strength, and balance-sheet improvements—net debt/EBITDA at 1.0x and substantial share buybacks—underline a cash-flow-driven growth strategy.</p>
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  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Q2 2026 net income $133.8M; H1 $251.8M; EPS $14.54 / $27.14.</li><li>Petroleum additives Q2 sales $675.6M; OI $149.4M; surcharges offset costs.</li><li>Specialty materials Q2 sales $67.2M; H1 $125.3M; Calca integration complete.</li><li>Net Debt/EBITDA 1.0x; capex $51.7M; buybacks $126.4M; strong cash flow.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>NewMarket Corporation (NEU)</strong>: Reports strong H1 2026; deleveraging to 1.0x; pursuing production-capacity investments.</li><li><strong>Calca Solutions, LLC (Calca)</strong>: Acquisition completed Oct 1, 2025; contributes Specialty Materials growth and capacity expansion.</li><li><strong>Afton Chemical Corporation (Afton)</strong>: Afton is a NEU subsidiary; key driver of petroleum additives portfolio.</li><li><strong>Ethyl Corporation (Ethyl)</strong>: NEU subsidiary; contributes to additives offerings and global distribution.</li><li><strong>AMPAC (AMPAC)</strong>: Specialty materials manufacturer; aerospace/defense applications; supports hydrazine/ammonium perchlorate initiatives.</li></ul>
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  <section data-block="category">
    <h3>Earnings</h3>
    <p>Category: Earnings. The release emphasizes segment profitability, cash generation, and strategic capacity expansion tied to aerospace/defense applications, aligning with NEU’s diversified chemical additives and defense-capable material portfolio.</p>
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  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>End-2026 capacity online for ammonium perchlorates and high-purity hydrazine.</li><li>Calca acquisition enhances Specialty Materials growth and margins.</li><li>H1 cash flow supports debt reduction and ongoing buybacks.</li><li>Surcharges on raw materials provide near-term margin protection but elevate cost leverage.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Second Quarter Ended June 30, 2026.</li><li>Q2 net income $133.8M; EPS $14.54.</li><li>Six Months Ended June 30, 2026: net income $251.8M; EPS $27.14.</li><li>Petroleum additives Q2 sales $675.6M; operating income $149.4M.</li><li>Specialty materials Q2 sales $67.2M; operating income $22.3M.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Bullish on NEU over 6–12 months due to deleveraging, margin resilience, and defense-capability expansion.</p>
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<article>
  <p>NewMarket Corporation, traded on the NYSE as NEU, reported second-quarter and first-half 2026 results, highlighting solid net income growth, robust segment profitability, and strong cash flow. Chairman and Chief Executive Officer Thomas E. Gottwald released the earnings results detailing performance across the petroleum additives and specialty materials segments, as well as capital deployment in the period.</p>

  <ul class="bwlistdisc" aria-label="Key first-half highlights">
    <li><strong>First Half Net Income of $252 million and Earnings per Share of $27.14</strong></li>
    <li><strong>First Half Segment Operating Profit of $319 million</strong></li>
    <li><strong>Strong First Half Cash Flow</strong></li>
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  <p>NewMarket Corporation (NYSE: NEU) Chairman and Chief Executive Officer, Thomas E. Gottwald, released the following earnings report of the Company’s operations for the second quarter and first half of 2026.</p>

  <section aria-labelledby="q2-2026-highlights">
    <h2 id="q2-2026-highlights">Second Quarter 2026 Financial Highlights</h2>
    <p>Net income for the second quarter of 2026 was <strong>$133.8 million</strong>, or <strong>$14.54 per share</strong>, compared to net income of <strong>$111.2 million</strong>, or <strong>$11.84 per share</strong>, for the second quarter of 2025.</p>
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  <section aria-labelledby="h1-2026-highlights">
    <h2 id="h1-2026-highlights">First Half 2026 Financial Highlights</h2>
    <p>For the first half of 2026, net income was <strong>$251.8 million</strong>, or <strong>$27.14 per share</strong>, compared to <strong>$237.2 million</strong>, or <strong>$25.11 per share</strong>, for the same period in 2025.</p>
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  <section aria-labelledby="petroleum-additives-quarter">
    <h2 id="petroleum-additives-quarter">Petroleum Additives: Quarterly Performance</h2>
    <p>Petroleum additives sales for the second quarter of 2026 were <strong>$675.6 million</strong>, compared to <strong>$653.9 million</strong> for the same period in 2025. Petroleum additives operating profit for the second quarter of 2026 was <strong>$149.4 million</strong>, compared to <strong>$139.8 million</strong> for the second quarter of 2025. Petroleum additives operating profit increased due to surcharges implemented in response to higher costs incurred due to the supply chain disruptions in the Middle East. These actions, together with our continued focus on operational efficiency, resulted in improved operating profit during the quarter.</p>
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  <section aria-labelledby="petroleum-additives-half">
    <h2 id="petroleum-additives-half">Petroleum Additives: First Half Performance</h2>
    <p>Petroleum additives sales were <strong>$1.3 billion</strong> for both the first half of 2026 and 2025. Petroleum additives operating profit for the first half of 2026 was <strong>$284.4 million</strong>, compared to <strong>$281.9 million</strong> in the same period last year.</p>
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  <section aria-labelledby="specialty-materials-quarter">
    <h2 id="specialty-materials-quarter">Specialty Materials: Quarterly Performance</h2>
    <p>Specialty materials sales were <strong>$67.2 million</strong> for the second quarter of 2026, compared to <strong>$42.0 million</strong> for the second quarter of 2025. Specialty materials operating profit was <strong>$22.3 million</strong> for the second quarter of 2026, compared to operating profit of <strong>$10.5 million</strong> 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 expect variation in quarterly results for the specialty materials segment on an ongoing basis due to the nature of its business.</p>
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  <section aria-labelledby="specialty-materials-half">
    <h2 id="specialty-materials-half">Specialty Materials: First Half Performance</h2>
    <p>Specialty materials sales were <strong>$125.3 million</strong> for the first half of 2026, compared to <strong>$95.8 million</strong> for the first half of 2025. Specialty materials operating profit was <strong>$34.8 million</strong> for the first half of 2026, compared to <strong>$33.7 million</strong> in the same period last year.</p>
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  <section aria-labelledby="strategic-capacity-expansion">
    <h2 id="strategic-capacity-expansion">Strategic Investments and Capacity Expansion</h2>
    <p><em>We are especially pleased with the performance of our Specialty Materials segment and we are also excited about our investments to expand production capacity for both ammonium perchlorates 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.</em></p>
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  <section aria-labelledby="cash-flow">
    <h2 id="cash-flow">Cash Flow, Capital Deployment, and Leverage</h2>
    <p>Our operations generated solid cash flow during the first half of 2026. We funded capital expenditures of <strong>$51.7 million</strong>, paid dividends of <strong>$55.6 million</strong>, and repurchased over 200 thousand shares of common stock for <strong>$126.4 million</strong>, while reducing our Net Debt to EBITDA ratio to <strong>1.0x</strong>.</p>
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  <section aria-labelledby="market-environment">
    <h2 id="market-environment">Market Environment and Strategic Review</h2>
    <p>The cash flow generated by operations enables us to continue to provide value to our customers and shareholders through reinvestment in our businesses for growth and efficiency, acquisitions, dividends and share repurchases.</p>
    <p>We continue to monitor the impact of the conflict in the Middle East, the uncertain macroeconomic environment, and the changes in international trade relations and tariffs. Within petroleum additives, the surcharges and operational actions implemented earlier this year to address higher raw materials, utility, and logistics costs remain in place, and we continue to evaluate and adjust our approach as market conditions evolve. While the operating environment remains dynamic, we believe these actions position us well to continue delivering solid results.</p>
    <p>We are pleased with the performance of both our petroleum additives and specialty materials segments during the first half of 2026. We will continue to invest in technology to serve our customers, focus on cost control and margin management, and advance our initiatives to strengthen our global manufacturing network to enable more efficient product delivery to our customers in the years ahead.</p>
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  <section aria-labelledby="leadership-values">
    <h2 id="leadership-values">Leadership Focus and Long-Term Objectives</h2>
    <p>Our dedicated team makes decisions to promote long-term value for our shareholders and customers, and remains focused on our long-term objectives. We believe the fundamentals of how we run our business - a long-term view, safety-first culture, customer-focused solutions, technology-driven product offerings, and world-class supply chain capability - will continue to benefit all our stakeholders.</p>
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  <section aria-labelledby="sign-off">
    <h2 id="sign-off-heading">Sign-Off</h2>
    <p>Sincerely,</p>
    <p>Thomas E. Gottwald</p>
  </section>

  <section aria-labelledby="segment-structure">
    <h2 id="segment-structure">About the Company and Segments</h2>
    <p>The petroleum additives segment consists of the North America (the United States and Canada), Latin America (Mexico, Central America, and South America), Asia Pacific, and Europe/Middle East/Africa/India (Europe or EMEAI) regions. The specialty materials segment operates primarily in North America.</p>
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  <section aria-labelledby="non-gaap-measures">
    <h2 id="non-gaap-measures">Non-GAAP Financial Measures</h2>
    <p>The Company has disclosed the non-GAAP financial measures EBITDA, Net Debt, and Net Debt to EBITDA, as well as the related calculations in the schedules included with this earnings release. EBITDA is defined as income from continuing operations before the deduction of interest and financing expenses, net, income taxes, depreciation (on property, plant, and equipment) and amortization (on intangible assets and lease right-of-use assets). Net Debt is defined as long-term debt, including current maturities, less cash and cash equivalents. Net Debt to EBITDA is defined as Net Debt divided by EBITDA for the rolling four quarters ended as of the specified date. The Company believes that even though these items are not required by or presented in accordance with United States generally accepted accounting principles (GAAP), these additional measures enhance understanding of the Company’s performance and period to period comparability. The Company believes that these items should not be considered an alternative to our results determined under GAAP.</p>
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  <section aria-labelledby="conference-call">
    <h2 id="conference-call">Conference Call and Webcast</h2>
    <p>As a reminder, a conference call and webcast is scheduled for 3:00 p.m. ET on Thursday, July 30, 2026, to review second quarter 2026 financial results. You can access the conference call live by dialing 1-888-506-0062 (domestic) or 1-973-528-0011 (international) and requesting the NewMarket conference call or using the participant access code 726865. To avoid delays, callers should dial in five minutes early. A teleconference replay of the call will be available until Thursday, August 13, 2026 at 3:00 p.m. ET by dialing 1-877-481-4010 (domestic) or 1-919-882-2331 (international). The replay passcode is 54208. The call will also be broadcast via the internet and can be accessed through the Company’s website at <a href="https://www.NewMarket.com" rel="nofollow">www.NewMarket.com</a>.</p>
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NewMarket reported a solid first half of 2026, with Q2 net income of $133.8M and H1 net income of $251.8M, lifting EPS to $14.54 and $27.14. The company cited surcharges to offset higher raw materials and logistics costs in petroleum additives, while expanding capacity for ammonium perchlorates and high-purity hydrazine to support domestic aerospace and defense needs by late 2026. A Calca acquisition adds to Specialty Materials strength, and balance-sheet improvements—net debt/EBITDA at 1.0x and substantial share buybacks—underline a cash-flow-driven growth strategy.

News insight

NewMarket Corporation Reports Second Quarter and First Half 2026 Results

AI summary

Sentiment rationale

Key facts

Earnings