- NewMarket Corporation (NEU, Financial) reports a net income of $125.9 million for Q1 2025, a rise from $107.7 million in Q1 2024.
- Petroleum additives sales dipped slightly to $645.6 million from $677.3 million in the previous year.
- Specialty materials segment saw a significant increase, with operating profit reaching $23.2 million compared to a loss of $5.0 million last year.
NewMarket Corporation (NEU) has announced its financial results for the first quarter of 2025, reflecting a solid performance despite mixed results across its operating segments. The company's net income rose to $125.9 million, or $13.26 per share, compared to $107.7 million, or $11.23 per share, in the first quarter of 2024.
In the petroleum additives segment, sales were reported at $645.6 million, a slight decrease from $677.3 million in the same quarter last year. The operating profit for this segment was $142.1 million, down from a record $150.9 million in Q1 2024, primarily due to a 7.2% decline in shipments. While lubricant additives shipments decreased in Asia Pacific and North America, Europe and Latin America had slight increases. Conversely, fuel additives shipments were lower in all regions except Asia Pacific.
The specialty materials segment experienced substantial growth, with sales soaring to $53.7 million, up from $17.0 million in the previous year. The segment reported an operating profit of $23.2 million in Q1 2025, contrasting with a $5.0 million operating loss in Q1 2024. This growth was driven by increased volumes and a favorable product mix.
During the quarter, NewMarket funded stock repurchases of $57.1 million and paid out $26.1 million in dividends, while capital expenditures amounted to $13.0 million. The company's net debt was reduced by $21.5 million, lowering the net debt to EBITDA ratio to 1.1 as of March 31, 2025.
NewMarket's subsidiary, American Pacific Corporation (AMPAC), has planned a capital investment of up to $100 million to expand its ammonium perchlorate production capacity by more than 50% at the Cedar City, Utah facility. This expansion aims to meet the demands of U.S. military and space launch programs by 2026.
Looking ahead, NewMarket emphasized its focus on improving operational efficiency and portfolio profitability while navigating an uncertain macroeconomic environment. The company remains committed to long-term strategies that prioritize safety, customer-centric solutions, and technological advancements.
