For personal use only Investor presentation 27 August 2025 IMPROVING THE LIVES OF PEOPLE WITH NEURODEVELOPMENTAL DISABILITIES P aa g e� 1 1 Forward looking statements This presentation contains forward looking statements that involve risks and uncertainties . Although we believe that the expectations reflected in the forward looking statements are reasonable at this time, Neuren can give no assurance that these expectations will prove to be correct . Actual results could differ materially from those anticip ...

Financial Data and Key Metrics Changes - Net income for Q2 2025 was $111 million or $11.84 per share, compared to $112 million or $11.63 per share for Q2 2024 [3] - Record net income for the first half of 2025 was $237 million or $25.11 per share, compared to $219 million or $22.87 per share for the same period in 2024 [3] - Petroleum additives sales for Q2 2025 were $654 million, down from $670 million in Q2 2024 [3][4] - Operating profit for petroleum additives in Q2 2025 was $140 million, compared to $148 million in Q2 2024 [4] Business Line Data and Key Metrics Changes - Petroleum additives segment sales for the first half of 2025 were $1.3 billion, essentially flat compared to the same period in 2024 [4] - Operating profit for the petroleum additives segment for the first half of 2025 was $282 million, down from $299 million in 2024 [4] - Specialty Materials sales for Q2 2025 were $42 million, up from $38 million in Q2 2024, with operating profit increasing to $11 million from $5 million [6] - Specialty Materials segment sales for the first half of 2025 were $96 million, compared to $55 million in the same period in 2024, with operating profit rising to $34 million from slightly above breakeven [7] Market Data and Key Metrics Changes - Shipments in the petroleum additives segment were down by 4.9% when comparing Q2 2025 with the same period in 2024 [5] - The company reported solid cash flows throughout 2025, allowing for $129 million returned to shareholders through share repurchases and dividends [7] Company Strategy and Development Direction - The company is committed to investing in technology to meet customer needs, optimizing inventory levels, and improving portfolio profitability [5] - The company views AMPAC as a strategic national asset and is investing in additional capacity to meet growing customer needs [7] - The company aims to promote long-term value for shareholders and customers while focusing on long-term objectives [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of the petroleum additives and specialty materials segments [8] - The company remains challenged by ongoing inflationary pressures and the impact of tariffs [5] - Management emphasized a long-term perspective, safety-first culture, customer-focused solutions, and technology-driven products as guiding principles [8] Other Important Information - As of June 30, 2025, the net debt to EBITDA ratio improved to 1.0 from 1.2 in 2024 [8] Q&A Session Summary - No specific questions or answers were documented in the provided content.

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the company's unaudited financial statements and management's analysis for the recent reporting period [Financial Statements (unaudited)](index=4&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited consolidated financial statements for the second quarter and six months ended June 30, 2025, and 2024, including detailed notes [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) This section presents the company's revenues, expenses, and net income for the specified periods Consolidated Income Statement Highlights (in millions, except per-share amounts) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $698.5 | $710.2 | $1,399.5 | $1,407.0 | | **Gross Profit** | $221.0 | $218.5 | $457.0 | $434.8 | | **Operating Profit** | $143.2 | $147.0 | $303.0 | $287.8 | | **Net Income** | $111.2 | $111.6 | $237.2 | $219.4 | | **EPS (basic and diluted)** | $11.84 | $11.63 | $25.11 | $22.87 | | **Cash Dividends per Share** | $2.75 | $2.50 | $5.50 | $5.00 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,067.8 | $1,029.6 | | **Total Assets** | $3,194.5 | $3,129.5 | | **Total Current Liabilities** | $402.1 | $374.5 | | **Long-term Debt** | $841.8 | $971.3 | | **Total Liabilities** | $1,582.8 | $1,668.0 | | **Total Shareholders' Equity** | $1,611.7 | $1,461.6 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Cash Flow Highlights (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Cash from Operating Activities** | $281.4 | $217.8 | | **Cash from Investing Activities** | $(29.3) | $(710.0) | | **Cash from Financing Activities** | $(264.2) | $470.5 | | **Decrease in Cash** | $(7.2) | $(24.3) | | **Cash at End of Period** | $70.3 | $87.6 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed financial statements - On January 16, 2024, the company acquired American Pacific Corporation (AMPAC) for approximately **$697 million**, funded by cash and borrowings, expanding its presence in mission-critical specialty materials for space launch and military defense[22](index=22&type=chunk) - The company operates through two reportable segments: Petroleum Additives and Specialty Materials, with Petroleum Additives being the primary revenue driver and Specialty Materials significantly expanded by the AMPAC acquisition[37](index=37&type=chunk) - Total long-term debt decreased to **$841.8 million** as of June 30, 2025, from **$971.3 million** at December 31, 2024, following principal payments on senior notes and a term loan[62](index=62&type=chunk)[131](index=131&type=chunk) - Total accruals for environmental remediation, dismantling, and decontamination were approximately **$11 million** at both June 30, 2025, and December 31, 2024[71](index=71&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides an analysis of financial results for the first six months of 2025 compared to 2024, highlighting segment performance, financial position, and liquidity [Results of Operations](index=20&type=section&id=Results%20of%20Operations) This section analyzes the company's operational performance, including segment sales and profitability Net Sales by Segment (in millions) | Segment | H1 2025 | H1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Petroleum Additives | $1,299.4 | $1,347.1 | $(47.7) | -3.5% | | Specialty Materials | $95.8 | $55.1 | $40.7 | +73.9% | | **Total Net Sales** | **$1,399.5** | **$1,407.0** | **$(7.5)** | **-0.5%** | Segment Operating Profit (in millions) | Segment | H1 2025 | H1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Petroleum Additives | $281.9 | $298.7 | $(16.8) | -5.6% | | Specialty Materials | $33.7 | $0.0 | $33.7 | N/A | - Petroleum additives shipments decreased by **4.9%** in the first six months of 2025 compared to the same period in 2024, primarily due to lower lubricant additives shipments in Asia Pacific and North America[98](index=98&type=chunk)[100](index=100&type=chunk) - The effective tax rate increased to **23.9%** for the first six months of 2025 from **21.9%** in the prior-year period, primarily driven by income from foreign operations[118](index=118&type=chunk) [Cash Flows, Financial Condition, and Liquidity](index=23&type=section&id=Cash%20Flows%2C%20Financial%20Condition%2C%20and%20Liquidity) This section discusses the company's cash generation, financial position, and ability to meet its short-term and long-term obligations - Cash provided from operating activities was **$281.4 million** for the first six months of 2025[124](index=124&type=chunk) - Capital spending for 2025 is expected to be between **$70 million and $100 million**, including a significant investment to expand AMPAC's production capacity by over **50%**[127](index=127&type=chunk)[128](index=128&type=chunk) - In the first six months of 2025, the company used cash for **$77.2 million** in stock repurchases, **$51.9 million** in dividends, and **$130 million** in net debt repayments[130](index=130&type=chunk) - The company was in compliance with all debt covenants, with a Leverage Ratio of **1.13** at June 30, 2025, well below the maximum of **3.75**[133](index=133&type=chunk)[134](index=134&type=chunk) [Outlook](index=24&type=section&id=Outlook) This section provides management's forward-looking statements regarding future performance and strategic priorities - The company's long-term goal is to provide a **10%** compounded annual return for shareholders, defined as EPS growth plus dividend yield[138](index=138&type=chunk) - Management expects the petroleum additives market to grow **1-2%** annually over the long term and plans for its segment to exceed that growth rate[139](index=139&type=chunk) - The primary focus for future acquisitions remains within the petroleum additives industry, though other value-enhancing opportunities like the AMPAC acquisition will be considered[144](index=144&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes in its market risk profile since the disclosures made in its 2024 Annual Report on Form 10-K - At June 30, 2025, there were no material changes in market risk from the information provided in the 2024 Annual Report[145](index=145&type=chunk) [Controls and Procedures](index=25&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Based on an evaluation conducted by management, including the CEO and CFO, the company's disclosure controls and procedures were concluded to be effective as of June 30, 2025 - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of the end of the period[146](index=146&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[147](index=147&type=chunk) [PART II. OTHER INFORMATION](index=26&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers various non-financial disclosures, including legal proceedings, equity sales, and exhibits [Legal Proceedings](index=26&type=section&id=ITEM%201.%20Legal%20Proceedings) The company reports that there have been no material changes to its legal proceedings as disclosed in the 2024 Annual Report - There have been no material changes to legal proceedings as disclosed in the 2024 Annual Report[148](index=148&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details its share repurchase activity under a **$500 million** authorization effective January 1, 2025, including shares repurchased in Q2 2025 - A share repurchase program authorizing up to **$500 million** was approved by the Board, effective from January 1, 2025, to December 31, 2027[149](index=149&type=chunk) Share Repurchases in Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining for Purchase | | :--- | :--- | :--- | :--- | | **Total Q2** | 36,812 | $537.66 | $428.2 million | [Other Information](index=26&type=section&id=ITEM%205.%20Other%20Information) The company confirms that no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the second quarter of 2025 - During the quarter ended June 30, 2025, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement[153](index=153&type=chunk) [Exhibits](index=26&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including corporate governance documents and certifications by the CEO and CFO - The report includes certifications from the CEO and CFO pursuant to the Sarbanes-Oxley Act of 2002, as well as Inline XBRL data files[154](index=154&type=chunk)

[NewMarket Corporation Q2 & H1 2025 Earnings Report](index=1&type=section&id=NewMarket%20Corporation%20Reports%20Second%20Quarter%20and%20First%20Half%202025%20Results) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Record H1 2025 net income was driven by strong performance, offsetting a slight decline in Q2 net income | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $111.2M | $111.6M | $237.2M | $219.4M | | **EPS (diluted)** | $11.84 | $11.63 | $25.11 | $22.87 | - The first half of 2025 marked a record for **Net Income ($237 million)** and **Earnings per Share ($25.11)**[9](index=9&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) The Petroleum Additives segment's profit declined on lower volumes, while the Specialty Materials segment saw significant profit growth [Petroleum Additives](index=1&type=section&id=Petroleum%20Additives) Operating profit declined due to lower shipment volumes and higher technology investments | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $653.9M | $669.8M | $1.3B | $1.3B | | **Operating Profit** | $139.8M | $147.8M | $281.9M | $298.7M | - The decline in operating profit was driven by a **decrease in shipments** and an **increase in technology investments**[4](index=4&type=chunk) - Shipment volumes **decreased by 2.5% in Q2 YoY** and **4.9% in H1 YoY**, with declines across lubricant and fuel additives[4](index=4&type=chunk)[5](index=5&type=chunk) [Specialty Materials](index=1&type=section&id=Specialty%20Materials) Operating profit surged, driven by increased volumes and the inclusion of results from the AMPAC acquisition | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $42.0M | $38.0M | $95.8M | $55.1M | | **Operating Profit** | $10.5M | $5.0M | $33.7M | ~$0M | - The increase in operating profit was primarily driven by **increased volumes**[6](index=6&type=chunk) - H1 2024 results only reflect performance since the **acquisition of American Pacific Corporation (AMPAC)** on January 16, 2024[7](index=7&type=chunk) [Cash Flow and Capital Management](index=1&type=section&id=Cash%20Flow%20and%20Capital%20Management) Strong cash flow funded significant shareholder returns and debt reduction, improving the leverage ratio H1 2025 Cash Flow and Capital Allocation | Activity | Amount | | :--- | :--- | | **Common Stock Repurchases** | $77.2M | | **Dividends Paid** | $51.9M | | **Capital Expenditures** | $29.3M | | **Net Debt Reduction** | $122.2M | - The company's **Net Debt to EBITDA ratio improved**, decreasing to 1.0 as of June 30, 2025[8](index=8&type=chunk) [Management Commentary and Outlook](index=2&type=section&id=Management%20Commentary%20and%20Outlook) Management noted strong H1 performance and will focus on efficiency and profitability while monitoring macroeconomic uncertainties - The company is pleased with **strong H1 2025 performance** and favorable results from efficiency initiatives[10](index=10&type=chunk) - Priorities for the remainder of 2025 include investing in technology, enhancing operational efficiency, and improving portfolio profitability[10](index=10&type=chunk) - The company is actively monitoring the uncertain macroeconomic environment, particularly changes in international trade relations and tariffs[11](index=11&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) [Segment Results and Other Financial Information](index=4&type=section&id=NEWMARKET%20CORPORATION%20AND%20SUBSIDIARIES%20SEGMENT%20RESULTS%20AND%20OTHER%20FINANCIAL%20INFORMATION) This section details net sales and operating profit by segment, reconciling to consolidated pre-tax income Segment Results (in thousands) | | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | | | | | | Petroleum additives | $653,875 | $669,826 | $1,299,429 | $1,347,090 | | Specialty materials | $42,037 | $38,010 | $95,758 | $55,057 | | **Total Net Sales** | **$698,509** | **$710,228** | **$1,399,455** | **$1,406,964** | | **Segment Operating Profit** | | | | | | Petroleum additives | $139,835 | $147,819 | $281,942 | $298,728 | | Specialty materials | $10,547 | $4,972 | $33,734 | $5 | | **Total Segment Operating Profit** | **$149,211** | **$151,417** | **$314,024** | **$297,278** | [Consolidated Statements of Income](index=5&type=section&id=NEWMARKET%20CORPORATION%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) H1 2025 net income and gross profit grew despite lower sales, alongside an increase in dividends per share Consolidated Income Statement Highlights (in thousands, except per-share amounts) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Net sales** | $1,399,455 | $1,406,964 | | **Gross profit** | $456,977 | $434,820 | | **Operating profit** | $303,021 | $287,752 | | **Net income** | $237,193 | $219,352 | | **Earnings per share** | $25.11 | $22.87 | | **Cash dividends per share** | $5.50 | $5.00 | [Consolidated Balance Sheets](index=

Financial Data and Key Metrics Changes - Net income for Q1 2025 was $126 million or $13.26 per share, compared to $108 million or $11.23 per share for Q1 2024, reflecting a year-over-year increase in net income [5] - Petroleum additive sales for Q1 2025 were $646 million, down from $677 million in Q1 2024, indicating a decline in sales [5] - Operating profit for petroleum additives in Q1 2025 was $142 million, compared to a record $151 million in Q1 2024, primarily due to lower shipments [5] Business Line Data and Key Metrics Changes - Lubricant additive shipments decreased in Asia Pacific and North America, while Europe and Latin America reported slight increases [6] - Specialty Materials sales were $54 million for Q1 2025, up from $17 million in Q1 2024, with operating profit rising to $23 million from an operating loss of $5 million in the same period [8] Market Data and Key Metrics Changes - Fuel additive shipments were lower in all regions except Asia Pacific, which reported a small increase [6] - The company continues to focus on operational efficiency despite lower shipments, maintaining strong operating profit levels [6] Company Strategy and Development Direction - The company is committed to investing in technology and supply networks to meet customer demands, enhance operational efficiency, and improve portfolio profitability [8] - A capital investment of up to $100 million is planned for the Ampac facility to increase production capacity by more than 50%, aimed at meeting growing demand for solid rocket motors [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the petroleum additives business performance but acknowledged challenges from the ongoing macroeconomic environment and uncertainties around international trade relations and tariffs [7] - The company generated solid cash flows, returning $83 million to shareholders through share repurchases and dividends, with a net debt to EBITDA ratio improving to 1.1% from 1.9% year-over-year [11] Other Important Information - The projected completion date for the Ampac facility investment is 2026, which is expected to enhance capacity and security of supply [10] - The company emphasizes core principles such as a long-term perspective, safety-first culture, customer-focused solutions, and technology-driven products [11] Q&A Session Summary - No specific questions or answers were recorded in the provided content, as the call concluded without a Q&A segment [12][13]

Financial Performance - Consolidated net sales for Q1 2025 totaled $700.9 million, a slight increase of $4.2 million, or 0.6%, from Q1 2024[89] - Petroleum additives segment net sales decreased by 4.7% to $645.5 million in Q1 2025, primarily due to lower product shipments[92] - Specialty materials segment reported net sales of $53.7 million in Q1 2025, significantly higher than $17.0 million in the same period of 2024, driven by higher product volumes[96] - Operating profit for petroleum additives decreased by 5.8% to $142.1 million in Q1 2025, reflecting lower product shipments and higher operating costs[100] - Specialty materials segment achieved an operating profit of $23.2 million in Q1 2025, compared to an operating loss of $5.0 million in the same period of 2024[107] Cash Flow and Capital Management - Cash and cash equivalents increased by $40.8 million to $118.3 million as of March 31, 2025, compared to December 31, 2024[114] - Cash provided from operating activities for Q1 2025 was $120.3 million, including $26.6 million of higher working capital requirements[118] - Cash used in investing activities totaled $13.0 million in Q1 2025, with total capital spending expected to be between $70 million and $100 million for the year[122] - Cash used in financing activities was $68.5 million in Q1 2025, including $57.1 million for stock repurchases and $50.0 million principal payment on senior notes[125] - Long-term debt increased to $990.6 million at March 31, 2025, compared to $971.3 million at December 31, 2024[126] - The leverage ratio was 1.31 at March 31, 2025, well below the maximum requirement of 3.75 to 1.00[128] - Total long-term debt as a percentage of total capitalization decreased from 39.9% at December 31, 2024, to 39.5% at March 31, 2025[130] Investment and Growth Strategy - Research and development investment increased by $2.0 million in Q1 2025, representing 5.1% of net sales compared to 4.6% in Q1 2024[105] - The company continues to prioritize investments in technology and operational efficiency to enhance portfolio profitability throughout 2025[86] - A capital investment of up to $100 million is planned to expand AMPAC's ammonium perchlorate production capacity by over 50%, scheduled for completion in 2026[123] - Significant investments in the petroleum additives business focus on operational efficiencies and technology development to enhance global reach[136] - The petroleum additives segment is expected to grow at an annual rate of up to 2%, with the company aiming to exceed this growth rate[135] Tax and Shareholder Value - The effective tax rate increased to 23.3% in Q1 2025 from 21.8% in Q1 2024, primarily due to prior year tax items[112] - The company continues to evaluate cash utilization strategies, including stock repurchases and dividends, to enhance shareholder value[139]

Financial Performance - Net income for Q1 2025 was $125.9 million, or $13.26 per share, up from $107.7 million, or $11.23 per share in Q1 2024, representing a 16.1% increase in net income[3][21] - Net income for Q1 2025 increased to $125,949,000, up from $107,732,000 in Q1 2024, representing a growth of 16.8%[23] - EBITDA for Q1 2025 was $203,207,000, compared to $178,602,000 in Q1 2024, reflecting an increase of 13.8%[24] Sales Performance - Petroleum additives sales decreased to $645.6 million in Q1 2025 from $677.3 million in Q1 2024, a decline of 4.7%[4][20] - Specialty materials sales surged to $53.7 million in Q1 2025, compared to $17.0 million in Q1 2024, marking a significant increase of 215.3%[5][20] Operating Profit - Operating profit for petroleum additives was $142.1 million in Q1 2025, down from $150.9 million in Q1 2024, a decrease of 5.2%[4][20] - Specialty materials operating profit improved to $23.2 million in Q1 2025 from an operating loss of $5.0 million in Q1 2024[5][20] Cash Flow and Dividends - Cash flows generated in Q1 2025 allowed for stock repurchases of $57.1 million and dividends of $26.1 million[6][9] - Dividends paid in Q1 2025 totaled $26,057,000, compared to $23,986,000 in Q1 2024, marking an increase of 8.7%[23] Debt and Financial Ratios - Net Debt was reduced by $21.5 million in Q1 2025, resulting in a Net Debt to EBITDA ratio of 1.1[6][12] - Net Debt decreased to $872,302,000 as of March 31, 2025, down from $893,805,000 at the end of 2024, indicating a reduction of 2.8%[25] - The Net Debt to EBITDA ratio improved to 1.1 in Q1 2025, compared to 1.2 in Q4 2024, showing enhanced financial leverage[25] Capital Expenditures and Investments - A capital investment of up to $100 million was approved to expand ammonium perchlorate production capacity by over 50%, projected for completion in 2026[7] - Capital expenditures for Q1 2025 were $13,016,000, slightly down from $13,564,000 in Q1 2024[23] Asset Management - Total assets increased to $3.23 billion as of March 31, 2025, compared to $3.13 billion at the end of 2024[22] - The company reported an increase in cash and cash equivalents by $40,777,000 in Q1 2025, compared to an increase of $5,130,000 in Q1 2024[23] Interest and Financing - Interest and financing expenses for Q1 2025 were $10,700,000, down from $15,654,000 in Q1 2024, a decrease of 31.3%[24] Working Capital Management - Working capital changes resulted in a cash outflow of $26,590,000 in Q1 2025, compared to $21,434,000 in Q1 2024, indicating a worsening in working capital management[23] Business Acquisitions - The company did not acquire any businesses in Q1 2025, contrasting with a significant acquisition cost of $683,924,000 in Q1 2024[23] Operational Focus - The company is focused on enhancing operational efficiency and investing in technology to meet customer needs throughout 2025[8][10]

Financial Performance - Consolidated net sales for 2024 amounted to $2.8 billion, an increase of $88 million, or 3.3%, from 2023[167]. - Net sales for 2024 were $2,786,558 thousand, an increase from $2,698,419 thousand in 2023, representing a growth of approximately 3.3%[281]. - Gross profit for 2024 was $886,346 thousand, up from $772,513 thousand in 2023, indicating a gross margin improvement[281]. - Operating profit increased to $590,036 thousand in 2024 from $483,045 thousand in 2023, reflecting a growth of about 22.2%[281]. - Net income for 2024 reached $462,413 thousand, compared to $388,864 thousand in 2023, marking an increase of approximately 18.9%[281]. - Earnings per share for 2024 were $48.22, up from $40.44 in 2023, representing a growth of about 19.4%[281]. - Comprehensive income for 2024 was $516,354,000, compared to $439,788,000 in 2023, reflecting a growth of 17%[285]. - Total assets increased to $3,129,541,000 in 2024, up from $2,308,871,000 in 2023, representing a 36% growth[287]. - Cash flows from operating activities of $519,592,000 in 2024, down from $576,823,000 in 2023[292]. Segment Performance - Petroleum additives net sales for 2024 were $2.6 billion, approximately 2.0% lower than 2023, with a decrease of $54 million attributed to lower selling prices and unfavorable foreign currency impact[169][172]. - The petroleum additives segment generated net sales of $2,636,242 in 2024, a decrease of 2.0% from $2,689,709 in 2023[355]. - Segment operating profit for petroleum additives was $591,854 in 2024, an increase of 14.9% from $514,428 in 2023[355]. - The specialty materials segment reported operating profit of $17 million for the period from the AMPAC acquisition date of January 16, 2024, to December 31, 2024[183]. - Specialty materials revenue is mainly derived from U.S. government contractors, with total sales of $141,243 in 2024[339]. Acquisition and Investments - The company completed the acquisition of AMPAC for approximately $697 million on January 16, 2024[161]. - The acquisition of AMPAC Intermediate Holdings, LLC was completed on January 16, 2024, for approximately $697 million, expanding the company's presence in mission-critical sectors[327]. - The fair value of net assets acquired from AMPAC included $650 million in intangibles and goodwill, with $256 million recognized as goodwill attributable to access to resilient sectors[330]. - The identified intangible assets from the AMPAC acquisition included a customer base valued at $275 million and formulas and technology valued at $60 million[328]. - The company acquired a business for $681,479,000 in 2024, marking a significant investment in growth[292]. Expenses and Costs - Interest and financing expenses increased to $57 million in 2024 from $37 million in 2023, primarily due to higher average debt outstanding and interest rates[184]. - Selling, general, and administrative expenses (SG&A) increased by $5 million, or 4.2%, in 2024 compared to 2023, with SG&A as a percentage of net sales at 4.8%[181]. - Research and development (R&D) investment decreased by approximately $13 million, representing 4.7% of net sales in 2024 compared to 5.1% in 2023[182]. - Environmental operating and clean-up costs were approximately $37 million in 2024, down from $41 million in 2023[210]. - Research, development, and testing expenses for 2024 were $124,898 thousand, a decrease from $137,998 thousand in 2023[281]. Cash Flow and Capital Structure - Cash generated from operating activities was $520 million in 2024, down from $577 million in 2023[188]. - Cash and cash equivalents decreased from $112 million at the end of 2023 to $77 million at December 31, 2024[191]. - Long-term debt increased from $644 million at December 31, 2023 to $971 million at December 31, 2024, representing an increase in total long-term debt percentage from 37.4% to 39.9%[205]. - The company had working capital of $655 million at December 31, 2024, with a current ratio of 2.75 to 1, down from $675 million and a current ratio of 2.85 to 1 at the end of 2023[206]. - Cash dividends paid in 2024 were $95,902,000, up from $85,034,000 in 2023, reflecting a 10% increase[289]. Pension and Retirement Plans - The pension benefit obligation was reported at $561 million as of December 31, 2024[272]. - The company expects net periodic benefit income for its pension and postretirement plans during 2025, with a discount rate assumption of 5.875% as of December 31, 2024[222]. - The expected aggregate cash contributions to the U.S. pension plans are projected to be approximately $4 million in 2025, with an additional $1 million for postretirement benefit plans[225]. - An actuarial gain of $16 million occurred during 2024, while an actuarial loss of $3 million was recorded in 2023 on plan liabilities due to changes in assumptions[229]. Market and Growth Outlook - The petroleum additives segment is expected to grow annually up to 2%, with the company planning to exceed that growth rate[236]. - The company aims to provide a 10% compounded return per year for shareholders over any ten-year period, focusing on a customer-centric strategy and technology-driven product offerings[235].

Financial Data and Key Metrics Changes - Net income for Q4 2024 was $111 million or $11.56 per share, compared to $80 million or $8.38 per share for Q4 2023, indicating a significant increase [3] - Full year net income for 2024 was $462 million or $48.22 per share, compared to $389 million or $40.44 per share for 2023, showing a strong year-over-year growth [3] Business Line Data and Key Metrics Changes - Petroleum additives sales for Q4 2024 were $626 million, down from $642 million in Q4 2023, while operating profit increased to $136 million from $110 million due to lower operating costs [4] - For the full year 2024, Petroleum Additives sales were $2.6 billion, down from $2.7 billion in 2023, but operating profit rose to $592 million from $514 million, driven by efficiency efforts and lower raw material costs [5] - Specialty Materials sales were $27 million for Q4 2024 and $141 million for the full year, with operating profit of $1.5 million for Q4 and $17.5 million for the full year, surpassing pre-acquisition expectations [7] Market Data and Key Metrics Changes - Shipments in the Petroleum Additives segment were flat year-over-year, with a small increase in lubricant additives offset by a decline in fuel additives [5] - The company faced challenges from an ongoing inflationary environment, impacting operational costs despite efficiency improvements [6] Company Strategy and Development Direction - The company completed the acquisition of American Pacific Corporation on January 16, 2024, enhancing its Specialty Materials segment with critical performance additives for space and military applications [6] - The company is focused on long-term value creation for shareholders and customers, emphasizing a safety-first culture, customer-focused solutions, and technology-driven products [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued strength in the Petroleum Additives and Specialty Materials segments moving into 2025 and beyond [8] - The company is committed to optimizing inventory levels and improving portfolio profitability while investing in technology to meet customer needs [6] Other Important Information - The company generated solid cash flows throughout the year and made significant payments on its revolving credit facility, returning $128 million to shareholders through dividends and share repurchases [7] - As of December 31, 2024, the net debt to EBITDA ratio improved to 1.2 from 1.9 at the end of Q1 [7] Q&A Session Summary - No specific questions or answers were documented in the provided content, as the call concluded with an invitation for questions via email or phone [10]

Financial Performance - Net income for Q4 2024 was $110.7 million, or $11.56 per share, up from $80.4 million, or $8.38 per share in Q4 2023, representing a 37.5% increase in net income year-over-year[4] - Full year net income for 2024 was $462.4 million, or $48.22 per share, compared to $388.9 million, or $40.44 per share in 2023, reflecting a 19% increase in net income[4] - Net income for the twelve months ended December 31, 2024, was $462,413 thousand, up from $388,864 thousand in 2023, reflecting a year-over-year increase of about 19%[25] - EBITDA for the twelve months ended December 31, 2024, reached $758,430 thousand, compared to $602,941 thousand in 2023, indicating a growth of approximately 25.7%[26] Sales and Revenue - Petroleum additives sales for Q4 2024 were $626.1 million, a decrease from $642.0 million in Q4 2023, while operating profit increased to $135.7 million from $110.4 million due to lower operating costs[5] - Total petroleum additives sales for 2024 were $2.6 billion, down from $2.7 billion in 2023, but operating profit rose to $591.9 million from $514.4 million, driven by efficiency efforts[6] - Specialty materials sales for Q4 2024 were $27.1 million, with full year sales reaching $141.2 million, exceeding pre-acquisition expectations[8] Acquisitions and Investments - The company completed the acquisition of American Pacific Corporation (AMPAC) on January 16, 2024, contributing positively to the specialty materials segment[8] - The company plans to continue investing in technology and enhancing operational efficiency in 2025 to meet customer needs and improve portfolio profitability[7] Debt and Cash Management - The company reduced net debt by $373 million since the AMPAC acquisition, with a Net Debt to EBITDA ratio of 1.2, below the target range of 1.5 to 2.0[11] - Long-term debt rose to $971,281 thousand in 2024 from $643,622 thousand in 2023, an increase of about 50.9%[27] - Net Debt to EBITDA ratio increased to 1.2 in 2024 from 0.9 in 2023, indicating a higher leverage position[27] - Cash and cash equivalents decreased to $77,476 thousand in 2024 from $111,936 thousand in 2023, a decline of approximately 30.8%[24] Capital Expenditures and Dividends - Capital expenditures for 2024 were $57,319 thousand, compared to $48,293 thousand in 2023, reflecting an increase of approximately 18.5%[25] - Cash dividends declared per share increased to $2.50 for Q4 2024, up from $2.25 in Q4 2023, and for the full year, dividends were $10.00 compared to $8.85 in 2023[23] - Dividends paid increased to $95,902 thousand in 2024 from $85,034 thousand in 2023, a rise of about 12.5%[25] Asset Management - Total assets increased to $3,129,541 thousand in 2024 from $2,308,871 thousand in 2023, representing a growth of approximately 35.5%[24] - Inventories increased to $505,426 thousand in 2024, up from $456,234 thousand in 2023, representing an increase of about 10.8%[24] - Accumulated other comprehensive income improved to $32,870 thousand in 2024 from a loss of $21,071 thousand in 2023, indicating a significant recovery[24]