NewMarket (NEU) - 2024 Q4 - Annual Results

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]