NewMarket (US:NEU)2025-04-23 21:19Financial 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]