NewMarket (US:NEU)2025-07-30 21:23NewMarket Corporation Q2 & H1 2025 Earnings Report Financial Highlights 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 Segment Performance The Petroleum Additives segment's profit declined on lower volumes, while the Specialty Materials segment saw significant profit growth Petroleum Additives 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 investments4 - Shipment volumes decreased by 2.5% in Q2 YoY and 4.9% in H1 YoY, with declines across lubricant and fuel additives45 Specialty Materials 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 volumes6 - H1 2024 results only reflect performance since the acquisition of American Pacific Corporation (AMPAC) on January 16, 20247 Cash Flow and Capital Management 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, 20258 Management Commentary and Outlook 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 initiatives10 - Priorities for the remainder of 2025 include investing in technology, enhancing operational efficiency, and improving portfolio profitability10 - The company is actively monitoring the uncertain macroeconomic environment, particularly changes in international trade relations and tariffs11 Consolidated Financial Statements Segment Results and Other Financial Information 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 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=