NewMarket (NEU) - 2025 Q4 - Annual Results

Financial Performance - Income before income tax expense for Q4 2025 was $113.2 million, down from $134.2 million in Q4 2024[4] - Net income for Q4 2025 was $81.3 million, or $8.65 per share, compared to $110.7 million, or $11.56 per share, in Q4 2024[4] - Net income for Q4 2025 was $81,285, a decrease of 26.6% from $110,739 in Q4 2024; total net income for 2025 was $418,747, down 9.4% from $462,413 in 2024[23] - Earnings per share for Q4 2025 were $8.65, down from $11.56 in Q4 2024; total earnings per share for 2025 were $44.44, compared to $48.22 in 2024[23] Sales Performance - Petroleum additives sales for Q4 2025 were $585.1 million, a decrease of 6.6% from $626.1 million in Q4 2024[5] - Full year 2025 petroleum additives sales totaled $2.5 billion, down from $2.6 billion in 2024, with a 4.9% decline in shipments[6] - Specialty materials sales for Q4 2025 increased to $48.5 million from $27.1 million in Q4 2024, driven by increased volumes and acquisitions[7] - Full year 2025 specialty materials sales reached $182.5 million, up from $141.2 million in 2024, with operating profit rising to $47 million from $17.5 million[8] - Net sales for Q4 2025 were $635,403, a decrease of 2.0% from $654,647 in Q4 2024; total net sales for 2025 were $2,725,169, down 2.2% from $2,786,558 in 2024[23] Profitability - Gross profit for Q4 2025 was $190,779, representing a gross margin of 30.0%, compared to $207,686 and a margin of 31.7% in Q4 2024; total gross profit for 2025 was $857,400, down 3.3% from $886,346 in 2024[23] - Operating profit for Q4 2025 was $110,028, a decline of 17.1% from $132,761 in Q4 2024; total operating profit for 2025 was $543,725, down 7.8% from $590,036 in 2024[23] Cash Flow and Investments - The company generated strong operating cash flows, paying dividends of $105.9 million and repurchasing $77.2 million in common stock in 2025[11] - The company is committed to investing approximately $1 billion in the specialty materials segment to enhance capacity and efficiency[10] - Capital expenditures for 2025 were $77,637, up from $57,319 in 2024; acquisition of businesses net of cash acquired was $213,447 in 2025, significantly lower than $681,479 in 2024[25] Debt and Assets - The net debt to EBITDA ratio improved to 1.1 as of December 31, 2025, after reducing long-term debt by $87.9 million[11] - Total assets increased to $3,492,465 in 2025, up 11.6% from $3,129,541 in 2024[24] - Total liabilities rose to $1,714,222 in 2025, an increase of 2.8% from $1,667,958 in 2024[24] - Net debt decreased to $805,793 in 2025 from $893,805 in 2024, with a net debt to EBITDA ratio of 1.1 compared to 1.2 in 2024[27] Dividends - Cash dividends declared per share increased to $3.00 in Q4 2025 from $2.50 in Q4 2024; total dividends paid for 2025 were $105,931, compared to $95,902 in 2024[23] Future Outlook - The company plans to expand production in the specialty materials segment, expecting increased capacity to come online by the end of 2026[12]