NewMarket Corporation Reports Fourth Quarter and Full Year 2025 Results

Core Viewpoint - NewMarket Corporation reported a decline in net income for both the fourth quarter and full year of 2025, primarily due to a higher effective income tax rate and market softness in the petroleum additives segment [1][2]. Financial Performance - For the fourth quarter of 2025, net income was $81.3 million, or $8.65 per share, down from $110.7 million, or $11.56 per share in the same period of 2024 [1][3]. - Full year 2025 net income was $418.7 million, or $44.44 per share, compared to $462.4 million, or $48.22 per share in 2024 [1][3]. - Income before income tax expense for the fourth quarter was $113.2 million, compared to $134.2 million in 2024, and for the full year, it was $560.6 million, down from $584.1 million in 2024 [1][3]. Segment Performance - Petroleum additives sales for Q4 2025 were $585.1 million, down from $626.1 million in Q4 2024, with operating profit decreasing to $106.8 million from $135.7 million [1][3]. - Full year petroleum additives sales were $2.5 billion, down from $2.6 billion in 2024, with operating profit at $520.1 million compared to $591.9 million in 2024 [1][3]. - Specialty materials sales for Q4 2025 increased to $48.5 million from $27.1 million in Q4 2024, with operating profit rising to $7.3 million from $1.5 million [1][3]. - Full year specialty materials sales were $182.5 million, up from $141.2 million in 2024, with operating profit increasing to $47.0 million from $17.5 million [1][3]. Cash Flow and Investments - The company generated strong operating cash flows in 2025, paying dividends of $105.9 million and repurchasing common stock for $77.2 million [1][3]. - Capital expenditures for 2025 were $77.6 million, and long-term debt was reduced by $87.9 million, resulting in a Net Debt to EBITDA ratio of 1.1 as of December 31, 2025 [1][3]. Future Outlook - The company anticipates continued solid results from the petroleum additives segment despite current market challenges and plans to invest in technology and expand production capacity in the specialty materials segment [1][2]. - The company is monitoring the macroeconomic environment, particularly international trade relations and tariffs, to assess potential impacts on operations [1][2].