10-K · February 12, 2026
NewMarket completed the acquisition of Calca on October 1, 2025 and is positioning its specialty materials businesses (AMPAC and Calca) as growth drivers while Afton (petroleum additives) remains a top-four global…
Earnings analysis · 10-Q
NEU earnings analysis
Filed April 23, 2026 · Our reading of the company's report
The latest report
NewMarket reported Q1 2026 net sales of $669.7 million, down $31.2 million or 4.5% versus Q1 2025, and diluted EPS of $12.62 (down from $13.26 in Q1 2025). Petroleum additives sales fell to $609.8 million (down 5.5%)…
Read full summary
NewMarket reported Q1 2026 net sales of $669.7 million, down $31.2 million or 4.5% versus Q1 2025, and diluted EPS of $12.62 (down from $13.26 in Q1 2025). Petroleum additives sales fell to $609.8 million (down 5.5%) with operating profit of $135.0 million (down $7.1 million), while specialty materials sales rose to $58.1 million but specialty operating profit fell to $12.4 million (down $10.8 million). Operating cash flow remained robust at $124.0 million; management expects 2026 capital spending of $100 million to $150 million and continues to repurchase shares.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $12.62
What stood out
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Solid operating cash generation
Cash provided from operating activities was $124.0 million for Q1 2026 (MD&A, 'Cash provided from operating activities for the first three months of 2026 was $124.0 million').
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Specialty revenue lifted by acquisition
Specialty materials net sales increased to $58.1 million in Q1 2026 from $53.7 million in Q1 2025 reflecting the October 1, 2025 Calca acquisition ('Total net sales for the specialty materials segment were $58.1 million ... compared to $53.7').
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Active capital allocation to shareholders
During Q1 2026 the company repurchased $125.6 million of common stock and paid cash dividends of $28.0 million (MD&A, 'repurchases of our common stock of $125.6 million' and 'cash dividends of $28.0 million').
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Deleveraged covenant headroom
Leverage Ratio under the revolving credit facility was 1.36 at March 31, 2026 and the company was in compliance with all debt covenants (MD&A, 'At March 31, 2026, the Leverage Ratio was 1.36' and 'in compliance with all covenants').
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High working capital / liquidity position
Total working capital was $647.5 million at March 31, 2026 and the current ratio was 2.55 (MD&A, 'total working capital of $647.5 million' and 'current ratio was 2.55').
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Lower interest cost y/y
Interest and financing expenses decreased to $8.8 million in Q1 2026 from $10.7 million in Q1 2025 (MD&A, 'Interest and financing expenses were $8.8 million ... and $10.7 million').
What to watch
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Revenue and EPS decline y/y
Consolidated net sales were $669.7 million, down $31.2 million or 4.5% from $700.9 million in Q1 2025, and diluted EPS declined to $12.62 from $13.26 (MD&A, 'Consolidated net sales ... totaled $669.7 million, representing a decrease of $31.2 million, or 4.5%' and press release / earnings).
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Petroleum additives shipments and sales weakness
Petroleum additives net sales fell to $609.8 million in Q1 2026, down $35.7 million or 5.5% from $645.5 million in Q1 2025, driven by a 6.9% worldwide decline in petroleum additives product shipments (MD&A, 'Petroleum additives net sales ... were $609.8 million, a decrease of $35.7 million, or 5.5%' and 'volume of product shipments for petroleum additives decreased 6.9%').
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Specialty operating profit compression
Specialty materials operating profit fell to $12.4 million in Q1 2026 from $23.2 million in Q1 2025 (down $10.8 million), attributed to shipment mix at AMPAC (MD&A, 'operating profit of $12.4 million ... as compared to $23.2 million' and 'primarily the result of a shift in quarterly product shipment mix at AMPAC').
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Rising long-term debt and higher leverage share
Long-term debt increased to $939.6 million at March 31, 2026 from $883.4 million at December 31, 2025 (MD&A, 'Our long-term debt was $939.6 million ... compared to $883.4 million'). Debt as a percentage of total capitalization rose to 35.2% from 33.2% (MD&A, 'total long-term debt percentage increased from 33.2% ... to 35.2%').
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Quarterly volatility in specialty segment
Management warns that the specialty materials segment may experience substantial variation quarter-to-quarter ('We may experience substantial variation in quarterly results for the specialty materials segment').
Management's outlook
No numeric consolidated revenue or EPS guidance provided. Management expects the petroleum additives segment to 'experience impacts to its operating performance during 2026' but 'anticipate[s] solid results' and 'anticipates specialty capacity to come online toward the end of 2026.' Company expects 2026 capital spending to be in the $100 million to $150 million range and an AMPAC expansion project 'of up to $100 million' expected to complete toward the end of 2026 (MD&A, 'total capital spending during 2026 will be in the $100 million to $150 million range' and 'project of up to $100 million ... expected to be completed towards the end of 2026').
Earlier filings 4
10-Q · July 31, 2025
NewMarket reported Q2 net sales of $698,509 (in thousands), down 1.7% year-over-year, with gross margin roughly 31.6% and consolidated operating profit of $143,152 (in thousands). Diluted EPS was $11.84 versus $11.63 in…
10-Q · April 27, 2023
NewMarket reported Q1 net sales of $702,789,000 (up $40,237,000 or 6.1% year-over-year) and net income of $97,583,000, producing diluted EPS of $10.09 versus $5.75 a year earlier. Gross profit rose to $198,044,000 and…
10-Q · October 25, 2022
NewMarket reported Q3 net sales of $696,049,000 (up from $622,207,000) and diluted EPS of $6.32 (up from $4.80) for the quarter ended September 30, 2022. Segment results were driven by higher selling prices with…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.