NewMarket (NEU) investor relations material

Executive summary

• Net income for Q1 2026 was $118.1 million ($12.62 per share), down from $125.9 million ($13.26 per share) in Q1 2025.

• Net sales for Q1 2026 were $669.7 million, a 4.5% decrease year-over-year, mainly due to lower petroleum additives shipments, partially offset by higher specialty materials sales from the Calca acquisition.

• Operating profit declined to $143.2 million from $159.9 million year-over-year, with both petroleum additives and specialty materials segments experiencing lower operating profits.

• Over 200,000 shares were repurchased for $125.6 million, and dividends paid totaled $28.0 million.

• Management remains focused on long-term value creation, operational efficiency, and technology investment.

Financial highlights

• Petroleum additives sales declined to $609.8 million from $645.6 million year-over-year, with operating profit at $135 million versus $142.1 million.

• Specialty materials sales rose to $58.1 million from $53.7 million, driven by the Calca acquisition, but operating profit fell to $12.4 million from $23.2 million due to shipment mix changes.

• Gross profit for Q1 2026 was $220.9 million, down from $236.0 million year-over-year.

• Cash flows enabled $154 million returned to shareholders via $126 million in share repurchases and $28 million in dividends.

• Net debt to EBITDA ratio stood at 1.2x as of March 31, 2026.

Outlook and guidance

• The company expects continued market softness in petroleum additives for 2026 but anticipates solid segment results.

• Positive shipment trends at the end of Q1 2026 are expected to support continued solid results.

• Capital expenditures for 2026 are projected at $100–$150 million, including a major expansion at AMPAC.

• Management remains focused on cost control, margin management, and integration of recent specialty materials acquisitions.

• Specialty materials segment capacity expansion expected to come online by end of 2026.