NewMarket (NEU) investor relations material

Executive summary

• Record first half 2025 net income was $237M ($25.11/share), up from $219M ($22.87/share) in 2024, with Q2 net income at $111.2M ($11.84/share), nearly flat year-over-year.

• Net sales for Q2 2025 were $698.5M, down 1.7% year-over-year; six-month sales were $1.4B, down 0.5% from 2024.

• Petroleum additives segment saw a 3.5% sales decline and 5.6% drop in operating profit for the first half, mainly due to lower shipments and higher costs.

• Specialty materials segment reported higher sales and operating profit, driven by increased volumes post-AMPAC acquisition.

• Financial position remains strong with ample liquidity, reduced debt, and compliance with all debt covenants.

Financial highlights

• Q2 2025 net income was $111.2M; six-month net income was $237.2M, up from $219.4M year-over-year.

• Petroleum additives Q2 2025 sales: $654M (down from $670M); six-month sales: $1.3B (flat); operating profit Q2: $140M (down from $148M); six-month: $282M (down from $299M).

• Specialty materials Q2 2025 sales: $42M (up from $38M); six-month sales: $96M (up from $55M); operating profit Q2: $11M (up from $5M); six-month: $34M (up from breakeven).

• Gross profit for Q2 2025 was $221M; six-month gross profit was $457M, up from $435M year-over-year.

• Operating profit for Q2 2025 was $143M; six-month operating profit was $303M, up from $288M in 2024.

Outlook and guidance

• Management anticipates continued strength in specialty materials and is planning AMPAC capacity expansion.

• Petroleum additives may face continued headwinds in 2025 due to global economic uncertainty, but long-term fundamentals remain positive.

• Committed to long-term value creation, technology investment, and supply chain excellence.

• Capital spending for 2025 projected at $70M–$100M, including up to $100M for AMPAC expansion.

• Goal remains a 10% compounded annual return for shareholders over any ten-year period.