NewMarket (NEU) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $112 million ($11.63 per share), up from $100 million ($10.36 per share) year-over-year; six-month net income reached $219.4 million ($22.87 per share).

• Net sales for Q2 2024 increased 3.7% year-over-year to $710.2 million; six-month sales rose to $1.41 billion.

• Petroleum additives operating profit rose to $148 million, driven by lower costs and higher shipments; segment delivered strong results.

• Completed $697 million acquisition of AMPAC in January 2024, expanding into specialty materials for defense and space.

• Entered new $900 million revolving credit facility and $250 million term loan in January 2024.

Financial highlights

• Q2 2024 gross profit was $218.5 million, up from $195.6 million year-over-year; six-month gross profit was $434.8 million.

• Q2 2024 operating profit rose to $146.9 million from $124.2 million; six-month operating profit was $287.8 million.

• Q2 2024 EPS was $11.63, up from $10.36; six-month EPS was $22.87.

• Cash and cash equivalents at June 30, 2024 were $87.6 million, down $24.3 million from year-end 2023.

• Long-term debt increased to $1.17 billion from $643.6 million at year-end 2023.

Outlook and guidance

• Capital expenditures for 2024 are expected to be in the $50–$70 million range, funded by operations and available credit.

• Continued strength anticipated in petroleum additives and ongoing integration of AMPAC; full-year specialty materials results expected to align with pre-acquisition expectations.

• Focus remains on cost control, margin management, and long-term value creation.