NewMarket (NEU) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $132.3 million ($13.79 per share), up from $111.2 million ($11.60 per share) year-over-year.

• Net sales for Q3 2024 increased 8.7% year-over-year to $724.9 million; nine-month sales rose to $2.13 billion.

• Completed the $697 million acquisition of AMPAC in January 2024, expanding the specialty materials segment.

• Petroleum additives business continued strong performance, focusing on margin management and cost control.

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

Financial highlights

• Petroleum additives Q3 sales were $663 million, nearly flat year-over-year; Q3 operating profit rose to $157.5 million from $139.8 million.

• Specialty materials (AMPAC) contributed $59.1 million in Q3 sales and $16 million in operating profit.

• Gross profit for Q3 2024 was $243.8 million, up from $201.7 million year-over-year; gross margin was 33.6%.

• Cash provided from operating activities for the nine months was $334.4 million; cash used in investing activities was $724.2 million, mainly for the AMPAC acquisition.

• Long-term debt increased to $1.1 billion at September 30, 2024, from $643.6 million at year-end 2023.

Outlook and guidance

• Full-year 2024 results for AMPAC expected to align with pre-acquisition expectations.

• Capital expenditures for 2024 projected in the $50 million–$70 million range.

• Continued focus on long-term value creation, safety, customer solutions, and technology-driven offerings.

• Long-term goal is a 10% compounded annual return for shareholders over any ten-year period.