NewMarket Corporation Posts Strong First Quarter 2026 Results Despite Global Uncertainty
Despite the ongoing challenges of a rapidly changing global market, NewMarket Corporation has posted strong financial results for its first quarter 2026.
In a conference call held on April 23rd, Tim Fitzgerald, CFO at NewMarket, highlighted the company's resilience and adaptability in the face of uncertainty. 'We are very pleased with the performance of our petroleum additives business during the first quarter of 2026,' he said, 'and the work done by our team to operate within a rapidly changing environment due to the conflict in the Middle East.'
Net income for the first quarter of 2026 was $118 million, or $12.62 per share, compared to net income of $126 million, or $13.26 per share for the same period in 2025. Petroleum additives sales for the first quarter of 2026 were $610 million, a decline from $646 million in 2025, but operating profit remained strong at $135 million.
The company attributed the decrease in operating profit to a 7% decline in shipments due to softening in the market and its strategic decision to reduce low-margin business. However, it noted an increase in shipments towards the end of the first quarter.
NewMarket's focus on investing in technology and improving operational efficiency has allowed it to navigate these challenges successfully, according to Fitzgerald. 'We have implemented price adjustments to account for the escalating cost of raw materials, utilities, and logistics,' he explained, 'and we have rebalanced our global production to make sure we are meeting customer demands in a dynamically evolving market.'
The company's specialty materials segment also reported solid sales growth, with $58 million in revenue compared to $54 million for the same period in 2025. This was largely due to the inclusion of the newly acquired Calca Solutions business.
Despite these positives, NewMarket did experience a decline in operating profit for its specialty materials segment, mainly due to changes in quarterly shipment mix at AMPAC compared to last year. However, this was attributed to the nature of the business and not seen as a cause for concern by the company.
The conference call also highlighted the company's commitment to returning value to its shareholders, with $154 million returned through share repurchases and dividends in the first quarter alone. The net debt to EBITDA ratio stood at 1.2 times as of March 31st, 2026.
NewMarket continues to focus on long-term value creation for its stakeholders, driven by core principles that include a long-term perspective, safety-first culture, customer-focused solutions, technology-driven products, and a world-class supply chain. As the company looks ahead to 2026, it remains committed to making decisions that promote long-term value while staying focused on its objectives.
