NewMarket Q3 2025 Results: Profits Dip Despite Segment Strength
NewMarket Corporation has reported its Q3 2025 financial results, showing a dip in profits despite continued strength in key segments. The company plans to press ahead with investments and integrations, including the recent acquisition of Calca Solutions.
Petroleum Additives, a core segment, saw sales drop to $649 million from $670 million last year, with operating profit falling to $131 million from $140 million. Specialty Materials also experienced a decline, with sales down to $38 million from $59 million and operating profit at $6 million from $11 million. Despite these setbacks, management expects both segments to remain strong.
The company's net income for the quarter was $100 million, or $10.67 per share, down from $132 million, or $13.79 per share, in Q3 2024. NewMarket attributed these challenges to inflation, tariff impacts, and market softness, particularly in the petroleum additives segment. However, the company has returned $155 million to shareholders through share repurchases and dividends in the first nine months of 2025, and net debt has been reduced by $213 million, lowering the net debt-to-EBITDA ratio to 0.9x.
NewMarket has announced a 9% increase in its quarterly dividend to $3 per share, effective for the January 2, 2026 payment. Looking ahead, the company plans to continue investing in technology, inventory optimization, and portfolio profitability, as well as integrating the recently acquired Calca Solutions. Despite recent setbacks, NewMarket remains committed to driving growth and value for shareholders.
