Key Highlights

  • Net income rose 23.8% to USD 124.1 million, equal to USD 13.50 per share versus USD 10.67.
  • Net sales increased 3.8% to USD 716.5 million, with specialty materials sales up 62% to USD 62.0 million.
  • Petroleum additives shipments fell 8%, yet segment operating profit held near USD 131 million after surcharges offset costs.
  • Net debt to EBITDA improved to 1.0 times, with nine-month buybacks of USD 126.4 million.

NewMarket Corporation (NYSE:NEU) reported third-quarter 2026 net income of USD 124.1 million, or USD 13.50 per share, compared with USD 100.3 million, or USD 10.67, a year earlier. Net sales rose 3.8% to USD 716.5 million from USD 690.3 million. No consensus estimate was available for either measure, so the comparison here is against the prior-year quarter.

Chairman and chief executive Thomas Gottwald credited higher operating profit and a lower effective tax rate for the increase. Operating profit was USD 142.9 million against USD 130.7 million, while income tax expense fell to USD 27.0 million from USD 35.3 million on pretax income that rose to USD 151.1 million from USD 135.6 million.

Segment Results and Cost Pressures

Petroleum additives sales were USD 651.0 million, nearly unchanged from USD 649.1 million, and segment operating profit was USD 130.9 million versus USD 131.3 million. Shipments declined 8% on softness in lubricant additives, but surcharges put in place to offset higher costs from Middle East supply chain disruptions, together with operational efficiency efforts, sustained margins. Over nine months, shipments were down 6%, partly reflecting a deliberate decision to reduce low-margin business.

Specialty materials sales rose to USD 62.0 million from USD 38.2 million, and operating profit climbed to USD 16.4 million from USD 6.0 million. The company pointed to a shift in shipment mix and the Calca Solutions business acquired on October 1, 2025, and noted that quarterly results in this segment can vary. Gross profit was USD 222.4 million, selling, general and administrative expense rose to USD 48.9 million, and research and development fell to USD 30.5 million.

Cash Flow, Capital Returns and Risk Factors

For nine months, net income was USD 375.9 million, or USD 40.64 per share, against USD 337.5 million, or USD 35.78. The company spent USD 88.5 million on capital expenditures, paid USD 83.1 million in dividends and repurchased more than 200 thousand shares for USD 126.4 million, together totaling almost USD 300 million. Long-term debt stood at USD 830.1 million with cash of USD 77.3 million, giving net debt of USD 752.7 million.

Management said it continues to monitor the conflict in the Middle East, the uncertain macroeconomic environment and changes in trade relations and tariffs. Petroleum additive surcharges remain in place, and capacity expansion projects for ammonium perchlorate and high-purity hydrazine are scheduled for completion by the end of 2026. The release did not provide numerical guidance.

Developments to Follow

Four items frame the next report. Petroleum additives volume is first, since shipments fell 8% in the quarter and 6% over nine months. Surcharges are second, as they remain in place against higher raw material, utility and logistics costs. Third is the specialty materials segment, where sales of USD 62.0 million include the Calca business and both capacity expansions are due by year end. Fourth is capital allocation, with net debt to EBITDA at 1.0 times, down from 1.1 times at the end of 2025, and a dividend of USD 3.00 per share declared in the quarter.