NewMarket Corporation Highlights 2025 Earnings Report
- Net Income Decline: NewMarket reported a net income of $418.7 million and earnings per share of $44.44 for 2025, down from $462.4 million and $48.22 in 2024, primarily due to an increased effective tax rate, indicating pressure on profitability.
- Petroleum Additives Sales Drop: Sales for petroleum additives reached $2.5 billion in 2025, down from $2.6 billion in 2024, with operating profit at $520.1 million, a decline from the record $591.9 million, reflecting market softness and strategic adjustments in low-margin businesses.
- Specialty Materials Growth: Specialty materials sales hit $182.5 million in 2025 with an operating profit of $4.7 million, significantly up from 2024, driven by acquisitions of AMPAC and Calca, showcasing expansion potential in high-tech materials.
- Strong Cash Flow Performance: The company generated robust cash flows in 2025, paying $105.9 million in dividends, repurchasing $77.2 million in stock, and reducing long-term debt by $87.9 million, resulting in a net debt to EBITDA ratio of 1.1, indicating solid financial management.
Trade with 70% Backtested Accuracy
Analyst Views on NEU
About NEU
About the author

- Net Income Decline: NewMarket reported a net income of $418.7 million and earnings per share of $44.44 for 2025, down from $462.4 million and $48.22 in 2024, primarily due to an increased effective tax rate, indicating pressure on profitability.
- Petroleum Additives Sales Drop: Sales for petroleum additives reached $2.5 billion in 2025, down from $2.6 billion in 2024, with operating profit at $520.1 million, a decline from the record $591.9 million, reflecting market softness and strategic adjustments in low-margin businesses.
- Specialty Materials Growth: Specialty materials sales hit $182.5 million in 2025 with an operating profit of $4.7 million, significantly up from 2024, driven by acquisitions of AMPAC and Calca, showcasing expansion potential in high-tech materials.
- Strong Cash Flow Performance: The company generated robust cash flows in 2025, paying $105.9 million in dividends, repurchasing $77.2 million in stock, and reducing long-term debt by $87.9 million, resulting in a net debt to EBITDA ratio of 1.1, indicating solid financial management.
- Revenue and Net Income Decline: In Q4 2025, net income was $81.3 million, or $8.65 per share, significantly down from $110.7 million and $11.56 per share last year, reflecting pressures from market softness and a higher effective tax rate.
- Petroleum Additives Sales Drop: Q4 2025 petroleum additives sales were $585.1 million, down from $626.1 million in Q4 2024, primarily due to a 6% decline in shipments and lower selling prices, leading to operating profit dropping to $106.8 million, impacting overall profitability.
- Specialty Materials Growth: Specialty materials sales reached $48.5 million in Q4 2025, up from $27.1 million last year, with operating profit increasing from $1.5 million to $7.3 million, showcasing the positive impact of AMPAC and Calca acquisitions.
- Cash Flow and Shareholder Returns: The company generated strong cash flows in 2025, paying $105.9 million in dividends and repurchasing $77.2 million in stock while reducing long-term debt by $87.9 million, demonstrating financial resilience amid an uncertain economic environment.
- Earnings Highlights: NewMarket reported Q4 GAAP EPS of $8.65, maintaining stable profitability; however, revenue declined by 2.9% year-over-year to $635.4 million, indicating growth challenges faced by the company.
- Revenue Decline Reasons: The revenue drop is primarily attributed to weak market demand and increased competition, putting pressure on the company to maintain sales, which could impact future profitability and investor confidence.
- Cash Return Performance: Despite the revenue decline, NewMarket continues to provide strong cash returns, demonstrating effective capital management that may attract investors seeking stable income.
- Growth Outlook Analysis: Analysts suggest that NewMarket's earnings growth may face a ceiling, indicating a need for the company to identify new growth drivers to adapt to changing market conditions and maintain competitiveness.

- Sales Forecast: Neuren Pharmaceuticals anticipates that its prescription drug DAYBUE for Rett syndrome will achieve global net sales of $700 million by 2028, reflecting strong growth potential in the market.
- Patient Treatment: Since its U.S. launch, over 2,000 Rett patients have been treated with DAYBUE, with a 12-month treatment persistency increase of 55%, indicating high patient reliance and satisfaction with the drug.
- Market Expansion: The company continued to expand its U.S. customer-facing teams in the second quarter of 2025, further driving DAYBUE sales growth, which underscores its strategic focus on market penetration and customer service.
- New Product Launch: The DAYBUE STIX formulation is set to launch in the U.S. in the first quarter of 2026, with a full commercial rollout planned for the second quarter, marking a significant enhancement of the company's product line and competitive positioning.
- Oversold Condition: NewMarket Corp's stock price fell to $695.94 on Tuesday, with an RSI reading of 29.7 indicating an oversold condition, suggesting potential buying opportunities for investors.
- Dividend Yield: Based on the current price of $704.44, NEU's annualized dividend of $12 per share translates to a yield of 1.70%, making it an attractive option for dividend investors seeking higher returns.
- Market Comparison: NEU's low RSI compared to the average RSI of 52.0 for covered dividend stocks suggests that recent heavy selling may be exhausting, drawing interest from bullish investors.
- Investor Strategy: While dividends are not always predictable, analyzing NEU's dividend history can assist investors in assessing the likelihood of continued payments, enabling more informed investment decisions.

Stock Performance: NewMarket Corporation's share price has increased by 137% over the last three years, with a recent 2.8% rise, indicating strong market sentiment aligned with its earnings per share (EPS) growth of 33% annually.
Total Shareholder Return: The total shareholder return (TSR) for NewMarket over the past three years is 151%, surpassing its share price return, largely due to dividends that have enhanced overall returns.
Recent Growth: NewMarket has delivered a 46% TSR in the last twelve months, suggesting improved business momentum compared to a 17% annualized return over the past five years.
Investment Considerations: While NewMarket shows promising returns, potential investors should be aware of one warning sign and consider insider buying trends before making investment decisions.








