NewMarket reported higher earnings for the third quarter and first nine months of 2026, with net income rising in both periods from a year earlier. The increase reflected higher operating profit and a lower effective tax rate. Petroleum additives remained the company’s largest reported business, while specialty materials posted substantial growth in sales and operating profit.
Cash generated by operations in the first nine months supported nearly $300 million in share repurchases, capital spending and dividends. NewMarket also reduced its net debt-to-EBITDA ratio to 1.0 times.
Earnings and petroleum additives
– Third-quarter net income was $124.1 million, or $13.50 per share, up from $100.3 million, or $10.67 per share, in the same period of 2025.
– For the first nine months, net income was $375.9 million, or $40.64 per share, compared with $337.5 million, or $35.78 per share, a year earlier.
– Third-quarter petroleum additives sales were $651.0 million, little changed from $649.1 million a year earlier. Operating profit was also nearly flat at $130.9 million, versus $131.3 million.
– Shipments in the additives business fell 8% in the quarter amid softer lubricant-additives markets. NewMarket said surcharges helped offset higher costs related to Middle East supply-chain disruptions, while operating efficiencies supported margins.
– For the first nine months, petroleum additives sales were $1.9 billion, roughly unchanged year over year, and operating profit rose to $415.3 million from $413.2 million. Shipments declined 6%, reflecting both market softness and the company’s earlier decision to reduce lower-margin business.
Specialty materials
– Third-quarter sales increased to $62.0 million from $38.2 million, while operating profit rose to $16.4 million from $6.0 million. The company attributed the sales increase to product mix and the addition of Calca Solutions, acquired on Oct. 1, 2025; improved product mix drove the higher operating profit.
– For the first nine months, sales were $187.3 million, up from $133.9 million, and operating profit reached $51.2 million, compared with $39.7 million.
– NewMarket said quarterly results in the segment can vary. It expects capacity expansion projects for ammonium perchlorate and high-purity hydrazine to be completed by the end of 2026.
Cash use and debt
– During the first nine months, NewMarket spent $88.5 million on capital expenditures, paid $83.1 million in dividends and repurchased more than 200,000 shares for $126.4 million—a combined total of $298 million.
– The company said operating cash flow funded those uses and helped reduce its net debt-to-EBITDA ratio to 1.0 times.
The results show a contrast between the two businesses: petroleum additives held operating profit roughly steady despite lower shipments, while specialty materials grew, with the acquisition contributing to its sales increase.