NewMarket Corporation (NYSE:NEU) reported its fourth‑quarter and full‑year 2025 financial results, showing a 3.0% year‑over‑year decline in revenue to $635.4 million for the quarter and a 2.0% drop in full‑year sales to $2.73 billion. The company’s operating profit for the quarter was $106.8 million, while full‑year operating profit totaled $567.1 million, reflecting a 9.4% decline from 2024.
Revenue fell as lower petroleum‑additive shipments and reduced selling prices weighed on the core business. The petroleum‑additives segment generated $585.1 million in the quarter, a 6.5% decline from $626.1 million in Q4 2024, and contributed $520.1 million to full‑year operating profit. In contrast, the specialty‑materials segment grew 79% to $48.5 million in the quarter and added $47.0 million to full‑year operating profit, driven by acquisitions of American Pacific Corporation and Calca Solutions.
Operating profit margins contracted across the company. The overall operating margin slipped to 20.8% from 22.1% in 2024, largely due to margin compression in the petroleum‑additives segment, where lower volumes and pricing pressure reduced profitability. The specialty‑materials segment maintained a higher margin, offsetting some of the decline in the core business.
Management highlighted the mixed performance of the two segments. "Thomas E. Gottwald, Chairman and CEO, stated that the company is 'pleased with the performance of both our petroleum additives and specialty materials segments during 2025.' He also noted that they are 'experiencing impacts to the petroleum additives segment due to market softness and the uncertain global economic environment in which we operate. Nonetheless, we anticipate continued solid results from this segment.' He further added, 'We will continue to invest in technology to serve our customers, focus on cost control and margin management, and advance our initiatives to build a global manufacturing network that will enable more efficient product delivery to our customers in the years ahead.'"
The company maintained its commitment to shareholder returns, completing a $77.2 million share‑repurchase program and paying a $105.9 million dividend in 2025. Net income for the year was $418.7 million, or $44.44 per share, down from $462.4 million ($48.22 per share) in 2024, reflecting higher effective tax rates and the impact of lower petroleum‑additive volumes.
NewMarket’s strategic focus on specialty materials continues to pay dividends, with the segment’s revenue rising to $182.5 million for the year, up from $27.1 million in 2024, driven by the recent acquisitions. The company also announced plans to expand AMPAC’s ammonium perchlorate production capacity by over 50% by the end of 2026, positioning it to capture growth in the specialty chemicals market while managing debt, which stands at a Net Debt to EBITDA ratio of 1.1 as of December 31, 2025.
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