NewMarket Q1 Net Income Falls to $118M, Returns $154M to Shareholders
NewMarket Corp posted Q1 2026 net income of $118 million, down from $126 million, as Petroleum Additives sales fell to $610 million on a 7% shipment drop. Specialty Materials sales rose with Calca Solutions’ inclusion, operating margin stayed firm and $154 million was returned to shareholders.
1. Q1 Financial Results
NewMarket Corp reported Q1 2026 net income of $118 million, down from $126 million in Q1 2025. Operating profit margin remained strong despite lower shipment volumes across key segments.
2. Petroleum Additives Decline
Petroleum Additives sales declined to $610 million from $646 million year-over-year, reflecting a 7% drop in shipments due to market softening and strategic reduction of low-margin business. Operating profit in the segment also decreased accordingly.
3. Specialty Materials Growth
Specialty Materials sales increased with the October 2025 Calca Solutions acquisition, though segment operating profit fell from $23 million to $12 million due to a shift in shipment mix at AMPAC. Management expects ongoing quarterly variability.
4. Cash Flow and Shareholder Returns
Robust cash flows allowed NewMarket to return $154 million through share repurchases and dividends. The company implemented price adjustments and rebalanced global production to address rising raw material, utility and logistics costs driven by geopolitical tensions.