NewMarket Corp Q1 Net Income Falls 6% to $118.1M as Revenue Declines

NewMarket Corporation, a specialty chemicals manufacturer, posted net income of $118.1 million for the quarter ending March 31, 2026, down from $125.9 million in the same period last year. Diluted earnings per share fell to $12.62 from $13.26. Read more earnings reports.

Revenue for the quarter totaled $669.7 million, a decline of 4% from $700.9 million in the first quarter of 2025. The company's petroleum additives segment generated $609.8 million in revenue, down 6% from $645.6 million in the prior-year quarter. The specialty components business reported revenue of $58.1 million, up 8% from $53.7 million a year earlier.

Operating income fell to $143.2 million from $159.9 million in the first quarter of 2025, a decrease of 10%. Gross profit declined to $220.9 million from $236.0 million, as cost of goods sold dropped to $448.8 million from $464.9 million.

Operating Expenses and Margins

Research and development expenses decreased to $31.6 million from $33.2 million year-over-year. Selling, general and administrative expenses rose to $46.0 million from $43.0 million in the first quarter of 2025.

Interest expense declined to $8.8 million from $10.7 million in the prior-year period. Income tax expense totaled $33.6 million compared to $38.2 million a year earlier.

Cash Flow and Balance Sheet

Cash from operations strengthened to $124.0 million from $120.3 million in the first quarter of 2025. Cash used in investing activities increased to $23.2 million from $13.0 million, while cash used in financing activities rose to $100.9 million from $68.5 million.

Total assets stood at $3.50 billion as of March 31, 2026, up slightly from $3.49 billion at year-end 2025. Cash and cash equivalents declined to $73.2 million from $77.6 million at December 31, 2025. Inventory decreased to $495.0 million from $502.3 million.

Long-term debt increased to $939.6 million from $883.4 million at the end of 2025. Total stockholders' equity declined to $1.73 billion from $1.78 billion at December 31, 2025.

Common shares outstanding fell to 9.20 million from 9.40 million at year-end, reflecting share repurchase activity during the quarter.

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