Q2 2026 NewMarket Corp Earnings Call Transcript
Key Points
- Net income for Q2 2026 increased to $134 million, or $14.54 per share, up from $111 million, or $11.84 per share, in Q2 2025.
- Petroleum Additives operating profit rose to $149 million in Q2 2026 from $140 million in the prior year, driven by surcharges implemented in response to higher costs.
- Specialty Materials sales nearly doubled to $67 million in Q2 2026, with operating profit doubling to $22 million, reflecting strong performance from the Calca acquisition.
- The company generated solid cash flow, enabling $182 million returned to shareholders through dividends and share repurchases in the first half of 2026.
- Net debt to EBITDA ratio improved to 1.0 times as of June 30, 2026, indicating a strong balance sheet.
- Investments in expanding production capacity for ammonium perchlorates and high purity hydrogen are on track to come online by the end of 2026, supporting domestic critical chemical production.
- Petroleum Additives sales for the first half of 2026 were essentially flat at $1.3 billion compared to the same period in 2025.
- Specialty Materials operating profit for the first half of 2026 was essentially flat at $35 million compared to the first half of 2025, despite higher sales.
- The company faces ongoing supply chain disruptions in the Middle East, which have increased costs and required surcharges to mitigate.
- Quarterly results for the Specialty Materials segment are expected to vary substantially due to the nature of the business, creating uncertainty.
- The company's performance is heavily dependent on managing costs and efficiency in a rapidly changing geopolitical environment.
Greetings and welcome to the NewMarket Corporation scheduled conference call and webcast to review second quarter 2026 financial results. (Operator Instructions) Please note this conference call is being recorded.
I will now turn the conference over to your host, Mr. Tim Fitzgerald, Chief Financial Officer with NewMarket Corporation. Sir, the floor is yours.
Thank you and thanks to everyone for joining me this afternoon. As a reminder, some of the statements made during this conference call may be forward-looking, relevant factors that could cause actual results to differ materially from those forward-looking statements are contained in our earnings release and in our SEC filings, including our most recent Form 10-K.
During this call, we will also discuss the non-GAAP financial measures included in our earnings release. The earnings release, which can be found on our website, includes a reconciliation of the non-GAAP financial measures to the comparable GAAP
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