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1. Company Snapshot

1.a. Company Description

NewMarket Corporation, through its subsidiaries, engages in the petroleum additives business.The company offers lubricant additives for use in various vehicle and industrial applications, including engine oils, transmission fluids, off-road powertrain and hydraulic systems, gear oils, hydraulic oils, turbine oils, and other applications where metal-to-metal moving parts are utilized; engine oil additives designed for passenger cars, motorcycles, on and off-road heavy duty commercial equipment, locomotives, and engines in ocean-going vessels; driveline additives designed for products, such as transmission fluids, axle fluids, and off-road powertrain fluids; and industrial additives designed for products for industrial applications consisting of hydraulic fluids, grease, industrial gear fluids, and industrial specialty applications, such as turbine oils.It also provides fuel additives that are used to enhance the oil refining process and the performance of gasoline, diesel, biofuels, and other fuels to industry, government, original equipment manufacturers, and individual customers.


In addition, the company engages in the antiknock compounds business, as well as contracted manufacturing and services activities; and owns and manages a real property in Virginia.It operates in North America, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and India.NewMarket Corporation was founded in 1887 and is headquartered in Richmond, Virginia.

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1.b. Last Insights on NEU

NewMarket Corporation faced negative drivers in recent months. The company's Q4 2025 earnings call transcript revealed potential challenges, although specifics were not disclosed. Additionally, NewMarket was a detractor from performance in The London Company Small Cap portfolio, which increased 2.7% during Q4 2025. The company's inclusion in a list of overlooked dividend stocks for choppy markets in 2026 may indicate concerns about its stability. Institutional investors, such as Aristides Capital LLC and Advisors Asset Management Inc., have taken positions in the company, but their impact is unclear.

1.c. Company Highlights

2. NewMarket Corporation's Q4 2025 Earnings: A Mixed Bag

NewMarket Corporation reported a pretax income of $113 million for Q4 2025, down from $134 million in Q4 2024, while net income was $81 million, down from $111 million. The decline in net income was primarily driven by a higher effective tax rate in 2025. Earnings per share (EPS) came in at $6.06, beating analyst estimates of $5.93. Revenue from petroleum additives sales was $585 million, down 6% from Q4 2024, mainly due to market softness and a decline in selling prices. The company's EPS performance was a bright spot, with a significant beat versus consensus estimates.

Publication Date: Feb -15

📋 Highlights
  • Lower Pretax/Net Income:: Q4 pretax income fell to $113M (-16%) and full-year to $561M (-4%); net income dropped to $81M (-23%) and $419M (-9.3%) due to a higher tax rate.
  • Petroleum Additive Sales Decline:: Q4 sales slid 6% to $585M; full-year sales dipped 4.9% to $2.5B from market softness and lower prices.
  • Specialty Materials Growth:: Segment reported $49M Q4 sales ($7M profit) and $182M annual sales ($47M profit), driven by Kalka acquisition and higher Impact volumes.
  • Strong Shareholder Returns:: Returned $183M to shareholders via buybacks/dividends in 2025; reduced debt by $88M, maintaining a 1.1x net debt/EBITDA ratio.
  • Tax Rate Impact:: Elevated effective tax rate in 2025 was the primary driver of the net income decline compared to 2024.

Segment Performance

The Specialty Materials segment reported sales of $49 million for Q4 2025 and $182 million for the full year, with operating profit of $7 million and $47 million, respectively. The segment's performance was driven by higher volume demand at Impact and the inclusion of the Kalka business acquired in 2025, as mentioned during the earnings call, "The segment's performance was driven by higher volume demand at Impact and the inclusion of the Kalka business acquired in 2025."

Cash Flow and Balance Sheet

NewMarket Corporation generated solid cash flows throughout 2025, returning $183 million to shareholders through share repurchases and dividends, and reducing total debt by $88 million. The company's net debt to EBITDA ratio was 1.1 times as of December 31, 2025, indicating a healthy balance sheet. With a current 'Net Debt / EBITDA' ratio of 1.31, the company is slightly above its latest reported figure.

Valuation and Outlook

With a P/E Ratio of 13.33 and an EV/EBITDA of 9.53, the stock appears to be reasonably valued. Analysts estimate revenue growth of 0.5% for the next year, indicating a moderate outlook. The company's commitment to long-term value creation through investing in technology, optimizing inventory levels, and improving portfolio profitability is expected to drive future growth. The 'ROIC (%)' of 13.15 and 'ROE (%)' of 25.38 indicate a strong return on investment and equity, respectively.

Dividend and Shareholder Return

The company has a 'Dividend Yield (%)' of 1.9, indicating a relatively stable dividend payout. With a 'Free Cash Flow Yield (%)' of 9.78, the company is generating significant cash flows, which should support future dividend payments and share repurchases.

3. NewsRoom

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3 Overlooked Dividend Stocks for Choppy Markets in 2026

Feb -18

Source: marketbeat.com

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The London Company Small Cap  Q4 2025 Performance And Trades

Feb -17

Source: seekingalpha.com

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The London Company Mid Cap Portfolio Q4 2025: Who Moved The Needle

Feb -16

Source: seekingalpha.com

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NewMarket Corporation (NEU) Q4 2025 Earnings Call Prepared Remarks Transcript

Feb -12

Source: seekingalpha.com

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Contrasting AdvanSix (NYSE:ASIX) and NewMarket (NYSE:NEU)

Jan -05

Source: defenseworld.net

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NewMarket (NYSE:NEU) & Toray Industries (OTCMKTS:TRYIY) Financial Analysis

Dec -28

Source: defenseworld.net

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Comparing Toray Industries (OTCMKTS:TRYIY) & NewMarket (NYSE:NEU)

Dec -22

Source: defenseworld.net

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Market Today: Ford axes Lightning, iRobot bankrupt, Nvidia-China chips

Dec -15

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Petroleum Additives

Expected Growth: 4.5%

Growing demand for high-performance fuels and lubricants, increasing adoption of electric vehicles, and stringent emissions regulations drive the growth of petroleum additives market.

All Other

Expected Growth: 4.5%

The All Other segment, comprising lubricant and fuel ingredient businesses, is expected to grow driven by increasing demand for high-performance lubricants, expansion into new markets, and strategic partnerships.

7. Detailed Products

Petroleum Additives

NewMarket Corporation's petroleum additives are used to enhance the performance of fuels and lubricants, improving fuel efficiency, reducing emissions, and extending the life of engines and equipment.

Fuel Additives

NewMarket Corporation's fuel additives are designed to improve fuel efficiency, reduce emissions, and enhance fuel stability, making them ideal for use in gasoline, diesel, and alternative fuels.

Lubricant Additives

NewMarket Corporation's lubricant additives are used to enhance the performance of lubricants, reducing wear and tear on engines and equipment, and improving fuel efficiency.

Specialty Chemicals

NewMarket Corporation's specialty chemicals are used in a variety of applications, including the manufacturing of fuels, lubricants, and other industrial products.

8. NewMarket Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

NewMarket Corporation operates in the petroleum additives industry, which has a moderate threat of substitutes. While there are some substitutes available, they are not as effective as NewMarket's products, and the company's strong brand recognition and customer loyalty help to mitigate the threat.

Bargaining Power Of Customers

NewMarket Corporation's customers are largely industrial companies, which have limited bargaining power due to their dependence on the company's products. Additionally, the company's strong relationships with its customers and its ability to provide customized solutions help to reduce the bargaining power of customers.

Bargaining Power Of Suppliers

NewMarket Corporation relies on a few key suppliers for its raw materials, which gives them some bargaining power. However, the company's strong relationships with its suppliers and its ability to negotiate contracts help to mitigate this threat.

Threat Of New Entrants

The petroleum additives industry has high barriers to entry, including significant capital requirements and the need for specialized expertise. Additionally, NewMarket Corporation's strong brand recognition and customer loyalty make it difficult for new entrants to gain traction in the market.

Intensity Of Rivalry

The petroleum additives industry is highly competitive, with several established players competing for market share. NewMarket Corporation faces intense competition from companies such as Afton Chemical and Chevron Oronite, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.52%
Debt Cost 6.40%
Equity Weight 59.48%
Equity Cost 6.51%
WACC 6.47%
Leverage 68.11%

11. Quality Control: NewMarket Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NewMarket

A-Score: 6.9/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 4.0

Momentum: 9.5

Volatility: 8.7

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Cabot

A-Score: 5.4/10

Value: 6.9

Growth: 6.4

Quality: 5.7

Yield: 5.0

Momentum: 1.0

Volatility: 7.3

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RPM International

A-Score: 5.3/10

Value: 3.8

Growth: 6.3

Quality: 5.8

Yield: 4.0

Momentum: 3.0

Volatility: 9.0

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Balchem

A-Score: 4.9/10

Value: 1.9

Growth: 5.4

Quality: 7.5

Yield: 1.0

Momentum: 4.0

Volatility: 9.3

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Innospec

A-Score: 4.5/10

Value: 5.0

Growth: 4.1

Quality: 4.8

Yield: 3.0

Momentum: 1.0

Volatility: 9.0

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Olin

A-Score: 4.1/10

Value: 7.1

Growth: 4.3

Quality: 2.4

Yield: 6.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

608.47$

Current Price

608.47$

Potential

-0.00%

Expected Cash-Flows