NewMarket Corporation (NYSE: NEU) reported higher second-quarter and first-half 2026 earnings, driven by improved profitability in its petroleum additives business and continued growth in its specialty materials segment. Despite modest revenue growth, the company benefited from pricing actions, operational efficiency, and contributions from recent acquisitions, while continuing to navigate supply chain challenges linked to the Middle East.
Second-Quarter Earnings Improve
For the second quarter ended June 30, 2026, NewMarket reported net sales of $747.1 million, up 7% from $698.5 million in the prior-year period. Net income increased to $133.8 million, or $14.54 per diluted share, compared with $111.2 million, or $11.84 per share, a year earlier.
For the first six months of 2026, net income reached $251.8 million, or $27.14 per share, up from $237.2 million, or $25.11 per share, in the same period of 2025. Management attributed the stronger performance to disciplined execution, higher margins, and sustained operational efficiency across its businesses.
Petroleum Additives Deliver Higher Profit
The company’s petroleum additives segment remained its largest business, generating $675.6 million in second-quarter sales, compared with $653.9 million a year earlier. Operating profit for the segment rose to $149.4 million from $139.8 million.
Although shipment volumes declined as the company continued reducing lower-margin business, NewMarket offset higher logistics and supply chain costs through customer surcharges and pricing actions. Management said these measures, combined with ongoing efficiency improvements, supported stronger profitability despite geopolitical disruptions affecting global supply chains.
Specialty Materials Continue Expanding
NewMarket’s specialty materials business posted another strong quarter following the acquisition of Calca in late 2025.
Quarterly sales increased to $67.2 million, up from $42.0 million in the prior year, while operating profit more than doubled to $22.3 million from $10.5 million. For the first half of 2026, specialty materials generated $125.3 million in sales and $34.8 million in operating profit.
The company noted that quarterly results in this segment may fluctuate due to the timing and nature of customer orders, particularly in aerospace and defense markets.
Investment and Outlook
NewMarket continues investing in long-term growth through manufacturing capacity expansion and research and development. The company is progressing with its $100 million AMPAC expansion project, expected to become operational later in 2026, while maintaining planned capital expenditures of $100 million to $130 million for the year.
Management remains focused on strengthening supply chain resilience, integrating recent acquisitions, advancing technology, and maintaining disciplined margin management. While geopolitical uncertainties persist, the company believes its diversified portfolio and operational strategy position it well for continued profitable growth.
