NewMarket reports strong 2024 financial results with USD462M net income

NewMarket Corporation (NYSE: NEU) has announced robust financial results for 2024, reporting a net income of USD462.4 million, or USD48.22 per share, marking an increase from USD388.9 million in 2023.

The petroleum additives segment continued to perform strongly, with an operating profit of USD591.9 million, up from USD514.4 million in the previous year. This increase was primarily driven by lower operating costs and reduced raw material expenses, although these gains were partially offset by lower selling prices. Sales in this segment totalled USD2.6 billion, slightly down from USD2.7 billion in 2023.

Afton Chemical Corporation is a wholly owned subsidiary of NewMarket Corporation, primarily focused on the development, manufacturing, and marketing of fuel and lubricant additives globally. Afton Chemical is the primary revenue-generating business under NewMarket, playing a key role in the company’s overall performance in the petroleum additives market. NewMarket Corporation also owns Ethyl Corporation, another subsidiary involved in chemical additives.

“We are pleased with the strong performance of our petroleum additives business in 2024 and continue to see positive results from our efficiency initiatives,” said Thomas E. Gottwald, chairman and CEO of NewMarket Corporation. “Our priorities for 2025 include further investments in technology, operational efficiency, and portfolio profitability.”

AMPAC acquisition exceeds expectations

NewMarket completed the acquisition of American Pacific Corporation (AMPAC) on 16 January 2024, with results exceeding pre-acquisition projections. The specialty materials segment, where AMPAC’s financials are reported, achieved sales of USD141.2 million for the year, with an operating profit of USD17.5 million.

The company also significantly reduced its debt, making net payments of USD373 million on its revolving credit facility since the AMPAC acquisition.

Looking ahead to 2025

NewMarket remains committed to long-term value creation for shareholders and customers. The company highlighted its focus on technological advancements, a strong supply chain, and a customer-centric approach as key factors driving future growth.

For further details, visit www.newmarket.com.