NewMarket (NEU) investor relations material

Executive summary

• Net income for Q2 2026 was $134 million ($14.54/share), up from $111 million ($11.84/share) in Q2 2025; first half 2026 net income reached $252 million ($27.14/share), compared to $237 million ($25.11/share) in the first half of 2025.

• Net sales for Q2 2026 rose 7.0% year-over-year to $747.1 million; six-month sales up 1.2% to $1.42 billion.

• Operating profit for Q2 2026 was $163.7 million, up from $143.2 million in Q2 2025; first half operating profit was $306.9 million, up from $303.0 million.

• Strong performance in both Petroleum Additives and Specialty Materials segments, with ongoing investments in capacity and technology.

• Strong cash flow supported capital expenditures, dividends, and share repurchases, while reducing net debt to EBITDA to 1.0x.

Financial highlights

• Petroleum Additives Q2 2026 sales were $676 million, up from $654 million in Q2 2025; operating profit rose to $149 million from $140 million.

• Specialty Materials Q2 2026 sales were $67 million, up from $42 million in Q2 2025; operating profit doubled to $22 million.

• Cash flow enabled $182 million returned to shareholders via $56 million in dividends and $126 million in share repurchases in H1 2026.

• Gross profit for Q2 2026 was $242.4 million, up from $221.0 million in Q2 2025.

• Long-term debt decreased to $854.8 million from $883.4 million at year-end 2025.

Outlook and guidance

• Additional production capacity for ammonium perchlorate and high-purity hydrazine expected online by end of 2026.

• Focus remains on long-term value creation, efficiency, and investment in technology and supply chain.

• Expect continued market softness and macroeconomic uncertainty for petroleum additives in 2026.

• Specialty materials segment anticipated to show solid results but with substantial quarterly variation.

• Capital spending for 2026 projected at $100 million–$130 million, including major expansion at AMPAC.