NEWMARKET CORP
For the period ended Sep 30, 2025. Filed Oct 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 31, 2025
NEU$694.31+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001282637-25-000016
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0001282637-25-000024
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 88 previous paragraphs and 88 current paragraphs.
46 unchanged; 40 reworded; 2 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Petroleum additives net sales for the first nine months of 2025 were $1.9 billion, a decrease of $61.6 million, or 3.1%, compared to the first nine months of 2024. Decreases in Asia Pacific of 9.1% and North America of 3.7% were partially offset by increases in EMEAI of 1.0% and Latin America of 0.5%.
Current report
In addition to the ongoing investments we make in our petroleum additives business, we have, since 2024, completed the acquisition of two companies - AMPAC and Calca - which constitute our specialty materials segment. We continue to focus on the integration of these companies into our business, and we anticipate solid results from both companies. We may experience substantial variation in quarterly results for the specialty materials segment on an ongoing basis due to the nature of the business, including any impact from shutdowns of the U.S. government.
Removed paragraphs (2)
Previous report
Petroleum additives net sales for the first six months of 2025 were $1.3 billion, a decrease of $47.7 million, or 3.5%, compared to the first six months of 2024. Asia Pacific decreased 10.2%, North America decreased 2.9%, EMEAI decreased 0.8%, and Latin America increased 0.8%.
Previous report
We continue to focus on the ongoing integration of AMPAC into our business. While we may experience substantial variation in quarterly results for specialty materials on an ongoing basis due to the nature of its business, we anticipate full year results to be consistent with our pre-acquisition expectations. Our planned investment to expand capacity at AMPAC is aligned with anticipated future industry demand.
Reworded paragraphs (40)
Previous wording
When comparing the results of the petroleum additives segment for the first six months of 2025 with the first six months of 2024, net sales declined 3.5%, resulting primarily from lower product shipments, which were partially offset by favorable product mix. Petroleum additives operating profit decreased 5.6% when comparing the 2025 and 2024 six months periods, primarily reflecting lower product shipments and higher operating costs, which were partially offset by lower raw material costs and favorable product mix. Operating profit was also unfavorably impacted for the six months comparisons due to higher technology investments for research, development and testing during the 2025 period as compared to the 2024 period.
Current wording
When comparing the results of the petroleum additives segment for the first nine months of 2025 with the first nine months of 2024, net sales declined 3.1%, resulting primarily from lower product shipments, which were partially offset by favorable product mix. Petroleum additives operating profit decreased 9.4% when comparing the 2025 and 2024 nine months periods, primarily reflecting lower product shipments and higher operating costs, which were partially offset by lower raw material costs and favorable product mix. Operating profit was also unfavorably impacted for the nine months comparisons due to higher technology investments for research, development and testing during the 2025 period as compared to the 2024 period, as well as one-time charges related to network optimization efforts.
Previous wording
The specialty materials segment reported both higher net sales and higher operating profit for the first six months of 2025 as compared to the same period in 2024, resulting primarily from higher product volumes. Specialty materials sales and operating profit for the first six months of 2024 reflect financial results since the acquisition of AMPAC on January 16, 2024.
Current wording
The specialty materials segment reported both higher net sales and higher operating profit for the first nine months of 2025 as compared to the same period in 2024, resulting primarily from higher product volumes. Specialty materials sales and operating profit for the first nine months of 2024 reflect financial results since the acquisition of AMPAC on January 16, 2024.
Previous wording
We continue to monitor the uncertain macroeconomic environment in which we operate, particularly the changes in international trade relations and tariffs, and assess the potential impacts to our operations. These impacts could include supply chain disruptions, lower customer demand, and higher inflation. Investing in technology to meet customer needs, enhancing our operational efficiency, and improving our portfolio profitability will remain priorities throughout 2025.
Current wording
We continue to monitor the uncertain macroeconomic environment in which we operate, particularly the changes in international trade relations and tariffs, and assess the potential impacts to our operations. These impacts could include supply chain disruptions, lower customer demand, and higher inflation. Investing in technology to meet customer needs, enhancing our operational efficiency, and improving our portfolio profitability will remain priorities.
Previous wording
Consolidated net sales for the second quarter of 2025 totaled $698.5 million, representing a decrease of $11.7 million, or 1.7%, from the second quarter of 2024. Consolidated net sales for the first six months of 2025 totaled $1.4 billion, representing a slight decrease of $7.5 million, or 0.5%, from the first six months of 2024. The following table shows net sales by segment and product line. The net sales for the six months 2024 period in the table below for the specialty materials segment include sales since the acquisition of AMPAC on January 16, 2024.
Current wording
Consolidated net sales for the third quarter of 2025 totaled $690.3 million, representing a decrease of $34.6 million, or 4.8%, from the third quarter of 2024. Consolidated net sales for the first nine months of 2025 totaled $2.1 billion, representing a decrease of $42.1 million, or 2.0%, from the first nine months of 2024. The following table shows net sales by segment and product line. The net sales for the nine months 2024 period in the table below for the specialty materials segment include sales since the acquisition of AMPAC on January 16, 2024.
Previous wording
The regions in which we operate include North America, Latin America, Asia Pacific, and EMEAI. While there is some fluctuation, the percentage of net sales generated by region remained fairly consistent when comparing the first six months of 2025 with both the same period in 2024, as well as with the full year of 2024.
Current wording
The regions in which we operate include North America, Latin America, Asia Pacific, and EMEAI. While there is some fluctuation, the percentage of net sales generated by region remained fairly consistent when comparing the first nine months of 2025 with both the same period in 2024, as well as with the full year of 2024.
Previous wording
Petroleum additives net sales for the second quarter of 2025 were $653.9 million compared to $669.8 million for the second quarter of 2024, a decrease of 2.4%. Decreases in Asia Pacific of 11.9% and North America of 3.5% were partially offset by increases of 4.5% in EMEAI and 2.5% in Latin America.
Current wording
Petroleum additives net sales for the third quarter of 2025 were $649.1 million compared to $663.0 million for the third quarter of 2024, a decrease of 2.1%. Decreases in Asia Pacific of 6.6% and North America of 5.2% were partially offset by an increase of 4.6% in EMEAI. Latin America was substantially unchanged when comparing the two periods.
Previous wording
The following table details the approximate components of the changes in petroleum additives net sales between the second quarter and first six months of 2025 and 2024.
Current wording
The following table details the approximate components of the changes in petroleum additives net sales between the third quarter and first nine months of 2025 and 2024.
Previous wording
When comparing the second quarters of 2025 and 2024, lower lubricant additives shipments drove the decrease in petroleum additives net sales. When comparing the first six months of 2025 and 2024, the decrease in petroleum additives net sales was due to lower product shipments, along with an unfavorable foreign currency impact. Partially offsetting these factors for the six months comparison was an increase to net sales driven by favorable product mix.
Current wording
When comparing the third quarters of 2025 and 2024, lower lubricant additives shipments drove the decrease in petroleum additives net sales, partially offset by an increase in fuel additives shipments. Selling prices for the third quarter comparison had a net unfavorable impact resulting primarily from an unfavorable product mix. When comparing the first nine months of 2025 and 2024, the decrease in petroleum additives net sales was due to lower product shipments in both lubricant additives and fuel additives. Partially offsetting these factors for the nine months comparison was favorable product mix.
Previous wording
The primary foreign currencies in which we transact include the Euro, Pound Sterling, Japanese Yen, Chinese Renminbi, and Indian Rupee. Comparing the second quarters of 2025 and 2024, the United States Dollar strengthened against the Rupee and Renminbi and weakened against the Euro, Yen, and Pound Sterling, resulting in the small favorable impact to net sales in the table above. For the six months comparison, the United States Dollar strengthened against all of the major currencies in which we transact, except the Yen and Pound Sterling, resulting in the unfavorable impact to net sales for the six months comparison.
Current wording
The primary foreign currencies in which we transact include the Euro, Pound Sterling, Japanese Yen, Chinese Renminbi, and Indian Rupee. Comparing both the third quarter and nine months periods of 2025 and 2024, the United States Dollar strengthened against the Rupee and Renminbi and weakened against the Euro, Yen, and Pound Sterling, resulting in the favorable impacts to net sales shown in the table above.
Previous wording
On a worldwide basis, the volume of product shipments for petroleum additives decreased 2.5% when comparing the second quarter periods and 4.9% when comparing the six months periods.
Current wording
On a worldwide basis, the volume of product shipments for petroleum additives decreased 4.1% when comparing the third quarter periods and 4.6% when comparing the nine months periods.
Previous wording
For the second quarter comparison, the decrease was in lubricant additives shipments, which was partially offset by a small increase in fuel additives shipments. Both the Asia Pacific and North America regions experienced decreases in lubricant additives shipments, while the EMEAI and Latin America regions reported small increases in lubricant additives shipments. For the fuel additives second quarter comparison, both the Asia Pacific and Latin America regions reported increases in product shipments, which were partially offset by decreases in the EMEAI and North America regions.
Current wording
For the third quarter comparison, the decrease was in lubricant additives shipments, which was partially offset by a small increase in fuel additives shipments. Both the Asia Pacific and North America regions experienced decreases in lubricant additives shipments, along with a small decrease in the Latin America region. The EMEAI region reported a small increase in lubricant additives shipments. For the fuel additives third quarter comparison, the EMEAI, Latin America, and North America regions reported small increases in product shipments, while the Asia Pacific region was substantially unchanged.
Previous wording
For the six months comparison, lubricant additives product shipments were lower in the Asia Pacific and North America regions, which were partially offset by increases in the EMEAI and Latin American regions. For the fuel additives six months comparison, both the EMEAI and North America regions reported decreases in product shipments, which were partially offset by increases in the Asia Pacific and Latin America regions.
Current wording
For the nine months comparison, lower lubricant additives product shipments in the Asia Pacific and North America regions were partially offset by increases in the EMEAI and Latin American regions. For the fuel additives nine months comparison, both the EMEAI and North America regions reported decreases in product shipments, which were partially offset by increases in the Asia Pacific and Latin America regions.
Previous wording
Total net sales for the specialty materials segment were $42.0 million for the second quarter of 2025 and $38.0 for the second quarter of 2024. For the six months comparison, net sales were $95.8 million for 2025 and $55.1 million for the period that we owned AMPAC during 2024. The increase in net sales for the second quarter and six months comparisons was primarily the result of higher product volumes.
Current wording
Total net sales for the specialty materials segment were $38.2 million for the third quarter of 2025 and $59.1 for the third quarter of 2024. For the nine months comparison, net sales were $134.0 million for 2025 and $114.2 million for the period that we owned AMPAC during 2024. The decrease in the third quarter comparison was primarily the result of timing of shipments when comparing the 2025 and 2024 periods, while the increase in net sales for the nine months comparison was primarily the result of higher product volumes.
Previous wording
The following table reports segment operating profit for the second quarter and six months ended June 30, 2025 and June 30, 2024. The amount reported for specialty materials for the six months ended June 30, 2024 is for the period from January 16, 2024 to June 30, 2024. A reconciliation of segment operating profit to income before income tax expense is in Note 4.
Current wording
The following table reports segment operating profit for the third quarter and nine months ended September 30, 2025 and September 30, 2024. The amount reported for specialty materials for the nine months ended September 30, 2024 is for the period from January 16, 2024 to September 30, 2024. A reconciliation of segment operating profit to income before income tax expense is in Note 4.
Previous wording
Petroleum additives segment gross profit decreased $2.8 million and operating profit decreased $8.0 million when comparing the second quarter of 2025 to the second quarter of 2024. For the first six months of 2025 compared to the first six months of 2024, petroleum additives segment gross profit decreased $9.3 million and operating profit decreased $16.8 million.
Current wording
Petroleum additives segment gross profit decreased $21.9 million and operating profit decreased $26.2 million when comparing the third quarter of 2025 to the third quarter of 2024. For the first nine months of 2025 compared to the first nine months of 2024, petroleum additives segment gross profit decreased $31.3 million and operating profit decreased $43.0 million.
Previous wording
The decrease in both gross profit and operating profit for both the second quarter and six months comparisons included the unfavorable impacts of lower product shipments and higher operating costs, which were partially offset by favorable product mix and lower raw material costs. Operating profit was also unfavorably impacted by higher technology investments for research, development and testing during both the 2025 second quarter and six months periods than during the same 2024 periods.
Current wording
The decrease in both gross profit and operating profit for the third quarter comparison included the unfavorable impacts of higher operating costs, product mix, and lower product shipments, reflecting some softening in the market, as well as our portfolio profitability management and one-time charges related to network optimization efforts. These were partially offset by lower raw materials costs. For the nine months comparison, the drivers of the decrease in gross profit and operating profit were consistent with those of the third quarter comparison with the exception of a favorable product mix for the nine months comparison. Operating profit for both the third quarter and nine months comparison periods was also unfavorably impacted by higher technology investments for research, development and testing.
Previous wording
For the rolling four quarters ended June 30, 2025, the operating profit margin for petroleum additives was 22.2%, which is within our historical range of operating profit margin. While operating margins will fluctuate from quarter to quarter due to multiple factors, we believe the fundamentals of our business and industry as a whole are unchanged.
Current wording
For the rolling four quarters ended September 30, 2025, the operating profit margin for petroleum additives was 21.3%, which is within our historical range of operating profit margin. While operating margins will fluctuate from quarter to quarter due to multiple factors, we believe the fundamentals of our business and industry as a whole are unchanged.
Previous wording
Petroleum additives selling, general, and administrative (SG&A) expenses for the second quarter of 2025 were $1.5 million higher than the second quarter of 2024 and $1.8 million higher for the first six months of 2025 than the first six months of 2024. SG&A expenses as a percentage of net sales were 5.1% for the second quarter of 2025, 4.7% for the second quarter of 2024, 5.1% for the first six months of 2025, and 4.7% for the first six months of 2024. Our SG&A costs are primarily personnel-related and include salaries, benefits, and other costs associated with our workforce, including travel-related expenses. While personnel-related costs fluctuate from period to period, there were no significant changes in the drivers of these costs when comparing the periods.
Current wording
Petroleum additives selling, general, and administrative (SG&A) expenses for the third quarter of 2025 were $1.4 million higher than the third quarter of 2024 and $3.2 million higher for the first nine months of 2025 than the first nine months of 2024. SG&A expenses as a percentage of net sales were 5.1% for both the third quarter and nine months of 2025 and 4.8% for both the third quarter and nine months of 2024. Our SG&A costs are primarily personnel-related and include salaries, benefits, and other costs associated with our workforce, including travel-related expenses. While personnel-related costs fluctuate from period to period, there were no significant changes in the drivers of these costs when comparing the periods.
Previous wording
Our investment in petroleum additives research, development, and testing (R&D) increased $3.7 million when comparing the second quarters of 2025 and 2024 and $5.7 million when comparing the first six months periods of 2025 and 2024. As a percentage of net sales, our R&D investment was 5.0% for the second quarter of 2025, 4.3% for the second quarter of 2024, 5.0% for the first six months of 2025, and 4.4% for the first six months of 2024. Our R&D investments reflect our efforts to support the development of solutions that meet our customers' needs, meet new and evolving standards, and support our expansion into new product areas. Our approach to R&D investments, as it is with SG&A costs, is one of purposeful spending on programs to support our current product base and to ensure that we develop products to support our customers' programs in the future. R&D investments include personnel-related costs, as well as costs for internal and external testing of our products.
Current wording
Our investments in petroleum additives research, development, and testing (R&D) increased $2.8 million when comparing the third quarters of 2025 and 2024 and $8.5 million when comparing the first nine months periods of 2025 and 2024. As a percentage of net sales, our R&D investment was 5.4% for the third quarter of 2025, 4.9% for the third quarter of 2024, 5.2% for the first nine months of 2025, and 4.6% for the first nine months of 2024. Our R&D investments reflect our efforts to support the development of solutions that meet our customers' needs, meet new and evolving standards, and support our expansion into new product areas. Our approach to R&D investments, as it is with SG&A costs, is one of purposeful spending on programs to support our current product base and to ensure that we develop products to support our customers' programs in the future. R&D investments include personnel-related costs, as well as costs for internal and external testing of our products.
Previous wording
The specialty materials segment reported operating profit of $10.5 million for the second quarter of 2025 as compared to $5.0 million for the second quarter of 2024. For the first six months of 2025, operating profit was $33.7 million as compared to operating profit of $5 thousand for the period from the AMPAC acquisition date of January 16, 2024 to June 30, 2024. The increase in specialty materials operating profit was primarily the result of higher product volumes.
Current wording
The specialty materials segment reported operating profit of $6.0 million for the third quarter of 2025 as compared to $16.0 million for the third quarter of 2024. For the first nine months of 2025, operating profit was $39.7 million as compared to operating profit of $16.0 million for the period from the AMPAC acquisition date of January 16, 2024 to September 30, 2024. The decrease in specialty materials operating profit for the third quarter comparison was primarily the result of timing of shipments, while the increase in specialty materials operating profit for the nine months comparison was primarily the result of higher product volumes.
Previous wording
Interest and financing expenses were $10.7 million for the second quarter of 2025, $15.9 million for the second quarter of 2024, $21.4 million for the first six months of 2025, and $31.6 million for the first six months of 2024.
Current wording
Interest and financing expenses were $8.4 million for the third quarter of 2025, $14.2 million for the third quarter of 2024, $29.8 million for the first nine months of 2025, and $45.7 million for the first nine months of 2024.
Previous wording
The decrease for both the second quarter and six months comparisons resulted primarily from lower average debt outstanding, along with a lower average interest rate.
Current wording
The decrease for both the third quarter and nine months comparisons resulted primarily from lower average debt outstanding, along with a lower average interest rate.
Previous wording
Other income (expense), net was income of $15.3 million for the second quarter of 2025, $12.0 million for the second quarter of 2024, $30.2 million for the first six months of 2025, and $24.5 million for the first six months of 2024. The amounts for both the 2025 and 2024 second quarter and six months periods primarily reflect the components of net periodic benefit cost (income), except for service cost, from defined benefit pension and postretirement plans. See Note 5 for further information on total periodic benefit cost (income).
Current wording
Other income (expense), net was income of $13.3 million for the third quarter of 2025, $13.8 million for the third quarter of 2024, $43.5 million for the first nine months of 2025, and $38.3 million for the first nine months of 2024. The amounts for both the 2025 and 2024 third quarter and nine months periods primarily reflect the components of net periodic benefit cost (income), except for service cost, from defined benefit pension and postretirement plans. See Note 5 for further information on total periodic benefit cost (income).
Previous wording
Income tax expense was $36.4 million for the second quarter of 2025 and $31.4 million for the second quarter of 2024. The effective tax rate was 24.7% for the second quarter of 2025 and 21.9% for the second quarter of 2024. Income tax expense increased $4.0 million due to the higher effective tax rate and $1.0 million due to higher income before income tax expense.
Current wording
Income tax expense was $35.3 million for the third quarter of 2025 and $36.8 million for the third quarter of 2024. The effective tax rate was 26.1% for the third quarter of 2025 and 21.8% for the third quarter of 2024. Income tax expense decreased $7.3 million due to lower income, which was partially offset by an increase of $5.8 million resulting from the higher effective tax rate.
Previous wording
Income tax expense was $74.6 million for the first six months of 2025 and $61.3 million for the first six months of 2024. The effective tax rate was 23.9% for the first six months of 2025 and 21.9% for the first six months of 2024. Income tax expense increased $6.8 million due to higher income before income tax expense and $6.5 million due to the higher effective tax rate.
Current wording
Income tax expense was $109.9 million for the first nine months of 2025 and $98.2 million for the first nine months of 2024. The effective tax rate was 24.6% for the first nine months of 2025 and 21.8% for the first nine months of 2024. Income tax expense increased $12.3 million due to the higher effective tax rate, which was slightly offset by lower income.
Previous wording
The increase in the tax rate for both periods was primarily driven by income from our foreign operations.
Current wording
The increase in the tax rate for both periods was primarily driven by changes in estimates related to prior year taxes and income and withholding taxes on our foreign earnings.
Previous wording
On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are currently assessing the impact of the OBBBA on our consolidated financial statements.
Current wording
On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The 2025 impacts of the OBBBA have been recorded in the income tax provision for the third quarter and nine months ended September 30, 2025. These impacts were not material. We are continuing to assess the impact of the provisions of the OBBBA that are effective in future years.
Previous wording
Cash and cash equivalents at June 30, 2025 were $70.3 million, a decrease of $7.2 million since December 31, 2024.
Current wording
Cash and cash equivalents at September 30, 2025 were $102.5 million, an increase of $25.0 million since December 31, 2024.
Previous wording
Cash and cash equivalents held by our foreign subsidiaries amounted to $66.3 million at June 30, 2025 and $71.3 million at December 31, 2024. Periodically, we repatriate cash from our foreign subsidiaries to the United States through intercompany dividends and loans. We do not anticipate significant tax consequences from future distributions of foreign earnings.
Current wording
Cash and cash equivalents held by our foreign subsidiaries amounted to $96.2 million at September 30, 2025 and $71.3 million at December 31, 2024. Periodically, we repatriate cash from our foreign subsidiaries to the United States through intercompany dividends and loans. We do not anticipate significant tax consequences from future distributions of foreign earnings.
Previous wording
Cash provided from operating activities for the first six months of 2025 was $281.4 million, including $0.8 million of higher working capital requirements. The $0.8 million excluded an unfavorable foreign currency impact to the components of working capital on the balance sheet.
Current wording
Cash provided from operating activities for the first nine months of 2025 was $423.8 million, including $4.5 million of lower working capital requirements. The $4.5 million excluded an unfavorable foreign currency impact to the components of working capital on the balance sheet.
Previous wording
When comparing the June 30, 2025 balances with those at December 31, 2024, the most significant changes in working capital included increases in trade and other accounts receivable and accounts payable. The increase in trade and other accounts receivable primarily reflects higher sales during the second quarter of 2025 compared to the fourth quarter of 2024. The increase in accounts payable is primarily the result of increased purchases during the second quarter of 2025 and normal invoice payment timing.
Current wording
When comparing the September 30, 2025 balances with those at December 31, 2024, the most significant changes in working capital included increases in trade and other accounts receivable and accounts payable. The increase in trade and other accounts receivable primarily reflects higher sales during the third quarter of 2025 compared to the fourth quarter of 2024. The increase in accounts payable is primarily the result of increased purchases during the third quarter of 2025 and normal invoice payment timing.
Previous wording
Including cash and cash equivalents, as well as the impact of changes in foreign currency exchange rates on the balance sheet, we had total working capital of $665.7 million at June 30, 2025 and $655.1 million at December 31, 2024. The current ratio was 2.66 at June 30, 2025 and 2.75 at December 31, 2024.
Current wording
Including cash and cash equivalents, as well as the impact of changes in foreign currency exchange rates on the balance sheet, we had total working capital of $690.7 million at September 30, 2025 and $655.1 million at December 31, 2024. The current ratio was 2.68 at September 30, 2025 and 2.75 at December 31, 2024.
Previous wording
Cash used in investing activities totaled $29.3 million during the first six months of 2025, comprised of capital expenditures. We expect that our total capital spending during 2025 will be in the $70 million to $100 million range and will include improvements to our manufacturing and R&D infrastructure around the world.
Current wording
Cash used in investing activities totaled $49.6 million during the first nine months of 2025, comprised of capital expenditures. We expect that our total capital spending during 2025 will be in the $70 million to $100 million range and will include improvements to our manufacturing and R&D infrastructure around the world.
Previous wording
Included in the expected capital expenditures for 2025 is a capital investment of up to $100 million to expand AMPAC's ammonium perchlorate production capabilities in support of growing solid rocket motor demand. This investment will include the construction of an additional production line, increasing capacity by more than 50%. The increased capacity will allow AMPAC to meet the demand of U.S. military and space launch programs, while also addressing the needs of U.S. allies in these critical areas. The project is currently scheduled to be completed during 2026.
Current wording
Included in the expected capital expenditures for 2025 is a capital investment to expand AMPAC's ammonium perchlorate production capabilities in support of growing solid rocket motor demand. The project of up to $100 million is currently scheduled to be completed during 2026 and includes the construction of an additional production line, increasing capacity by more than 50%. The increased capacity will allow AMPAC to meet the anticipated future demand of U.S. military and space launch programs, while also addressing the needs of U.S. allies in these critical areas.
Previous wording
Cash used in financing activities during the first six months of 2025 amounted to $264.2 million. These cash flows included repurchases of our common stock of $77.2 million, cash dividends of $51.9 million, principal payments of $50.0 million each on the 3.78% senior notes and term loan, and net repayments of $30 million on the revolving credit facility.
Current wording
Cash used in financing activities during the first nine months of 2025 amounted to $350.1 million. These cash flows included principal payments of $150.0 million on the term loan and $50 million on the 3.78% senior notes, cash dividends of $77.7 million, and repurchases of our common stock of $77.2 million, which were partially offset by net borrowings of $11.0 million on the revolving credit facility.
Previous wording
Our long-term debt was $841.8 million at June 30, 2025 compared to $971.3 million at December 31, 2024.
Current wording
Our long-term debt was $783.1 million at September 30, 2025 compared to $971.3 million at December 31, 2024.
Previous wording
The revolving credit facility contains financial covenants that require NewMarket to maintain a consolidated Leverage Ratio (as defined in the agreement) of no more than 3.75 to 1.00, except during an Increased Leverage Period (as defined in the agreement) at the end of each quarter. At June 30, 2025, the Leverage Ratio was 1.13 under the revolving credit facility.
Current wording
The revolving credit facility contains financial covenants that require NewMarket to maintain a consolidated Leverage Ratio (as defined in the agreement) of no more than 3.75 to 1.00, except during an Increased Leverage Period (as defined in the agreement) at the end of each quarter. At September 30, 2025, the Leverage Ratio was 1.10 under the revolving credit facility.
Previous wording
As a percentage of total capitalization (total long-term debt and shareholders’ equity), our total long-term debt decreased from 39.9% at December 31, 2024 to 34.3% at June 30, 2025. The change resulted from the increase in shareholders' equity along with a net decrease in outstanding long-term debt. The increase in shareholders’ equity primarily reflects our earnings and favorable impact from foreign currency translation adjustments, partially offset by repurchases of shares of our common stock and dividend payments. Generally, we repay any outstanding long-term debt with cash from operations or refinancing activities.
Current wording
As a percentage of total capitalization (total long-term debt and shareholders’ equity), our total long-term debt decreased from 39.9% at December 31, 2024 to 31.7% at September 30, 2025. The change resulted from the increase in shareholders' equity along with a net decrease in outstanding long-term debt. The increase in shareholders’ equity primarily reflects our earnings and favorable impact from foreign currency translation adjustments, partially offset by repurchases of shares of our common stock and dividend payments. Generally, we repay any outstanding long-term debt with cash from operations or refinancing activities.
Previous wording
Our petroleum additives segment may experience impacts to its operating performance during 2025 due to the uncertain global economic environment in which we operate; however, we anticipate continued strength from this segment. As a result, we will continue to focus on cost control and operating profit margin management throughout the year. We expect over the long-term that the petroleum additives market will grow annually up to 2%. We plan to exceed that growth rate in our petroleum additives segment.
Current wording
We expect our petroleum additives segment will continue to experience impacts to its operating performance during the remainder of 2025 due to market softness and the uncertain global economic environment in which we operate. Nonetheless, we anticipate continued solid results from this segment in 2025. We will continue to focus on cost control and operating profit margin management, while advancing our initiatives to build a global manufacturing network that will enable more efficient product delivery to our customers in the years ahead.
Previous wording
While our AMPAC acquisition was outside of our core petroleum additives business, we believe it presented an excellent opportunity to provide long-term value for our shareholders. Nonetheless, our primary focus in the acquisition area remains on the petroleum additives industry. It is our view that the petroleum additives industry will provide the greatest opportunity for solid returns on our investments while minimizing risk. We remain focused on this strategy and will evaluate any future opportunities. We will continue to evaluate all alternative uses of cash to enhance shareholder value, including stock repurchases and dividends.
Current wording
While our recent acquisitions of AMPAC and Calca were outside of our core petroleum additives business, we believe both presented an excellent opportunity to provide long-term value for our shareholders. Nonetheless, our primary focus in the acquisition area remains on the petroleum additives industry. It is our view that the petroleum additives industry will provide the greatest opportunity for solid returns on our investments while minimizing risk. We remain focused on this strategy and will evaluate any future opportunities. We will continue to evaluate all alternative uses of cash to enhance shareholder value, including stock repurchases and dividends.