NEWMARKET CORP
For the period ended Sep 30, 2026. Filed Oct 29, 2026.
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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, 2026 · Filed Oct 29, 2026
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 2026-06-30; filed 2026-07-30.
0001282637-26-000016
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-29.
0001282637-26-000020
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 87 previous paragraphs and 86 current paragraphs.
48 unchanged; 34 reworded; 4 added; 4 removed; 1 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 (4)
Current report
Petroleum additives net sales for the third quarter of 2026 were $650.9 million compared to $649.1 million for the third quarter of 2025, an increase of 0.3%. Increases in Latin America of 8.3%, North America of 1.7%, and EMEAI of 1.3% were substantially offset by a decrease in Asia Pacific of 8.1%.
Current report
For the first nine months comparison, the factors contributing to the decrease in gross profit were generally consistent with those affecting the third quarter comparison discussed above, with higher operating costs also contributing to the year to date decrease. As discussed in the Net Sales section above, the decrease in product shipments for the nine months comparison reflected the first half impact of our strategic decision to examine and reduce low-margin business. The increase in operating profit for the first nine months comparison also benefited from lower costs for research, development, and testing.
Current report
For the third quarter comparison, interest and financing expenses were mostly unchanged at $8.0 million for the third quarter of 2026 and $8.4 million for the third quarter of 2025.
Current report
Interest and financing expenses were $25.6 million for the first nine months of 2026 and $29.8 million for the first nine months of 2025. The decrease for the nine months comparison resulted primarily from a lower average interest rate, as well as lower average debt outstanding.
Removed paragraphs (4)
Previous report
Petroleum additives net sales for the second quarter of 2026 were $675.6 million compared to $653.9 million for the second quarter of 2025, an increase of 3.3%. Net sales increased across all regions with growth of 2.8% in North America, 3.2% in Asia Pacific, 2.6% in EMEAI, and 7.7% in Latin America.
Previous report
For the first six months comparison, the drivers for the slight decrease in gross profit were consistent with those affecting the second quarter comparison discussed above, offset by a 5.3% decline in shipments. The increase in operating profit for the first six months comparison was further impacted by lower costs for research, development, and testing.
Previous report
Interest and financing expenses were $8.8 million for the second quarter of 2026, $10.7 million for the second quarter of 2025, $17.6 million for the first six months of 2026, and $21.4 million for the first six months of 2025.
Previous report
The decrease for both the second quarter and six months comparisons resulted primarily from both lower average debt outstanding and a lower average interest rate.
Reworded paragraphs (34)
Previous wording
When comparing the results of the petroleum additives segment for the first six months of 2026 with the first six months of 2025, net sales decreased 1.1%, resulting primarily from lower product shipments partially offset by higher selling prices. Operating profit increased 0.9% over the same comparative periods.
Current wording
When comparing the results of the petroleum additives segment for the first nine months of 2026 with the first nine months of 2025, net sales decreased 0.6%, resulting primarily from lower product shipments partially offset by higher selling prices. Operating profit increased 0.5% over the same comparative periods.
Previous wording
For the six months comparison periods of 2026 and 2025, the specialty materials segment reported higher net sales, as well as slightly higher operating profit. Specialty materials net sales and operating profit for the first six months of 2025 do not reflect financial results of Calca since the acquisition of Calca occurred on October 1, 2025. We continue to expect to experience substantial variation in quarterly results for the specialty materials segment due to the nature of its business.
Current wording
For the nine months comparison periods of 2026 and 2025, the specialty materials segment reported higher net sales, as well as higher operating profit. Specialty materials net sales and operating profit for the first nine months of 2025 do not reflect financial results of Calca since the acquisition of Calca occurred on October 1, 2025. We continue to expect to experience substantial variation in quarterly results for the specialty materials segment due to the nature of its business.
Previous wording
Consolidated net sales for the second quarter of 2026 totaled $747.1 million, representing an increase of $48.6 million, or 7.0%, from the second quarter of 2025. Consolidated net sales for the first six months of 2026 totaled $1.4 billion, representing an increase of $17.4 million, or 1.2%, from the first six months of 2025. The following table shows net sales by segment and product line. The net sales in the table below for the specialty materials segment do not include sales from Calca for the 2025 periods as the acquisition occurred on October 1, 2025.
Current wording
Consolidated net sales for the third quarter of 2026 totaled $716.5 million, representing an increase of $26.2 million, or 3.8%, from the third quarter of 2025. Consolidated net sales for the first nine months of 2026 totaled $2.1 billion, representing an increase of $43.5 million, or 2.1%, from the first nine months of 2025. The following table shows net sales by segment and product line. The net sales in the table below for the specialty materials segment do not include sales from Calca for the 2025 periods as the acquisition occurred on October 1, 2025.
Previous wording
Petroleum additives net sales for the first six months of 2026 were $1.3 billion, a decrease of $14 million, or 1.1%, compared to the first six months of 2025. Decreases in North America of 3.9% and Asia Pacific of 3.4% were partially offset by increases in EMEAI of 2.2% and Latin America of 4.3%.
Current wording
Petroleum additives net sales for the first nine months of 2026 were $1.9 billion, a decrease of $12.2 million, or 0.6%, compared to the first nine months of 2025. Decreases in Asia Pacific of 4.9% and North America of 2.0% were mostly offset by increases in Latin America of 5.6% and EMEAI of 1.9%.
Previous wording
While regional sales fluctuate period to period, the percentage of net sales generated by region remained fairly consistent during the second quarter and first six months of 2026 compared with the same periods in 2025.
Current wording
While regional sales fluctuate period to period, the percentage of net sales generated by region remained fairly consistent during the third quarter and first nine months of 2026 compared with the same periods in 2025.
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 2026 and 2025.
Current wording
The following table approximates the components of the changes in petroleum additives net sales between the third quarter and first nine months of 2026 and 2025.
Previous wording
When comparing the second quarter periods of 2026 and 2025, higher selling prices drove the increase in net sales, which was partially offset by lower product shipments. For the first six month comparison between 2026 and 2025, lower product shipments, partially offset by higher selling prices and a favorable foreign currency impact, resulted in the decrease in petroleum additives net sales. The higher selling prices for both the second quarter and first six months of 2026 included surcharges implemented in response to higher costs from the supply chain disruptions in the Middle East. The decrease in shipments was substantially due to our strategic decision to examine and reduce low-margin business.
Current wording
When comparing the third quarter periods of 2026 and 2025, higher selling prices drove the increase in net sales, which was mostly offset by lower product shipments. For the first nine months comparison between 2026 and 2025, lower product shipments, partially offset by higher selling prices and a favorable foreign currency impact, resulted in the decrease in petroleum additives net sales. The higher selling prices for both the third quarter and first nine months of 2026 included surcharges implemented in response to higher costs from the supply chain disruptions in the Middle East. The decrease in product shipments for the third quarter comparison reflects broad market softness, particularly in lubricant additives. In addition to the current quarter market softness, the decrease in product shipments for the nine months comparison was impacted by the first half effects of our strategic decision to examine and reduce low-margin business.
Previous wording
On a worldwide basis, the volume of product shipments for petroleum additives decreased 3.8% in the second quarter of 2026 and 5.3% in the first six months of 2026 compared with the same periods in 2025. The decline reflected lower shipments across both the lubricant additives and fuel additives product lines, with lubricant additives accounting for the majority of the decrease, particularly for the six months period. For the second quarter comparison, lubricant additives product shipments were lower in EMEAI and Asia Pacific, partially offset by growth in Latin America, while North America remained substantially unchanged. Fuel additives shipments for the second quarter comparison were lower across all regions except Asia Pacific. For the first six months comparison, lubricant additives product shipments declined across all regions except for Latin America, which experienced modest growth. Fuel additives shipments for the first six months comparison decreased across all regions except for EMEAI, which remained substantially unchanged.
Current wording
On a worldwide basis, the volume of product shipments for petroleum additives decreased 7.7% for the third quarter of 2026 and 6.1% for the first nine months of 2026 compared with the same periods in 2025. The decline reflected lower shipments across both the lubricant additives and fuel additives product lines, with lubricant additives accounting for the majority of the decrease for both comparative periods. For the third quarter comparison, lubricant additives product shipments were lower across all regions while lower fuel additives shipments in North America were partially offset by increases in EMEAI and Asia Pacific. Fuel additives shipments for the Latin America region were substantially unchanged for the third quarter comparison. For the first nine months comparison, lubricant additives product shipments declined across all regions except for Latin America, which experienced modest growth. Fuel additives shipments for the first nine months comparison decreased in North America and Latin America but increased in EMEAI. Fuel additives shipments were substantially unchanged in Asia Pacific for the nine months comparison.
Previous wording
The primary foreign currencies in which we transact include the Euro, Pound Sterling, Japanese Yen, Chinese Renminbi, and Indian Rupee. Comparing both the second quarters and first six months periods of 2026 and 2025, the United States Dollar strengthened against the Rupee and Yen and weakened against the Euro, Renminbi, and Pound Sterling, resulting in the favorable impacts to net sales in the table above.
Current wording
The primary foreign currencies in which we transact include the Euro, Pound Sterling, Japanese Yen, Chinese Renminbi, and Indian Rupee. Comparing the third quarters of 2026 and 2025, the United States Dollar strengthened against the Euro, Rupee, Yen, and Pound and weakened against the Renminbi, resulting in an unfavorable impact to net sales for the quarter in the table above. However, when comparing the first nine months periods of 2026 and 2025, the United States Dollar strengthened against the Rupee and Yen but weakened against the Euro, Pound, and Renminbi resulting in the overall favorable impact to net sales in the table above.
Previous wording
Total net sales for the specialty materials segment were $67.2 million for the second quarter of 2026, compared to $42.0 million for the second quarter of 2025. For the six months comparison, net sales were $125.3 million for 2026 and $95.8 million for 2025. The increase in net sales for both comparison periods was the result of higher selling prices from favorable product mix, as well as the inclusion of Calca's net sales following its acquisition on October 1, 2025.
Current wording
Total net sales for the specialty materials segment were $62.0 million for the third quarter of 2026, compared to $38.2 million for the third quarter of 2025. For the nine months comparison, net sales were $187.3 million for 2026 and $134.0 million for 2025. The increase in net sales for both comparison periods was the result of higher selling prices from favorable product mix, as well as the inclusion of Calca's net sales following its acquisition on October 1, 2025.
Previous wording
The following table presents reporting segment operating profit for the second quarter and six months ended June 30, 2026 and June 30, 2025 for the petroleum additives and specialty materials segments, as well as the operating loss for the "All other" businesses. A reconciliation of segment operating profit to income before income tax expense is included in Note 4.
Current wording
The following table presents reporting segment operating profit for the third quarter and nine months ended September 30, 2026 and September 30, 2025 for the petroleum additives and specialty materials segments, as well as the operating loss for the "All other" businesses. A reconciliation of segment operating profit to income before income tax expense is included in Note 4.
Previous wording
Petroleum additives segment gross profit increased $7.0 million and operating profit increased $9.5 million when comparing the second quarter of 2026 to the second quarter of 2025. Gross profit decreased $0.4 million and operating profit increased $2.4 million when comparing the first six months of 2026 to the first six months of 2025.
Current wording
Petroleum additives segment gross profit decreased $5.9 million and operating profit decreased $0.4 million when comparing the third quarter of 2026 to the third quarter of 2025. Gross profit decreased $6.3 million and operating profit increased $2.1 million when comparing the first nine months of 2026 to the first nine months of 2025.
Previous wording
Gross profit and operating profit for the second quarter comparison increased primarily due to the net impact of surcharges implemented in response to higher raw material and operating costs we have incurred from the supply chain disruptions in the Middle East.
Current wording
Gross profit and operating profit for the third quarter comparison decreased primarily due to the impact of higher raw material costs and decreased sales volumes partially offset by higher selling prices. Despite broad market softness in lubricant additives that resulted in the decrease in shipments, we successfully implemented surcharges to selling prices to offset higher raw material and operating costs incurred due to the supply chain disruptions in the Middle East.
Previous wording
Petroleum additives selling, general, and administrative (SG&A) expenses decreased $0.5 million in the second quarter of 2026 compared with the second quarter of 2025 and increased $0.6 million in the first six months of 2026 compared with the first six months of 2025. SG&A expenses as a percentage of net sales were 4.8% for the second quarter of 2026, 5.1% for the second quarter of 2025, 5.2% for the first six months of 2026, and 5.1% for the first six months of 2025. 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 decreased $0.9 million in the third quarter of 2026 compared with the third quarter of 2025 and decreased $0.3 million in the first nine months of 2026 compared with the first nine months of 2025. SG&A expenses as a percentage of net sales were 4.9% for the third quarter of 2026 and 5.1% for each of the third quarter of 2025, the first nine months of 2026, and the first nine months of 2025. 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
Investments in petroleum additives research, development, and testing (R&D) decreased $2.0 million when comparing the second quarters of 2026 and 2025 and decreased $3.5 million when comparing the first six months of 2026 and 2025. As a percentage of net sales, R&D investment was 4.5% for the second quarter of 2026, 5.0% for the second quarter of 2025, 4.8% for the first six months of 2026, and 5.0% for the first six months of 2025. 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
Investments in petroleum additives research, development, and testing (R&D) decreased $4.5 million when comparing the third quarters of 2026 and 2025 and decreased $8.0 million when comparing the first nine months of 2026 and 2025. As a percentage of net sales, R&D investment was 4.7% for the third quarter of 2026, 5.4% for the third quarter of 2025, 4.8% for the first nine months of 2026, and 5.2% for the first nine months of 2025. 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 $22.3 million for the second quarter of 2026 as compared to $10.5 million for the second quarter of 2025. Operating profit of $34.8 million for the first six months of 2026 remained fairly flat as compared to operating profit of $33.7 million for the first six months of 2025. The increase in specialty materials operating profit for the second quarter comparison was driven by factors consistent with those impacting specialty materials net sales as discussed above, partially offset by higher operating costs. We expect to experience substantial variation in quarterly results for the specialty materials segment due to the nature of its business.
Current wording
The specialty materials segment reported operating profit of $16.4 million for the third quarter of 2026 as compared to $6.0 million for the third quarter of 2025. For the first nine months of 2026, operating profit was $51.2 million as compared to operating profit of $39.7 million for the first nine months of 2025. The increases in specialty materials operating profit for the third quarter and nine months comparisons were driven by factors consistent with those impacting specialty materials net sales as discussed above. We expect to experience substantial variation in quarterly results for the specialty materials segment due to the nature of its business.
Previous wording
Other income (expense), net was income of $15.5 million for the second quarter of 2026, $15.3 million for the second quarter of 2025, $32.7 million for the first six months of 2026, and $30.2 million for the first six months of 2025. The amounts for both the 2026 and 2025 second quarter and six months periods primarily reflect the non-service cost components of net periodic benefit cost (income) 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 $16.2 million for the third quarter of 2026, $13.3 million for the third quarter of 2025, $48.9 million for the first nine months of 2026, and $43.5 million for the first nine months of 2025. The amounts for both the 2026 and 2025 third quarter and nine month periods primarily reflect the non-service cost components of net periodic benefit cost (income) 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 $36.6 million for the second quarter of 2026 and $36.4 million for the second quarter of 2025. The effective tax rate was 21.5% for the second quarter of 2026 and 24.7% for the second quarter of 2025. Income tax expense increased $5.6 million due to higher income but was mostly offset by a $5.5 million decrease resulting from the lower effective tax rate.
Current wording
Income tax expense was $27.0 million for the third quarter of 2026 and $35.3 million for the third quarter of 2025. The effective tax rate was 17.9% for the third quarter of 2026 and 26.1% for the third quarter of 2025. Income tax expense decreased $8.3 million due to a $12.3 million decrease resulting from the lower effective tax rate partially offset by a $4.0 million increase due to higher income. The decrease in the effective tax rate was primarily driven by changes in estimates related to prior year taxes and lower taxes on foreign earnings.
Previous wording
Income tax expense was $70.2 million for the first six months of 2026 and $74.6 million for the first six months of 2025. The effective tax rate was 21.8% for the first six months of 2026 and 23.9% for the first six months of 2025. Income tax expense decreased $6.9 million due to the lower effective tax rate and was slightly offset by a $2.5 million increase due to higher income.
Current wording
Income tax expense was $97.2 million for the first nine months of 2026 and $109.9 million for the first nine months of 2025. The effective tax rate was 20.6% for the first nine months of 2026 and 24.6% for the first nine months of 2025. Income tax expense decreased $12.7 million due to a $19.0 million decrease resulting from the lower effective tax rate as discussed above, which was partially offset by a $6.3 million increase due to higher income.
Previous wording
The OBBBA has multiple effective dates, with certain provisions which were effective in 2025 and others implemented through 2027. The 2026 impacts of the OBBBA have been reflected in the income tax provision for the second quarter and six months ended June 30, 2026. These impacts were not material to our consolidated financial statements. We are continuing to assess the impact of the provisions of the OBBBA that are effective in the future.
Current wording
The OBBBA has multiple effective dates, with certain provisions which were effective in 2025 and others implemented through 2027. The 2026 impacts of the OBBBA have been reflected in the income tax provision for the third quarter and nine months ended September 30, 2026. These impacts were not material to our consolidated financial statements. We are continuing to assess the impact of the provisions of the OBBBA that are effective in the future.
Previous wording
Cash and cash equivalents at June 30, 2026 were $93.6 million, an increase of $16.0 million since December 31, 2025.
Current wording
Cash and cash equivalents at September 30, 2026 were $77.3 million, a decrease of $0.3 million since December 31, 2025.
Previous wording
Cash and cash equivalents held by our foreign subsidiaries amounted to $78.2 million at June 30, 2026 and $68.3 million at December 31, 2025. 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 $71.1 million at September 30, 2026 and $68.3 million at December 31, 2025. 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
We expect that cash from operations, together with borrowing available under our revolving credit facility, will continue to be sufficient to cover our operating needs including planned short-term and long-term capital expenditures.
Current wording
We expect that cash from operations, together with borrowing available under our revolving credit facility, will continue to be sufficient to cover our operating needs for the foreseeable future, including planned short-term and long-term capital expenditures.
Previous wording
Cash provided from operating activities for the first six months of 2026 was $286.2 million, including $3.6 million of higher working capital requirements. The $3.6 million excluded a favorable 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 2026 was $354.7 million, including $77.0 million of higher working capital requirements.
Previous wording
When comparing the June 30, 2026 balances with those at December 31, 2025, the most significant changes in working capital included increases in trade and other accounts receivable, inventories, and accounts payable, along with a decrease in accrued expenses. The increase in trade and other accounts receivable primarily reflects higher sales during the second quarter of 2026 compared to the fourth quarter of 2025, partially offset by a reduction in a short-term income tax receivable. The increase in inventories is due mainly to increased sales volume and higher raw material prices resulting from the conflict in the Middle East. The increase in accounts payable is primarily the result of increased purchasing along with higher raw material costs during the first six months of 2026 and normal invoice payment timing. The decrease in accrued expenses is primarily the result of normal payments related to customer rebates and personnel-related payments.
Current wording
When comparing the September 30, 2026 balances with those at December 31, 2025, the most significant changes in working capital included increases in trade and other accounts receivable, inventories, and accounts payable. The increase in trade and other accounts receivable primarily reflects higher sales during the third quarter of 2026 compared to the fourth quarter of 2025, partially offset by a reduction in a short-term income tax receivable. The increase in inventories is due mainly to higher raw material prices and transit times as a result of the conflict in the Middle East, as well as higher production volume during the third quarter of 2026. The increase in accounts payable is primarily the result of increased purchasing along with higher raw material costs during the first nine months of 2026 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 $639.6 million at June 30, 2026 and $640.4 million at December 31, 2025. The current ratio was 2.25 at June 30, 2026 and 2.53 at December 31, 2025.
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 $688.4 million at September 30, 2026 and $640.4 million at December 31, 2025. The current ratio was 2.46 at September 30, 2026 and 2.53 at December 31, 2025.
Previous wording
Cash used in investing activities totaled $50.6 million during the first six months of 2026, comprised primarily of capital expenditures. We expect that our total capital spending during 2026 will be in the $100 million to $130 million range and will include improvements to our manufacturing and R&D infrastructure around the world.
Current wording
Cash used in investing activities totaled $87.3 million during the first nine months of 2026, comprised primarily of capital expenditures. We expect that our total capital spending during 2026 will be in the $100 million to $120 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 2026 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, which began in 2025 and is currently expected to come online towards the end of 2026, 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.
Current wording
Expected 2026 capital expenditures include a project to expand AMPAC's ammonium perchlorate production capacity to meet growing solid rocket motor demand. The project of up to $100 million, which began in 2025 and is expected to be completed in late 2026, will add a new production line and increase capacity by 50%, strengthening supply for U.S. military and space launch programs and key U.S. allies.
Previous wording
Cash used in financing activities during the first six months of 2026 amounted to $215.1 million. These cash flows included repurchases of our common stock of $126.4 million, cash dividends of $55.6 million, and principal payments of $50.0 million on the 3.78% senior notes, which were partially offset by net borrowings of $21.0 million on the revolving credit facility.
Current wording
Cash used in financing activities during the first nine months of 2026 amounted to $268.5 million. These cash flows included repurchases of our common stock of $126.4 million, cash dividends of $83.1 million, principal payments of $50.0 million on the 3.78% senior notes, and net repayments of $4.0 million on the revolving credit facility.
Previous wording
Our long-term debt was $854.8 million at June 30, 2026 compared to $883.4 million at December 31, 2025.
Current wording
Our long-term debt was $830.1 million at September 30, 2026 compared to $883.4 million at December 31, 2025.
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, 2026, the Leverage Ratio was 1.20 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, 2026, the Leverage Ratio was 1.14 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 percentage decreased from 33.2% at December 31, 2025 to 31.7% at June 30, 2026. The change resulted from a net decrease in outstanding long-term debt along with an increase in shareholders' equity. The increase in shareholders’ equity primarily reflects our earnings partially offset by repurchases of shares of our common stock, dividend payments, and an unfavorable impact from foreign currency translation adjustments. 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 percentage decreased from 33.2% at December 31, 2025 to 30.1% at September 30, 2026. The change resulted from a net decrease in outstanding long-term debt along with an increase in shareholders' equity. The increase in shareholders’ equity primarily reflects our earnings partially offset by repurchases of shares of our common stock, dividend payments, an unfavorable impact from foreign currency translation adjustments, and a decrease in the funded position of our retirement plans. Generally, we repay any outstanding long-term debt with cash from operations or refinancing activities.
Previous wording
In addition to the ongoing investments we make in our petroleum additives business, we have committed approximately $1 billion to our specialty materials business since 2024, including the acquisitions of AMPAC and Calca, as well as investments expanding capacity at both operations. 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 this resilient, high-technology specialty materials segment due to the nature of the business, including any impact from shutdowns of the U.S. government.
Current wording
In addition to the ongoing investments we make in our petroleum additives business, we have committed approximately $1 billion to our specialty materials business since 2024, including acquisitions and investments in expanded capacity across the specialty materials business. We continue to focus on the integration of recent acquisitions into our business, and we anticipate solid results from this segment. We may experience substantial variation in quarterly results for this resilient, high-technology specialty materials segment due to the nature of the business, including any impact from shutdowns of the U.S. government.
Previous wording
While our most 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.
Current wording
While our most recent acquisitions in the specialty materials business were outside of our core petroleum additives business, we believe they 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.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The decrease in the effective tax rate for both periods was primarily driven by lower taxes on foreign earnings.