NewMarket Corporation Reports Q1 2026 Results: Net Income at \$118 Million, \$126 Million in Stock Buybacks

Richmond, VA, April 22, 2026 – NewMarket Corporation (NYSE: NEU) has released its financial results for the first quarter ended March 31, 2026, delivering a mixed picture with continued share repurchases and robust profitability, but a slight decline in net income compared to the prior year.

Key Financial Highlights

• Net Income: \$118.1 million, down from \$125.9 million in Q1 2025.
• Earnings Per Share (EPS): \$12.62, compared to \$13.26 one year ago.
• Segment Operating Profit: \$147 million.
• Stock Repurchases: \$126 million in shares bought back in Q1 2026.
• Cash Dividends Declared per Share: \$3.00, unchanged from last year.
• EBITDA: \$191.8 million for the quarter (vs. \$203.2 million in Q1 2025).
• Total Shareholders’ Equity: \$1.73 billion at March 31, 2026 (down from \$1.78 billion at December 31, 2025).
• Net Borrowings Under Revolving Credit Facility: \$106 million (up from \$69 million in Q1 2025).
• Repurchases of Common Stock: \$125.6 million (up from \$57.1 million in Q1 2025).

Detailed Segment and Financial Information

• Revenue: \$448.8 million, a decrease from \$464.9 million in Q1 2025, reflecting a modest contraction in topline performance.
• Gross Profit: \$220.9 million, compared to \$232.5 million in the same quarter last year.
• Operating Profit: \$147.1 million, down from \$159.9 million in Q1 2025.
• Interest and Financing Expenses (Net): \$8.8 million, down from \$10.7 million last year, reflecting improved financing cost control.
• Other Income (Net): \$17.2 million, up from \$14.9 million last year.
• Income Before Income Tax Expense: \$151.7 million, compared to \$164.1 million in Q1 2025.
• Net Income: \$118.1 million (down from \$125.9 million).
• Retained Earnings: \$1.63 billion at March 31, 2026.
• Cash Flow from Operations: \$130.5 million in Q1 2026 (down from \$134.5 million).

Shareholder-Focused Actions

• Share Repurchases: Aggressive buyback program continued, with \$125.6 million spent on share repurchases in Q1 2026, nearly double the amount from the same period last year. This could signal management’s confidence in the company’s prospects and directly impacts EPS by reducing share count.
• Dividends: Maintained at \$3.00 per share for the quarter, supporting ongoing income for shareholders.

Balance Sheet and Liquidity

• Total Assets: \$3.49 billion at period end.
• Current Liabilities: \$94.8 million in accounts payable, compared to \$109.8 million at year-end 2025.
• Shareholders’ Equity: \$1.73 billion, a slight decrease from \$1.78 billion at year-end, reflecting share repurchases and dividend payments.
• Net Borrowings: \$106 million, up from \$69 million in Q1 2025, indicating increased leverage, likely to support share repurchases and operational needs.

Potentially Price-Sensitive Items & Risks

• Net Income and EPS Decline: Both net income and EPS declined year-over-year, which could be seen as a cautionary signal by investors, especially if the trend persists.
• Accelerated Share Repurchases: The company’s substantial buyback activity (\$126 million in the quarter) is a significant shareholder return policy. While this can boost EPS and share value, it also reduces cash reserves and increases leverage, which may have longer-term implications.
• Increased Borrowings: The rise in net borrowings under the credit facility suggests increased financial leverage. While manageable at current levels, any further increase in debt could increase financial risk.
• Dividend Stability: The maintenance of the dividend at \$3.00 per share may reassure income-oriented investors, but any future changes could be price-sensitive.
• Profit Margin Compression: Decreases in both revenue and operating profit may prompt concerns about margin pressure or top-line growth challenges.
• Forward-Looking Statements and Risks: The report cites risks including market volatility, indebtedness, foreign exchange impacts, environmental liabilities, and ongoing legal matters. These are detailed in the company’s 10-K and should be monitored for any material developments.

Management and Investor Relations

• CEO Statement: The earnings report was released by Thomas E. Gottwald, Chairman and CEO.
• Investor Contact: Timothy K. Fitzgerald, Vice President and CFO, is the main point of contact (Phone: 804.788.5555, Email: [email protected]).

Summary and Investor Takeaways

NewMarket Corporation continues to deliver strong profitability and returns capital to shareholders through dividends and accelerated share buybacks. However, the modest declines in net income, EPS, and revenue, coupled with increased leverage, may raise some caution among investors. The company’s aggressive stock repurchase program is supportive for per-share metrics but bears watching for its impact on balance sheet strength.

The maintenance of the dividend and buyback activity are both potential share price drivers, but ongoing monitoring of margins, revenue trends, and debt levels will be important for investors. Any changes to these policies or further declines in earnings could be price-sensitive.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should review the full SEC filings and consult with their financial advisors before making any investment decisions. The information herein is based on publicly released filings as of April 22, 2026, and may be subject to change.

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