NEWMARKET CORP — Call Transcript 2026

Greetings. Welcome to the NewMarket Corporation conference call and webcast to review first quarter 2026 financial results. At this time, all participants are in a listen only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Tim Fitzgerald, CFO at NewMarket. You may begin. Thank you, and thanks to everyone for joining me this afternoon. As a reminder, some of the statements made during this conference call may be forward-looking. Relevant factors that could cause actual results to differ materially from those forward-looking statements are contained in our earnings release and in our SEC filings, including our most recent Form 10-K. During this call, we will also discuss the non-GAAP financial measures included in our earnings release. The earnings release, which can be found on our website, includes a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures. We filed our 10-Q for the first quarter of 2026 today, and it contains significantly more details on the operations and performance of our company. Today, I will be referring to the data that was included in last night's press release. Net income for the first quarter of 2026 was $118 million, or $12.62 per share, compared to net income of $126 million, or $13.26 per share for the first quarter of 2025. Petroleum additives sales for the first quarter of 2026 were $610 million, compared to $646 million for the same period in 2025. Petroleum additives operating profit for the first quarter of 2026 was $135 million, compared to operating profit of $142 million in 2025. The decrease in operating profit was mainly due to the decline in shipments of 7%, due to softening in the market and our strategic decision to reduce low-margin business. However, we are encouraged by the increase in shipments we observed in the latter part of the first quarter of 2026. Despite the decline in shipments in the first quarter, our operating profit margin remained strong. We are very pleased with the performance of our petroleum additives business during the first quarter of 2026 and the work done by our team to operate within a rapidly changing environment due to the conflict in the Middle East. We have implemented price adjustments to account for the escalating cost of raw materials, utilities, and logistics, and we have rebalanced our global production to make sure we are meeting customer demands in a dynamically evolving market. Despite these challenges, we remain committed to improving efficiency and managing operating costs. Our focus continues to be on investing in technology and our supply network to meet customer demands, enhancing our operational efficiency and improving our portfolio profitability. We report the financial results of our AMPAC business and our newly acquired Calca Solutions business in our specialty materials segment. Specialty materials sales for the first quarter of 2026 were $58 million, compared to $54 million for the same period in 2025. The increase in sales was mainly due to the inclusion of the Calca business, which was acquired on October 1st, 2025, offset by a shift in shipment mix at AMPAC versus the first quarter of last year. Specialty materials operating profit for the first quarter of 2026 was $12 million, compared to $23 million for the first quarter of 2025. The decline in operating profit was mainly due to the change in quarterly shipment mix at AMPAC compared to last year. As previously stated, we will see substantial variation in quarterly results for the specialty materials segment on an ongoing basis due to the nature of the business. Our company generated solid cash flows throughout the first quarter, which allowed us to return $154 million to our shareholders through share repurchases of $126 million and dividends of $28 million. As of March 31st, 2026, our net debt to EBITDA ratio was 1.2 times. As we look ahead to 2026, we are committed to making decisions that promote long-term value for our shareholders and customers while staying focused on our long-term objectives. We believe that the core principles guiding our business, a long-term perspective, a safety-first culture, customer-focused solutions, technology-driven products, and a world-class supply chain will continue to benefit all of our stakeholders. That concludes our planned comments. We are available for questions via email or by phone, so please feel free to contact me directly. Thank you all again, and we will talk to you next quarter. Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

Speaker 1: Greetings. Welcome to the NewMarket Corporation conference call and webcast to review first quarter 2026 financial results. At this time, all participants are in a listen only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Tim Fitzgerald, CFO at NewMarket. You may begin. Greetings. greetings Welcome to the NewMarket Corporation conference call and webcast to review first quarter 2026 financial results. welcome to the newmarket corporation conference call and webcast to review first quarter 2026 financial results At this time, all participants are in a listen only mode. at this time all participants are in a listen only mode If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. if anyone should require operator assistance during the conference please press star zero on your telephone keypad Please note this conference is being recorded. please note this conference is being recorded I will now turn the conference over to your host, Tim Fitzgerald, CFO at NewMarket. i will now turn the conference over to your host tim fitzgerald cfo at newmarket You may begin. you may begin

Speaker 2: Thank you, and thanks to everyone for joining me this afternoon. As a reminder, some of the statements made during this conference call may be forward-looking. Relevant factors that could cause actual results to differ materially from those forward-looking statements are contained in our earnings release and in our SEC filings, including our most recent Form 10-K. During this call, we will also discuss the non-GAAP financial measures included in our earnings release. The earnings release, which can be found on our website, includes a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures. We filed our 10-Q for the first quarter of 2026 today, and it contains significantly more details on the operations and performance of our company. Today, I will be referring to the data that was included in last night's press release. Thank you, and thanks to everyone for joining me this afternoon. thank you and thanks to everyone for joining me this afternoon As a reminder, some of the statements made during this conference call may be forward-looking. as a reminder some of the statements made during this conference call may be forward-looking Relevant factors that could cause actual results to differ materially from those forward-looking statements are contained in our earnings release and in our SEC filings, including our most recent Form 10-K. relevant factors that could cause actual results to differ materially from those forward-looking statements are contained in our earnings release and in our sec filings including our most recent form 10-k During this call, we will also discuss the non-GAAP financial measures included in our earnings release. during this call we will also discuss the non-gaap financial measures included in our earnings release The earnings release, which can be found on our website, includes a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures. the earnings release which can be found on our website includes a reconciliation of the non-gaap financial measures to the comparable gaap financial measures We filed our 10-Q for the first quarter of 2026 today, and it contains significantly more details on the operations and performance of our company. we filed our 10-q for the first quarter of 2026 today and it contains significantly more details on the operations and performance of our company Today, I will be referring to the data that was included in last night's press release. today i will be referring to the data that was included in last night's press release Net income for the first quarter of 2026 was $118 million, or $12.62 per share, compared to net income of $126 million, or $13.26 per share for the first quarter of 2025. Petroleum additives sales for the first quarter of 2026 were $610 million, compared to $646 million for the same period in 2025. Petroleum additives operating profit for the first quarter of 2026 was $135 million, compared to operating profit of $142 million in 2025. The decrease in operating profit was mainly due to the decline in shipments of 7%, due to softening in the market and our strategic decision to reduce low-margin business. However, we are encouraged by the increase in shipments we observed in the latter part of the first quarter of 2026. Despite the decline in shipments in the first quarter, our operating profit margin remained strong. Net income for the first quarter of 2026 was $118 million, or $12.62 per share, compared to net income of $126 million, or $13.26 per share for the first quarter of 2025. net income for the first quarter of 2026 was $118 million or $12.62 per share compared to net income of $126 million or $13.26 per share for the first quarter of 2025 Petroleum additives sales for the first quarter of 2026 were $610 million, compared to $646 million for the same period in 2025. petroleum additives sales for the first quarter of 2026 were $610 million compared to $646 million for the same period in 2025 Petroleum additives operating profit for the first quarter of 2026 was $135 million, compared to operating profit of $142 million in 2025. petroleum additives operating profit for the first quarter of 2026 was $135 million compared to operating profit of $142 million in 2025 The decrease in operating profit was mainly due to the decline in shipments of 7%, due to softening in the market and our strategic decision to reduce low-margin business. the decrease in operating profit was mainly due to the decline in shipments of 7% due to softening in the market and our strategic decision to reduce low-margin business However, we are encouraged by the increase in shipments we observed in the latter part of the first quarter of 2026. however we are encouraged by the increase in shipments we observed in the latter part of the first quarter of 2026 Despite the decline in shipments in the first quarter, our operating profit margin remained strong. despite the decline in shipments in the first quarter our operating profit margin remained strong We are very pleased with the performance of our petroleum additives business during the first quarter of 2026 and the work done by our team to operate within a rapidly changing environment due to the conflict in the Middle East. We have implemented price adjustments to account for the escalating cost of raw materials, utilities, and logistics, and we have rebalanced our global production to make sure we are meeting customer demands in a dynamically evolving market. Despite these challenges, we remain committed to improving efficiency and managing operating costs. Our focus continues to be on investing in technology and our supply network to meet customer demands, enhancing our operational efficiency and improving our portfolio profitability. We report the financial results of our AMPAC business and our newly acquired Calca Solutions business in our specialty materials segment. We are very pleased with the performance of our petroleum additives business during the first quarter of 2026 and the work done by our team to operate within a rapidly changing environment due to the conflict in the Middle East. we are very pleased with the performance of our petroleum additives business during the first quarter of 2026 and the work done by our team to operate within a rapidly changing environment due to the conflict in the middle east We have implemented price adjustments to account for the escalating cost of raw materials, utilities, and logistics, and we have rebalanced our global production to make sure we are meeting customer demands in a dynamically evolving market. we have implemented price adjustments to account for the escalating cost of raw materials utilities and logistics and we have rebalanced our global production to make sure we are meeting customer demands in a dynamically evolving market Despite these challenges, we remain committed to improving efficiency and managing operating costs. despite these challenges we remain committed to improving efficiency and managing operating costs Our focus continues to be on investing in technology and our supply network to meet customer demands, enhancing our operational efficiency and improving our portfolio profitability. our focus continues to be on investing in technology and our supply network to meet customer demands enhancing our operational efficiency and improving our portfolio profitability We report the financial results of our AMPAC business and our newly acquired Calca Solutions business in our specialty materials segment. we report the financial results of our ampac business and our newly acquired calca solutions business in our specialty materials segment Specialty materials sales for the first quarter of 2026 were $58 million, compared to $54 million for the same period in 2025. The increase in sales was mainly due to the inclusion of the Calca business, which was acquired on October 1st, 2025, offset by a shift in shipment mix at AMPAC versus the first quarter of last year. Specialty materials operating profit for the first quarter of 2026 was $12 million, compared to $23 million for the first quarter of 2025. The decline in operating profit was mainly due to the change in quarterly shipment mix at AMPAC compared to last year. As previously stated, we will see substantial variation in quarterly results for the specialty materials segment on an ongoing basis due to the nature of the business. Specialty materials sales for the first quarter of 2026 were $58 million, compared to $54 million for the same period in 2025. specialty materials sales for the first quarter of 2026 were $58 million compared to $54 million for the same period in 2025 The increase in sales was mainly due to the inclusion of the Calca business, which was acquired on October 1st, 2025, offset by a shift in shipment mix at AMPAC versus the first quarter of last year. the increase in sales was mainly due to the inclusion of the calca business which was acquired on october 1st 2025 offset by a shift in shipment mix at ampac versus the first quarter of last year Specialty materials operating profit for the first quarter of 2026 was $12 million, compared to $23 million for the first quarter of 2025. specialty materials operating profit for the first quarter of 2026 was $12 million compared to $23 million for the first quarter of 2025 The decline in operating profit was mainly due to the change in quarterly shipment mix at AMPAC compared to last year. the decline in operating profit was mainly due to the change in quarterly shipment mix at ampac compared to last year As previously stated, we will see substantial variation in quarterly results for the specialty materials segment on an ongoing basis due to the nature of the business. as previously stated we will see substantial variation in quarterly results for the specialty materials segment on an ongoing basis due to the nature of the business Our company generated solid cash flows throughout the first quarter, which allowed us to return $154 million to our shareholders through share repurchases of $126 million and dividends of $28 million. As of March 31st, 2026, our net debt to EBITDA ratio was 1.2 times. As we look ahead to 2026, we are committed to making decisions that promote long-term value for our shareholders and customers while staying focused on our long-term objectives. We believe that the core principles guiding our business, a long-term perspective, a safety-first culture, customer-focused solutions, technology-driven products, and a world-class supply chain will continue to benefit all of our stakeholders. That concludes our planned comments. We are available for questions via email or by phone, so please feel free to contact me directly. Thank you all again, and we will talk to you next quarter. Our company generated solid cash flows throughout the first quarter, which allowed us to return $154 million to our shareholders through share repurchases of $126 million and dividends of $28 million. our company generated solid cash flows throughout the first quarter which allowed us to return $154 million to our shareholders through share repurchases of $126 million and dividends of $28 million As of March 31st, 2026, our net debt to EBITDA ratio was 1.2 times. as of march 31st 2026 our net debt to ebitda ratio was 1.2 times As we look ahead to 2026, we are committed to making decisions that promote long-term value for our shareholders and customers while staying focused on our long-term objectives. as we look ahead to 2026 we are committed to making decisions that promote long-term value for our shareholders and customers while staying focused on our long-term objectives We believe that the core principles guiding our business, a long-term perspective, a safety-first culture, customer-focused solutions, technology-driven products, and a world-class supply chain will continue to benefit all of our stakeholders. we believe that the core principles guiding our business a long-term perspective a safety-first culture customer-focused solutions technology-driven products and a world-class supply chain will continue to benefit all of our stakeholders That concludes our planned comments. that concludes our planned comments We are available for questions via email or by phone, so please feel free to contact me directly. we are available for questions via email or by phone so please feel free to contact me directly Thank you all again, and we will talk to you next quarter. thank you all again and we will talk to you next quarter

Speaker 1: Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation. Thank you. thank you This does conclude today's conference. this does conclude today's conference You may disconnect your lines at this time. you may disconnect your lines at this time Thank you for your participation. thank you for your participation