NewMarket Profit Rises as Rocket-Propellant Materials Business Surges

NewMarket's third-quarter profit climbed to $124.1 million on Wednesday, as its rocket-propellant materials business more than doubled its operating profit and price surcharges shielded the core fuel and lubricant additives unit from a drop in volumes.

The Richmond, Virginia-based chemical maker reported net income of $124.1 million, or $13.50 per share, up from $100.3 million, or $10.67 per share, a year earlier, according to the earnings release it filed with an 8-K on Wednesday. The company said higher operating profit and a lower effective tax rate drove the increase.

Specialty materials take off

The standout was specialty materials, the segment that makes ingredients used mainly in solid rocket motors for the aerospace and defense industries. Sales rose to $62.0 million from $38.2 million, and operating profit climbed to $16.4 million from $6.0 million.

NewMarket attributed the sales gain to a shift in product shipment mix and the addition of Calca Solutions, a high-purity hydrazine maker it acquired on Oct. 1, 2025. The company cautioned that it expects quarterly results in the segment to vary on an ongoing basis.

Chairman and CEO Thomas E. Gottwald said the company looks forward to completing capacity expansion projects for both ammonium perchlorate and high-purity hydrazine by the end of 2026.

Additives hold steady despite softer demand

Petroleum additives, the company's largest business, posted sales of $651.0 million, compared with $649.1 million a year earlier. Operating profit was essentially flat at $130.9 million versus $131.3 million.

That stability came even as shipments fell 8%. "Despite broader market softness in lubricant additives that resulted in an 8% decline in shipments, we successfully implemented surcharges to offset higher costs incurred due to the supply chain disruptions in the Middle East," Gottwald said in the release.

For the first nine months, additives shipments fell 6%, which the company tied partly to a first-half decision to reduce low-margin business. Gottwald said the surcharges and operational actions put in place earlier in the year to address higher raw material, utility and logistics costs remain in effect.

Nine-month results and cash use

Through September, net income rose to $375.9 million, or $40.64 per share, from $337.5 million, or $35.78 per share. Specialty materials sales for the period reached $187.3 million, up from $133.9 million.

NewMarket funded $88.5 million of capital spending, paid $83.1 million in dividends and repurchased more than 200,000 shares for $126.4 million during the nine months, while reducing its net debt to EBITDA ratio to 1.0x.

Watching the backdrop

The company said it continues to monitor the conflict in the Middle East, the uncertain macroeconomic environment, and changes in international trade relations and tariffs. "While the operating environment remains dynamic, we believe these actions position us well to continue delivering solid results," Gottwald said.

NewMarket will hold a conference call on Thursday afternoon to review the results.

Sources

1. NewMarket Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001282637-26-000019)

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