NewMarket raises dividend to $2.75 per share

RICHMOND, Va. - NewMarket Corporation (NYSE: NEU) announced an increase in its quarterly dividend, raising the payout from $2.50 to $2.75 per share, marking a 10% hike. This new dividend is set to be distributed on April 1, 2025, to shareholders who are on record as of March 17, 2025. According to InvestingPro data, this marks the company’s 6th consecutive year of dividend increases, while maintaining dividend payments for 19 straight years - a testament to its commitment to shareholder returns.

The company, which operates through its subsidiaries Afton Chemical Corporation, Ethyl Corporation, and American Pacific Corporation, is known for its development, manufacturing, and delivery of chemical additives for petroleum products, as well as specialty materials for the aerospace and defense industries. With a market capitalization of $5.36 billion and trailing twelve-month EBITDA of $750 million, NewMarket has established itself as a significant player in the specialty chemicals sector.

The announcement is part of NewMarket’s ongoing commitment to delivering value to its shareholders. However, the company also cautioned that forward-looking statements within the press release are subject to risks and uncertainties, and there can be no guarantee that actual results will not materially differ from expectations.

Factors that may influence future results include availability and cost of raw materials, production disruptions, market competition, regulatory changes, and the potential impact of extraordinary events such as natural disasters or geopolitical conflicts.

NewMarket’s management emphasizes that while they believe their expectations are based on reasonable assumptions, investors should be aware of the various risks detailed in the company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2024.

This dividend increase reflects NewMarket’s financial health and its ability to generate consistent cash flow, which supports the higher payout to its investors. It’s a sign of the company’s confidence in its business operations and its strategic positioning within the industry. InvestingPro analysis indicates the company maintains excellent financial health with a "GREAT" overall score, supported by a strong current ratio of 2.75 and attractive valuations with a P/E ratio of 11.69. For deeper insights into NewMarket’s valuation and growth potential, investors can access comprehensive Pro Research Reports available on InvestingPro, covering over 1,400 US stocks.

As with all forward-looking statements, NewMarket does not intend to update or revise its projections beyond the date of the press release, except as required by law. Shareholders and investors are encouraged to consider the detailed risk factors that may affect the company’s performance. Based on InvestingPro Fair Value analysis, the stock currently appears slightly undervalued, with additional ProTips and metrics available to subscribers, including insights on the company’s free cash flow yield and price volatility patterns.

The information contained in this article is based on a press release statement from NewMarket Corporation.

In other recent news, NewMarket Corporation announced its financial results for the fourth quarter of 2024, surpassing market expectations with earnings per share (EPS) of $11.56. The company reported a revenue of $654.6 million, demonstrating a strong performance despite a slight decline in Petroleum Additives sales. NewMarket’s net income for the quarter rose to $111 million, up from $80 million in the same period last year. The acquisition of American Pacific Corporation has been a strategic move, enhancing NewMarket’s capabilities in performance additives for space and defense sectors. Operational efficiencies have led to reduced costs and improved debt ratios, contributing to the company’s overall profitability.

Additionally, NewMarket’s full-year net income increased to $462 million from $389 million in 2023. Analysts from various firms noted the company’s strong execution and strategic focus, particularly highlighting the benefits of its recent acquisition. The company’s outlook remains positive, with expectations of continued strength in its Petroleum Additives and Specialty Materials segments. As NewMarket continues to invest in technology and operational efficiencies, it aims to maintain long-term shareholder value and enhance its market position.

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