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RICHMOND, Va. - NewMarket Corporation (NYSE:NEU) reported first quarter earnings that surpassed expectations, but saw revenue decline YoY, leading to a 3% drop in its stock price.
The petroleum additives maker posted adjusted earnings per share of $13.26 for the first quarter of 2025, beating analyst estimates. However, revenue fell to $700.95 million from $694.3 million in the same quarter last year, a 3.5% decrease.
NewMarket’s petroleum additives segment, which accounts for the bulk of its business, saw sales decline to $645.6 million from $677.3 million YoY. The company attributed this to a 7.2% drop in shipments, with lubricant additives shipments decreasing in Asia Pacific and North America.
Despite lower shipments, the company maintained a strong operating profit margin in its petroleum additives segment due to continued focus on operational efficiency. Operating profit for the segment was $142.1 million, down from $150.9 million in Q1 2024.
The specialty materials segment showed significant growth, with sales rising to $53.7 million from $17.0 million YoY. Operating profit for this segment jumped to $23.2 million, compared to a $5.0 million loss in the same period last year.
"We are pleased with the strong performance of our business during the first quarter of 2025 and continue to see favorable results from our ongoing efficiency initiatives," said Thomas E. Gottwald, Chairman and CEO of NewMarket.
The company repurchased $57.1 million worth of common stock and paid $26.1 million in dividends during the quarter. NewMarket also reduced its net debt by $21.5 million, bringing its net debt to EBITDA ratio down to 1.1 as of March 31, 2025.
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