NewMarket Corporation Q2 FY2025 earnings call

• Net income for Q2 2025 was $111 million vs $112 million in Q2 2024; first half 2025 net income was $237 million vs $219 million in first half 2024.
• Petroleum additives business had flat sales in first half 2025, strong operating margins due to efficiency focus but challenged by inflation and tariffs.
• Specialty Materials segment had increased sales and operating profit in Q2 and first half 2025, with AMPAC viewed as strategic for safety, security, etc.
• Company generated solid cash flows in first half 2025, returning $129 million to shareholders via repurchases and dividends.
• Committed to investing in AMPAC capacity to meet growing customer needs.

Petroleum Additives: Second quarter 2025 sales were $654 million, operating profit $140 million. First half 2025 sales $1.3 billion, operating profit $282 million. Specialty Materials: Second quarter 2025 sales $42 million, operating profit $11 million. First half 2025 sales $96 million, operating profit $34 million. Petroleum additives sales in Q2 2025 were down from Q2 2024, with operating profit decrease due to 2.5% shipment decline and R&D investments. Specialty Materials saw sales and operating profit increase in Q2 and first half 2025, with volume driving Q2 operating profit increase.

• Anticipate continued strength in petroleum additives and Specialty Materials segments.
• Committed to making decisions promoting long-term value for shareholders and customers.

• Ongoing inflationary environment.
• Impact of tariffs despite efforts to improve efficiency and manage costs.

Q: No specific questions addressed in the provided transcript A: Operator states they are available for questions via email or phone, but no questions were asked in the given transcript