Thu, Apr 24, 1:17 PM (24 days ago)
**NewMarket Corporation (NEU) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $700.9 million, up 0.6% from Q1 2024. - **Net Income:** $125.9 million, up 17% from Q1 2024. - **Earnings per Share (EPS):** $13.26, up 18% from Q1 2024. - **Operating Profit:** $159.9 million, up 13.5% from Q1 2024. - **Gross Profit Margin:** 33.7%, up from 31% in Q1 2024. - **Operating Profit Margin:** 22.8%, up from 20.2% in Q1 2024. **Segment Performance:** - **Petroleum Additives:** Revenue down 4.7% due to lower shipments, but operating profit decreased by 5.8%. - **Specialty Materials:** Revenue up significantly due to higher product volumes and favorable mix, with operating profit turning positive. **Cash Flow:** - **Operating Cash Flow:** $120.3 million, up from $102.8 million in Q1 2024. - **Capital Expenditures:** $13.0 million, with expected full-year spending of $70-$100 million. - **Financing Activities:** Net outflow of $68.5 million, including stock repurchases and debt repayments. **Debt and Liquidity:** - **Long-Term Debt:** $990.6 million, up from $971.3 million at year-end 2024. - **Cash and Cash Equivalents:** $118.3 million, up from $77.5 million at year-end 2024. - **Leverage Ratio:** 1.31, well below the covenant limit of 3.75. **Future Outlook:** - **Market Uncertainties:** Monitoring macroeconomic environment and potential impacts on operations. - **Investments:** Continuing investments in technology, operational efficiency, and portfolio profitability. - **Shareholder Returns:** Focus on stock repurchases and dividends to enhance shareholder value. **Trends and Uncertainties:** - **Economic Environment:** Uncertain macroeconomic conditions may impact supply chains and customer demand. - **Integration:** Ongoing integration of AMPAC, with planned capacity expansion to meet future demand. - **Regulatory and Environmental:** Compliance with covenants and managing environmental liabilities. **Future Operations Impact:** - **Capital Spending:** Expected to be in the $70-$100 million range for 2025, including AMPAC expansion. - **Debt Management:** Continued focus on maintaining a strong financial position and compliance with debt covenants. - **Shareholder Value:** Emphasis on stock repurchases and dividends, along with strategic investments in growth areas. NewMarket Corporation (NEU) demonstrates strong financial health and performance in Q1 2025, with notable improvements in profitability and cash flow. The company is well-positioned to navigate market uncertainties and continue delivering value to shareholders.