NewMarket Corp
NewMarket Corp is a Virginia-based holding company whose main operating businesses are Afton Chemical, Ethyl, AMPAC, and Calca. Through these subsidiaries it makes lubricant and fuel additive packages, antiknock compounds, and specialty materials such as perchlorates and hydrazine for aerospace and defense applications.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueHighly formulated lubricant and fuel additive packages sold worldwide through Afton.
Perchlorates and hydrazine products used mainly in aerospace and defense.
Ethyl-branded antiknock compounds and related manufacturing services in North America.
Customers
NewMarket sells mainly to multinational oil companies and other participants in the lubricant and fuel industries, where purchasing is concentrated among a small number of large accounts. Its specialty materials business also serves U.S. government contractors and the U.S. government directly for aerospace and defense programs. Customer demand is driven by fuel volumes, industrial activity, defense funding, and the technical performance requirements of end markets.
Buy lubricant and fuel additive packages for large-scale global formulations and technical support.
Purchase additive packages and components tailored to regional fuel and lubricant specifications.
Buy perchlorates and hydrazine for tactical missiles, space launch, and defense applications.
Use Ethyl's manufacturing and related services for antiknock compounds and specialty production.
Strategy
Management is focused on customer-driven, technology-led growth in petroleum additives, with continued investment in operational efficiency, technical capability, and global infrastructure. The company also aims to improve portfolio profitability and maintain a long-term return target while managing exposure to macro uncertainty, tariffs, and supply chain disruption.
This is the core business and management expects it to outperform a low-growth market.
Raw material volatility and macro uncertainty can pressure profitability.
Defense and aerospace materials diversify the portfolio and can add long-term value.
Geography
Q1/2026NewMarket's petroleum additives business sells worldwide, while its specialty materials segment operates predominantly in North America. The company is headquartered in Richmond, Virginia, and also manages real estate there through NewMarket Development. International exposure matters because foreign operations, tariffs, trade policy, and foreign exchange can affect costs, taxes, and customer demand.
Share of the revenue the company reports by geography.
Risks
NewMarket is exposed to raw material price swings, supply chain disruptions, and production outages, including at single-site facilities. It also faces concentration risk in both customer demand and government-funded specialty materials contracts, plus cybersecurity, trade policy, and foreign exchange risks from its global footprint.
- Raw material price and availability volatilityImpact: HighLikelihood: Medium
Additives manufacturing depends on inputs such as base oil, detergents, solvents, and copolymers.
Exposure: Petroleum additives margins and working capital
- Production disruption at sole-source facilitiesImpact: HighLikelihood: Medium
Several products are made in only one location, so outages can stop shipments.
Exposure: Supply continuity and customer retention
- U.S. government contract dependenceImpact: HighLikelihood: Medium
Specialty materials sales depend on defense and space funding priorities.
Exposure: Specialty materials revenue and backlog
- Customer concentrationImpact: MediumLikelihood: Medium
A small number of large oil companies drive demand in the core business.
Exposure: Revenue stability and pricing power
- Tariffs, trade policy, and foreign exchangeImpact: MediumLikelihood: Medium
The company sells globally and sources/operates across borders.
Exposure - Cybersecurity and IT system failureImpact: MediumLikelihood: Medium
Operations, manufacturing, and customer transactions depend on IT systems.
Exposure: Operational continuity and data protection
Accounting
Judgemental itemsThe company carries significant goodwill and intangibles from acquisitions and must test them for impairment.
Impact: Could create non-cash charges if expected cash flows weaken
AMPAC and Calca acquisitions affect asset values, amortization, and segment results.
Impact: Changes reported earnings and balance sheet composition
Chemical manufacturing can create remediation and litigation obligations requiring estimates.
Impact: Affects expenses and balance sheet reserves
Global operations and jurisdictional income mix influence reported equity and tax rates.
Impact: Can move effective tax rate and accumulated other comprehensive income
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Last updated: 24/09/2026