Raw material price and availability volatility
Additives manufacturing depends on inputs such as base oil, detergents, solvents, and copolymers.
- Scope
- Petroleum additives margins and working capital
- Materiality
- high
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.
24,4 %
31,5 %
15,4 %
−2,2 %
2.53
1.33
| % | |
|---|---|
| Petroleum additives | 85% Highly formulated lubricant and fuel additive packages sold worldwide through Afton. |
| Specialty materials | 7% Perchlorates and hydrazine products used mainly in aerospace and defense. |
| Antiknock compounds and contract manufacturing | 8% Ethyl-branded antiknock compounds and related manufacturing services in North America. |
NewMarket sells mainly to multinational oil companies and other participants in the lubricant and fuel industries,...
- Multinational oil companiesprimary
Buy lubricant and fuel additive packages for large-scale global formulations and technical support.
- National, regional, and independent oil companiesprimary
Purchase additive packages and components tailored to regional fuel and lubricant specifications.
- U.S. government and contractorssecondary
Buy perchlorates and hydrazine for tactical missiles, space launch, and defense applications.
- Contract manufacturing customerssecondary
Use Ethyl's manufacturing and related services for antiknock compounds and specialty production.
NewMarket's petroleum additives business sells worldwide, while its specialty materials segment operates predominantly...
- •Petroleum additives are marketed and sold worldwide
- •Specialty materials operations are predominantly in North America
- •Headquarters and research/testing facilities are in Richmond, Virginia
- •Foreign operations expose the company to tariffs, trade policy, and FX
- •Virginia real estate is managed by NewMarket Development
Management is focused on customer-driven, technology-led growth in petroleum additives, with continued investment in...
01
Grow petroleum additives above market ratesmedium-term
This is the core business and management expects it to outperform a low-growth market.
02
Improve cost control and margin managementshort-term
Raw material volatility and macro uncertainty can pressure profitability.
03
Strengthen specialty materials platformmedium-term
Defense and aerospace materials diversify the portfolio and can add long-term value.
NewMarket is exposed to raw material price swings, supply chain disruptions, and production outages, including at...
Production disruption at sole-source facilities
Several products are made in only one location, so outages can stop shipments.
- Scope
- Supply continuity and customer retention
- Materiality
- high
U.S. government contract dependence
Specialty materials sales depend on defense and space funding priorities.
- Scope
- Specialty materials revenue and backlog
- Materiality
- high
Customer concentration
A small number of large oil companies drive demand in the core business.
- Scope
- Revenue stability and pricing power
- Materiality
- high
Tariffs, trade policy, and foreign exchange
The company sells globally and sources/operates across borders.
- Scope
- Costs, demand, and tax rates
- Materiality
- medium
Cybersecurity and IT system failure
Operations, manufacturing, and customer transactions depend on IT systems.
- Scope
- Operational continuity and data protection
- Materiality
- medium
Goodwill and intangible asset impairment
Could create non-cash charges if expected cash flows weaken
Purchase accounting for acquisitions
Changes reported earnings and balance sheet composition
Environmental liabilities and legal provisions
Affects expenses and balance sheet reserves
Foreign currency translation and tax estimates
Can move effective tax rate and accumulated other comprehensive income
: 28.4.2026