At a glance
NewMarket Corporation is worth $8.03B, about 20 times its fiscal 2025 earnings. Revenue fell 2.2% to $2.73B in fiscal 2025, with 15.4% kept as profit; over 5 years it has grown 6.3% a year. It pays a 1.37% dividend yield, raised every year for at least 7 years, and returned $1.01B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +17.0% over the past year with dividends reinvested and +24.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 20.1% in the 2020 crash (S&P 500: 33.7%) and 20.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 5 months after the lows.
The business in plain English
NewMarket Corporation is a Richmond, Virginia, holding company that owns several specialty chemical businesses. Its petroleum additives segment is run mainly by Afton Chemical. Afton makes the chemical ingredients that oil companies blend into motor oil, transmission fluid, gear oil, industrial oils and fuels. These additives reduce wear, prevent sludge and help fuels burn cleaner. Afton makes most of the component chemicals itself. It then combines them into custom packages that meet carmaker, industry or customer specifications. Its buyers are mainly multinational oil companies and independent blenders. It has no direct sales to drivers or carmakers.
The second segment, specialty materials, serves aerospace and defense customers. AMPAC makes materials used in solid rocket motors for space launches and military defense. Calca, acquired on October 1, 2025, is the leading US producer of high-purity hydrazine, a propellant used in aerospace and defense. A smaller unit, Ethyl, markets antiknock compounds (fuel additives that stop engine knocking) in North America and does contract manufacturing. NewMarket also owns about 50 acres in Richmond and is exploring ways to develop parts of it.
Sales totaled $2.73 billion for the year ended December 31, 2025. The United States accounted for 39.2% of revenue; Europe, the Middle East, Africa and India for 30%; Asia Pacific for 19%; and other foreign markets for 11.8%.
Price history
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NEU +17.0% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By geography
| United States | $1.07B | 39.2% |
| Europe, Middle East, Africa, India | $818.8M | 30% |
| Asia Pacific | $518.5M | 19% |
| Other foreign | $320.6M | 11.8% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $716.5M, up 3.8% from a year earlier, and net income was $124.1M (+23.8%).
- For fiscal 2025, revenue was $2.73B (-2.2% year over year; +6.3% a year from FY2020 to FY2025) with a 15.4% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +6.3% good |
|---|---|
| Operating margin | 20% good |
| Free cash flow margin | 18% good |
| Return on equity (FY2025) | 23.5% good |
| Return on assets (FY2025) | 12% good |
| Net cash (cash minus debt) | $-752.7M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $2.01B | $270.6M | $190.8M |
| FY2021 | $2.36B | $190.9M | $86.4M |
| FY2022 | $2.76B | $279.5M | $52.5M |
| FY2023 | $2.70B | $388.9M | $528.5M |
| FY2024 | $2.79B | $462.4M | $462.3M |
| FY2025 | $2.73B | $418.7M | $491.3M |
Valuation snapshot
| Market value | $8.03B |
|---|---|
| P/E ratio | 19.7 |
| Dividend yield | 1.37% |
Rank among 1514 US companies
Market value at each year end
NewMarket’s market value went from $5.02B at the end of 2016 to $8.03B on Oct 28, 2026, up 60%; since the end of 2025 it is up 24%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $8.03B | +24.4% |
| 2025 | $6.46B | +27.4% |
| 2024 | $5.07B | -3.2% |
| 2023 | $5.23B | +70.4% |
| 2022 | $3.07B | -15.8% |
| 2021 | $3.65B | -16.2% |
| 2020 | $4.35B | -20.1% |
| 2019 | $5.44B | +15.8% |
| 2018 | $4.70B | -0.2% |
| 2017 | $4.71B | -6.2% |
| 2016 | $5.02B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| NEU price data to Oct 28, 2026 | +28.6% | +17.0% | +24.8% | +24.6% | +10.2% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +28.6% |
| 2025 | +32.3% |
| 2024 | -1.5% |
| 2023 | +79.1% |
| 2022 | -6.7% |
| 2021 | -11.9% |
| 2020 | -16.5% |
| 2019 | +20.0% |
| 2018 | +5.5% |
| 2017 | -4.7% |
| 2016 | +13.1% |
| 2015 | -4.3% |
| 2014 | +22.2% |
| 2013 | +29.1% |
| 2012 | +47.5% |
| 2011 | +63.0% |
| 2010 | +9.1% |
| 2009 | +233.8% |
| 2008 | -36.4% |
| 2007 | -4.5% |
| 2006 | +144.9% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 38.1% over that stretch · deepest drop along the way 73.2%, back to its old high 9.8 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 19.5% over that stretch · deepest drop along the way 20.1%, back to its old high 1.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 8.5% over that stretch · deepest drop along the way 20.1%, back to its old high 5 months after the low |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (19 read): 1 open-market purchases ($248K) and 0 sales ($0.00).
| Date | Insider | Type | Value |
|---|---|---|---|
| Feb 24, 2026 | Ting Xu Director | buy | $248K |
Who owns it
Large shareholders (13G filings)
| The London Company | 5.87% | Jun 30, 2025 |
| BANK OF AMERICA CORP /DE/ | 0.2% | Mar 31, 2026 |
ETFs with the most weight in NEU
| FXZ First Trust Materials AlphaDEX Fund | 4.94% |
| ABLD Abacus FCF Real Assets Leaders ETF | 2.37% |
| WBIF WBI BullBear Value 3000 ETF | 1.56% |
| PEXL Pacer US Export Leaders ETF | 1.19% |
| SFLO VictoryShares Small Cap Free Cash Flow ETF | 0.95% |
| NIXT Research Affiliates Deletions ETF | 0.85% |
| QSML WisdomTree U.S. SmallCap Quality Growth Fund | 0.79% |
| BRNY Burney U.S. Factor Rotation ETF | 0.72% |
What could go wrong
- Dependence on a few big oil customers. Its main customers are a handful of multinational oil companies. Losing one, or a sharp drop in its orders, could significantly cut revenue and profit. An industry downturn would hit them all at once.
- Defense and space budgets can shift. Much of the specialty materials business relies on the US government and its contractors. Congress sets funding yearly, programs can be cut, and the government can cancel contracts early at its discretion.
- Raw material costs and supply. Inputs such as base oil and solvents can swing in price because of war, tariffs, weather or inflation. Some come from a single supplier. Higher costs may not be passed on to customers.
- Competitors with deeper pockets. NewMarket faces significant competition in every product line. Rivals with greater financial and technical resources could launch better products or force price cuts that shrink its margins.
- Overseas sales and currency swings. Most revenue comes from outside the United States. Political or economic trouble abroad and exchange rate moves can hurt sales or shrink the dollar value of foreign earnings.
- Debt limits flexibility. Total debt was about $855 million against $94 million of cash and investments as of June 30, 2026. The company warns substantial debt could limit its operating and financial flexibility.
Recent events
- Other company announcement
- Quarterly results released
- Other company announcement
- Quarterly results released
- Shareholder vote results; Other company announcement
- Quarterly results released
- Other company announcement
- Executive or board change
- Quarterly results released
- Executive or board change
For income and retirement investors
NewMarket has raised its regular dividend seven years in a row, from $7.60 a share in fiscal 2020 to $11.25 in fiscal 2025, about 8.2% a year. In fiscal 2025, dividends used 25.3% of earnings and 21.6% of free cash flow (cash left after running and investing in the business). The yield was 1.37% as of October 28, 2026, so cash income is modest. Buybacks (repurchases of its own shares) totaled $556 million from fiscal 2021 to 2025, more than the $457 million paid in dividends. The share count fell 13.5% from September 2021 to June 2026.
The stock has fallen hard in past downturns. It dropped 73.2% in the 2008 financial crisis and regained its prior peak about 10 months after bottoming. In the 2020 COVID crash and the 2022 bear market, it fell about 20% each time and recovered in under two months and five months. Single stocks like NewMarket carry more risk than diversified funds.
Questions investors ask
How does NewMarket make money?
NewMarket makes money from chemical additives and specialty materials. Its petroleum additives segment, run mainly by Afton Chemical, supplies additive packages that oil companies blend into engine oils, transmission fluids, industrial oils and fuels. Its specialty materials segment, made up of AMPAC and Calca, provides rocket motor materials and hydrazine for aerospace and defense. For the year ended December 31, 2025, revenue was $2.73 billion and net income was $419 million. The United States supplied 39.2% of revenue.
Does NewMarket raise its dividend every year?
Yes, for seven straight years through fiscal 2025. The regular dividend rose from $7.60 a share in fiscal 2020 to $11.25 in fiscal 2025, an average gain of about 8.2% a year. Dividends used 25.3% of fiscal 2025 earnings, which leaves a cushion. Still, the board is not obligated to keep raising them. The yield was 1.37% as of October 28, 2026, so the stock provides modest income relative to its price.
Does NewMarket have a defense business?
Yes. Its specialty materials segment supplies materials that power rockets. AMPAC makes materials used in solid rocket motors for space launches and military defense, and the company calls it a global leader in that field. Calca, acquired on October 1, 2025, is the leading US producer of Ultra Pure and high-purity hydrazine, a propellant for aerospace and defense. A significant portion of segment sales goes to the US government or its contractors, so budget shifts or canceled contracts could hurt results.
How much debt does NewMarket have?
About $855 million as of June 30, 2026, against $94 million of cash and investments. That leaves net debt (debt minus cash) of about $761 million, compared with shareholders' equity of $1.84 billion. For scale, NewMarket produced $491 million of free cash flow in fiscal 2025. Free cash flow is the cash left after running and investing in the business. The company's 10-K warns that a substantial amount of debt could limit its operating and financial flexibility.
How has NewMarket stock performed?
It has gained a lot over five years, with big swings along the way. As of October 28, 2026, the share price was up 17% over one year. It had risen about 24.6% a year over five years and 10.2% a year over ten years. Calendar years varied widely: the stock lost value in 2020, 2021 and 2022, then jumped 79% in 2023. Its deepest drop was 73.2%, in 2008. Past returns do not predict future results.