NewMarket Corp (NEU) 2025 Q4 法說會逐字稿

Greetings. Welcome to the NewMarket Corporation conference call and webcast to review our fourth-quarter and full year 2025 financial results. (Operator Instructions). Please note this conference is being recorded.

問候。歡迎參加 NewMarket 公司電話會議和網路直播，我們將回顧 2025 年第四季和全年財務表現。（操作說明）請注意，本次會議正在錄影。

I will now turn the conference over to your host, Tim Fitzgerald, CFO at NewMarket. You may begin.

現在我將把會議交給主持人，NewMarket 的財務長 Tim Fitzgerald。你可以開始了。

Thank you, and thanks to everyone for joining me this afternoon. As a reminder, some of the statements made during this conference call may be forward-looking. Relevant factors that could cause actual results to differ materially from those forward-looking statements are contained in our earnings release and in our SEC filings, including our most recent Form 10-K.

謝謝大家，也謝謝今天下午各位的到來。提醒各位，本次電話會議中提到的一些內容可能具有前瞻性。可能導致實際結果與這些前瞻性聲明有重大差異的相關因素已包含在我們的獲利報告中以及我們向美國證券交易委員會提交的文件中，包括我們最新的 10-K 表格。

During this call, we will also discuss the non-GAAP financial measures included in our earnings release. The earnings release, which can be found on our website, includes a reconciliation of the non-GAAP financial measures to the closest comparable GAAP financial measures. Today, I will be referring to the data that was included in last night's press release.

在本次電話會議中，我們也將討論獲利報告中包含的非GAAP財務指標。您可以在我們的網站上找到收益報告，其中包含非GAAP財務指標與最接近的可比較GAAP財務指標的調節表。今天，我將參考昨晚新聞稿中包含的數據。

However, our 2025 10-K contains significantly more details on the operations and performance of our company. Pretax income for the fourth-quarter of 2025 was $113 million compared to $134 million for the fourth-quarter of 2024. For the full year, pretax income was $561 million in 2025 compared to $584 million for 2024, a decline of only 4%.

然而，我們的 2025 年 10-K 報告包含了有關公司營運和業績的更多詳細資訊。2025 年第四季稅前收入為 1.13 億美元，而 2024 年第四季稅前收入為 1.34 億美元。2025 年全年稅前收入為 5.61 億美元，而 2024 年為 5.84 億美元，僅下降了 4%。

While we don't normally call out pretax income, it's notable now due to the significantly higher income taxes booked throughout the year, impacting our net income and EPS. Net income for the fourth-quarter of 2025 was $81 million or $8.65 per share compared to net income of $111 million or $11.56 per share for the fourth-quarter of 2024.

雖然我們通常不會提及稅前收入，但由於全年提列的所得稅大幅增加，影響了我們的淨收入和每股盈餘，因此現在特別值得一提。2025 年第四季淨收入為 8,100 萬美元，即每股 8.65 美元，而 2024 年第四季淨收入為 1.11 億美元，即每股 11.56 美元。

Net income for the full year of 2025 was $419 million or $44.44 per share compared to our net income of $462 million or $48.22 per share for 2024. One of the primary drivers of the decline in net income was a higher effective tax rate in 2025 compared to 2024. The factors driving the increase in our effective tax rate are outlined in the 10-K.

2025 年全年淨收入為 4.19 億美元，即每股 44.44 美元，而 2024 年淨收入為 4.62 億美元，即每股 48.22 美元。淨收入下降的主要原因之一是 2025 年的實際稅率高於 2024 年。導致實際稅率上升的因素已在 10-K 文件中列出。

Petroleum additives sales for the fourth-quarter of 2025 were $585 million compared to $626 million for the same period in 2024. Petroleum additives operating profit for the fourth-quarter of 2025 was $107 million compared to $136 million for the fourth-quarter of 2024, which was a record fourth-quarter for the segment. The decrease in operating profit compared to prior year was driven by a decline in shipments of 6%, mainly due to market softness as well as a decline in selling prices.

2025 年第四季石油添加劑銷售額為 5.85 億美元，而 2024 年同期為 6.26 億美元。2025 年第四季石油添加劑業務的營業利潤為 1.07 億美元，而 2024 年第四季為 1.36 億美元，創下該業務第四季的紀錄。與前一年相比，營業利潤下降，主要是由於出貨量下降 6%，這主要是由於市場疲軟以及銷售價格下降。

In addition, to manage inventory levels, operating profit in the fourth-quarter was impacted by higher unit costs resulting from lower production volumes at our plants. For the full year of 2025, sales for the Petroleum Additives segment were $2.5 billion compared to $2.6 billion for 2024. Petroleum additives operating profit for 2025 was $520 million compared to $592 million in 2024.

此外，為了控制庫存水平，由於工廠產量下降導致單位成本上升，第四季度的營業利潤受到了影響。2025 年全年，石油添加劑業務的銷售額為 25 億美元，而 2024 年為 26 億美元。2025 年石油添加劑業務的營業利潤為 5.2 億美元，而 2024 年為 5.92 億美元。

The drivers for the decrease in operating profit were consistent with those affecting the fourth-quarter comparison. Shipments were down by 4.9% compared to last year as we saw market softness throughout 2025, combined with our strategic decision to manage the profitability of our portfolio by reducing low-margin business.

導致營業利益下降的因素與影響第四季業績的因素一致。與去年相比，出貨量下降了 4.9%，因為我們看到 2025 年市場疲軟，再加上我們透過減少低利潤業務來管理我們投資組合獲利能力的策略決策。

We are very pleased with the performance of our petroleum additives business in 2025 compared to our record performance in 2024. However, we remain challenged by the ongoing inflationary environment and the impact of tariffs as well as softness in the market impacting shipments. We continue to focus on investing in technology to meet customer needs, becoming more efficient in our operating costs, optimizing our inventory levels and improving our portfolio profitability.

與 2024 年創紀錄的業績相比，我們對 2025 年石油添加劑業務的業績非常滿意。然而，我們仍面臨持續的通膨環境、關稅的影響以及市場疲軟對出貨量的影響等挑戰。我們將繼續專注於投資技術以滿足客戶需求，提高營運成本效率，優化庫存水平，並提高投資組合獲利能力。

We report the financial results of our AMPAC business and our newly acquired Calca Solutions business in our Specialty Materials segment. Specialty Materials sales for the fourth-quarter of 2025 were $49 million compared to $27 million for the same period in 2024. The increase in sales was mainly due to higher volume at AMPAC and the inclusion of the Calca business, which was acquired on October 1, 2025.

我們在此公佈特種材料部門旗下 AMPAC 業務和新收購的 Calca Solutions 業務的財務表現。2025 年第四季特種材料銷售額為 4,900 萬美元，而 2024 年同期為 2,700 萬美元。銷售額的成長主要歸功於 AMPAC 銷量的增加以及 2025 年 10 月 1 日收購的 Calca 業務的併入。

Specialty Materials operating profit for the fourth-quarter of 2025 was $7 million compared to about $2 million for the fourth-quarter of 2024. As previously stated, we will see substantial variation in quarterly results for the Specialty Materials segment on an ongoing basis due to the nature of the business. For the full year of 2025, sales for the Specialty Materials segment were $182 million compared to $141 million for 2024. Specialty Materials operating profit for 2025 was $47 million compared to $17 million for 2024.

2025 年第四季特種材料業務的營業利潤為 700 萬美元，而 2024 年第四季約為 200 萬美元。如前所述，由於業務性質所致，特種材料業務的季度業績將持續大幅波動。2025 年全年，特種材料部門的銷售額為 1.82 億美元，而 2024 年為 1.41 億美元。特種材料業務2025年的營業利潤為4700萬美元，而2024年為1700萬美元。

The increase in operating profit was mainly driven by an increase in volume demand at AMPAC. As previously announced, through our acquisitions of AMPAC and Calca and our investments to expand capacity at both operations, we have committed approximately $1 billion to this resilient high-technology Specialty Materials segment.

營業利潤的成長主要得益於 AMPAC 銷售需求的成長。正如先前宣布的那樣，透過收購 AMPAC 和 Calca 以及投資擴大這兩家公司的產能，我們已向這一具有韌性的高科技特種材料領域投入了約 10 億美元。

Our company generated solid cash flows throughout the year in 2025, which allowed us to return $183 million to our shareholders through share repurchases of $77 million and dividends of $106 million. We also reduced our total debt by $88 million compared to 2024, which includes the borrowing for the Calca acquisition.

2025 年，我們公司全年都產生了穩健的現金流，這使我們能夠透過 7,700 萬美元的股票回購和 1.06 億美元的股息，向股東返還 1.83 億美元。與 2024 年相比，我們的總債務也減少了 8,800 萬美元，其中包括為收購 Calca 而進行的借款。

As of December 31, 2025, our net debt-to-EBITDA ratio was 1.1 times, slightly down from 1.2 times at the end of 2024. This strong cash flow performance enables us to continue to provide value to our shareholders through reinvestment of capital into our businesses for growth and efficiency, acquisitions, share repurchases and dividends.

截至 2025 年 12 月 31 日，我們的淨負債與 EBITDA 比率為 1.1 倍，略低於 2024 年底的 1.2 倍。強勁的現金流表現使我們能夠繼續透過將資本再投資於業務成長和效率、收購、股票回購和分紅等方式為股東創造價值。

We anticipate continued strength in our Petroleum additives and Specialty Materials segments. We are committed to making decisions that promote long-term value for our shareholders and customers while staying focused on our long-term objectives. We believe that the core principles guiding our business, a long-term perspective, a safety-first culture, customer-focused solutions, technology-driven products and a world-class supply chain will continue to benefit all of our stakeholders.

我們預計石油添加劑和特種材料業務將繼續保持強勁勢頭。我們致力於做出能夠為股東和客戶創造長期價值的決策，同時始終專注於我們的長期目標。我們相信，指導我們業務的核心原則——長遠眼光、安全第一的文化、以客戶為中心的解決方案、技術驅動的產品以及世界一流的供應鏈——將繼續造福我們所有的利害關係人。

That concludes our planned comments. We are available for questions via e-mail or by phone, so please feel free to contact me directly. Thank you all again, and we will talk to you next quarter.

我們的發言到此結束。我們可以透過電子郵件或電話解答您的問題，請隨時直接與我聯絡。再次感謝大家，我們下個季度再見。

Thank you. This does conclude today's conference, and you may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束，您可以斷開線路了。感謝您的參與。