NEWMARKET CORPNEU

NEWMARKET CORP Segments Disclosure

10-KFiled Feb 12, 20264 min read
Segment and Geographic Area Information
Segment Information -We have two reportable segments – petroleum additives and specialty materials. The petroleum additives segment includes lubricant and fuel additives which are necessary for the efficient and reliable operation of vehicles and machinery. The specialty materials segment includes critical materials used in solid rocket motors for space launch and military defense applications as well as propellants that enable advanced aerospace and defense applications and are integral to in-space propulsion systems for satellites and space probes. The petroleum additives and specialty materials segments are managed separately by the president of Afton and the executive vice president, specialty materials, respectively. The “All other” category shown in the tables below includes the operations of the antiknock compounds business, as well as certain contracted manufacturing and related services associated with Ethyl.
We have determined that our chief executive officer is the chief operating decision maker (CODM) who makes key operating decisions and assesses the performance of the reportable segments. The CODM evaluates performance based on segment operating profit and considers budgeted and forecasted variances to actual results in allocating resources to the segments.
The segment accounting policies are the same as those described in Note 1. NewMarket Services expenses are billed to Afton, AMPAC, Calca, and Ethyl based on the services provided. Depreciation on segment property, plant, and equipment, as well as amortization of segment definite-lived intangible assets and lease right-of-use assets are included in segment operating profit. No material transfers occurred between any of the petroleum additives segment, specialty materials segment, and the “All other” category during the periods presented.
The table below reports net sales and operating profit by segment, as well as a reconciliation to income before income tax expense, for the last three years. No single customer accounted for 10% or more of our total net sales in 2025, 2024, or 2023.
Years Ended December 31,
(in thousands)202520242023
Net sales
Petroleum additives
Lubricant additives$2,155,972 $2,246,293 $2,295,440 
Fuel additives377,638 389,949 394,269 
Total2,533,610 2,636,242 2,689,709 
Specialty materials182,482 141,243 0 
All other9,077 9,073 8,710 
Total net sales $2,725,169 $2,786,558 $2,698,419 
Segment operating profit
Petroleum additives
Net sales
$2,533,610 $2,636,242 $2,689,709 
Cost of goods sold(1,748,787)(1,791,481)(1,914,337)
Research, development, and testing expenses(132,091)(124,898)(137,998)
Other segment items(132,680)(128,009)(122,946)
Petroleum additives segment operating profit520,052 591,854 514,428 
Specialty materials
Net sales
182,482 141,243 0 
Other segment items(135,455)(123,791)0 
Specialty materials segment operating profit47,027 17,452 0 
Total segment operating profit567,079 609,306 514,428 
All other(4,765)(2,283)(4,986)
Corporate, general, and administrative expenses(18,633)(17,332)(26,147)
Interest and financing expenses, net(39,693)(57,366)(37,359)
Other income (expense), net56,574 51,782 43,026 
Income before income tax expense$560,562 $584,107 $488,962 
The significant expense categories of cost of goods sold and research, development, and testing expenses are shown in the above segment operating profit table for the petroleum additives segment and are regularly provided to the CODM. The other segment items for the petroleum additives segment represent selling, general, and administrative expenses, as well as corporate services allocated to the reporting segment.
The other segment items for the specialty materials segment include costs of goods sold; selling, general, and administrative expenses; and corporate services allocated to the reporting segment. Significant expense categories of the specialty materials segment are not regularly provided to the CODM.
Asset information by segment is not reported internally or otherwise regularly provided to the CODM.
The following tables show additions to long-lived assets by segment and depreciation and amortization by segment and the reconciliation to both consolidated amounts. The additions to long-lived assets include property, plant, and equipment and lease right-of-use assets.
Years Ended December 31,
(in thousands)202520242023
Additions to long-lived assets
Petroleum additives$75,639 $72,126 $72,038 
Specialty materials50,716 4,144 0 
All other16 2 1 
Corporate5,062 2,125 2,018 
Total additions to long-lived assets$131,433 $78,397 $74,057 
Depreciation and amortization
Petroleum additives$79,624 $79,241 $74,471 
Specialty materials39,000 33,849 0 
All other49 46 45 
Corporate3,749 3,821 3,494 
Total depreciation and amortization$122,422 $116,957 $78,010 
Geographic Area Information - We have operations in the North America, Latin America, Asia Pacific, and EMEAI regions. Our foreign customers consist primarily of global, national, and independent oil companies.
The tables below report net sales and long-lived assets by geographic area, as well as by country for those countries with significant net sales or long-lived assets. Since our foreign operations are significant to our overall business, we are also presenting net sales in the table below by the major regions in which we operate. NewMarket assigns net sales to geographic areas based on the location to which the product was shipped to a third party. Long-lived assets in the table below include property, plant, and equipment, net of depreciation, and lease right-of-use assets.
Years Ended December 31,
(in thousands)202520242023
Net sales
United States$1,067,306 $1,095,881 $972,954 
Europe, Middle East, Africa, India818,833 786,764 791,744 
Asia Pacific518,478 573,312 582,971 
Other foreign320,552 330,601 350,750 
Total net sales $2,725,169 $2,786,558 $2,698,419 
December 31,
(in thousands)20252024
Long-lived assets
United States$533,286 $484,265 
Singapore216,768 227,287 
Other foreign134,788 128,204 
Total long-lived assets$884,842 $839,756 
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Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 14, 2025
2023Feb 15, 2024
2022Feb 15, 2023
2021Feb 15, 2022
2020Feb 16, 2021
2019Feb 18, 2020
2018Feb 19, 2019
2017Feb 15, 2018
2016Feb 15, 2017
2015Feb 12, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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