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Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information
4. 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. The petroleum additives and specialty materials segments are managed separately by the president of Afton and the president of AMPAC, 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 of our 2024 Annual Report. NewMarket Services expenses are billed to Afton, AMPAC, 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 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 second quarter and six months ended June 30, 2025 and June 30, 2024. No single customer accounted for 10% or more of our total net sales in any period presented.
Second Quarter Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Net sales
Petroleum additives
Lubricant additives$556,479 $575,194 $1,115,657 $1,147,109 
Fuel additives97,396 94,632 183,772 199,981 
Total653,875 669,826 1,299,429 1,347,090 
Specialty materials42,037 38,010 95,758 55,057 
All other2,597 2,392 4,268 4,817 
Total net sales $698,509 $710,228 $1,399,455 $1,406,964 
Segment operating profit
Petroleum additives
Net sales$653,875 $669,826 $1,299,429 $1,347,090 
Cost of goods sold(448,474)(461,617)(886,220)(924,536)
Research, development, and testing expenses(32,374)(28,663)(65,550)(59,863)
Other segment items(33,192)(31,727)(65,717)(63,963)
Petroleum additives segment operating profit139,835 147,819 281,942 298,728 
Specialty materials
Net sales42,037 38,010 95,758 55,057 
Other segment items(31,490)(33,038)(62,024)(55,052)
Specialty materials segment operating profit10,547 4,972 33,734 5 
Total segment operating profit150,382 152,791 315,676 298,733 
All other(1,171)(1,374)(1,652)(1,455)
Corporate, general, and administrative expenses(6,414)(3,985)(11,300)(9,542)
Interest and financing expenses, net(10,735)(15,910)(21,435)(31,564)
Other income (expense), net15,626 11,472 30,512 24,515 
Income before income tax expense$147,688 $142,994 $311,801 $280,687 

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.
Second Quarter Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Additions to long-lived assets
Petroleum additives$16,449 $17,644 $36,723 $38,948 
Specialty materials4,139 981 5,027 2,418 
All other0 0 0 2 
Corporate970 298 2,062 838 
Total additions to long-lived assets$21,558 $18,923 $43,812 $42,206 
Depreciation and amortization
Petroleum additives$18,700 $19,019 $37,679 $38,093 
Specialty materials8,864 9,381 17,722 15,020 
All other12 12 24 23 
Corporate916 911 1,845 1,994 
Total depreciation and amortization$28,492 $29,323 $57,270 $55,130