v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
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 as well as propellants that enable advanced aerospace and defense applications that 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 of our 2025 Annual Report. NewMarket Services expenses are billed to the companies in each of the segments and all other businesses 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 second quarter and six months ended June 30, 2026 and June 30, 2025. 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)2026202520262025
Net sales
Petroleum additives
Lubricant additives$584,024 $556,479 $1,105,193 $1,115,657 
Fuel additives91,549 97,396 180,198 183,772 
Total675,573 653,875 1,285,391 1,299,429 
Specialty materials67,165 42,037 125,306 95,758 
All other4,356 2,597 6,114 4,268 
Total net sales $747,094 $698,509 $1,416,811 $1,399,455 
Segment operating profit
Petroleum additives
Net sales$675,573 $653,875 $1,285,391 $1,299,429 
Cost of goods sold(463,188)(448,474)(872,626)(886,220)
Research, development, and testing expenses(30,388)(32,374)(62,024)(65,550)
Other segment items(32,627)(33,192)(66,372)(65,717)
Petroleum additives segment operating profit149,370 139,835 284,369 281,942 
Specialty materials
Net sales67,165 42,037 125,306 95,758 
Other segment items(44,819)(31,490)(90,538)(62,024)
Specialty materials segment operating profit22,346 10,547 34,768 33,734 
Total segment operating profit171,716 150,382 319,137 315,676 
All other(212)(1,171)(1,322)(1,652)
Corporate, general, and administrative expenses(7,816)(6,414)(10,869)(11,300)
Interest and financing expenses, net(8,818)(10,735)(17,589)(21,435)
Other income (expense), net15,468 15,626 32,635 30,512 
Income before income tax expense$170,338 $147,688 $321,992 $311,801 

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)2026202520262025
Additions to long-lived assets
Petroleum additives$23,157 $16,449 $39,429 $36,723 
Specialty materials18,915 4,139 33,414 5,027 
Corporate18 970 842 2,062 
Total additions to long-lived assets$42,090 $21,558 $73,685 $43,812 
Depreciation and amortization
Petroleum additives$18,748 $18,700 $37,323 $37,679 
Specialty materials11,990 8,864 24,152 17,722 
All other13 12 35 24 
Corporate1,048 916 1,951 1,845 
Total depreciation and amortization$31,799 $28,492 $63,461 $57,270