NewMarket Corporation Plans Ammonium Perchlorate and Hydrazine Capacity Expansion
NewMarket Corporation Plans Ammonium Perchlorate and Hydrazine Capacity Expansion
NewMarket reported second-quarter 2026 net income of $133.8 million, or $14.54 per share, up from $111.2 million a year earlier, with first-half net income of $251.8 million. Petroleum additives operating profit rose to $149.4 million on surcharges imposed to offset higher Middle East-related supply chain costs, while specialty materials sales reached $67.2 million. The company plans to bring new ammonium perchlorate and high-purity hydrazine capacity online toward the end of 2026, and first-half capital expenditures totaled $51.7 million.
Surcharges on petroleum additives and new aerospace and defense propellant capacity signal that additive pricing and domestic critical-chemical supply are both shifting in 2026.
Key facts
| Companies | NewMarket Corporation, Afton Chemical Corporation, Ethyl Corporation, American Pacific Corporation, Calca Solutions, LLC |
|---|---|
| Chemicals | ammonium perchlorate, high purity hydrazine |
| Capacity | Expanded production capacity for ammonium perchlorate and high purity hydrazine expected to come online towards the end of 2026 |
| Investment | First-half 2026 capital expenditures of $51.7 million; repurchases of common stock for $126.4 million; dividends paid of $55.6 million |
| Location | Richmond, VA (corporate headquarters) |
| Timing | 2026-07-29, 2026-07-30, 2026-06-30, 2026-08-13 |
| End uses | petroleum products additives, aerospace and defense, solid rocket motors |
Market context
NewMarket's Afton Chemical unit makes petroleum additives, which are blended into engine oils and fuels to control wear, deposits, oxidation and other performance properties, so demand tracks vehicle and industrial lubricant consumption. Specialty materials serve aerospace and defense, where ammonium perchlorate is a key oxidizer in solid rocket motor propellants and high-purity hydrazine is used as a propellant and reactive intermediate. Defense and space programs drive demand for these critical chemicals, and supply is concentrated among a small number of qualified domestic producers, which makes new capacity strategically important. Higher feedstock, freight and regional supply chain costs often lead additive suppliers to add temporary surcharges, which can lift reported margins while customers face higher contract prices. For buyers, the key questions are how quickly surcharges are unwound once input costs ease and whether new propellant-grade capacity will meet government qualification timelines.
Source: official release on newmarket.com. Summary and context written by Market Krystal.
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