10 High Growth Chemical Stocks to Buy

5. NewMarket Corporation (NYSE:NEU)

Revenue CAGR: 7.10%

Market Capitalization: $5.17 billion

NewMarket Corporation (NYSE:NEU) is a key player in the petroleum additives market. It supplies lubricant and fuel additives for the automotive, industrial, and commercial sectors globally. The company provides critical components for hydraulic fluids, engine oils, and biofuels.

NewMarket reported a net income of $462 million in 2024, up from $389 million in 2023, driven by operational efficiency and lower raw material costs. Furthermore, petroleum additives’ sales reached $2.6 billion, slightly below the $2.7 billion recorded in 2023. However, due to cost reductions, operating profit increased from $514 million to $592 million on a YoY basis.

NewMarket Corporation (NYSE:NEU) made improvements in its financial position, repaying $373 million in debt and reducing its net debt-to-EBITDA ratio from 1.9x to 1.2x. It also gave $128 million back to shareholders in the form of dividends and share buybacks.

With an emphasis on supply chain efficiency and technology investment, NewMarket Corporation (NYSE:NEU) is setting itself up for long-term success. The company took a groundbreaking step with the January 2024 acquisition of American Pacific Corporation. It boosted the company’s Specialty Materials segment by generating $141 million in sales and $17.5 million in operating profit.

Looking forward, NewMarket Corporation (NYSE:NEU) anticipates growth in specialty materials, fueled by AMPAC and steady demand for petroleum additives. Thus, the company is in a great position for sustained profitability and long-term value in the additives sector due to cost control and strategic investments.