Second quarter earnings reports rolled out as this issue was being prepared, and they showed many of the industry’s publicly held companies having a rough time so far in 2025.
A survey of 21 companies that file earnings reports for businesses in this industry showed 14 posted decreased profits for the first six months of the current calendar year, compared to the same period of 2024. Those with falling earnings cited decreased sales as well economic uncertainty stemming from issues such as tariffs.
The table below compiles results for 10 of those companies, among the largest in the industry to report financial results.
The results for companies in the industry are not surprising given the state of the world’s economy, one of the most reliable indicators for lubricant sales. After global economic output expanded 3.2% in 2024, according to World Bank calculations, analysts have scaled back forecasts for this year and next. The World Bank lowered its growth prediction for this year to 2.3%, while the Organization for Economic Cooperation and Development predicted expansion will fall to 2.9% for 2025 and 2026. Lubricant demand growth tends to lag economic growth by a couple or a few percentage points.
Several of the companies covered here recorded double-digit drops in profitability during the first half, including: Quaker-Houghton, of Conshohocken, Pennsylvania, United States, a major supplier of metalworking fluids and other industrial lubricants; the base oils and lubricants business of Seoul-based SK Enmove, one of the largest merchant base oil suppliers; Jeddah, Saudi Arabia-based base oil refiner Luberef; and the Lubricants and Specialties unit of Dallas-based refiner HF Sinclair.
Berkshire Hathaway does not specify profits for its Lubrizol subsidiary, which is one of the world’s largest lubricant additive businesses, but it said that profit was down 19%.
Smaller decreases in profitability were posted for Mannheim, Germany-based Fuchs SE, the world’s largest independent lube supplier, the Petroleum Additives business of NewMarket Corp., of Richmond, Virginia, U.S., another of the world’s largest additive suppliers.
Not everyone saw profits drop. Brazilian sugar company Cosan posted a 5% increase in earnings despite a February fire that damaged its lube factory near Rio de Janeiro. Chinese additive supplier Richful Lube Additive Co., known in China as Ruifeng Technology, also does reported increased earnings as did Mumbai-based Gulf Oil Lubricants India Ltd.
Most of those suffering lower profits cited lower sales, and some attributed those to sagging economies and trade wars. Major economies such as Europe and China were already flagging before this year. Trade disputes triggered by U.S. tariffs have been a further drag, some companies said.
Financial Performance First Half 2025
Notes: For comparison, U.S. dollar conversions shown for revenue reported in other currencies. Conversions based on July 1 exchange rates.
| Business type | Company | Revenue | Year-to-year change | Profits | Year-to-year change |
|---|---|---|---|---|---|
| Lubricant suppliers | Fuchs | €2.1 billion ($2.2 b) | +2% | €209 million1 | -4% |
| Lubricant suppliers | Quaker Houghton | $926 million | -1% | 144 million2 | -14% |
| Lubricant suppliers | Moove | BRL 4.6 bn ($847 m) | -9% | Brl 737 mn2 | +5% |
| Lubricant suppliers | Gulf Oil Lubricants India Ltd. | ₹18.8 billion ($219 m) | +10% | ₹253 billion3 | +9% |
| Additive companies | Lubrizol | $3.2 billion | -4.8% | n.d.7 | -19% |
| Additive companies | Afton, Petroleum Additives | $1.3 billion | 0% | $282 million2 | -6% |
| Additive companies | Richful | ¥1.7 billion ($237 m) | +11% | ¥354 million4 | +14% |
| Primarily base oil | SK-Enmove, Lubricants | ₩1.9 trillion ($1.4 b) | -15% | ₩256 billion5 | -31% |
| Primarily base oil | Luberef | SAR 4.3 billlion ($1.3 b) | -12% | SAR 467 million6 | -13% |
| Primarily base oil | HF Sinclair, Lubricants and Specialties | $1.3 billion | -12% | $140 million1 | -24% |
“The current economic and geopolitical situation remains tense,” Fuchs said in its second quarter earnings report. “Tariff discussions originating from the U.S. and weak industrial production in Europe result in subdued demand from key customer groups.”
Geography played a role in the performance variances for different companies. Global players such Fuchs, Quaker Houghton and Lubrizol, all of which are active in most of the globe’s major markets – were affected by economic downturns or slowdowns in Europe, the U.S. and China. Quaker reported that revenue decreases in Europe and the Americas offset gains in Asia-Pacific, but its profits declined in all three regions.
Gulf, on the other hand, does most of its business in its home market of India and cited healthy domestic lubricant demand as one of the reasons for its success. Lube demand in India is rising at least 3% per year, Managing Director and CEO Ravi Chawla said, and is projected to continue doing so for the rest of this decade.
As always, company-specific developments affected performance for some companies. HF Sinclair noted that a temporary maintenance shutdown at its Petro-Canada refinery in Mississauga, Canada, cut into base oil sales volumes. SK and Luberef also went through maintenance turnarounds, and Lubrizol incurred a restructuring charge in the first quarter.
Surveyed companies split over outlooks for the rest of this year. Fuchs lowered its forecast for full-year earnings before interest and tax by 6%, while SK said it sees base oil business conditions improving.
“Supply is expected to rise as major suppliers complete maintenance, but seasonal demand is projected to support stable profitability,” it said.
Companies surveyed for this article but not included in the table include South Korean base oil refiner GS-Caltex; Malaysian lubricant blender AP Oil; U.S. rerefiner Safety-Kleen; Sri Lankan lube blender Lanka IOC; Indian lubricant suppliers Veedol and Continental; and Nigerian blender Conoil, all of which posted lower earnings. It also included Indian lube suppliers Castrol India and Savita; South Korean base oil refiner S-Oil; and South Korean lube blender Michang Oil, which all recorded higher profits.
Tim Sullivan is Executive Editor of Lubes’n’Greases. Contact him at Tim@LubesnGreases.com