#United States #earnings report #Conshohocken #Quaker Houghton #Industrial Fluids

Quaker Houghton Reports Q3 2026 Results

Quaker Houghton, recognized as the leader in industrial process fluids, announced its financial performance for the third quarter of 2026, revealing a remarkable 10% increase in net sales compared to the prior year. The company's total net sales reached approximately $544.5 million, driven by several factors, including an elevation in selling prices and product mix, which collectively contributed a 7% increase, along with a 3% rise in sales volumes attributed to new business wins across all segments.

In this quarterly report, the net income attributable to Quaker Chemical Corporation amounted to $30 million or $1.73 per diluted share, though slightly down from $30.5 million, or $1.75 per diluted share during the same timeframe in the previous year. When adjusting for non-recurring and non-core items, Quaker Houghton's non-GAAP net income stood at $41.4 million, reflecting a robust growth of 15% year on year, translating to earnings per diluted share of $2.39.

CEO Joe Berquist commented on the strong performance, highlighting that the increase in net sales indicates sustained growth across various segments, particularly in the Americas and a revival in earnings within the EMEA (Europe, the Middle East, and Africa). Despite challenges related to ongoing geopolitical conflicts, the company's ability to secure new business ventures has allowed it to maintain profitability. The Asia Pacific region also reported growth, even amid a slowdown in market conditions within China.

Furthermore, Quaker Houghton achieved adjusted EBITDA of $89.8 million for the quarter, marking an 8% rise from the $82.9 million recorded in Q3 2025. This increase showcases the company's commitment to optimizing operational efficiency, even in the face of rising input costs and increasing selling, general, and administrative expenses.

Delving deeper into the segment performance, the quarterly results divulged the following net sales across the three major reportable segments:

• - Americas: $254 million, a significant 14% increase from the previous year
• - EMEA: $152 million, up 6% despite challenges
• - Asia/Pacific: $138 million, a robust 9% increase

The Americas segment demonstrated particularly strong operational earnings attributed to the uptick in sales and slightly improved margins. Conversely, EMEA faced volume drops due to previous pre-buy activities, but the overall sales uplift reflects the firm's strategic pricing adjustments and product offerings that have successfully combated raw material cost hikes. The Asia Pacific segment’s performance benefitted from favorable foreign currency translations and product mix improvements.

Looking forward, Quaker Houghton anticipates a seasonal decline in sequential revenue and adjusted EBITDA for Q4 2026 but expects year-over-year revenue growth to continue, particularly as demand fluctuates during the holiday season in North America. The stability of industrial demand in the Asia Pacific is still in question, as economic uncertainties loom, particularly in China. The firm also indicated that they are focused on advancing transformation initiatives to support their growth trajectory into 2027.

Some notable financial metrics disclosed in the report included:

• - Operating cash flow for the nine months ending September 30, 2026 was recorded at $47.6 million, a drop compared to the $89.9 million from 2025, primarily due to heightened cash outflows from working capital.
• - They maintained a gross debt of $894.6 million with cash and cash equivalents at around $167 million, resulting in a net debt of approximately $727.6 million, equating to a ratio of about 2.3x against trailing twelve-month adjusted EBITDA.
• - Approximately 21,781 shares were repurchased during the quarter for $3.3 million, indicating the company's ongoing commitment to shareholder value.

In summary, Quaker Houghton’s third quarter results for 2026 exhibit a blend of growth amid challenges, showcasing resilience in its market approach and operational execution. The coming quarters will be critical for the firm as they navigate seasonal dynamics and international economic fluctuations while striving for sustained profitability and expansion in various segments of its operations.