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Quaker Houghton Fourth Quarter and Full Year 2025 Financial Review

Quaker Houghton has recently announced its fourth quarter and full year financial results for 2025, demonstrating resilience and growth in a challenging market. For Q4'25, the company reported net sales of $468.5 million, reflecting a 6% increase year-over-year (Y/Y) from $444.1 million in Q4'24. This growth can be attributed to successful acquisitions and favorable currency translations, which added 6% and 2% to the sales respectively. However, the company also faced challenges with a 1% decline in selling price and product mix, alongside a 1% decrease in organic sales volumes, mainly due to softer market conditions experienced in the Americas and EMEA regions.

Net income for the fourth quarter reached $20.7 million, or $1.18 per diluted share, up from $14.2 million or $0.81 per diluted share a year earlier. Adjusted non-GAAP net income for Q4 climbed to $28.9 million, translating to $1.65 per diluted share, which demonstrates an impressive 24% Y/Y improvement. The company's adjusted EBITDA for the fourth quarter was $71.9 million, marking an increase of 11% compared to the previous year.

Joseph A. Berquist, CEO of Quaker Houghton, commented on the results: "We closed 2025 with a second consecutive quarter showing year-over-year profitability improvement, as our adjusted EBITDA rose 11% compared to last year. Despite softening market conditions, we managed to offset these by achieving net share gains globally of around 4%. Our acquisition efforts, particularly with Dipsol, continue to contribute positively to revenues. Although gross margins remained flat compared to last year, we anticipate improvement in the coming quarter as we address operational issues and higher disposal charges from the previous quarter."

Full Year 2025 Overview

For the full year, Quaker Houghton reported net sales of $1.89 billion; however, net income showed a loss of $2.5 million which included substantial impairment and restructuring charges totaling $123.9 million. Non-GAAP net income for the year stood at $123.2 million, with earnings per diluted share reported at $7.02. The company's adjusted EBITDA for the year reached $299.2 million, emphasizing a steady performance despite the fluctuations in the market.

Cash flow remained positive, with $136.5 million generated from operating activities throughout 2025. Quaker Houghton also completed three strategic acquisitions during the year while returning $75.9 million to shareholders through dividends and share repurchase programs.

Strategic Outlook

Looking forward to 2026, Quaker Houghton expects end markets to stabilize, anticipating growth avenues to materialize in the second half of the year. The company remains committed to a disciplined operational approach and is focused on controlling costs while continuing to pursue new business opportunities. Berquist expressed optimism regarding future performance, emphasizing the company’s proven track record in securing partnerships and winning new business.

In summary, Quaker Houghton has showcased resilience amid market dynamics through strong acquisition strategies and a focus on operational excellence. Their future outlook remains promising as they navigate the upcoming year with confidence.

For investors and stakeholders, more information on the quarterly performance will be discussed in an upcoming conference call scheduled for February 24, 2026. The call will be available for live streaming via the company’s Investor Relations page. Quaker Houghton, headquartered in Conshohocken, Pennsylvania, continues to establish itself as a leader in industrial process fluids across the globe. Keep an eye on this company as it ventures into 2026 with a robust foundation built on strategic foresight and customer-centric innovations.