#USA #Q3 2025 #earnings report #Conshohocken #Quaker Houghton

Quaker Houghton Reports Q3 2025 Results

Quaker Houghton, a leading company in the field of industrial process fluids, has announced its financial results for the third quarter of 2025, revealing a robust performance despite a challenging market environment. The company's net sales for the quarter reached $493.8 million, reflecting a 7% increase compared to the same period in the previous year. This remarkable growth was propelled by a 3% rise in organic sales volumes, a 5% contribution from acquisitions, and a favorable impact from foreign currency translation, even though there was a slight decline in selling price and product mix of 2%.

Key Financial Highlights

In terms of net income, Quaker Houghton reported $30.5 million for Q3 2025, translating to $1.75 per diluted share. This marks a decrease from $32.3 million or $1.81 per diluted share in Q3 2024. However, when adjusting for non-recurring items, the non-GAAP net income stood at $36.3 million with earnings of $2.08 per diluted share, which represents a notable increase of 10% year-over-year. The company also achieved an adjusted EBITDA of $82.9 million, up 5% from $78.6 million in Q3 2024, achieving adjusted EBITDA margins of 16.8%.

CEO Insights

Joe Berquist, the President and Chief Executive Officer, commented on the quarterly performance, emphasizing the disciplined execution of the company's strategy amidst expectant market challenges. He noted, "Our results were driven by new business wins globally, contributing approximately 5% to revenue growth. We are leveraging our strategic initiatives to enhance competitiveness and manage costs effectively to improve our margins."

Furthermore, Berquist highlighted that strong cash generation allowed the company to reinforce its balance sheet by returning cash to shareholders through dividends and share repurchases. He projected a resilient outlook, indicating that although soft market conditions may persist, Quaker Houghton expects to achieve year-over-year revenue and earnings growth in the fourth quarter.

Segment Performance

Looking at the operating performance across its three reporting segments—Americas, EMEA, and Asia/Pacific—Quaker Houghton displayed varied results. The Americas segment generated net sales of $222.8 million, slightly up from $220.3 million in Q3 2024. The EMEA segment revealed net sales of $143.9 million, an increase from $134.1 million in the previous year. The Asia/Pacific segment saw the most significant growth, with net sales climbing to $127.2 million compared to $107.9 million in Q3 2024, indicating an 18% increase.

Operational Measures and Challenges

Despite these favorable results, Quaker Houghton faced challenges, particularly in the Americas segment, where ongoing price declines affected margins. The company attributed the mixed results in the Americas to a combination of product mix changes and the impacts of index-based customer contracts. However, the Asia/Pacific region demonstrated resilience, aided by both organic sales volumetric growth and acquisition contributions.

In terms of cash flow, Quaker Houghton generated $51.4 million in operating cash flow in Q3 2025, alongside a net leverage ratio reduction to 2.4x. This reflects the company’s ability to manage its debt efficiently and its ongoing commitment to investor returns.

Summary and Future Outlook

In summary, Quaker Houghton's third-quarter results for 2025 underscore the company's adaptability and strategic focus in a fluctuating market landscape. The demonstrated growth in sales, net income, and EBITDA reflects a solid foundation for future performance. Looking ahead, the company aims to build on its growth momentum and maintain its competitive edge in the field of industrial processes, methodically navigating through market uncertainties while capitalizing on new opportunities. Quaker Houghton continues to position itself for sustained above-market growth into 2026 and beyond.

For more information about Quaker Houghton and its strategic initiatives, please visit quakerhoughton.com.