QUAKER HOUGHTON ANNOUNCES THIRD QUARTER 2026 RESULTS

Higher sales and adjusted earnings contrasted with lower GAAP profit and weaker nine-month operating cash flow.

Rhea-AI Summary

Quaker Houghton (NYSE: KWR) reported third-quarter 2026 net sales of $544.5 million, up 10% from the same period last year. Sales volumes rose 3%, primarily from new business wins across all segments, while selling price and product mix improved 7%. Net income fell to $30.0 million, or $1.73 per diluted share, from $30.5 million, or $1.75. Non-GAAP diluted earnings rose to $2.39 from $2.08, and adjusted EBITDA, an adjusted earnings measure, increased approximately 8% to $89.8 million.

Americas and EMEA segment operating earnings increased year over year, while Asia/Pacific earnings declined. Nine-month operating cash flow fell to $47.6 million from $89.9 million, primarily reflecting higher working-capital outflows. The company expects fourth-quarter revenue and adjusted EBITDA to improve year over year but decline sequentially, with soft Asian activity and elevated global raw material costs expected to persist.

14 points · 0 major

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0 major · 12 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointQ3 sales increased 10% year over year to $544.5 million, with approximately 2% sequential growth.
• Moderate pointQ3 non-GAAP net income reached $41.4 million, versus $36.3 million; diluted earnings increased to $2.39 from $2.08.
• Moderate pointQ3 adjusted EBITDA increased approximately 8% to $89.8 million, versus $82.9 million a year earlier.
• Moderate pointNine-month net income reached $76.481 million, versus a $23.189 million loss; diluted earnings were $4.40 versus negative $1.32.
• Minor pointQ3 sales volumes rose 3% year over year, primarily driven by new business wins across all segments.

9 minor points

• Minor pointQ3 selling price and product mix improved 7% year over year.
• Minor pointAmericas Q3 sales rose 14% to $254.030 million, with volumes up 6% and price/mix up 8%.
• Minor pointAmericas Q3 operating earnings increased to $65.657 million from $58.913 million, also improving sequentially.
• Minor pointEMEA Q3 sales rose 6% to $152.466 million, supported by a 10% price/mix improvement.
• Minor pointEMEA Q3 operating earnings increased to $31.174 million from $26.479 million, with improved operating margins.
• Minor pointAsia/Pacific Q3 sales rose 9% to $138.052 million, with volumes up 5%, price/mix up 3%, and currency adding 1%.
• Minor pointNine-month sales increased to $1,557.577 million from $1,420.156 million in 2025.
• Minor pointNine-month non-GAAP net income rose to $107.688 million from $94.298 million; diluted earnings reached $6.20 versus $5.37.
• Minor pointNine-month adjusted EBITDA increased to $247.477 million from $227.377 million.

Negative

• Moderate pointNine-month operating cash flow fell to $47.6 million from $89.9 million, primarily reflecting higher working-capital outflows.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 revenue and adjusted EBITDA are expected to rise year over year but decline sequentially, reflecting seasonal demand.
• Minor pointQ3 net income declined to $30.0 million from $30.5 million; diluted earnings fell to $1.73 from $1.75.
• Minor pointGross debt totaled $894.6 million at September 30; net debt was approximately $727.6 million, with leverage approximately 2.3x.
• Minor point. Forward-looking: it has not happened yet and may not happen.Asian activity is expected to remain soft in Q4, with uncertainty tempering industrial demand in China.

7 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Global raw material costs are expected to remain elevated through year-end, according to the company.
• Minor pointHigher input costs and selling, general and administrative expenses partially offset Q3 adjusted EBITDA growth.
• Minor pointAmericas Q3 operating margins declined year over year, while higher selling, general and administrative expenses constrained earnings growth.
• Minor pointEMEA Q3 volumes declined 2% after second-quarter pre-buying reversed; currency reduced sales growth by 2%.
• Minor pointEMEA Q3 operating earnings declined sequentially, primarily driven by lower net sales.
• Minor pointAsia/Pacific Q3 operating earnings fell to $35.055 million from $35.569 million, primarily reflecting lower operating margins.
• Minor pointAsia/Pacific Q3 operating earnings also declined sequentially, with persistent input cost inflation reducing operating margins.

News Explained

At September 30, 2026, Quaker Houghton reported $894.6 million in gross debt and $167.0 million in cash; net debt was $727.6 million.

Key Figures

Net sales: $544.5 million Net sales growth: 10% Y/Y Net income: $30.0 million +5 more

Net sales

$544.5 million

Q3 2026

Net sales growth

10% Y/Y

Q3 2026

Net income

$30.0 million

Q3 2026, compared with $30.5 million in Q3 2025

Diluted EPS

$1.73

Q3 2026, compared with $1.75 in Q3 2025

Non-GAAP net income

$41.4 million

Q3 2026, compared with $36.3 million in Q3 2025

Non-GAAP diluted EPS

$2.39; up 15% Y/Y

Q3 2026

Adjusted EBITDA

$89.8 million; up 8% Y/Y

Q3 2026

Operating cash flow

$47.6 million

Nine months ended September 30, 2026, compared with $89.9 million in 2025

Previous Earnings Reports

2 past events · Latest: Jul 30

Same Type 2 events

1. Jul 30

   Q2 earnings

   24h Move

   +3.6%

   Sales rose 10% year over year and adjusted EBITDA increased about 13%.

2. Oct 30

   Q3 earnings

   24h Move

   +10.5%

   Q3 sales rose 7% and adjusted EBITDA increased 5% year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap, ebitda, sg&a, two-class share method

4 terms

non-gaap financial

"non-GAAP net income and non-GAAP earnings per diluted share"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

ebitda financial

"adjusted EBITDA of $89.8 million"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

sg&a financial

"higher input costs and SG&A expenses"

SG&A stands for Selling, General, and Administrative expenses. It includes the costs a company spends on selling products, running the business day-to-day, and managing staff, like advertising, rent, and salaries. These expenses matter because they affect how much profit a company can make from its sales.

two-class share method financial

"accounted for under the "two-class share method"

An accounting method used when a company has more than one class of common shares with different rights (for example differing dividend or participation rights) that allocates a company’s net income between the share classes before computing earnings per share (EPS). Under this approach, net income is divided according to each class’s contractual or actual rights to dividends and participation in undistributed earnings rather than simply by share count; the portion allocated to a class is then used as the numerator for that class’s basic (and sometimes diluted) EPS. The two-class share method is applied when accounting rules identify ‘‘participating securities’’ or otherwise require separate allocation, and it affects how much income is reported as attributable to each share class for EPS purposes.

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• Q3'26 net sales of $544.5 million, an increase of 10% Y/Y
• Q3'26 net income of $30.0 million and earnings per diluted share of $1.73
• Sales volumes increased 3% Y/Y primarily driven by new business wins across all segments
• Q3'26 non-GAAP net income of $41.4 million and non-GAAP earnings per diluted share of $2.39, an increase of 15% Y/Y
• Delivered Q3'26 adjusted EBITDA of $89.8 million, an 8% increase Y/Y

CONSHOHOCKEN, Pa., Oct. 29, 2026 /PRNewswire/ -- Quaker Houghton ("the Company") (NYSE: KWR), the global leader in industrial process fluids, announced its third quarter 2026 results today. 

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands, except per share data)	2026		2025		2026		2025
Net sales	$       544,548		$       493,842		$   1,557,577		$   1,420,156
Net income (loss) attributable to Quaker Chemical Corporation	29,977		30,469		76,481		(23,189)
Net income (loss) attributable to Quaker Chemical Corporation common shareholders – diluted	1.73		1.75		4.40		(1.32)
Non-GAAP net income *	41,411		36,270		107,688		94,298
Non-GAAP earnings per diluted share *	2.39		2.08		6.20		5.37
Adjusted EBITDA *	89,781		82,851		247,477		227,377
* Refer to the Non-GAAP Measures and Reconciliations section below for additional information

Third Quarter 2026 Consolidated Results

Net sales in the third quarter of 2026 were $544.5 million, an increase of 10% compared to $493.8 million in the third quarter of 2025. This increase was primarily driven by an improvement in selling price and product mix of 7% and an increase in sales volumes of 3%. The increase in selling price and product mix reflects pricing actions taken to offset higher raw material costs, as well as changes in the mix of products and services, and the impact of our index-based customer contracts.  The increase in sales volumes compared to the prior year was primarily a result of new business wins across all segments.

The Company reported net income in the third quarter of 2026 of $30.0 million, or $1.73 per diluted share, compared to $30.5 million, or $1.75 per diluted share, in the third quarter of 2025. Excluding non-recurring and non-core items in each period, the Company's non-GAAP net income and non-GAAP earnings per diluted share were $41.4 million and $2.39, respectively, in the third quarter of 2026 compared to $36.3 million and $2.08, respectively, in the third quarter of 2025. The Company generated adjusted EBITDA of $89.8 million in the third quarter of 2026, an increase of approximately 8% compared to $82.9 million in the third quarter of 2025, primarily driven by the increase in net sales, partially offset by higher input costs and SG&A expenses. See the Non-GAAP Measures and Reconciliations section below for additional information.

Joe Berquist, Chief Executive Officer and President, commented, "Net sales increased 10% compared with the prior year, driven by new business wins across all segments, leading to a fifth consecutive quarter of year-over-year profitability improvement. Our results were led by strong growth in the Americas and improved operating earnings in EMEA despite end markets that remain challenged amid the backdrop of ongoing conflict in the Middle East. Asia Pacific continued to generate volume growth even as market conditions softened in China throughout the quarter. I am proud of our team's consistent execution and ability to convert above-market growth into higher earnings, leading to our second consecutive quarter of record adjusted EBITDA.

"Looking ahead, we anticipate fourth quarter revenue and adjusted EBITDA will improve year-over-year but decline sequentially from the third quarter's record level in line with normal seasonal demand patterns from the holiday season in North America and EMEA. Activity in Asia is expected to remain soft in the fourth quarter as geopolitical and economic uncertainty have tempered industrial demand in China, and we anticipate global raw material costs will remain elevated through the end of the year as the conflict in the Middle East continues. We remain focused on advancing our transformation initiatives and carrying our positive earnings momentum into 2027."

Third Quarter 2026 Segment Results

The Company's third quarter of 2026 operating performance for each of its three reportable segments: (i) Americas; (ii) EMEA; and (iii) Asia/Pacific, is further described below. 

							Three Months Ended September 30,				Nine Months Ended September 30,
							2026		2025		2026		2025
Net Sales *
Americas							$      254,030		$      222,787		$      704,271		$      657,560
EMEA							152,466		143,900		452,985		413,101
Asia/Pacific							138,052		127,155		400,321		349,495
Total net sales							$      544,548		$      493,842		$   1,557,577		$   1,420,156
Segment operating earnings *
Americas							$       65,657		$       58,913		$      176,845		$      176,351
EMEA							31,174		26,479		89,475		74,867
Asia/Pacific							35,055		35,569		105,890		90,214
Total segment operating earnings							$      131,886		$      120,961		$      372,210		$      341,432
* Refer to the Segment Measures and Reconciliations section below for additional information

The following table summarizes the sales variances by reportable segment and consolidated operations in the third quarter of 2026 compared to the third quarter of 2025:

	Sales volumes		Selling price & product mix		Foreign currency		Acquisition & other		Total
Americas	6 %		8 %		— %		— %		14 %
EMEA	(2) %		10 %		(2) %		— %		6 %
Asia/Pacific	5 %		3 %		1 %		— %		9 %
Consolidated	3 %		7 %		— %		— %		10 %

Net sales in the Americas segment in the third quarter of 2026 increased 14% compared to the same period in 2025, due to an increase in sales volumes and an increase in selling price and product mix. Net sales in the Asia/Pacific segment increased 9% in the third quarter of 2026 compared to the same period in 2025, as a result of an increase in sales volumes, an increase in selling price and product mix, and a favorable impact of foreign currency translation. Net sales in the EMEA segment increased 6% in the third quarter of 2026 compared to the same period in 2025, due to an increase in selling price and product mix, partially offset by a decrease in sales volumes resulting from the reversal of pre-buy activity in the second quarter, and an unfavorable impact of foreign currency translation.

Underlying end market activity in the third quarter of 2026 was flat to slightly lower than prior year levels, while new business wins across all segments led to year-over-year volume growth compared to the prior year quarter. The increase in selling price and product mix in the third quarter of 2026 compared to the same period in 2025 reflects pricing actions taken to offset higher raw material costs across all segments, as well as changes in the mix of products and services, and the impact of our index-based customer contracts.

Consolidated net sales increased approximately 2% compared to the second quarter of 2026, driven by an increase in selling price and product mix across all segments and an increase in sales volumes in the Americas and Asia/Pacific segments, offset by a decrease in sales volumes in the EMEA segment.

Segment operating earnings for the EMEA segment increased compared to the prior year quarter, primarily due to an increase in net sales and an improvement in segment operating margins. Segment operating earnings for the Americas segment increased compared to the prior year quarter, primarily due to an increase in net sales, partially offset by lower segment operating margins and higher SG&A.  Segment operating earnings for the Asia/Pacific segment decreased compared to the prior year quarter primarily due to lower segment operating margins, partially offset by an increase in net sales. Segment operating earnings increased in the Americas segment in the third quarter of 2026 compared to the second quarter of 2026, primarily driven by an increase in net sales and improved segment operating margins. Segment operating earnings decreased in the EMEA and Asia/Pacific segments in the third quarter of 2026 compared to the second quarter of 2026, primarily driven by a decrease in net sales in the EMEA segment and lower segment operating margins in the Asia/Pacific segment driven by persistent input cost inflation.

Cash Flow and Liquidity Highlights

Net cash provided by operating activities was $47.6 million for the nine months ended September 30, 2026, compared to net cash provided by operating activities of $89.9 million for the same period in 2025. The Company's decrease in operating cash flow year-over-year primarily reflects higher net cash outflows from working capital, partially offset by improved operating performance and lower outflows from restructuring activities.

As of September 30, 2026, the Company's total gross debt was $894.6 million and its cash and cash equivalents was $167.0 million, which resulted in net debt of approximately $727.6 million. The Company's net debt divided by its trailing twelve months adjusted EBITDA was approximately 2.3x. In the third quarter of 2026, the Company repurchased 21,781 shares for $3.3 million.

Non-GAAP Measures and Reconciliations

The information in this press release includes non-GAAP (unaudited) financial information that includes EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP gross profit, non-GAAP gross margin, taxes on income before equity in net income of associated companies – adjusted, non-GAAP net income and non-GAAP earnings per diluted share. The Company believes these non-GAAP financial measures provide meaningful supplemental information as they enhance a reader's understanding of the financial performance of the Company, facilitate a comparison among fiscal periods, and exclude items that management believes are not indicative of future operating performance or considered core to the Company's operations. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for the financial information presented in accordance with GAAP. In addition, our definitions of EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP gross profit, non-GAAP gross margin, taxes on income before equity in net income of associated companies – adjusted, non-GAAP net income, and non-GAAP earnings per diluted share, as discussed and reconciled below to the most comparable GAAP measures, may not be comparable to similarly named measures reported by other companies. 

The Company presents EBITDA, which is calculated as net income attributable to the Company before depreciation and amortization, interest expense, and taxes on income before equity in net income of associated companies. The Company also presents adjusted EBITDA, which is calculated as EBITDA plus or minus certain items that management believes are not indicative of future operating performance or considered core to the Company's operations. In addition, the Company presents non-GAAP operating income, which is calculated as operating income plus or minus certain items that management believes are not indicative of future operating performance or considered core to the Company's operations. The Company also presents non-GAAP gross profit, which is calculated as gross profit plus or minus certain items that management believes are not indicative of future operating performance or considered core to the Company's operations. Additionally, the Company presents non-GAAP Adjusted EBITDA margin, non-GAAP operating margin, and non-GAAP gross margin, which are calculated as the percentage of adjusted EBITDA, non-GAAP operating income, and non-GAAP gross profit to consolidated net sales, respectively. The Company believes these non-GAAP measures provide transparent and useful information and are widely used by analysts, investors, and competitors in our industry, as well as by management in assessing the operating performance of the Company on a consistent basis.

Additionally, the Company presents non-GAAP net income and non-GAAP earnings per diluted share as additional performance measures. Non-GAAP net income is calculated as adjusted EBITDA, defined above, less depreciation and amortization, interest expense, and taxes on income before equity in net income of associated companies, in each case adjusted, as applicable, for any depreciation, amortization, interest or tax impacts resulting from the non-core items identified in the reconciliation of net income attributable to the Company to adjusted EBITDA. Non-GAAP earnings per diluted share is calculated as non-GAAP net income per diluted share as accounted for under the "two-class share method." The Company believes that non-GAAP net income and non-GAAP earnings per diluted share provide transparent and useful information and are widely used by analysts, investors, and competitors in our industry, as well as by management in assessing the performance of the Company on a consistent basis.

As it relates to future projections for the Company as well as other forward-looking information contained in this press release, the Company has not provided guidance for comparable GAAP measures or a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP measure because it is unable to determine with reasonable certainty the ultimate outcome of certain significant items necessary to calculate such measures without unreasonable effort. These items include, but are not limited to, certain non-recurring or non-core items the Company may record that could materially impact net income. These items are uncertain, depend on various factors, and could have a material impact on the U.S. GAAP reported results for the guidance period. 

The Company's reference to trailing twelve months adjusted EBITDA within this press release refers to the twelve-month period ended September 30, 2026 adjusted EBITDA of $319.3 million, which consists of (i) the nine months ended September 30, 2026 adjusted EBITDA of $247.5 million, as presented in the non-GAAP reconciliations below, and (ii) the twelve months ended December 31, 2025 adjusted EBITDA of $299.2 million, as presented in the non-GAAP reconciliations included in the Company's fourth quarter and full year 2025 results press release dated February 23, 2026, less (iii) the nine months ended September 30, 2025 adjusted EBITDA of $227.4 million, as presented in the non-GAAP reconciliations below. 

Certain of the prior period non-GAAP financial measures presented in the following tables have been adjusted to conform with current period presentation. The following tables reconcile the Company's non-GAAP financial measures (unaudited) to their most directly comparable GAAP (unaudited) financial measures (dollars in thousands unless otherwise noted, except per share amounts):

Non-GAAP Gross Profit and Margin Reconciliations	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Gross profit	$   193,523		$   180,865		$   559,462		$   513,848
Acquisition-related step-up inventory amortization	—		—		—		6,022
Loss (gain) on inventory and other adjustments	—		671		—		(2,933)
Non-GAAP gross profit	$   193,523		$   181,536		$   559,462		$   516,937
Non-GAAP gross margin (%)	35.5 %		36.8 %		35.9 %		36.4 %

 

Non-GAAP Operating Income and Margin Reconciliations			Three Months Ended September 30,				Nine Months Ended September 30,
			2026		2025		2026		2025
Operating income			$     48,853		$     46,641		$    123,045		$     21,755
Acquisition-related step-up inventory amortization			—		—		—		6,022
Restructuring and related charges, net			8,263		7,745		23,760		31,128
Acquisition-related expenses			152		642		1,086		4,775
Loss (gain) on inventory and other adjustments			—		671		—		(3,256)
Business transformation costs			3,017		—		8,789		—
Impairment charges			—		—		—		88,840
Duplicate headquarter lease costs			1,156		—		2,042		—
Acquisition-related depreciation and amortization			1,585		1,656		4,779		3,337
Other charges			109		530		270		1,695
Non-GAAP operating income			$     63,135		$     57,885		$    163,771		$    154,296
Non-GAAP operating margin (%)			11.6 %		11.7 %		10.5 %		10.9 %

 

EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Non-GAAPNet Income Reconciliations	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net income (loss) attributable to Quaker Chemical Corporation	$     29,977		$     30,469		$     76,481		$    (23,189)
Depreciation and amortization (a)	25,620		24,436		77,085		69,187
Interest expense	10,023		10,941		29,775		33,265
Taxes on income before equity in net income of associated companies (b)	11,830		9,266		30,147		22,280
EBITDA	77,450		75,112		213,488		101,543
Equity income in a captive insurance company	(1,175)		(1,691)		(4,810)		(4,437)
Acquisition-related step-up inventory amortization	—		—		—		6,022
Restructuring and related charges, net	8,263		7,745		23,760		31,128
Acquisition-related expenses	152		642		1,086		4,775
Loss (gain) on inventory and other adjustments	—		671		—		(3,256)
Business transformation costs	3,017		—		8,789		—
Pension and postretirement benefit costs, non-service components	286		469		863		1,351
Impairment charges	—		—		—		88,840
Product liability claim reimbursement	—		—		(1,000)		—
Currency conversion impacts of hyper-inflationary economies	455		886		1,210		2,073
Loss on acquisition-related hedges	—		—		—		1,351
Loss (gain) on sale of assets	165		—		165		(2,534)
Multiemployer plan withdrawal charge	—		923		—		923
Brazilian non-income tax credits	—		(1,762)		—		(1,762)
Debt modification and extinguishment costs	—	—	—		1,711		—
Duplicate headquarter lease costs	1,156		—		2,042		—
Other charges (credits)	12		(144)		173		1,360
Adjusted EBITDA	$     89,781		$     82,851		$    247,477		$    227,377
Adjusted EBITDA margin (%)	16.5 %		16.8 %		15.9 %		16.0 %
Adjusted EBITDA	$     89,781		$     82,851		$    247,477		$    227,377
Less: Depreciation and amortization (a)	25,620		24,436		77,085		69,187
Less: Interest expense	10,023		10,941		29,775		33,265
Less: Taxes on income before equity in net income of associated companies - adjusted (b)	14,312		12,860		37,708		33,964
Plus: Acquisition-related depreciation and amortization	1,585		1,656		4,779		3,337
Non-GAAP net income	$     41,411		$     36,270		$    107,688		$     94,298

 

	Three Months Ended September 30,				Nine Months Ended September 30,
Non-GAAP Earnings per Diluted Share Reconciliations	2026		2025		2026		2025
GAAP earnings (loss) per diluted share attributable to Quaker   Chemical Corporation common shareholders	$          1.73		$          1.75		$          4.40		$         (1.32)
Equity income in a captive insurance company	(0.07)		(0.10)		(0.28)		(0.25)
Acquisition-related step-up inventory amortization	—		—		—		0.25
Restructuring and related charges, net	0.31		0.30		0.97		1.31
Acquisition-related expenses	0.01		0.02		0.05		0.21
Loss (gain) on inventory and other adjustments	—		0.02		—		(0.14)
Business transformation costs	0.14		—		0.39		—
Pension and postretirement benefit costs, non-service components	0.02		0.02		0.04		0.06
Impairment charges	—		—		—		4.91
Product liability claim reimbursement	—		—		(0.04)		—
Currency conversion impacts of hyper-inflationary economies	0.03		0.05		0.07		0.12
Loss on acquisition-related hedges	—		—		—		0.06
Loss (gain) on sale of assets	0.01		—		0.01		(0.11)
Multiemployer plan withdrawal charge	—		0.04		—		0.04
Brazilian non-income tax credits	—		(0.08)		—		(0.08)
Debt modification and extinguishment costs	—		—		0.08		—
Duplicate headquarter lease costs	0.05		—		0.09		—
Other charges (credits)	0.01		0.02		0.02		0.07
Discrete tax items	0.09		(0.02)		0.21		0.11
Acquisition-related depreciation and amortization	0.06		0.06		0.19		0.13
Non-GAAP earnings per diluted share	$          2.39		$          2.08		$          6.20		$          5.37

a.	Depreciation and amortization for the three and nine months ended September 30, 2026 and 2025 each includes approximately $0.2 million and $0.7 million, respectively, of amortization expense recorded within equity in net income of associated companies in the Company's Condensed Consolidated Statements of Operations. This is attributable to the amortization of the fair value purchase accounting step-up in connection with the acquisition of the Company's 50% equity interest in Korea Houghton Corporation.
b.	Taxes on income before equity in net income of associated companies – adjusted includes the Company's tax expense adjusted for the impact of any current and deferred income tax expense (benefit), as applicable, of the reconciling items presented in the reconciliation of Net income attributable to Quaker Chemical Corporation to adjusted EBITDA, above, determined utilizing the applicable rates in the taxing jurisdictions in which these adjustments occurred, subject to deductibility. This caption also includes the impact of specific tax charges and benefits for the three and nine months ended September 30, 2026 and 2025.

Segment Measures and Reconciliations

Segment operating earnings for each of the Company's reportable segments are comprised of the segment's net sales less directly related product costs and other segment items. Operating expenses not directly attributable to the net sales of each respective segment, such as certain corporate and administrative costs and restructuring charges, are not included in segment operating earnings. Other items not specifically identified with the Company's reportable segments include Interest expense and Other expense, net. 

The following table presents information about the performance of the Company's reportable segments (dollars in thousands):
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net Sales
Americas	$      254,030		$      222,787		$      704,271		$      657,560
EMEA	152,466		143,900		452,985		413,101
Asia/Pacific	138,052		127,155		400,321		349,495
Total net sales	$      544,548		$      493,842		$   1,557,577		$   1,420,156
Segment operating earnings
Americas	$       65,657		$       58,913		$      176,845		$      176,351
EMEA	31,174		26,479		89,475		74,867
Asia/Pacific	35,055		35,569		105,890		90,214
Total segment operating earnings	131,886		120,961		372,210		341,432
Restructuring and related charges, net	(8,263)		(7,745)		(23,760)		(31,128)
Impairment charges	—		—		—		(88,840)
Non-operating and administrative expenses	(57,262)		(49,560)		(172,552)		(151,137)
Depreciation of corporate assets and amortization	(17,508)		(17,015)		(52,853)		(48,572)
Operating income	48,853		46,641		123,045		21,755
Other expense, net	(797)		(270)		(414)		(1,632)
Interest expense	(10,023)		(10,941)		(29,775)		(33,265)
Income (loss) before taxes and equity in net income of associated companies	$       38,033		$       35,430		$       92,856		$      (13,142)

Forward-Looking Statements

This press release contains "forward-looking statements" that fall under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended. These statements can be identified by the fact that they do not relate strictly to historical or current facts. We have based these forward-looking statements on assumptions, projections and expectations about future events that we believe are reasonable based on currently available information, including statements regarding the potential effects of economic downturns; tariffs, including retaliatory tariffs, "trade wars" and uncertainty surrounding changes in tariffs; inflation and global supply chain constraints on the Company's business, results of operations, and financial condition; our expectation that we will maintain sufficient liquidity and remain in compliance with the terms of the Company's credit facility; expectations about future demand and raw material costs; and statements regarding the impact of increased raw material costs and pricing initiatives. These forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, intentions, financial condition, results of operations, future performance, and business, which may differ materially from our actual results, including but not limited to the potential benefits of acquisitions and divestitures, the impacts on our business as a result of global supply chain constraints and other macroeconomic stresses and uncertainties, including political and geopolitical events, civil disturbances and endemics/pandemics or extreme weather events and other natural disasters that may adversely affect regional economic conditions, and our current and future results and plans and statements that include the words "may," "could," "should," "would," "believe," "expect," "anticipate," "estimate," "intend," "outlook," "target," "possible," "potential," "plan" or similar expressions. Such statements include information relating to current and future business activities, operational matters, capital spending, and financing sources. A major risk is that demand for the Company's products and services is largely derived from the demand for its customers' products, which subjects the Company to uncertainties related to downturns in a customer's business and unanticipated customer production slowdowns and shutdowns. Other major risks and uncertainties include, but are not limited to, inflationary pressures, including increases in raw material costs; supply chain constraints and the impacts of economic downturns; customer financial instability; high interest rates and their impact on our and our customers' business operations; the impacts from acts of war, terrorism and military conflicts, including those in Ukraine and the Middle East as well as economic and political actions taken by various government organizations; economic and political disruptions globally and the possibility of regime changes; the possibility of economic recession; legislative and regulatory developments including changes to existing laws and regulations, or the way they are interpreted, applied or enforced; tariffs, trade restrictions, and the economic and other sanctions imposed by other nations on Russia and Belarus and/or other government organizations; suspensions of activities in Russia by many multinational companies; foreign currency fluctuations; significant changes in applicable tax rates and regulations and the potential impacts therefrom, including those arising from H.R.1, commonly known as the "One Big Beautiful Bill Act"; other acts of violence; the impacts of consolidation in our industry, including loss or consolidation of a major customer; the effects of climate change, fires, or other natural disasters; and the potential occurrence of cyber-security breaches, cyber-security attacks and other technology outages and security incidents. Furthermore, the Company is subject to the same business cycles as those experienced by our customers in the steel, automobile, aircraft, industrial equipment, aluminum and durable goods industries. Our forward-looking statements are subject to risks, uncertainties and assumptions about the Company and its operations that are subject to change based on various important factors, some of which are beyond our control. These risks, uncertainties, and possible inaccurate assumptions relevant to our business could cause our actual results to differ materially from expected and historical results. All forward-looking statements included in this press release, including expectations about future periods, are based upon information available to the Company as of the date of this press release, which may change. Therefore, we caution you not to place undue reliance on our forward-looking statements. For more information regarding these risks and uncertainties as well as certain additional risks that we face, refer to the Risk Factors section, which appears in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, and in subsequent reports filed from time to time with the Securities and Exchange Commission. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements to reflect new information or future events or for any other reason.

Conference Call

As previously announced, the Company's investor conference call to discuss its third quarter of 2026 performance is scheduled for Friday, October 30, 2026 at 8:00 a.m. ET. A live webcast of the conference call, together with supplemental information, can be accessed through the Company's Investor Relations website at investors.quakerhoughton.com. You can also access the conference call by dialing 877-269-7756. 

About Quaker Houghton

Quaker Houghton is the global leader in industrial process fluids. With a presence around the world, including operations in over 25 countries, our customers include thousands of the world's most advanced and specialized steel, aluminum, automotive, aerospace, offshore, can, mining, and metalworking companies. Our high-performing, innovative and sustainable solutions are backed by best-in-class technology, deep process knowledge and customized services. With approximately 4,700 employees, including chemists, engineers and industry experts, we partner with our customers to improve their operations so they can run even more efficiently, even more effectively, whatever comes next. Quaker Houghton is headquartered in Conshohocken, Pennsylvania, located near Philadelphia in the United States. Visit quakerhoughton.com to learn more.

Quaker Chemical Corporation Condensed Consolidated Statements of Operations (Unaudited; Dollars in thousands, except per share data)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net sales	$      544,548		$      493,842		$   1,557,577		$   1,420,156
Cost of goods sold	351,025		312,977		998,115		906,308
Gross profit	193,523		180,865		559,462		513,848
Selling, general and administrative expenses	136,407		126,479		412,657		372,125
Impairment charges	—		—		—		88,840
Restructuring and related charges, net	8,263		7,745		23,760		31,128
Operating income	48,853		46,641		123,045		21,755
Other expense, net	(797)		(270)		(414)		(1,632)
Interest expense	(10,023)		(10,941)		(29,775)		(33,265)
Income (loss) before taxes and equity in net income of associated companies	38,033		35,430		92,856		(13,142)
Taxes on income before equity in net income of associated companies	11,830		9,266		30,147		22,280
Income (loss) before equity in net income of associated companies	26,203		26,164		62,709		(35,422)
Equity in net income of associated companies	3,767		4,322		13,816		12,262
Net income (loss)	29,970		30,486		76,525		(23,160)
Less: Net (loss) income attributable to noncontrolling interest	(7)		17		44		29
Net income (loss) attributable to Quaker Chemical Corporation	$       29,977		$       30,469		$       76,481		$      (23,189)
Per share data:
Net income (loss) attributable to Quaker Chemical Corporation common shareholders – basic	$          1.74		$          1.75		$          4.43		$         (1.32)
Net income (loss) attributable to Quaker Chemical Corporation common shareholders – diluted	$          1.73		$          1.75		$          4.40		$         (1.32)
Basic weighted average common shares outstanding	17,196,928		17,363,947		17,273,816		17,524,377
Diluted weighted average common shares outstanding	17,345,329		17,421,090		17,363,516		17,545,666

 

Quaker Chemical Corporation Condensed Consolidated Balance Sheets (Unaudited; Dollars in thousands, except par value)
	September 30, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$      167,006		$      179,829
Accounts receivable, net	487,955		417,157
Inventories	319,612		265,776
Prepaid expenses and other current assets	74,468		58,428
Total current assets	1,049,041		921,190
Property, plant and equipment, net	319,049		313,423
Right-of-use lease assets	51,256		38,737
Goodwill	506,772		501,720
Other intangible assets, net	813,174		873,540
Investments in associated companies	117,998		106,915
Deferred tax assets	11,258		12,128
Other non-current assets	46,784		30,283
Total assets	$    2,915,332		$   2,797,936
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings and current portion of long-term debt	$        20,532		$       35,657
Accounts payable	233,814		198,929
Dividends payable	9,111		8,804
Accrued compensation	51,799		41,192
Accrued restructuring	9,149		8,351
Accrued pension and postretirement benefits	2,115		2,126
Other accrued liabilities	98,993		85,097
Total current liabilities	425,513		380,156
Long-term debt	871,462		834,901
Long-term lease liabilities	35,494		22,759
Deferred tax liabilities	128,162		140,814
Non-current accrued pension and postretirement benefits	18,641		20,615
Other non-current liabilities	18,978		22,192
Total liabilities	1,498,250		1,421,437
Equity
Common stock $1 par value; authorized 30,000,000 shares; issued and outstanding      September 30, 2026 – 17,191,225 shares; December 31, 2025 – 17,331,779 shares	17,191		17,332
Capital in excess of par value	856,031		874,826
Retained earnings	646,422		596,616
Accumulated other comprehensive loss	(105,978)		(115,661)
Total Quaker shareholders' equity	1,413,666		1,373,113
Noncontrolling interest	3,416		3,386
Total equity	1,417,082		1,376,499
Total liabilities and equity	$    2,915,332		$   2,797,936

 

Quaker Chemical Corporation Condensed Consolidated Statements of Cash Flows (Unaudited; Dollars in thousands)
	Nine Months Ended September 30,
	2026		2025
Cash flows from operating activities
Net income (loss)	$       76,525		$      (23,160)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization	76,393		68,471
Equity in undistributed earnings of associated companies, net of dividends	(7,358)		(4,366)
Deferred income taxes	(15,997)		(16,503)
Share-based compensation	10,570		10,419
Impairment charges	—		88,840
Restructuring and related charges, net	23,760		31,128
Inventory step-up amortization	—		6,022
Loss (gain) on disposal of property, plant and equipment and other assets	422		(2,051)
Other adjustments	(6,133)		(5,082)
Increase (decrease) in cash from changes in current assets and current liabilities, net of    acquisitions:
Accounts receivable	(72,918)		4,585
Inventories	(57,185)		(16,473)
Prepaid expenses and other current assets	(14,741)		(4,258)
Accrued restructuring	(17,964)		(21,671)
Accounts payable and accrued liabilities	52,208		(25,992)
Net cash provided by operating activities	47,582		89,909
Cash flows from investing activities
Investments in property, plant and equipment	(32,466)		(33,630)
Payments related to acquisitions, net of cash acquired	—		(164,209)
Proceeds from disposition of assets	370		2,992
Other investing activities	3,380		1,828
Net cash used in investing activities	(28,716)		(193,019)
Cash flows from financing activities
Payments of long-term debt	(629,685)		(25,967)
Proceeds from long-term debt	800,000		—
Borrowings on revolving credit facilities	324,252		328,201
Payments on revolving credit facilities	(463,222)		(159,263)
Payments on other debt	—		(525)
Financing-related debt issuance costs	(6,232)		—
Dividends paid	(26,368)		(25,583)
Shares purchased under share repurchase programs	(27,480)		(36,496)
Other stock related activity	(2,024)		(1,099)
Net cash (used in) provided by financing activities	(30,759)		79,268
Effect of foreign exchange rate changes on cash	(930)		7,000
Net decrease in cash and cash equivalents	(12,823)		(16,842)
Cash and cash equivalents at the beginning of the period	179,829		188,880
Cash and cash equivalents at the end of the period	$      167,006		$      172,038

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SOURCE Quaker Chemical Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Quaker Houghton's third-quarter 2026 earnings?

Quaker Houghton earned $30.0 million, or $1.73 per diluted share, compared with $30.5 million, or $1.75, a year earlier. Non-GAAP net income was $41.4 million, with diluted earnings of $2.39, compared with $36.3 million and $2.08, respectively.

What does Quaker Houghton expect for the fourth quarter of 2026?

Quaker Houghton expects revenue and adjusted EBITDA to improve year over year but decline from the third quarter. The company links the sequential decline to normal holiday-season demand patterns in North America and EMEA and expects Asian activity to remain soft.

How much cash and debt did Quaker Houghton have at September 30, 2026?

Quaker Houghton had $167.0 million in cash and cash equivalents and $894.6 million in gross debt at September 30, 2026. Net debt was approximately $727.6 million, equivalent to approximately 2.3x trailing twelve-month adjusted EBITDA.