Quaker Houghton (NYSE: KWR) lifts Q1 earnings, extends debt and launches cost plan
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Quaker Houghton reported stronger first-quarter 2026 results with higher sales and profit. Net sales were $480.5 million, up 8% from $442.9 million a year earlier, helped by 3% higher volumes, 4% growth from acquisitions and favorable currency, partly offset by lower pricing and mix.
Net income rose to $19.7 million, or $1.13 per diluted share, compared with $12.9 million, or $0.73 per share, while non-GAAP net income was $28.4 million and non-GAAP diluted EPS was $1.63, slightly above $1.58 last year. Adjusted EBITDA increased 5% to $72.5 million.
Asia/Pacific led growth with 25% higher sales, EMEA grew 10% and Americas was flat year over year. Operating cash flow improved to $3.8 million from a $3.1 million outflow. The company ended March 31, 2026 with $875.0 million of gross debt, $169.7 million of cash and a net debt-to-trailing adjusted EBITDA ratio of about 2.3x.
Quaker Houghton amended its credit agreement after quarter-end, extending the nearest maturity to 2031 and increasing available credit, and launched a global transformation and cost program targeting $20 million to $30 million of annualized savings by 2028, with a $10 million run-rate goal by the end of 2026.
Positive
- Strong earnings growth and solid non-GAAP profitability: Q1 2026 net income rose to $19.7 million from $12.9 million and non-GAAP diluted EPS increased to $1.63, with adjusted EBITDA up 5% to $72.5 million despite softer end markets.
- Improved capital structure and defined cost actions: Net debt-to-trailing adjusted EBITDA was about 2.3x, the nearest debt maturity was extended to 2031 with more available credit, and a new cost program targets $20–$30 million annual savings by 2028.
Negative
- None.
Insights
Q1 2026 shows solid earnings growth, stronger balance flexibility and defined cost actions.
Quaker Houghton delivered Q1 2026 net sales of $480.5 million, up 8.5%, with volumes up 3% and contributions from acquisitions and currency. GAAP net income climbed to $19.7 million, and adjusted EBITDA reached $72.5 million, a 5% increase, showing resilient profitability despite softer end markets.
Non-GAAP diluted EPS edged up to $1.63 from $1.58, while non-GAAP operating margin slipped from 10.3% to 9.4%, reflecting higher SG&A and price/mix pressure. Segment data highlight particularly strong growth in Asia/Pacific, where net sales rose 25%, and improved earnings in both EMEA and Asia/Pacific.
Leverage remains manageable with net debt of about $705 million and a net debt-to-trailing adjusted EBITDA ratio near 2.3x. The amended credit agreement extending the nearest maturity to 2031 and the new global cost program targeting $20–$30 million annual savings by 2028 provide clearer visibility on funding and margin support, pending execution.
8-K Event Classification
4 items: 0.02, 0.08, 2.02, 9.01
4 items
Item 0.02
Item 0.02
Item 0.08
Item 0.08
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales: $480.5M
Net income: $19.7M
GAAP diluted EPS: $1.13/share
+5 more
8 metrics
Net sales
$480.5M
Q1 2026; up 8.5% from $442.9M in Q1 2025
Net income
$19.7M
Q1 2026; up from $12.9M in Q1 2025
GAAP diluted EPS
$1.13/share
Q1 2026; up from $0.73/share in Q1 2025
Adjusted EBITDA
$72.5M
Q1 2026; 5% increase from $69.0M in Q1 2025
Non-GAAP diluted EPS
$1.63/share
Q1 2026; up from $1.58/share in Q1 2025
Asia/Pacific net sales
$124.7M
Q1 2026; 25% higher than $99.9M in Q1 2025
Net debt
$705.3M
As of March 31, 2026; net debt/TTM adjusted EBITDA about 2.3x
Operating cash flow
$3.8M
Net cash provided by operating activities in Q1 2026 vs. $3.1M used in Q1 2025
Key Terms
Adjusted EBITDA, non-GAAP net income, Restructuring and related charges, net, Business transformation costs, +2 more
6 terms
Adjusted EBITDA financial
"Delivered Q1’26 adjusted EBITDA of $72.5 million, a 5% increase Y/Y"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP net income financial
"Q1’26 non-GAAP net income of $28.4 million and non-GAAP earnings per diluted share of $1.63"
Non-GAAP net income is a company's profit figure that excludes certain costs or income that are included in standard accounting methods. Companies often use it to show what their earnings might look like without one-time expenses or other unusual items, helping investors see the company's core performance more clearly.
Business transformation costs financial
"Business transformation costs 1,659 —"
Business transformation costs are one-time or short-term expenses a company incurs to change how it operates—such as restructuring, new technology, layoffs, or retraining—so it can compete better in the future. Investors care because these costs reduce near-term profits and cash flow but may improve long-term efficiency and competitiveness; think of it as paying for a renovation that temporarily disrupts a store but aims to increase future sales and lower running costs.
leverage ratio financial
"The Company’s net debt divided by its trailing twelve months adjusted EBITDA was approximately 2.3x."
Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.
trailing twelve months adjusted EBITDA financial
"twelve-month period ended March 31, 2026 adjusted EBITDA of $302.7 million"
Trailing twelve months adjusted EBITDA measures a company’s core operating profit over the most recent 12 months, before interest, taxes, depreciation and amortization, and after removing one-time or irregular items so the number reflects recurring results. Investors use it like a rolling meter of underlying cash-earning power—helpful for comparing performance across companies or time by isolating ongoing business strength from temporary gains or losses.
Earnings Snapshot
Net sales: $480.5M · Guidance included
Q1 2026
Net sales
$480.5M
8.5% YoY
Net income
$19.7M
52.8% YoY
GAAP diluted EPS
$1.13
54.8% YoY
Adjusted EBITDA
$72.5M
5.0% YoY
Non-GAAP diluted EPS
$1.63
3.2% YoY
Guidance
The company expects year-over-year revenue and adjusted EBITDA growth in 2026 assuming no significant deterioration in end markets.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
Commission File Number 001-12019
| (State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) | ||||
(Address of principal executive offices)
(Zip Code)
(610 ) 832-4000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
INFORMATION TO BE INCLUDED IN THE REPORT
Item 2.02. Results of Operations and Financial Condition.
On April 30, 2026, Quaker Chemical Corporation announced its results of operations for the first quarter ended March 31, 2026 in a press release, the text of which is included as Exhibit 99.1 hereto. Supplemental information related to the same period is also included as Exhibit 99.2 hereto.
Item 9.01. Financial Statements and Exhibits.
The following exhibits are included as part of this report:
| Exhibit No. | Description | |||||||
99.1 | Press Release of Quaker Chemical Corporation dated April 30, 2026 (furnished herewith). | |||||||
99.2 | Supplemental Information related to the first quarter ended April 30, 2026 (furnished herewith). | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| QUAKER CHEMICAL CORPORATION | ||||||||
Date: April 30, 2026 | By: | /s/ Thomas Coler | ||||||
| Thomas Coler | ||||||||
| Executive Vice President, Chief Financial Officer | ||||||||
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Exhibit 99.1
NEWS Contact: John Dalhoff Director, Investor Relations investor@quakerhoughton.com T. 1.610.684.7822 |  | |||||||
For Release: Immediate | ||||||||
QUAKER HOUGHTON ANNOUNCES FIRST QUARTER 2026 RESULTS
•Q1’26 net sales of $480.5 million, an increase of 8% Y/Y, net income of $19.7 million and earnings per diluted share of $1.13
•Organic sales volumes increased 3% Y/Y driven by new business wins of approximately 4%
•Delivered Q1’26 adjusted EBITDA of $72.5 million, a 5% increase Y/Y
•Q1’26 non-GAAP net income of $28.4 million and non-GAAP earnings per diluted share of $1.63, a 3% increase Y/Y
•Amended credit agreement, extending nearest-term debt maturity to 2031 and increasing available credit with improved terms
•New global transformation and cost program targeting $20 to $30 million savings, with run rate of $10M by end of 2026
April 30, 2026
CONSHOHOCKEN, PA – Quaker Houghton (“the Company”) (NYSE: KWR), the global leader in industrial process fluids, announced its first quarter 2026 results today.
Three Months Ended March 31, | |||||||||||
($ in thousands, except per share data) | 2026 | 2025 | |||||||||
Net sales | $ | 480,479 | $ | 442,914 | |||||||
Net income attributable to Quaker Chemical Corporation | 19,669 | 12,922 | |||||||||
Net income attributable to Quaker Chemical Corporation common shareholders – diluted | 1.13 | 0.73 | |||||||||
Non-GAAP net income * | 28,374 | 28,028 | |||||||||
Non-GAAP Earnings per diluted share * | 1.63 | 1.58 | |||||||||
Adjusted EBITDA * | 72,530 | 69,047 | |||||||||
*Refer to the Non-GAAP Measures and Reconciliations section below for additional information
First Quarter 2026 Consolidated Results
Net sales in the first quarter of 2026 were $480.5 million, an increase of 8% compared to $442.9 million in the first quarter of 2025. This increase was primarily driven by an increase in organic sales volumes of 3%, a contribution from acquisitions of 4%, and a favorable impact from foreign currency translation of 4%, partially offset by a decline in selling price and product mix of 3%. The increase in organic sales volumes compared to the prior year was the result of net 4% new business wins across all segments and strong growth in the Asia/Pacific segment.
The Company reported net income in the first quarter of 2026 of $19.7 million, or $1.13 per diluted share, compared to $12.9 million, or $0.73 per diluted share, in the first 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 $28.4 million and $1.63, respectively, in the first quarter of 2026 compared to $28.0 million and $1.58, respectively, in the first quarter of 2025. The Company generated adjusted EBITDA of $72.5 million in the first quarter of 2026, an increase of approximately 5% compared to $69.0 million in the first quarter of 2025, driven by the increase in net sales, partially offset by a decrease in operating margins. See the Non-GAAP Measures and Reconciliations section below for additional information.
Joe Berquist, Chief Executive Officer and President, commented, “We achieved 3% year-over-year organic volume growth despite challenging markets, resulting in our third consecutive quarter of profitability improvement compared to prior year. The volume growth was driven by new business wins in all regions, led again by the Asia/Pacific region. Our disciplined approach to sales execution and serving the customer is enabling us to outperform soft end markets, which we estimate were down a low-single-digit percentage in the quarter. Gross margins improved as expected in the first quarter, driving higher earnings, with adjusted EBITDA up 5% compared to prior year.
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Looking ahead we expect demand to improve incrementally with normal seasonality, even with volatility and current uncertainty in the market. We expect to incur raw material inflation beginning in the second quarter and have implemented price recovery and cost actions to mitigate the impact; however, some lag will temporarily impact gross margins in the second quarter. We expect to fully recover margins to reach our target range as we exit the year. While recent geopolitical events have created additional near-term uncertainty, we expect to achieve year-over-year revenue and adjusted EBITDA growth in 2026 assuming no significant deterioration in our end markets as a result of the Middle East conflict. I am proud of the resilience and unwavering commitment to our customers demonstrated by the entire Quaker Houghton team in an exceptionally volatile environment.”
First Quarter 2026 Segment Results
The Company’s first 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 March 31, | |||||||||||
2026 | 2025 | ||||||||||
Net Sales * | |||||||||||
Americas | $ | 213,728 | $ | 213,711 | |||||||
EMEA | 142,083 | 129,278 | |||||||||
Asia/Pacific | 124,668 | 99,925 | |||||||||
Total net sales | $ | 480,479 | $ | 442,914 | |||||||
Segment operating earnings * | |||||||||||
Americas | $ | 53,947 | $ | 58,462 | |||||||
EMEA | 25,561 | 23,393 | |||||||||
Asia/Pacific | 34,276 | 25,930 | |||||||||
Total segment operating earnings | $ | 113,784 | $ | 107,785 | |||||||
*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 first quarter of 2026 compared to the first quarter of 2025:
Sales volumes | Selling price & product mix | Foreign currency | Acquisition & other | Total | |||||||||||||||||||||||||
Americas | (2) | % | (1) | % | 1 | % | 2 | % | — | % | |||||||||||||||||||
EMEA | 2 | % | (4) | % | 10 | % | 2 | % | 10 | % | |||||||||||||||||||
Asia/Pacific | 10 | % | (2) | % | 3 | % | 14 | % | 25 | % | |||||||||||||||||||
Consolidated | 3 | % | (3) | % | 4 | % | 4 | % | 8 | % | |||||||||||||||||||
Net sales in the Asia/Pacific segment increased 25% in the first quarter of 2026 compared to the same period in 2025, as an increase in organic sales volumes, a contribution in sales from acquisitions, primarily Dipsol, and a favorable impact of foreign currency translation, was partially offset by a decrease in selling price and product and geographic mix. Net sales in the EMEA segment increased 10% in the first quarter of 2026 compared to the same period in 2025, due to an increase in organic sales volumes, an increase in sales from acquisitions, and a favorable impact of foreign currency translation, partially offset by a decrease in selling price and product and geographic mix. Net sales in the Americas segment in the first quarter of 2026 were consistent with the same period in 2025, as the contribution in sales from acquisitions and favorable impact from foreign currency translation was offset by a decrease in organic sales volumes and a decrease in selling price and product and geographic mix.
New business wins were strong across all segments in the first quarter of 2026 despite softer underlying end market activity compared to prior year levels. The decline in selling price and product mix in the first quarter of 2026 compared to the same period in 2025 reflects changes in the mix of products, services and geographies, and the impact of our index-based customer contracts.
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Consolidated net sales increased approximately 3% compared to the fourth quarter of 2025, driven by an increase in organic sales volumes and a favorable impact from foreign currency translation, partially offset by a decrease in selling price and product and geographic mix. Net sales increased in the Americas segment compared to the fourth quarter of 2025 driven by an increase in organic sales volumes and new business wins, despite a continuation of soft underlying end market activity, partially offset by a decrease in selling price and product and geographic mix. Net sales increased in the EMEA segment compared to the fourth quarter of 2025 driven by an increase in organic sales volumes and new business wins, and an increase in selling price and product and geographic mix. Net sales in the Asia/Pacific segment decreased compared to the fourth quarter of 2025 primarily due to a decrease in selling price and product and geographic mix. Foreign currency translation was favorable to sales across all segments in the first quarter of 2026 compared to the fourth quarter of 2025.
Segment operating earnings increased in the EMEA and Asia/Pacific segments in the first quarter of 2026 compared to the prior year period primarily due to the improvement in net sales and a decrease in raw material costs, partially offset by an increase in SG&A expenses. Segment operating earnings decreased in the Americas segment in the first quarter of 2026 compared to the prior year due to a decrease in segment operating margins resulting from a decrease in price and product mix and higher SG&A expenses. Segment operating earnings increased in all three segments in the first quarter of 2026 compared to the fourth quarter of 2025, primarily driven by an increase in net sales in the Americas and EMEA segments and improved operating margins in all three segments.
Cash Flow and Liquidity Highlights
Net cash provided by operating activities was $3.8 million for the three months ended March 31, 2026, compared to net cash used by operating activities of $3.1 million for the same period in 2025. The Company’s increase in operating cash flow year-over-year primarily reflects improved operating performance and lower cash outflows from restructuring activities and working capital.
Subsequent to the first quarter end, the Company successfully amended its credit agreement, extending its nearest-term maturity from June 2027 to April 2031 and expanding the availability under its revolving credit facility. As of March 31, 2026, the Company’s total gross debt was $875.0 million and its cash and cash equivalents was $169.7 million, which resulted in net debt of approximately $705.3 million. The Company’s net debt divided by its trailing twelve months adjusted EBITDA was approximately 2.3x.
The Company also announced the initiation of a global business transformation and cost savings program, which is expected to generate at least $20 million to $30 million of annualized cost savings by 2028.
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, 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, 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. In addition, the Company presents non-GAAP Adjusted EBITDA margin and non-GAAP operating margin, which are calculated as the percentage of adjusted EBITDA and non-GAAP operating income, 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.
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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 March 31, 2026 adjusted EBITDA of $302.7 million, which consists of (i) the three months ended March 31, 2026 adjusted EBITDA of $72.5 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 three months ended March 31, 2025 adjusted EBITDA of $69.0 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 Operating Income and Margin Reconciliations | Three Months Ended March 31, | ||||||||||
2026 | 2025 | ||||||||||
Operating income | $ | 33,589 | $ | 27,624 | |||||||
Restructuring and related charges, net | 7,381 | 14,590 | |||||||||
Acquisition-related expenses | 715 | 3,329 | |||||||||
Business transformation costs | 1,659 | — | |||||||||
Acquisition-related depreciation and amortization | 1,608 | — | |||||||||
Other charges | 397 | 226 | |||||||||
Non-GAAP operating income | $ | 45,349 | $ | 45,769 | |||||||
Non-GAAP operating margin (%) | 9.4 | % | 10.3 | % | |||||||
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EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Non-GAAP Net Income Reconciliations | Three Months Ended March 31, | ||||||||||
2026 | 2025 | ||||||||||
Net income attributable to Quaker Chemical Corporation | $ | 19,669 | $ | 12,922 | |||||||
Depreciation and amortization (a) | 25,870 | 20,830 | |||||||||
Interest expense | 9,879 | 9,545 | |||||||||
Taxes on income before equity in net income of associated companies (b) | 7,145 | 7,542 | |||||||||
EBITDA | 62,563 | 50,839 | |||||||||
Equity income in a captive insurance company | (607) | (671) | |||||||||
Restructuring and related charges, net | 7,381 | 14,590 | |||||||||
Acquisition-related expenses | 715 | 3,329 | |||||||||
Business transformation costs | 1,659 | — | |||||||||
Pension and postretirement benefit costs, non-service components | 251 | 433 | |||||||||
Currency conversion impacts of hyper-inflationary economies | 171 | 535 | |||||||||
Loss on acquisition-related hedges | — | 1,943 | |||||||||
Gain on sale of assets | — | (2,177) | |||||||||
Other charges | 397 | 226 | |||||||||
Adjusted EBITDA | $ | 72,530 | $ | 69,047 | |||||||
Adjusted EBITDA margin (%) | 15.1 | % | 15.6 | % | |||||||
Adjusted EBITDA | $ | 72,530 | $ | 69,047 | |||||||
Less: Depreciation and amortization (a) | 25,870 | 20,830 | |||||||||
Less: Interest expense | 9,879 | 9,545 | |||||||||
Less: Taxes on income before equity in net income of associated companies - adjusted (b) | 10,015 | 10,644 | |||||||||
Plus: Acquisition-related depreciation and amortization | 1,608 | — | |||||||||
Non-GAAP net income | $ | 28,374 | $ | 28,028 | |||||||
Three Months Ended March 31, | |||||||||||
Non-GAAP Earnings per Diluted Share Reconciliations | 2026 | 2025 | |||||||||
GAAP earnings per diluted share attributable to Quaker Chemical Corporation common shareholders | $ | 1.13 | $ | 0.73 | |||||||
Equity income in a captive insurance company | (0.03) | (0.04) | |||||||||
Restructuring and related charges, net | 0.32 | 0.62 | |||||||||
Acquisition-related expenses | 0.03 | 0.14 | |||||||||
Business transformation costs | 0.07 | — | |||||||||
Pension and postretirement benefit costs, non-service components | 0.01 | 0.02 | |||||||||
Currency conversion impacts of hyper-inflationary economies | 0.01 | 0.03 | |||||||||
Loss on acquisition-related hedges | — | 0.08 | |||||||||
Gain on sale of assets | — | (0.09) | |||||||||
Other charges | 0.01 | 0.01 | |||||||||
Discrete tax items | 0.02 | 0.08 | |||||||||
Acquisition-related depreciation and amortization | 0.06 | — | |||||||||
Non-GAAP earnings per diluted share | $ | 1.63 | $ | 1.58 | |||||||
a.Depreciation and amortization for the three months ended March 31, 2026 and 2025 each includes approximately $0.2 million 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.
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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 months ended March 31, 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 March 31, | |||||||||||
2026 | 2025 | ||||||||||
Net Sales | |||||||||||
Americas | $ | 213,728 | $ | 213,711 | |||||||
EMEA | 142,083 | 129,278 | |||||||||
Asia/Pacific | 124,668 | 99,925 | |||||||||
Total net sales | $ | 480,479 | $ | 442,914 | |||||||
Segment operating earnings | |||||||||||
Americas | $ | 53,947 | $ | 58,462 | |||||||
EMEA | 25,561 | 23,393 | |||||||||
Asia/Pacific | 34,276 | 25,930 | |||||||||
Total segment operating earnings | 113,784 | 107,785 | |||||||||
Restructuring and related charges, net | (7,381) | (14,590) | |||||||||
Non-operating and administrative expenses | (55,087) | (50,717) | |||||||||
Depreciation of corporate assets and amortization | (17,727) | (14,854) | |||||||||
Operating income | 33,589 | 27,624 | |||||||||
Other expense, net | (23) | (709) | |||||||||
Interest expense | (9,879) | (9,545) | |||||||||
Income before taxes and equity in net income of associated companies | $ | 23,687 | $ | 17,370 | |||||||
6
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 and the Securities Act of 1933, 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, political and governmental actions taken by various governments and government organizations in response; economic and political disruptions particularly in light of numerous elections 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”; terrorist attacks and 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 first quarter of 2026 performance is scheduled for Friday, May 1, 2026 at 8:30 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.
7
Quaker Chemical Corporation
Condensed Consolidated Statements of Operations
(Unaudited; Dollars in thousands, except per share data)
Three Months Ended March 31, | |||||||||||
2026 | 2025 | ||||||||||
Net sales | $ | 480,479 | $ | 442,914 | |||||||
Cost of goods sold | 303,744 | 281,654 | |||||||||
Gross profit | 176,735 | 161,260 | |||||||||
Selling, general and administrative expenses | 135,765 | 119,046 | |||||||||
Restructuring and related charges, net | 7,381 | 14,590 | |||||||||
Operating income | 33,589 | 27,624 | |||||||||
Other expense, net | (23) | (709) | |||||||||
Interest expense | (9,879) | (9,545) | |||||||||
Income before taxes and equity in net income of associated companies | 23,687 | 17,370 | |||||||||
Taxes on income before equity in net income of associated companies | 7,145 | 7,542 | |||||||||
Income before equity in net income of associated companies | 16,542 | 9,828 | |||||||||
Equity in net income of associated companies | 3,200 | 3,089 | |||||||||
Net income | 19,742 | 12,917 | |||||||||
Less: Net income (loss) attributable to noncontrolling interest | 73 | (5) | |||||||||
Net income attributable to Quaker Chemical Corporation | $ | 19,669 | $ | 12,922 | |||||||
Per share data: | |||||||||||
Net income attributable to Quaker Chemical Corporation common shareholders – basic | $ | 1.13 | $ | 0.73 | |||||||
Net income attributable to Quaker Chemical Corporation common shareholders – diluted | $ | 1.13 | $ | 0.73 | |||||||
Basic weighted average common shares outstanding | 17,326,847 | 17,639,764 | |||||||||
Diluted weighted average common shares outstanding | 17,411,094 | 17,669,965 | |||||||||
8
Quaker Chemical Corporation
Condensed Consolidated Balance Sheets
(Unaudited; Dollars in thousands, except par value)
March 31, 2026 | December 31, 2025 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 169,728 | $ | 179,829 | |||||||
Accounts receivable, net | 441,167 | 417,157 | |||||||||
Inventories | 282,508 | 265,776 | |||||||||
Prepaid expenses and other current assets | 59,196 | 58,428 | |||||||||
Total current assets | 952,599 | 921,190 | |||||||||
Property, plant and equipment, net | 311,422 | 313,423 | |||||||||
Right-of-use lease assets | 38,534 | 38,737 | |||||||||
Goodwill | 502,005 | 501,720 | |||||||||
Other intangible assets, net | 847,994 | 873,540 | |||||||||
Investments in associated companies | 106,192 | 106,915 | |||||||||
Deferred tax assets | 12,182 | 12,128 | |||||||||
Other non-current assets | 30,999 | 30,283 | |||||||||
Total assets | $ | 2,801,927 | $ | 2,797,936 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities | |||||||||||
Short-term borrowings and current portion of long-term debt | $ | 37,301 | $ | 35,657 | |||||||
Accounts payable | 205,386 | 198,929 | |||||||||
Dividends payable | 8,822 | 8,804 | |||||||||
Accrued compensation | 30,299 | 41,192 | |||||||||
Accrued restructuring | 9,482 | 8,351 | |||||||||
Accrued pension and postretirement benefits | 2,119 | 2,126 | |||||||||
Other accrued liabilities | 95,086 | 85,097 | |||||||||
Total current liabilities | 388,495 | 380,156 | |||||||||
Long-term debt | 837,132 | 834,901 | |||||||||
Long-term lease liabilities | 22,134 | 22,759 | |||||||||
Deferred tax liabilities | 131,922 | 140,814 | |||||||||
Non-current accrued pension and postretirement benefits | 20,191 | 20,615 | |||||||||
Other non-current liabilities | 22,902 | 22,192 | |||||||||
Total liabilities | 1,422,776 | 1,421,437 | |||||||||
Equity | |||||||||||
Common stock $1 par value; authorized 30,000,000 shares; issued and outstanding March 31, 2026 – 17,365,508 shares; December 31, 2025 – 17,331,779 shares | 17,366 | 17,332 | |||||||||
Capital in excess of par value | 876,213 | 874,826 | |||||||||
Retained earnings | 607,463 | 596,616 | |||||||||
Accumulated other comprehensive loss | (125,359) | (115,661) | |||||||||
Total Quaker shareholders’ equity | 1,375,683 | 1,373,113 | |||||||||
Noncontrolling interest | 3,468 | 3,386 | |||||||||
Total equity | 1,379,151 | 1,376,499 | |||||||||
Total liabilities and equity | $ | 2,801,927 | $ | 2,797,936 | |||||||
9
Quaker Chemical Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited; Dollars in thousands)
Three Months Ended March 31, | |||||||||||
2026 | 2025 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 19,742 | $ | 12,917 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 25,640 | 20,599 | |||||||||
Equity in undistributed earnings of associated companies, net of dividends | (2,830) | (2,769) | |||||||||
Deferred income taxes | (7,517) | (3,340) | |||||||||
Share-based compensation | 3,170 | 3,182 | |||||||||
Restructuring and related charges, net | 7,381 | 14,590 | |||||||||
Gain on disposal of property, plant and equipment and other assets | — | (2,148) | |||||||||
Other adjustments | 492 | 2,190 | |||||||||
Increase (decrease) in cash from changes in current assets and current liabilities, net of acquisitions: | |||||||||||
Accounts receivable | (25,480) | (10,302) | |||||||||
Inventories | (18,437) | (13,457) | |||||||||
Prepaid expenses and other current assets | (1,340) | 245 | |||||||||
Accrued restructuring | (3,880) | (9,045) | |||||||||
Accounts payable and accrued liabilities | 6,845 | (15,712) | |||||||||
Net cash provided by (used in) operating activities | 3,786 | (3,050) | |||||||||
Cash flows from investing activities | |||||||||||
Investments in property, plant and equipment | (10,656) | (12,329) | |||||||||
Payments related to acquisitions, net of cash acquired | — | (3,983) | |||||||||
Proceeds from disposition of assets | — | 2,900 | |||||||||
Other investing activities | 1,126 | — | |||||||||
Net cash used in investing activities | (9,530) | (13,412) | |||||||||
Cash flows from financing activities | |||||||||||
Payments of long-term debt | (8,770) | (8,523) | |||||||||
Borrowings on revolving credit facilities, net | 14,053 | 30,000 | |||||||||
Borrowings (payments) on other debt, net | 1,857 | (773) | |||||||||
Dividends paid | (8,805) | (8,572) | |||||||||
Other stock related activity | (1,749) | (1,176) | |||||||||
Net cash (used in) provided by financing activities | (3,414) | 10,956 | |||||||||
Effect of foreign exchange rate changes on cash | (943) | 2,849 | |||||||||
Net decrease in cash and cash equivalents | (10,101) | (2,657) | |||||||||
Cash and cash equivalents at the beginning of the period | 179,829 | 188,880 | |||||||||
Cash and cash equivalents at the end of the period | $ | 169,728 | $ | 186,223 | |||||||
10
Quaker Houghton First Quarter 2026 Results Investor Conference Call
Forward-Looking Statements This presentation contains “forward-looking statements” that fall under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Securities Act of 1933, 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 presentation, including expectations about future periods, are based upon information available to the Company as of the date of this presentation, 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. ©2026 Quaker Houghton. All Rights Reserved 2 Forward-Looking Statements
The information in this presentation includes non-GAAP (unaudited) financial information that includes EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP operating 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, 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. In addition, the Company presents non-GAAP Adjusted EBITDA margin and non-GAAP operating margin, which are calculated as the percentage of adjusted EBITDA and non-GAAP operating income, 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 presentation, 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 following charts should be read in conjunction with the Company’s first quarter earnings news release dated April 30, 2026, which has been furnished to the Securities and Exchange Commission on Form 8-K, the Company’s Annual Report for the year ended December 31, 2025, and the Company’s 10-Q for the period ended March 31, 2026. These documents may contain additional explanatory language and information regarding certain of the items included in the following reconciliations. ©2026 Quaker Houghton. All Rights Reserved 3 Non-GAAP Measures
Joe Berquist Chief Executive Officer, President Tom Coler Executive Vice President, Chief Financial Officer Robert T. Traub Senior Vice President, General Counsel & Corporate Secretary John Dalhoff Director, Investor Relations ©2026 Quaker Houghton. All Rights Reserved 4 Speakers
Q1’26 Highlights © 2026 Quaker Houghton. All Rights Reserved $480m Net Sales $73m Adjusted EBITDA1 5 $1.63 Non-GAAP Earnings per Diluted Share1 2.3x Leverage Ratio1,2 1 This is a non-GAAP measure, refer to the reconciliations of our non-GAAP measures to their most comparable GAAP measures provided within this presentation and in our SEC filings 2 Leverage ratio defined as gross debt minus cash and cash equivalents divided by trailing twelve month adjusted EBITDA
©2026 Quaker Houghton. All Rights Reserved 6 Financial Snapshot (Unaudited; Dollars in millions, unless otherwise noted) 1 Certain amounts may not calculate due to rounding 2 These are non-GAAP measures. Refer to the reconciliations of our non-GAAP measures to their most comparable GAAP measures provided within this presentation and in our SEC filings. Q1 2026 Q1 2025 Variance(1) GAAP Net sales $ 480.5 $ 442.9 $ 37.6 8.5% Operating income 33.6 27.6 6.0 21.6% Operating income margin (%) 7.0% 6.2% 0.8% Net income 19.7 12.9 6.8 52.8% Earnings per diluted share 1.13 0.73 0.40 54.8% Non-GAAP (2) Non-GAAP operating income 45.3 45.8 (0.4) (0.9%) Non-GAAP operating margin (%) 9.4% 10.3% (0.9%) Adjusted EBITDA 72.5 69.0 3.5 5.0% Adjusted EBITDA margin (%) 15.1% 15.6% (0.5%) Non-GAAP earnings per diluted share 1.63 1.58 0.05 3.2%
Total Company Volume Trend1 (kilograms) 7 ©2026 Quaker Houghton. All Rights Reserved Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Sales volumes increased by 3% in Q1’26 compared to Q1’25, primarily due to continued growth in the Asia/Pacific segment and new business wins across all segments, helping to offset a continuation of soft end market conditions Sequentially, sales volumes increased by 2% in Q1’26 compared to Q4’25 1 The total company volume trend excludes volumes related to business impacted due to the war in Ukraine and volumes relating to the Sutai, Natech and Dipsol acquisitions.
©2026 Quaker Houghton. All Rights Reserved 8 Adjusted EBITDA1 (dollars in millions) Generated $73m of adjusted EBITDA in Q1’26, an increase of 5% year-over-year 1 This is a non-GAAP measure, refer to the reconciliations of our non-GAAP measures to their most comparable GAAP measures provided within this presentation and in our SEC filings. 2 The Company's reference to trailing twelve months adjusted EBITDA refers to the twelve-month period ended March 31, 2026 adjusted EBITDA of $302.7 million, which consists of (i) the three months ended March 31, 2026 adjusted EBITDA of $72.5 million and (ii) the twelve months ended December 31, 2025 adjusted EBITDA of $299.2 million less (iii) the three months ended March 31, 2025 adjusted EBITDA of $69.0 million. $257 $320 $311 $299 $303 2022 2023 2024 2025 Q1'26 LTM $73 $69 Q1 2026 Q1 20252
Leverage and Liquidity Update 9 ©2026 Quaker Houghton. All Rights Reserved 1 Leverage ratio, which is a non-GAAP measure, is defined as gross debt minus cash and cash equivalents divided by trailing twelve month adjusted EBITDA 2 Defined as net debt divided by trailing twelve month adjusted EBITDA, as calculated under the terms of the credit agreement $765 $787 $815 $774 $753 $696 $628 $561 $574 $549 $529 $519 $551 $735 $703 $691 $705 Mar- 22 3.0x Jun- 22 3.2x Sep- 22 3.3x Dec- 22 3.0x Mar- 23 2.7x Jun- 23 2.3x Sep- 23 2.0x Dec- 23 1.8x Mar- 24 1.8x Jun- 24 1.7x Sep- 24 1.6x Dec- 24 1.7x Mar- 25 1.9x Jun- 25 2.6x Sep- 25 2.4x Dec- 25 2.3x Mar- 26 2.3x Net Debt and Leverage Ratio1 (Dollars in Millions) • Total debt of $875 million • Cash and cash equivalents of $170 million • Net debt of $705 million • Leverage of 2.3x as of March 31, 20261 ◦ In April 2025, we funded the Dipsol acquisition with borrowings under our existing credit facility • Operating well within bank covenants ◦ Bank leverage of 2.2x as of March 31, 20262 ◦ Maximum permitted leverage of 4.0x2 • Healthy balance sheet and ample liquidity ◦ Amended our credit agreement in April 2026, extending nearest term maturity to April 2031 and increasing available credit with improved terms ◦ Q1’26 cost of debt on credit facility was ~4.8%
Appendix Actual and Non-GAAP Results
©2026 Quaker Houghton. All Rights Reserved 11 Non-GAAP Operating Income Reconciliation (Unaudited; Dollars in thousands, unless otherwise noted) Three Months Ended March 31, Non-GAAP Operating Income and Margin Reconciliations 2026 2025 Operating income $ 33,589 $ 27,624 Restructuring and related charges, net 7,381 14,590 Acquisition-related expenses 715 3,329 Business transformation costs 1,659 — Acquisition-related depreciation and amortization 1,608 — Other charges 397 226 Non-GAAP operating income $ 45,349 $ 45,769 Non-GAAP operating margin (%) 9.4 % 10.3 %
©2026 Quaker Houghton. All Rights Reserved 12 Adjusted EBITDA Reconciliation (Unaudited; Dollars in thousands, unless otherwise noted) EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin Reconciliations: Three Months Ended March 31, 2026 2025 Net income attributable to Quaker Chemical Corporation $ 19,669 $ 12,922 Depreciation and amortization 25,870 20,830 Interest expense 9,879 9,545 Taxes on income before equity in net income of associated companies 7,145 7,542 EBITDA 62,563 50,839 Equity income in a captive insurance company (607) (671) Restructuring and related charges, net 7,381 14,590 Acquisition-related expenses 715 3,329 Business transformation costs 1,659 — Pension and postretirement benefit costs, non-service components 251 433 Currency conversion impacts of hyper-inflationary economies 171 535 Loss on acquisition-related hedges — 1,943 Gain on sale of assets — (2,177) Other charges 397 226 Adjusted EBITDA $ 72,530 $ 69,047 Adjusted EBITDA margin (%) 15.1 % 15.6 %
©2026 Quaker Houghton. All Rights Reserved 13 EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin Reconciliations: Twelve Months Ended December 31, 2025 2024 2023 2022 Net income attributable to Quaker Chemical Corporation $ (2,488) $ 116,644 $ 112,748 $ (15,931) Depreciation and amortization 94,402 85,108 83,020 81,514 Interest expense 44,048 41,002 50,699 32,579 Taxes on income before equity in net income of associated companies 24,607 49,300 55,585 24,925 EBITDA 160,569 292,054 302,052 123,087 Equity income in a captive insurance company (4,272) (2,930) (2,090) 1,427 Acquisition-related step-up inventory amortization 6,022 — — — Restructuring and related charges, net 35,130 6,530 7,588 3,163 Acquisition-related expenses (credits) 12,031 1,454 (475) 10,990 Strategic planning expenses (credits) 579 (290) 4,704 14,446 Gain on inventory and other adjustments (3,256) — — — Pension and postretirement benefit costs, non-service components 1,676 1,827 2,033 (1,704) Executive transition costs — 7,288 688 2,813 Customer insolvency costs — 3,213 — — Currency conversion impacts of hyper-inflationary economies 2,216 811 7,849 1,617 Impairment charges 88,840 — — 93,000 Loss on acquisition-related hedges 1,351 — — — Gain on sale of assets (2,534) (492) — — Multiemployer plan withdrawal charge 923 — — — Brazilian non-income tax credits (1,762) — — — Loss on extinguishment of debt — — — 6,763 Other charges 1,725 1,453 (1,970) 1,548 Adjusted EBITDA $ 299,238 $ 310,918 $ 320,379 $ 257,150 Adjusted EBITDA Reconciliation (Unaudited; Dollars in thousands, unless otherwise noted)
©2026 Quaker Houghton. All Rights Reserved 14 Non-GAAP EPS Reconciliation Three Months Ended March 31, Non-GAAP Earnings per Diluted Share Reconciliations 2026 2025 GAAP earnings per diluted share attributable to Quaker Chemical Corporation common shareholders $ 1.13 $ 0.73 Equity income in a captive insurance company (0.03) (0.04) Restructuring and related charges, net 0.32 0.62 Acquisition-related expenses 0.03 0.14 Business transformation costs 0.07 — Pension and postretirement benefit costs, non-service components 0.01 0.02 Currency conversion impacts of hyper-inflationary economies 0.01 0.03 Loss on acquisition-related hedges — 0.08 Gain on sale of assets — (0.09) Other charges 0.01 0.01 Discrete tax items 0.02 0.08 Acquisition-related depreciation and amortization 0.06 — Non-GAAP earnings per diluted share $ 1.63 $ 1.58
©2026 Quaker Houghton. All Rights Reserved 15 Segment Performance (Unaudited; Dollars in thousands, except per share amounts) Three Months Ended March 31, 2026 2025 Net sales Americas $ 213,728 $ 213,711 EMEA 142,083 129,278 Asia/Pacific 124,668 99,925 Total net sales $ 480,479 $ 442,914 Segment operating earnings Americas $ 53,947 $ 58,462 EMEA 25,561 23,393 Asia/Pacific 34,276 25,930 Total segment operating earnings 113,784 107,785 Restructuring and related charges, net (7,381) (14,590) Non-operating and administrative expenses (55,087) (50,717) Depreciation of corporate assets and amortization (17,727) (14,854) Operating income 33,589 27,624 Other expense, net (23) (709) Interest expense (9,879) (9,545) Income before taxes and equity in net income of associated companies $ 23,687 $ 17,370
FAQ
How did Quaker Houghton (KWR) perform financially in Q1 2026?
Quaker Houghton reported higher Q1 2026 sales and profit. Net sales reached $480.5 million, up 8.5% year over year, while net income rose to $19.7 million. Diluted EPS increased to $1.13, and adjusted EBITDA grew 5% to $72.5 million.
What were Quaker Houghton’s key non-GAAP results for Q1 2026?
Non-GAAP performance remained solid in Q1 2026. Quaker Houghton reported non-GAAP net income of $28.4 million and non-GAAP diluted EPS of $1.63, slightly above $1.58 a year earlier. Adjusted EBITDA was $72.5 million, with an adjusted EBITDA margin of 15.1%.
Which segments drove Quaker Houghton’s Q1 2026 growth?
Growth was led by the Asia/Pacific and EMEA segments. Asia/Pacific net sales increased 25% to $124.7 million, EMEA grew 10% to $142.1 million, while Americas net sales were essentially flat at about $213.7 million compared with Q1 2025.
What is Quaker Houghton’s leverage and liquidity position as of March 31, 2026?
As of March 31, 2026, Quaker Houghton had $875.0 million of gross debt and $169.7 million of cash, resulting in net debt of about $705.3 million. Net debt divided by trailing twelve-month adjusted EBITDA was approximately 2.3x, indicating moderate leverage.
Did Quaker Houghton change its credit agreement in 2026?
Yes. After Q1 2026, Quaker Houghton amended its credit agreement, extending the nearest-term maturity from June 2027 to April 2031. The amendment also increased availability under the revolving credit facility and included improved terms, supporting future flexibility.
What cost savings initiatives is Quaker Houghton pursuing?
Quaker Houghton launched a global business transformation and cost savings program. The initiative targets at least $20–$30 million of annualized cost savings by 2028 and aims to reach a $10 million savings run-rate by the end of 2026, subject to execution.
How did Quaker Houghton’s cash flow from operations change in Q1 2026?
Operating cash flow improved versus the prior year. Net cash provided by operating activities was $3.8 million in Q1 2026, compared with net cash used of $3.1 million in Q1 2025, reflecting better operating performance and lower cash outflows for restructuring and working capital.