Quaker Chemical Stock Earnings Reports

Quaker Houghton reported a strong Q1 2026: net sales of $480M (+8% YoY) with organic volume growth of 3% and adjusted EBITDA of $73M. The company achieved its 10th consecutive quarter of net share gains (4%) and continued outsized growth in Asia Pacific (double-digit organic growth in the region; Asia sales +25% YoY driven by Dipsol acquisition and organic gains). Gross margin was 36.8% (near high end of target) but management expects 2–3 percentage points of sequential gross margin pressure in Q2 due to sharply higher raw material and shipping costs from the Middle East conflict. Pricing actions have begun (some implemented in April) and additional increases are planned; management expects to recover margins within 1–2 quarters and return to a target gross margin range of 36%–37% by year-end. The company launched a transformation program targeting cost and complexity reduction (first-year run-rate savings of ~$10M; $20M–$30M sustainable savings over 3 years) to drive adjusted EBITDA margins to at/above the 18% target. Other notes: continued investment in Asia manufacturing (new China plant opening this summer), closure of underperforming European and China sites (Dortmund, Songjiang) with modest near-term savings, capital spending guided to ~2.5%–3.5% of sales for 2026, amended credit agreement extended maturities and increased liquidity (maturity extended to Apr 2031, larger RCF), dividend continuity and opportunistic share repurchase discretion. Management believes end markets will be roughly flat for 2026 with better seasonality in H2 and expects revenue and adjusted EBITDA growth for the year absent further material deterioration from geopolitical developments.