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    QUAKER HOUGHTON ANNOUNCES FIRST QUARTER 2025 RESULTS

    5/1/25 4:30:00 PM ET
    $KWR
    Major Chemicals
    Industrials
    Get the next $KWR alert in real time by email
    • Q1'25 net sales of $442.9 million, net income of $12.9 million and earnings per diluted share of $0.73
    • Q1'25 non-GAAP net income of $28.0 million and non-GAAP earnings per diluted share of $1.58
    • Delivered adjusted EBITDA and adjusted EBITDA margins of $69.0 million and 15.6% respectively in Q1'25
    • Acquired Dipsol Chemicals, Natech, and Chemical Solutions & Innovations in 2025, enhancing our differentiated portfolio of advanced solutions and metalworking fluids

    CONSHOHOCKEN, Pa., May 1, 2025 /PRNewswire/ -- Quaker Houghton ("the Company") (NYSE:KWR), the global leader in industrial process fluids, announced its first quarter 2025 results today. 



    Three Months Ended

    March 31,



    ($ in thousands, except per share data)

    2025



    2024



    Net sales

    $           442,914



    $           469,759



    Net income attributable to Quaker Chemical Corporation

    12,922



    35,227



    Net income attributable to Quaker Chemical Corporation common shareholders – diluted

    0.73



    1.95



    Non-GAAP net income *

    28,028



    37,673



    Non-GAAP Earnings per diluted share *

    1.58



    2.09



    Adjusted EBITDA *

    69,047



    83,282





    *   Refer to the Non-GAAP Measures and Reconciliations section below for additional information

    First Quarter 2025 Consolidated Results

    Net sales in the first quarter of 2025 were $442.9 million, a decline of approximately 6% compared to $469.8 million in the first quarter of 2024.  This was a result of a decline in sales volumes of 3%, an unfavorable impact from foreign currency translation of 3%, and a modest decrease in selling price and product mix of approximately 1%, partially offset by a 1% contribution from acquisitions.  The decline in sales volumes compared to the prior year was primarily a result of a continuation of soft end market conditions and uncertainty related to tariffs, primarily in the Europe, Middle East and Africa ("EMEA") and Americas segments, partially offset by an increase in sales volumes in the Asia/Pacific segment, continued new business wins across all segments and a contribution from acquisitions in the EMEA and Asia/Pacific segments.  The decrease in selling price and product mix was primarily attributable to the impact of our index-based customer contracts and the mix of products and services.

    The Company reported net income in the first quarter of 2025 of $12.9 million, or $0.73 per diluted share, compared to net income of $35.2 million, or $1.95 per diluted share, in the first quarter of 2024.  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 $28.0 million and $1.58 respectively in the first quarter of 2025 compared to $37.7 million and $2.09 respectively in the prior year.  The Company generated adjusted EBITDA of $69.0 million in the first quarter of 2025, a decrease of 17% compared to $83.3 million in the first quarter of 2024, primarily driven by the decline in net sales and lower segment operating margins.

    Joe Berquist, Chief Executive Officer and President, commented, "First quarter results improved compared to the prior quarter despite a further contraction in end market conditions.  The improvement in our earnings from the previous quarter was driven by a combination of share gains, improved margins and our cost and optimization actions, which will continue to benefit the Company in the coming quarters.  Volumes in our Asia/Pacific segment once again grew on a year-over-year basis while underlying end market demand remains below prior levels in all regions.  I am pleased with the progress we are making on several of our strategic objectives, including the acquisitions of Dipsol Chemicals and Natech, which provide more avenues for growth in 2025 and beyond.

    Looking ahead, there is a great deal of uncertainty impacting near-term demand in our end markets, which we now expect will persist at least into the second half of the year.  Considering the context of the current economic environment, we expect revenue and earnings will be in-line with 2024.  This is supported by the confidence in our ability to sustain above market growth by executing on our enterprise strategy, better leveraging our scale, and recent acquisitions.  We have strengthened our financial profile and believe our proximity to our customers and "local for local" supply chain capabilities positions us well to mitigate the direct impacts to our business from tariffs, while minimizing the impacts to our customers."

    First Quarter 2025 Segment Results

    The Company's first quarter 2025 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,





    2025



    2024



    Net Sales *









    Americas

    $         213,711



    $         229,754



    EMEA

    129,278



    138,422



    Asia/Pacific

    99,925



    101,583



    Total net sales

    $         442,914



    $         469,759



    Segment operating earnings *









    Americas

    $           58,462



    $           66,770



    EMEA

    23,393



    29,571



    Asia/Pacific

    25,930



    30,377



    Total segment operating earnings

    $         107,785



    $         126,718





    *   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 2025 compared to the first quarter of 2024:



    Sales volumes



    Selling price &

    product mix



    Foreign

    currency



    Acquisition &

    other



    Total

    Americas

    (3) %



    — %



    (4) %



    — %



    (7) %

    EMEA

    (6) %



    (1) %



    (3) %



    3 %



    (7) %

    Asia/Pacific

    1 %



    (3) %



    (2) %



    2 %



    (2) %

    Consolidated

    (3) %



    (1) %



    (3) %



    1 %



    (6) %

    Net sales in the Asia/Pacific segment decreased 2% in the first quarter of 2025, compared to the same period in 2024, as an increase in sales volumes, and a further contribution from acquisitions was offset by a decrease in selling price and product mix and an unfavorable impact of foreign currency translation.  Net sales in the Americas segment declined 7% in the first quarter of 2025, compared to the same period in 2024, due to an unfavorable impact of foreign currency translation and a decline in sales volumes.  Net sales in the EMEA segment declined 7% in the first quarter of 2025, compared to the same period in 2024, due to a decline in sales volumes, a modest decline in selling price and product mix, and an unfavorable impact of foreign currency translation, partially offset by an increase in sales from acquisitions. 

    The decline in sales volumes in the Americas and EMEA segments in the first quarter of 2025 was primarily due to softer economic activity compared to the prior year and uncertainty related to tariffs, which impacted our end markets, partially offset by new business wins across all segments.  The modest decline in selling price and product mix in the first quarter of 2025 compared to the same period in 2024, primarily reflects the impact of our index-based customer contracts and mix of products and services. Sales in the EMEA segment benefited from the acquisitions of IKV and CSI and the Asia/Pacific segment had a positive contribution from the Company's acquisition of Sutai.

    Consolidated net sales were consistent with the fourth quarter of 2024.  Net sales in the Americas and EMEA segments increased due to a modest increase in sales volumes despite softer end market conditions due in part to uncertainty related to tariffs, increases in selling price and product mix in both segments, and a contribution from acquisitions in the EMEA segment.  Net sales and sales volumes in the Asia/Pacific segment declined compared to the fourth quarter of 2024, primarily related to the timing of the Lunar New Year.  The impact of foreign currency translation was unfavorable to sales across all segments in the first quarter of 2025 compared to the fourth quarter of 2024.

    Operating earnings decreased in all segments in the first quarter of 2025 compared to the prior year due to lower net sales and lower segment operating margins in all segments.  Segment operating margins increased in the Americas and EMEA segments and declined in the Asia/Pacific segment in the first quarter of 2025 compared to the fourth quarter of 2024.

    Cash Flow and Liquidity Highlights

    Net cash used by operating activities was $3.1 million for the three months ended March 31, 2025, compared to net cash provided by operating activities of $27.2 million for the same period in 2024. The Company's operating cash flow reflects a lower operating performance and higher working capital outflows. 

    As of March 31, 2025, the Company's total gross debt was $737.0 million and its cash and cash equivalents was $186.2 million, which resulted in net debt of approximately $550.8 million. The Company's net debt divided by its trailing twelve months adjusted EBITDA was approximately 1.9x.

    In the first and second quarter, Quaker Houghton made three strategic acquisitions which further strengthen its global portfolio of advanced solutions and metalworking fluids and provide opportunities to accelerate its growth.  In February 2025, the Company acquired Chemical Solutions & Innovations (Pty) Ltd. ("CSI"), a South African based supplier of metalworking fluids and lubricants for approximately $3.9 million.  In April 2025, the Company acquired U.K. based Natech, Ltd ("Natech") for approximately $6.5 million (5.0 million GBP).  Also in April 2025, the Company acquired Dipsol Chemicals Co., Ltd., ("Dipsol"), a leading supplier of surface treatment and plating solutions and services, for approximately $155.2 million (23.0 billion JPY) net of cash acquired.  Dipsol is headquartered in Japan and had revenues and adjusted EBITDA of approximately $82 million and $15 million, respectively, in 2024 and primarily serves the automotive and other industrial applications.  The Dipsol acquisition was funded with borrowings under Quaker Houghton's existing credit facility.

    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. Adjusted EBITDA margin and non-GAAP operating margin are calculated as the percentage of adjusted EBITDA and non-GAAP operating income 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 March 31, 2025 adjusted EBITDA of $296.7 million, which consists of (i) the three months ended March 31, 2025 adjusted EBITDA of $69.0 million, as presented in the non-GAAP reconciliations below, and (ii) the twelve months ended December 31, 2024 adjusted EBITDA of $310.9 million, as presented in the non-GAAP reconciliations included in the Company's fourth quarter and full year 2024 results press release dated February 24, 2025, less (iii) the three months ended March 31, 2024 adjusted EBITDA of $83.3 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):



    Three Months Ended

    March 31,



    Non-GAAP Operating Income and Margin Reconciliations:

    2025



    2024



    Operating income

    $        27,624



    $        55,526



    Restructuring and related charges, net

    14,590



    1,857



    Acquisition-related expenses

    3,329



    283



    Customer insolvency costs

    —



    1,522



    Other charges

    226



    54



    Non-GAAP operating income

    $        45,769



    $        59,242



    Non-GAAP operating margin (%)

    10.3 %



    12.6 %



     

    EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Non-GAAP Net Income Reconciliations:

    Three Months Ended

    March 31,



    2025



    2024



    Net income attributable to Quaker Chemical Corporation

    $        12,922



    $        35,227



    Depreciation and amortization (a)

    20,830



    21,056



    Interest expense

    9,545



    10,824



    Taxes on income before equity in net income of associated companies (b)

    7,542



    12,508



    EBITDA

    50,839



    79,615



    Equity income in a captive insurance company

    (671)



    (506)



    Restructuring and related charges, net

    14,590



    1,857



    Acquisition-related expenses

    3,329



    283



    Customer insolvency costs

    —



    1,522



    Product liability claim costs, net

    —



    896



    Currency conversion impacts of hyper-inflationary economies

    535



    (904)



    Loss on acquisition-related hedges

    1,943



    —



    Gain on sale of property

    (2,177)



    —



    Other charges

    659



    519



    Adjusted EBITDA

    $        69,047



    $        83,282



    Adjusted EBITDA margin (%)

    15.6 %



    17.7 %













    Adjusted EBITDA

    $        69,047



    $        83,282



    Less: Depreciation and amortization (a)

    20,830



    21,056



    Less: Interest expense

    9,545



    10,824



    Less: Taxes on income before equity in net income of associated companies - adjusted (b)

    10,644



    13,729



    Non-GAAP net income

    $        28,028



    $        37,673



     



    Three Months Ended

    March 31,



    Non-GAAP Earnings per Diluted Share Reconciliations:

    2025



    2024



    GAAP earnings per diluted share attributable to Quaker Chemical Corporation common shareholders

    $                0.73



    $                1.95



    Equity income in a captive insurance company

    (0.04)



    (0.03)



    Restructuring and related charges, net

    0.62



    0.08



    Acquisition-related expenses, net

    0.14



    0.01



    Customer insolvency costs

    —



    0.06



    Product liability claim costs, net

    —



    0.04



    Currency conversion impacts of hyper-inflationary economies

    0.03



    (0.05)



    Loss on acquisition-related hedges

    0.08



    —



    Gain on sale of property

    (0.09)



    —



    Other charges

    0.03



    0.03



    Impact of certain discrete tax items

    0.08



    —



    Non-GAAP earnings per diluted share

    $                1.58



    $                2.09







    a.

    Depreciation and amortization for the three months ended March 31, 2025 and 2024 includes approximately $0.2 million and $0.3 million, respectively, of amortization expense recorded within equity in net income of associated companies in the Company's Condensed Consolidated Statements of Operations, which is attributable to the amortization of the fair value step up for the Company's 50% interest in a joint venture in Korea as a result of required purchase accounting. 

    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, 2025 and 2024.

    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 operating expenses. 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 income (expense), net. 

    The following table presents information about the performance of the Company's reportable segments (dollars in thousands):



    Three Months Ended

    March 31,





    2025



    2024



    Net Sales









    Americas

    $         213,711



    $         229,754



    EMEA

    129,278



    138,422



    Asia/Pacific

    99,925



    101,583



    Total net sales

    $         442,914



    $         469,759



    Segment operating earnings









    Americas

    $           58,462



    $           66,770



    EMEA

    23,393



    29,571



    Asia/Pacific

    25,930



    30,377



    Total segment operating earnings

    107,785



    126,718



    Restructuring and related charges, net

    (14,590)



    (1,857)



    Non-operating and administrative expenses

    (50,717)



    (54,177)



    Depreciation of corporate assets and amortization

    (14,854)



    (15,158)



    Operating income

    27,624



    55,526



    Other income (expense), net

    (709)



    1,080



    Interest expense

    (9,545)



    (10,824)



    Income before taxes and equity in net income of associated companies

    $           17,370



    $           45,782



    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 the 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 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 our 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 governmental 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, retaliatory tariffs, "trade wars" and 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; future 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; the potential occurrence of cyber-security breaches, cyber-security attacks and other technology outages and security incidents; and; and U.S. political conditions and legislative and regulatory activity (or inactivity), including adoption of (or failure to adopt) new laws, regulations and executive orders, changes in existing laws, regulations and executive orders or the way they are interpreted or applied, and adoption of laws, regulations or executive orders that conflict among jurisdictions in which we operate. Furthermore, the Company is subject to the same business cycles as those experienced by our customers in the steel, automotive, aerospace, 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 business conditions during 2025 and 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, 2024, 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. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995. 

    Conference Call

    As previously announced, the Company's investor conference call to discuss its first quarter of 2025 performance is scheduled for Friday, May 2, 2025 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, container, 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 4,400 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

    March 31,





    2025



    2024



    Net sales

    $         442,914



    $         469,759



    Cost of goods sold

    281,654



    288,196



    Gross profit

    161,260



    181,563



    Selling, general and administrative expenses

    119,046



    124,180



    Restructuring and related charges, net

    14,590



    1,857



    Operating income

    27,624



    55,526



    Other income (expense), net

    (709)



    1,080



    Interest expense

    (9,545)



    (10,824)



    Income before taxes and equity in net income of associated companies

    17,370



    45,782



    Taxes on income before equity in net income of associated companies

    7,542



    12,508



    Income before equity in net income of associated companies

    9,828



    33,274



    Equity in net income of associated companies

    3,089



    1,984



    Net income

    12,917



    35,258



    Less: Net income (loss) attributable to noncontrolling interest

    (5)



    31



    Net income attributable to Quaker Chemical Corporation

    $           12,922



    $           35,227



    Per share data:









    Net income attributable to Quaker Chemical Corporation common shareholders – basic

    $                0.73



    $                1.96



    Net income attributable to Quaker Chemical Corporation common shareholders – diluted

    $                0.73



    $                1.95



    Basic weighted average common shares outstanding

    17,639,764



    17,908,814



    Diluted weighted average common shares outstanding

    17,669,965



    17,938,862



     

    Quaker Chemical Corporation

    Condensed Consolidated Balance Sheets

    (Unaudited; Dollars in thousands, except par value)





    March 31,

    2025



    December 31,

    2024

    ASSETS







    Current assets







    Cash and cash equivalents

    $          186,223



    $         188,880

    Accounts receivable, net

    418,659



    400,126

    Inventories

    246,122



    227,472

    Prepaid expenses and other current assets

    61,417



    59,939

    Total current assets

    912,421



    876,417









    Property, plant and equipment, net

    232,469



    229,532

    Right-of-use lease assets

    36,122



    34,120

    Goodwill

    524,667



    518,894

    Other intangible assets, net

    830,270



    827,098

    Investments in associated companies

    101,182



    98,012

    Deferred tax assets

    9,443



    9,216

    Other non-current assets

    17,855



    17,360

    Total assets

    $       2,664,429



    $      2,610,649









    LIABILITIES AND EQUITY







    Current liabilities







    Short-term borrowings and current portion of long-term debt

    $            37,292



    $           37,554

    Accounts payable

    199,430



    198,137

    Dividends payable

    8,575



    8,572

    Accrued compensation

    28,706



    50,212

    Accrued restructuring

    7,159



    2,297

    Accrued pension and postretirement benefits

    2,228



    2,328

    Other accrued liabilities

    89,436



    80,668

    Total current liabilities

    372,826



    379,768









    Long-term debt

    698,768



    669,614

    Long-term lease liabilities

    21,130



    20,028

    Deferred tax liabilities

    136,593



    138,828

    Non-current accrued pension and postretirement benefits

    24,062



    23,783

    Other non-current liabilities

    24,550



    24,445

    Total liabilities

    1,277,929



    1,256,466









    Equity







    Common stock $1 par value; authorized 30,000,000 shares; issued and outstanding

         March 31, 2025 – 17,680,380 shares; December 31, 2024 – 17,673,607 shares

    17,680



    17,674

    Capital in excess of par value

    905,781



    903,781

    Retained earnings

    638,079



    633,731

    Accumulated other comprehensive loss

    (175,655)



    (201,619)

    Total Quaker shareholders' equity

    1,385,885



    1,353,567

    Noncontrolling interest

    615



    616

    Total equity

    1,386,500



    1,354,183

    Total liabilities and equity

    $       2,664,429



    $      2,610,649

     

    Quaker Chemical Corporation

    Condensed Consolidated Statements of Cash Flows

    (Unaudited; Dollars in thousands)





    Three Months Ended

    March 31,



    2025



    2024

    Net income

    $           12,917



    $           35,258

    Adjustments to reconcile net income to net cash provided by operating activities:







    Depreciation and amortization

    20,599



    20,802

    Equity in undistributed earnings of associated companies, net of dividends

    (2,769)



    (1,675)

    Deferred income taxes

    $            (3,340)



    3,167

    Share-based compensation

    3,182



    3,884

    Restructuring and related charges, net

    14,590



    1,857

    (Gain) loss on disposal of property, plant, equipment and other assets

    (2,148)



    —

    Other adjustments

    2,190



    (2,797)

    Increase (decrease) in cash from changes in current assets and current liabilities, net of acquisitions:







    Accounts receivable

    (10,302)



    1,431

    Inventories

    (13,457)



    (6,576)

    Prepaid expenses and other current assets

    245



    (1,054)

    Accrued restructuring

    (9,045)



    (3,666)

    Accounts payable and accrued liabilities

    (15,712)



    (23,400)

    Net cash (used in) provided by operating activities

    (3,050)



    27,231

    Cash flows from investing activities







    Investments in property, plant and equipment

    (12,329)



    (4,460)

    Payments related to acquisitions, net of cash acquired

    (3,983)



    (24,899)

    Proceeds from disposition of assets

    2,900



    58

    Net cash used in investing activities

    (13,412)



    (29,301)

    Cash flows from financing activities







    Payments of long-term debt

    (8,523)



    (4,711)

    Borrowings on revolving credit facilities, net

    30,000



    20,902

    Payments on other debt, net

    (773)



    —

    Dividends paid

    (8,572)



    (8,186)

    Other stock related activity

    (1,176)



    (1,442)

    Net cash provided by financing activities

    10,956



    6,563

    Effect of foreign exchange rate changes on cash

    2,849



    (3,270)

    Net (decrease) increase in cash and cash equivalents

    (2,657)



    1,223

    Cash and cash equivalents at the beginning of the period

    188,880



    194,527

    Cash and cash equivalents at the end of the period

    $         186,223



    $         195,750

     

    Quaker Houghton (PRNewsfoto/Quaker Houghton)

     

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/quaker-houghton-announces-first-quarter-2025-results-302444355.html

    SOURCE Quaker Chemical Corporation

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