| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 480.48 | 8.5% |
| Total Income | 480.48 | 8.5% |
| Expenditure | 446.89 | 7.6% |
| PBT | 23.69 | 36.4% |
| Net Profit | 19.67 | 52.2% |
| OPM | 6.99% | 0.75pp |
| NPM | 4.09% | 1.18pp |
| EPS | 1.13 | 54.8% |
Quaker Houghton Announces Q1 2026 Net Sales of $480.5 Million, Up 8% YoY
01 May 2026 · 1 May, 2:14 am
Summary
Quaker Houghton announced robust first-quarter 2026 results, with net sales climbing 8% year-over-year to $480.5 million, driven by organic volume growth and strategic acquisitions. Net income saw a substantial increase to $19.7 million, while adjusted EBITDA grew 5% to $72.5 million, reflecting improved operating performance despite challenging markets. CEO Joe Berquist highlighted the company's disciplined sales execution and new business wins, which enabled outperformance in soft end markets. Management anticipates incremental demand improvement and expects to fully recover gross margins by year-end, projecting year-over-year revenue and adjusted EBITDA growth for 2026.
Key Highlights
- 1
Quaker Houghton reported Q1 2026 net sales of $480.5 million, marking an 8% increase year-over-year compared to $442.9 million in Q1 2025.
- 2
Net income attributable to Quaker Chemical Corporation for the first quarter of 2026 rose significantly to $19.7 million, or $1.13 per diluted share, from $12.9 million, or $0.73 per diluted share, in the prior year.
- 3
Adjusted EBITDA for Q1 2026 increased by 5% year-over-year to $72.5 million, up from $69.0 million in Q1 2025.
- 4
Organic sales volumes grew by 3% year-over-year, primarily driven by approximately 4% in new business wins across all segments and strong growth in the Asia/Pacific segment.
- 5
Non-GAAP net income for Q1 2026 was $28.4 million, with non-GAAP earnings per diluted share at $1.63, representing a 3% increase year-over-year.
- 6
The company successfully amended its credit agreement, extending its nearest-term debt maturity to April 2031 and increasing available credit with improved terms.
- 7
A new global business transformation and cost savings program has been initiated, targeting $20 million to $30 million of annualized cost savings by 2028, with a run rate of $10 million expected by the end of 2026.
Management Comments
Joe Berquist
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. 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.
Informational and educational content only. Not investment advice.