| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 532.55 | 10.8% | 10.2% |
| Total Income | 532.55 | 10.8% | 10.2% |
| Expenditure | 491.95 | 10.1% | 8.2% |
| PBT | 31.14 | 31.4% | 147.2% |
| Net Profit | 26.84 | 36.5% | 140.3% |
| OPM | 7.62% | 0.63pp | 18.49pp |
| NPM | 5.04% | 0.94pp | 18.81pp |
| EPS | 1.56 | 38.0% | 141.3% |
Quaker Houghton Announces Second Quarter 2026 Results
31 Jul 2026 · 31 Jul, 2:08 am
Summary
Quaker Houghton announced strong second quarter 2026 results, with net sales reaching $532.6 million, a 10% increase year-over-year, primarily due to a 7% rise in sales volumes driven by new business wins. The company achieved a net income of $26.8 million and reported non-GAAP net income of $37.9 million, with non-GAAP earnings per diluted share of $2.19, up 28% year-over-year. Adjusted EBITDA also saw a 13% increase to $85.2 million. Management highlighted the fourth consecutive quarter of year-over-year profitability growth and record adjusted EBITDA, expressing confidence in stable demand and continued revenue and adjusted EBITDA growth for the remainder of 2026.
Key Highlights
- 1
Q2'26 net sales increased by 10% year-over-year to $532.6 million, driven by a 7% increase in sales volumes.
- 2
The company reported a net income of $26.8 million, or $1.55 per diluted share, for Q2'26, a significant improvement from a net loss in the prior year.
- 3
Non-GAAP net income for Q2'26 was $37.9 million, with non-GAAP earnings per diluted share of $2.19, representing a 28% increase year-over-year.
- 4
Adjusted EBITDA for the second quarter of 2026 was $85.2 million, up approximately 13% compared to the prior year period.
- 5
Sales volumes increased 7% year-over-year, primarily driven by new business wins across all segments.
- 6
The company increased its quarterly dividend by approximately 4.3% and repurchased $24.2 million of shares in Q2'26, also announcing a new $250 million stock repurchase program.
Management Comments
Joe Berquist
We achieved our fourth consecutive quarter of year-over-year profitability growth in Q2 2026, resulting in record adjusted EBITDA. Net sales increased 10% against prior year, driven by strong share gains and pricing during a period of significant raw material inflation. Volume growth reflected new business wins across all regions that exceeded the high end of our target range, while underlying markets were flat to slightly positive. Demand has remained steady against the backdrop of the conflict in the Strait of Hormuz, and we have observed selective areas of market growth. We experienced modest pre-buy activity from our customers early in the period in reaction to the conflict, with normal seasonal patterns returning by the end of the quarter. I’m proud of our team’s ability to maintain reliable supply to our customers despite heightened volatility. Looking ahead, we expect stable demand trends entering the third quarter with flat to slightly positive end markets throughout the remainder of the year. We anticipate gross margin percentage to stabilize in the third quarter in the range of second quarter gross margins as we work through the timing of raw material cost inflation, inventory movements and price recovery actions. Our pricing and cost initiatives have kept us on track to exit the year within our target gross margin range. We anticipate meaningful revenue and adjusted EBITDA growth in 2026 supported by continued share gains, disciplined cost management, and the resilience of our global network.
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