Quaker Chemical (NYSE:KWR) Q3 2025 Earnings Call October 31, 2025 08:30 AM ET Speaker5Greetings. Welcome to the Quaker Houghton Third Quarter 2025 earnings conference call. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the call over to Jeffrey Schnell, Vice President of Investor Relations. Mr ...

Financial Performance - Q3 2025 - Net sales for Q3 2025 were $493.8 million, a 6.8% increase compared to $462.3 million in Q3 2024[12] - Non-GAAP earnings per diluted share for Q3 2025 were $2.08, a 10.1% increase compared to $1.89 in Q3 2024[12] - Adjusted EBITDA for Q3 2025 was $82.9 million, with adjusted EBITDA margins of 16.8%[12, 18] Financial Performance - YTD 2025 - Net sales for YTD 2025 reached $1.42 billion, a 1.8% increase compared to $1.3956 billion in YTD 2024[11, 12] - Non-GAAP earnings per diluted share for YTD 2025 were $5.37[11, 12] - Adjusted EBITDA for YTD 2025 was $227.4 million[11, 12] Leverage and Liquidity - The company's net debt stood at $703 million as of September 30, 2025[23] - The leverage ratio was 2.4x as of September 30, 2025, operating well within the bank's maximum permitted leverage of 4.0x[11, 23] - The company had cash and cash equivalents of $172 million[23] Sales Volume - Sales volumes increased by 3% year-over-year in Q3 2025, driven by new business wins across all regions[15]

Quaker Chemical (KWR) came out with quarterly earnings of $2.08 per share, beating the Zacks Consensus Estimate of $1.94 per share. This compares to earnings of $1.89 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +7.22%. A quarter ago, it was expected that this specialty chemical company would post earnings of $1.82 per share when it actually produced earnings of $1.71, delivering a surprise of -6.04%.Over the last four quar ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Registrant's telephone number, including area code: 610-832-4000 Not Applicable Former name, former address and former fiscal year, if changed since last report. For the transit ...

Exhibit 99.1 NEWS Contact: Jeffrey Schnell Vice President, Investor Relations investor@quakerhoughton.com T. 1.610.832.4087 For Release: Immediate The Company reported net income in the third quarter of 2025 of $30.5 million, or $1.75 per diluted share, compared to $32.3 million, or $1.81 per diluted share, in the third 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 $36.3 million and $2.08 respectivel ...

Core Points - Quaker Houghton is set to release its third quarter 2025 earnings on October 30, 2025, after market close, with a subsequent investor call scheduled for October 31, 2025, at 8:30 a.m. (ET) [1] - The company is a global leader in industrial process fluids, operating in over 25 countries and serving advanced industries such as steel, aluminum, automotive, aerospace, and mining [2] - Quaker Houghton has approximately 4,400 employees, including chemists and engineers, focusing on innovative and sustainable solutions for its customers [2] Earnings Release and Investor Call - Earnings Release Date: October 30, 2025, after market close [1] - Investor Call Date: October 31, 2025, at 8:30 a.m. (ET) [1] - Participation Options: Live phone call or audio webcast available on the company's investor relations website [1] Dividend Announcement - The Board of Directors declared a quarterly cash dividend of $0.508 per share, representing a 4.7% increase over the previous dividend [5]

Group 1 - Quaker Chemical, operating as Quaker Houghton, is a leader in industrial process fluids, serving industries such as specialized steel, automotive, and mining [1] - The company specializes in products like metal removal fluids, rolling lubricants, and hydraulic fluids [1] Group 2 - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]

Company Overview - Quaker Chemical is a global specialty chemical company focused on supplying high-value process fluids and solutions to industrial manufacturers, serving sectors such as steel, aluminum, automotive, aerospace, and mining across the Americas, EMEA, and Asia/Pacific regions [5]. - The company reported a total revenue of $1.83 billion and a net income of $(7.13) million for the trailing twelve months (TTM) [4]. Recent Developments - Luminus Management sold 42,585 shares of Quaker Chemical, valued at approximately $5.6 million, during the quarter ended September 30, 2025, and retained 60,466 shares worth about $8 million at quarter-end, making Quaker Chemical its 5th-largest equity position [2][3]. - Quaker Chemical's stake represented 7.2% of Luminus Management's reported assets under management (AUM) [3]. Financial Performance - Quaker Chemical's revenue showed a 4% year-over-year increase to $483.4 million in the second quarter, with acquisitions contributing 6 percentage points and higher volume adding 2 percentage points, although lower prices and a changing mix subtracted 4 percentage points [6][7]. - Despite the sales growth, the company's net income, adjusted for certain items, dropped 21.5% to $30 million [7]. Market Position - As of October 2, 2025, Quaker Chemical's shares were priced at $132.59, reflecting a 19% decline over the past year, underperforming the S&P 500 by 36.6 percentage points during the same period [3].

Core Insights - Quaker Houghton has announced two key executive appointments to enhance its strategic priorities and growth strategy [1][2] - Christine Johnson has been appointed as Senior Vice President and Chief Transformation Officer, while Dr. André Frodl has been promoted to Vice President, R&D – Metals and Metalworking [1][2] - The leadership changes are aimed at driving innovation and operational excellence within the company [1] Leadership Appointments - Christine Johnson will lead transformation and process optimization efforts, focusing on unlocking value and accelerating the company's growth strategy [1] - Johnson previously worked at McKinsey & Company, advising materials and energy companies on strategy and transformation [1] - Dr. André Frodl will oversee global R&D for metals and metalworking, taking over from the retiring Dr. Dave Slinkman [2] - Frodl has been with Quaker Houghton for two decades, previously managing advanced development labs across multiple regions [2] Company Overview - Quaker Houghton is a global leader in industrial process fluids, operating in over 25 countries [3] - The company serves a diverse range of industries, including steel, aluminum, automotive, aerospace, and mining [3] - With approximately 4,400 employees, Quaker Houghton emphasizes innovative and sustainable solutions backed by advanced technology and process knowledge [3]

Core Viewpoint - Quaker Chemical (KWR) and Hawkins (HWKN) are both stocks in the Chemical - Specialty sector that are currently rated as a Zacks Rank of 2 (Buy), indicating positive earnings outlooks for both companies [3]. Valuation Metrics - KWR has a forward P/E ratio of 18.18, while HWKN has a significantly higher forward P/E of 41.40 [5]. - The PEG ratio for KWR is 1.46, suggesting a more favorable valuation relative to its expected EPS growth, compared to HWKN's PEG ratio of 2.59 [5]. - KWR's P/B ratio stands at 1.7, indicating a lower market value relative to its book value, whereas HWKN has a P/B ratio of 7.87 [6]. Value Grades - Based on various valuation metrics, KWR holds a Value grade of B, while HWKN has a Value grade of D, suggesting that KWR is currently the superior value option [6].