Core Viewpoint - Quaker Chemical reported quarterly earnings of $1.33 per share, missing the Zacks Consensus Estimate of $1.62 per share, and showing a decline from $1.78 per share a year ago, indicating a significant earnings surprise of -17.90% [1] Financial Performance - The company posted revenues of $444.09 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.54%, but down from $467.11 million year-over-year [2] - Over the last four quarters, Quaker Chemical has only surpassed consensus EPS estimates once [2] Stock Performance - Quaker Chemical shares have increased by approximately 0.7% since the beginning of the year, while the S&P 500 has gained 2.2% [3] - The stock is currently rated Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.82 on revenues of $456.95 million, and for the current fiscal year, it is $8.42 on revenues of $1.88 billion [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which may impact future stock performance [6] Industry Context - The Chemical - Specialty industry, to which Quaker Chemical belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Performance - Quaker Houghton reported net sales of $1,839.7 million in 2024, a decrease of 6% from $1,953.3 million in 2023, primarily due to a 4% decrease in selling price and product mix, a 2% decrease in sales volumes, and a 1% unfavorable impact from foreign currency translation[141]. - The company generated net income of $116.6 million or $6.51 per diluted share in 2024, compared to $112.7 million or $6.26 per diluted share in 2023, reflecting lower interest expenses and foreign exchange losses[142]. - Adjusted EBITDA for 2024 was $310.9 million, a decrease of 3% from $320.4 million in 2023, primarily due to lower net sales[142]. - Net cash flows from operating activities were $204.6 million in 2024, down from $279.0 million in 2023, driven by reduced cash inflow from working capital[144]. - The Americas segment accounted for approximately 48% of consolidated net sales in 2024, with net sales of $882.1 million, a decrease of $95.0 million or 10% compared to 2023[211]. Acquisitions and Strategic Initiatives - The Company acquired Chemical Solutions & Innovations (CSI) for approximately $3.9 million in February 2025, enhancing its position in South Africa[21]. - In July 2024, Quaker Houghton acquired the Sutai Group for approximately $16.2 million, strengthening its technology portfolio in the Asia/Pacific region[22]. - The acquisition of I.K.V. Tribologie IKVT for $35.2 million in February 2024 bolstered the Company's position in high-performance lubricants and greases[23]. - Strategic acquisitions are part of the company's business strategy, but successful integration and realization of synergies are critical to avoid adverse financial impacts[56]. Research and Development - Research and development expenses for 2024 were $57.3 million, an increase from $50.3 million in 2023 and $46.0 million in 2022[20]. - The company is committed to continuous product development to meet customer demands for higher performance, but faces risks if competitors introduce superior products[53]. Employee and Operational Insights - The Company had approximately 4,400 full-time employees globally as of December 31, 2024, with around 3,400 employed by non-U.S. subsidiaries[29]. - The company emphasizes the importance of safety culture, implementing ten "lifesaving" rules and several "Live Safe" initiatives to prevent serious injuries[40]. Financial Obligations and Liquidity - The Company had total net debt of $519.4 million as of December 31, 2024, consisting of total borrowings of $708.3 million less cash and cash equivalents of $188.9 million[162]. - The weighted average variable interest rate on outstanding borrowings was approximately 6.1% for the twelve months ended December 31, 2024, with an interest rate of approximately 5.2% on outstanding borrowings as of December 31, 2024[163]. - The Company believes its existing cash and anticipated cash flows will be sufficient to support its operating requirements and fund business objectives for at least the next twelve months[171]. Market and Economic Risks - The company faces significant risks from demand fluctuations in the steel, automotive, aerospace, and industrial equipment industries, which are cyclical[49]. - The company is exposed to economic uncertainties, including inflation, supply chain constraints, and potential downturns in customer industries[45]. - Rising interest rates could increase debt service obligations and negatively impact customer demand for the company's products[70]. - The company is subject to risks from currency fluctuations, particularly between the U.S. dollar and major currencies like the Euro and British pound, affecting profitability[73]. Environmental, Social, and Governance (ESG) Considerations - The company is subject to increasing scrutiny regarding its Environmental, Social, and Governance (ESG) practices, which may impose additional costs and risks[106]. - The company has adopted certain sustainability practices as highlighted in its annual Sustainability Report, which is available on its corporate website[107]. - The company may face reputational challenges if its ESG procedures do not meet stakeholder expectations, potentially harming its financial performance[108]. Legal and Regulatory Risks - The company may experience adverse effects from legislative and regulatory changes, tariffs, and geopolitical tensions, particularly related to Russia and Belarus[44]. - Compliance with complex global regulations is essential, as failure could result in increased costs and operational restrictions[83]. - Ongoing legal proceedings, including environmental matters, could adversely impact liquidity and reputation in the market[82]. Shareholder Returns - The company declared cash dividends totaling $1.88 per share, amounting to $33.6 million for the year ended December 31, 2024, compared to $1.78 per share or $32.0 million for 2023[132]. - The company has authorized a new share repurchase program of up to $150 million, effective immediately with no expiration date[64].

Financial Performance - Q4 2024 net sales were $444.1 million, a decrease of 5% from $467.1 million in Q4 2023, driven by a 4% decline in selling price and product mix, a 2% unfavorable impact from foreign currency translation, and a 1% decline in organic sales volumes[4] - Q4 2024 net income was $14.2 million, or $0.81 per diluted share, compared to $20.2 million, or $1.12 per diluted share in Q4 2023; non-GAAP net income was $23.6 million, or $1.33 per diluted share, down from $31.9 million, or $1.78 per diluted share in the prior year[5] - Full year 2024 net sales totaled $1.84 billion, with net income of $116.6 million and earnings per diluted share of $6.51; non-GAAP net income was $133.5 million, or $7.44 per diluted share[6] - Adjusted EBITDA for Q4 2024 was $64.8 million, a decrease of approximately 16% from $77.0 million in Q4 2023; full year adjusted EBITDA was $310.9 million[5] - Non-GAAP operating income for Q4 2024 was $40,453,000, compared to $50,884,000 in Q4 2023, reflecting a decrease of 20.4%[21] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $310,918,000, compared to $320,379,000 for the same period in 2023, a decrease of 2.1%[21] - Non-GAAP net income for the twelve months ended December 31, 2024, was $133,456,000, slightly down from $137,643,000 in 2023, a decrease of 3.2%[22] - Non-GAAP earnings per diluted share for Q4 2024 were $1.33, compared to $1.78 in Q4 2023, a decline of 25.3%[22] Segment Performance - The Americas segment reported Q4 2024 net sales of $208.6 million, down 8% year-over-year, while the EMEA segment saw a 7% decline to $125.9 million; the Asia/Pacific segment increased by 5% to $109.6 million[9] - Segment operating earnings in the Americas for Q4 2024 were $50,930,000, a decrease of 17.6% from $61,756,000 in Q4 2023[24] - The Americas segment reported net sales of $208,585,000 in Q4 2024, down 7.9% from $226,564,000 in Q4 2023[24] - EMEA segment net sales decreased to $125,877,000 in Q4 2024 from $135,745,000 in Q4 2023, a decline of 7.3%[24] Cash Flow and Debt - Operating cash flow for 2024 was $204.6 million, down from $279.0 million in 2023, primarily due to a higher inflow of working capital in the prior year[14] - As of December 31, 2024, total gross debt was $708.3 million, with cash and cash equivalents of $188.9 million, resulting in net debt of $519.4 million[15] - Interest expense, net for the twelve months ended December 31, 2024, was $41,002,000, down from $50,699,000 in 2023, a decrease of 19.3%[21] - Total liabilities decreased to $1.26 billion in 2024 from $1.33 billion in 2023, indicating a reduction of 5.5%[30] - Payments of long-term debt increased to $57,221 million in 2024 from $38,932 million in 2023, representing a rise of approximately 46.7%[33] Shareholder Returns - The Company returned approximately $82.4 million to shareholders through dividends and share repurchases in 2024, including repurchasing 312,997 shares for approximately $49.2 million[15] - Share repurchase program resulted in $49,247 million spent in 2024, with no prior expenditures in 2023[33] Strategic Initiatives - The Company completed two strategic acquisitions in 2024, contributing to sales growth despite challenging market conditions[6] - The Company anticipates cost savings of at least $20 million in 2025 through steps to reduce complexity and improve operational efficiency[7] Asset Management - Total assets as of December 31, 2024, were $2.61 billion, a decrease from $2.71 billion as of December 31, 2023[30] - Cash and cash equivalents were $188.9 million as of December 31, 2024, down from $194.5 million in 2023[30] - The company reported a significant increase in accounts receivable, which rose to $24,975 million in 2024 from $32,169 million in 2023, indicating a decrease of approximately 22.3%[33] Economic Outlook - The company expects to maintain sufficient liquidity and compliance with credit facility terms despite economic uncertainties[25] - The effect of foreign exchange rate changes on cash resulted in a loss of $11,141 million in 2024, contrasting with a gain of $771 million in 2023[33] - The company experienced a net decrease in cash and cash equivalents of $5,647 million in 2024, compared to an increase of $13,564 million in 2023[33]

In its upcoming report, Quaker Chemical (KWR) is predicted by Wall Street analysts to post quarterly earnings of $1.62 per share, reflecting a decline of 9% compared to the same period last year. Revenues are forecasted to be $441.71 million, representing a year-over-year decrease of 5.4%.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 2.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections durin ...

Core Viewpoint - Quaker Houghton is set to release its fourth quarter and full year 2024 earnings on February 24, 2025, followed by an investor call on February 25, 2025 [1][2]. Company Information - Quaker Houghton is recognized as the global leader in industrial process fluids, operating in over 25 countries and serving thousands of advanced and specialized companies across various sectors including steel, aluminum, automotive, aerospace, and mining [3]. - The company employs approximately 4,400 individuals, including chemists, engineers, and industry experts, focusing on providing innovative and sustainable solutions backed by advanced technology and deep process knowledge [3]. - Quaker Houghton is headquartered in Conshohocken, Pennsylvania, near Philadelphia, and emphasizes partnerships with customers to enhance operational efficiency [3].

Core Viewpoint - Quaker Houghton has appointed Joseph Berquist as the new Chief Executive Officer and President, succeeding Andy Tometich, effective immediately [1][2]. Leadership Transition - The Board of Directors expressed gratitude to Andy Tometich for his three years of leadership, highlighting his valuable outside perspective [2]. - The Board aims to have a CEO with in-depth knowledge of the industry, which is expected to drive shareholder value through organic growth and acquisitions [2]. - Joseph Berquist has a long history with Quaker Houghton, having joined in 1997 and held various leadership roles, including Chief Strategy Officer and Executive Vice President, Chief Commercial Officer [2][3]. Company Background - Quaker Houghton is recognized as the global leader in industrial process fluids, operating in over 25 countries and serving advanced industries such as steel, aluminum, automotive, and aerospace [3]. - The company employs approximately 4,400 individuals, including chemists and engineers, to provide innovative and sustainable solutions to its customers [3].

Financial Data and Key Metrics Changes - Third quarter net sales were $462 million, a 6% decrease from the prior year but consistent with the second quarter [9][34] - Gross margins in the third quarter were 37.3%, in line with the prior year and the prior quarter [11][36] - Adjusted EBITDA for the third quarter was $79 million, reflecting a 7% decline year-over-year [13][38] - Non-GAAP diluted earnings per share were $1.89, up approximately 4% year-to-date despite a challenging operating environment [48] Business Line Data and Key Metrics Changes - Asia-Pacific segment net sales increased approximately 3% year-over-year, driven by a 9% increase in sales volumes [40][17] - EMEA segment net sales decreased by 4% year-over-year, with sales volumes increasing by approximately 1% due to the I.K.V. acquisition [42] - Americas segment net sales declined 10% year-over-year, impacted by lower sales volumes and selling price [44] Market Data and Key Metrics Changes - The overall market environment remains soft, particularly in the Americas and EMEA segments, with automotive and industrial sectors facing extended downtimes [34][18] - Asia-Pacific has shown resilience with growth driven by new business wins in metals and metalworking applications [17][59] Company Strategy and Development Direction - The company is focused on three key themes: globalizing, digitalizing, and leading in sustainability, aiming to modernize its proven model and enhance competitive positioning [26][27] - Recent acquisitions of technology-advantaged businesses are expected to expand markets and complement the portfolio [16][27] - The company is committed to maximizing shareholder value through a balanced capital allocation strategy, including organic and inorganic growth initiatives [15][86] Management's Comments on Operating Environment and Future Outlook - Management anticipates that soft underlying market conditions will persist through the fourth quarter, with seasonal patterns affecting production and working capital [20][62] - The company remains focused on executing its customer intimate model and driving efficiencies while managing costs and margins [21][64] - Confidence in the long-term fundamentals of the industry remains, with expectations for continued outperformance against softer end-markets [24][32] Other Important Information - The company generated approximately $142 million of operating cash flow year-to-date and ended the third quarter with over $200 million in cash [14][50] - Capital expenditures in the third quarter were approximately $8 million, with expectations to exceed the midpoint of the communicated range for the year [49] Q&A Session Summary Question: Operating margin performance in Q3 - Management noted a sequential decline in operating margins due to a lag effect on pricing and some uptick in SG&A costs [54][56] Question: Strength in Asia-Pacific - Growth in Asia-Pacific is attributed to new business wins across multiple countries, with expectations for continued positive momentum [59][60] Question: Q4 outlook and seasonality - Management expects a seasonal decline in revenue and potential margin impacts, but remains optimistic about new business wins [62][65] Question: Pricing and index impacts - Pricing was down year-over-year due to index-based contracts, but stabilization is anticipated moving forward [74][75] Question: Capital allocation and acquisition opportunities - The company is open to larger consolidation opportunities and has several bolt-on deals in the pipeline [97][98]

Quaker Houghton Third Quarter 2024 Results Investor Conference Call Quaker Houghton.. Forward Together Forward-Looking Statements Regulation G The attached charts include Company information that does not conform to generally accepted accounting principles ("GAAP"). Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the Company and helps investors to evaluate the financial results of the Company. These measure ...

Core Insights - Quaker Chemical (KWR) reported a revenue of $462.27 million for the quarter ended September 2024, reflecting a decline of 5.8% year-over-year and a surprise of -1.31% compared to the Zacks Consensus Estimate of $468.39 million [1] - The earnings per share (EPS) for the quarter was $1.89, down from $2.05 in the same quarter last year, resulting in an EPS surprise of -7.35% against the consensus estimate of $2.04 [1] Revenue Performance by Geography - Asia/Pacific revenue was reported at $107.86 million, exceeding the average estimate of $105.70 million by two analysts, marking a year-over-year increase of +2.6% [3] - Americas revenue stood at $220.28 million, below the average estimate of $224.05 million, representing a year-over-year decline of -10.4% [3] - EMEA revenue was reported at $134.14 million, slightly below the average estimate of $136.39 million, indicating a year-over-year decrease of -3.9% [3] Stock Performance - Over the past month, Quaker Chemical shares have returned -5.5%, contrasting with the Zacks S&P 500 composite's increase of +1% [4] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [4]

Company Performance - Quaker Chemical reported quarterly earnings of $1.89 per share, missing the Zacks Consensus Estimate of $2.04 per share, and down from $2.05 per share a year ago, representing an earnings surprise of -7.35% [1] - The company posted revenues of $462.27 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.31%, and down from $490.61 million year-over-year [2] - Over the last four quarters, Quaker Chemical has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Quaker Chemical shares have lost approximately 27.6% since the beginning of the year, contrasting with the S&P 500's gain of 21.9% [3] - The current Zacks Rank for Quaker Chemical is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.91 on revenues of $467.98 million, and for the current fiscal year, it is $8.18 on revenues of $1.87 billion [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which may impact future stock movements [6] Industry Context - The Chemical - Specialty industry, to which Quaker Chemical belongs, is currently in the bottom 33% of the Zacks industry rankings, suggesting potential challenges ahead [8]