Group 1: Acquisition Details - Quaker Chemical Corporation (KWR) has completed the acquisition of Dipsol Chemicals Co., Ltd. for JPY 23 billion (approximately $153 million) [1] - Dipsol generated around $82 million in revenues for the 12 months ended December 31, 2024, with an acquisition multiple of about 10.5 times its trailing 12-month estimated adjusted EBITDA of approximately $15 million [2] - Additionally, KWR announced the acquisition of Natech, Ltd. for about 4 million GBP (approximately $5.2 million) [3] Group 2: Strategic Impact - The acquisitions of Dipsol and Natech strengthen KWR's market position and enhance its technical service model, broadening its product and service portfolio [4] - These acquisitions are expected to expand KWR's advanced solutions business in high-growth potential markets, providing significant opportunities for cross-selling and meeting global customer needs [4] Group 3: Financial Performance and Outlook - KWR's shares have decreased by 43.1% over the past year, contrasting with a 2.3% decline in the Zacks Chemicals Specialty industry [5] - The company aims to achieve sustained growth and share gains by advancing its enterprise strategy, with expected run-rate cost savings of at least $20 million this year, which should enhance operational efficiency and competitiveness [6] - KWR anticipates revenue, adjusted EBITDA, and earnings growth in 2025 [6]

Core Insights - Quaker Houghton has completed the acquisition of Dipsol Chemicals Co., Ltd. for 23 billion JPY (~$153 million), enhancing its position in the surface treatment and plating solutions market [1] - The company also announced the acquisition of Natech, Ltd. for approximately 4 million GBP (~$5.2 million), further expanding its product offerings [2] - The acquisitions are expected to accelerate growth and create shareholder value by complementing Quaker Houghton's existing technical service model and expanding its advanced solutions businesses [3] Company Overview - Quaker Houghton is a global leader in industrial process fluids, operating in over 25 countries and serving advanced industries such as steel, aluminum, automotive, and aerospace [8] - The company employs approximately 4,400 individuals, including chemists and engineers, to provide innovative and sustainable solutions to its customers [8] Financial Metrics - Dipsol reported revenues of approximately $82 million for the twelve-month period ending December 31, 2024, with an estimated adjusted EBITDA of around $15 million [1] - The purchase price for Dipsol represents a multiple of approximately 10.5x its trailing twelve-month estimated adjusted EBITDA [1]

Quaker Chemical Corporation (KWR) recently entered into a purchase agreement to acquire Dipsol Chemicals Co. Ltd. for JPY 23 billion (roughly $153 million). Dipsol is a leading supplier of surface treatment and plating solutions and services, mainly for automotive and other industrial applications. It is headquartered in Japan and had revenues of approximately $82 million over the 12-month period ending Dec. 31, 2024. This strategic investment aims to accelerate growth and create shareholder value by using ...

CONSHOHOCKEN, Pa., March 25, 2025 /PRNewswire/ -- Quaker Houghton (the "Company") (NYSE: KWR), the global leader in industrial process fluids, announced today that it has entered into a purchase agreement to acquire Dipsol Chemicals Co., Ltd., ("Dipsol") a leading supplier of surface treatment and plating solutions and services primarily for the automotive and other industrial applications, for  23 billion JPY (~$153 million at current rates), subject to post-closing adjustments.  Dipsol is headquartered in ...

Have you evaluated the performance of Quaker Chemical's (KWR) international operations during the quarter that concluded in December 2024? Considering the extensive worldwide presence of this specialty chemical company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and ...

Quaker Chemical Corporation (KWR) recorded earnings of 81 cents per share in the fourth quarter of 2024, down from earnings of $1.12 per share in the year-ago quarter.Barring one-time items, earnings came in at $1.33 per share for the reported quarter, missing the Zacks Consensus Estimate of $1.62.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.Net sales fell around 5% year over year to $444.1 million in the quarter. Sales, however, beat the Zacks Consensus Estimate of $441.7 mil ...

Financial Data and Key Metrics Changes - Fourth quarter net sales were $444 million, a decline of 5% year-over-year or 3% lower on a constant currency basis [9][37] - Gross margins were 35.2% in the fourth quarter, impacted by manufacturing absorption, raw material cost increases, and customer production levels [11][40] - Adjusted EBITDA for the fourth quarter was $65 million, with a full year total of $311 million [12][43] - Operating cash flow for 2024 was $205 million, supporting capital allocation priorities including dividends and acquisitions [12][54] Business Line Data and Key Metrics Changes - Asia Pacific segment net sales increased approximately 5% year-over-year, driven by a 5% increase in sales volumes [44] - EMEA segment net sales decreased by 7% year-over-year, with a decline in sales volumes of approximately 4% [46] - Americas segment net sales declined by 8% year-over-year, impacted by lower selling prices and a 1% decline in total sales volumes [49] Market Data and Key Metrics Changes - Market conditions were persistently soft throughout 2024, with a low to mid single-digit decline in aggregate end markets [9][10] - The company expects end markets to grow approximately 1% to 2% in 2025, primarily in the second half of the year [31][81] Company Strategy and Development Direction - The company aims to return to growth, reduce complexity, and enhance shareholder value through disciplined capital deployment [17][30] - Focus on globalizing operations and aligning resources with faster-growing regions, including India and Southeast Asia [20][21] - Emphasis on customer intimacy and improving operational efficiencies to support organic growth [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver above-market performance despite challenging conditions [10][34] - Expectations for gross margins to be comparable to 2024 levels, with revenue, adjusted EBITDA, and earnings growth anticipated in 2025 [34][81] - The long-term fundamentals of the industry are viewed positively, with a focus on managing controllable factors while investing in capabilities [35][58] Other Important Information - The company completed two acquisitions in 2024 and recently acquired Chemical Solutions & Innovations in South Africa [29][56] - A new $20 million cost action plan has been identified, expected to drive approximately $15 million in savings [27][58] Q&A Session Summary Question: Gross margin performance in Q4 and future targets - Management indicated that the historical gross margin target of 37% to 38% is still relevant, with expectations for recovery in Q1 [65][68] Question: Performance in Asia Pacific and growth opportunities - Asia Pacific's success is attributed to new business wins, with plans to replicate this success in other regions [71][76] Question: Expectations for revenue and EBITDA growth in 2025 - Management anticipates gradual market improvement, with a focus on new business gains and a healthy pipeline [80][84] Question: Raw materials expectations for 2025 - Stability in raw materials is expected, with no significant volatility anticipated [90] Question: Volume trends in the Americas - Improvement is expected in the second half of 2025, following a decline in the first half [92] Question: Impact of new capacity coming online - New capacity is expected across Asia and the US, contributing to growth [95][96] Question: Cost savings initiatives and SG&A expectations - Cost savings are primarily targeting SG&A, with expectations for SG&A to be flat to modestly up in 2025 [106][107] Question: Details on the acquisition of CSI - CSI enhances the portfolio in South Africa, supporting growth in the region [109] Question: Capital allocation priorities - The focus remains on investing in the business through M&A and organic growth, with share repurchases considered as opportunities arise [112]

Financial Data and Key Metrics Changes - Fourth quarter net sales were $444 million, a 5% decline from the prior year or 3% lower on a constant currency basis [9][37] - Gross margins were 35.2% in the fourth quarter, impacted by manufacturing absorption, raw material cost increases, and customer production levels [11][40] - Adjusted EBITDA for the fourth quarter was $65 million, with a full year total of $311 million [12][43] - Operating cash flow for 2024 was $205 million, supporting capital allocation priorities [12][54] Business Line Data and Key Metrics Changes - Asia Pacific segment net sales increased approximately 5% year-over-year, driven by a 5% increase in sales volumes [44] - EMEA segment net sales decreased by 7% year-over-year, with a decline in sales volumes and service revenues [46] - Americas segment net sales declined 8% year-over-year, impacted by lower selling prices and volumes [49] Market Data and Key Metrics Changes - Market conditions were persistently soft throughout 2024, with a low to mid single-digit decline in aggregate end markets [9][39] - The company expects end markets to grow approximately 1% to 2% in 2025, primarily in the second half of the year [31][81] Company Strategy and Development Direction - The company aims to return to growth, reduce complexity, and enhance shareholder value through disciplined capital deployment [17][29] - Focus on globalizing operations and aligning resources with faster-growing regions, including India and Southeast Asia [20][21] - Emphasis on customer intimacy and operational efficiencies to drive organic growth [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver above-market performance despite challenging conditions [10][34] - Expectations for gross margins to be comparable to 2024 levels, with revenue and adjusted EBITDA growth anticipated in 2025 [34][81] - The long-term fundamentals of the industry are viewed positively, with a focus on managing controllable factors [35][58] Other Important Information - The company completed two acquisitions in 2024 and recently acquired Chemical Solutions & Innovations in South Africa [29][56] - A new $20 million cost action plan has been identified, expected to drive approximately $15 million in savings [27][58] Q&A Session Summary Question: Gross margin performance in Q4 - Management acknowledged a decline in gross margins due to various factors but indicated a return to historical levels is expected in 2025 [63][65] Question: Performance in Asia Pacific - Management highlighted strong new business wins in Asia Pacific and expressed optimism about transferring that success to other regions [69][71] Question: Expectations for raw materials in 2025 - Stability in raw materials is anticipated, with no significant volatility expected [90] Question: Volume trends in the Americas - Improvement in volumes is expected throughout 2025, with the first quarter likely being the lowest [92] Question: Impact of new capacity - New capacity is coming online in both Asia and the US, contributing to growth opportunities [95][96] Question: Cost savings initiatives - Cost savings are primarily targeting SG&A, with expectations for SG&A to be flat to modestly up in 2025 [106] Question: Capital allocation priorities - The focus remains on investing in the business through M&A and organic growth, with share repurchases considered opportunistically [112]

Quaker Chemical (KWR) Q4 2024 Earnings Call February 25, 2025 08:30 AM ET Company Participants Jeffrey Schnell - Vice President, Investor RelationsJoseph Berquist - President and Chief Executive OfficerTom Coler - Executive Vice President & Chief Financial OfficerDavid Begleiter - Managing DirectorJonathan Tanwanteng - Managing Director Conference Call Participants Arun Viswanathan - Senior Equity AnalystMichael Harrison - Managing Director and Senior Chemicals AnalystLaurence Alexander - Analyst Operator G ...

Core Insights - Quaker Chemical (KWR) reported a revenue of $444.09 million for the quarter ended December 2024, reflecting a year-over-year decline of 4.9% [1] - The earnings per share (EPS) for the quarter was $1.33, down from $1.78 in the same quarter last year, indicating a significant decrease [1] - The reported revenue exceeded the Zacks Consensus Estimate of $441.71 million by 0.54%, while the EPS fell short of the consensus estimate of $1.62 by 17.90% [1] Financial Performance Metrics - Quaker Chemical's stock has returned +2.4% over the past month, outperforming the Zacks S&P 500 composite, which saw a decline of -0.5% [3] - The company currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [3] Geographic Revenue Breakdown - Revenue from the Americas was reported at $208.59 million, surpassing the average estimate of $201.35 million, but showing a year-over-year decline of 7.9% [4] - Revenue from the Asia/Pacific region was $109.62 million, exceeding the average estimate of $106.70 million, with a year-over-year increase of 4.6% [4] - Revenue from the EMEA region was $125.88 million, below the estimated $130.05 million, reflecting a year-over-year decrease of 7.3% [4]