Quaker(US:KWR)2025-10-30 20:39Financial Performance - Q3 2025 net sales were $493.8 million, a 7% increase from $462.3 million in Q3 2024[3] - Q3 2025 net income was $30.5 million, or $1.75 per diluted share, compared to $32.3 million, or $1.81 per diluted share in Q3 2024[4] - Non-GAAP net income for Q3 2025 was $36.3 million, with non-GAAP earnings per diluted share at $2.08, reflecting a 10% increase year-over-year[6] - Adjusted EBITDA for Q3 2025 was $82.9 million, a 5% increase from $78.6 million in Q3 2024, with adjusted EBITDA margins at 16.8%[6] - Total net sales for Q3 2025 reached $493,842,000, a 6.8% increase from $462,274,000 in Q3 2024[31] - The company reported a net income of $30.5 million for the three months ended September 30, 2025, compared to $32.3 million for the same period in 2024[23] - GAAP earnings per diluted share for the three months ended September 30, 2025, is $1.75, compared to $1.81 for the same period in 2024[24] Sales and Market Trends - Organic sales volumes increased by 3% year-over-year, driven by new business wins of approximately 5% globally[6] - The Asia/Pacific segment saw a net sales increase of 18% year-over-year, primarily due to organic sales volume growth and contributions from acquisitions[10] - The company anticipates continued soft market conditions through year-end but expects year-over-year revenue and earnings growth in Q4 2025[8] Costs and Expenses - The company incurred restructuring and related charges of $7.7 million for the three months ended September 30, 2025[23] - Restructuring and related charges for Q3 2025 were $7,745,000, compared to $2,610,000 in Q3 2024, indicating an increase of 196.7%[31] - Interest expense increased to $10,941,000 in Q3 2025 from $10,347,000 in Q3 2024, reflecting a rise of 5.7%[31] Cash Flow and Debt - Cash flow from operating activities for the nine months ended September 30, 2025, was $89.9 million, down from $141.5 million in the same period of 2024[14] - As of September 30, 2025, total gross debt was $875.2 million, with net debt at approximately $703.2 million, resulting in a net leverage ratio of 2.4x[15] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $89,909 thousand, down from $141,514 thousand in the same period of 2024, a decrease of 36.4%[36] - Long-term debt rose to $838,522 thousand, an increase of 25.2% from $669,614 thousand at December 31, 2024[33] Equity and Assets - Total assets increased to $2,816,797 thousand as of September 30, 2025, up from $2,610,649 thousand at December 31, 2024, representing a growth of 7.9%[33] - Total equity increased to $1,366,883 thousand as of September 30, 2025, compared to $1,354,183 thousand at December 31, 2024, reflecting a growth of 0.9%[33] Impairment and Losses - The company reported a net loss of $23,160,000 for the nine months ended September 30, 2025, compared to a net income of $102,540,000 for the same period in 2024[31] - The company incurred impairment charges of $88,840,000 for the nine months ended September 30, 2025, with no impairment charges reported in the same period of 2024[31] - The company reported impairment charges of $88,840 thousand during the nine months ended September 30, 2025, which were not present in the same period of 2024[36] Future Outlook - The company plans to continue focusing on market expansion and new product development as part of its growth strategy[21] - The company anticipates maintaining sufficient liquidity and compliance with credit facility terms despite economic uncertainties and inflationary pressures[27]