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QUAKER HOUGHTON ANNOUNCES FIRST QUARTER 2025 RESULTS
QuakerQuaker(US:KWR) Prnewswireยท2025-05-01 20:30

Core Insights - Quaker Houghton reported a decline in net sales and net income for Q1 2025 compared to Q1 2024, attributed to soft end market conditions and tariff uncertainties [3][4][10] - The company experienced a decrease in sales volumes across its segments, with a slight increase in the Asia/Pacific segment [3][10] - Strategic acquisitions in 2025 are expected to enhance growth opportunities despite current market challenges [5][15] Financial Performance - Net sales for Q1 2025 were $442.9 million, down approximately 6% from $469.8 million in Q1 2024 [3][4] - Net income attributable to Quaker Chemical Corporation was $12.9 million, or $0.73 per diluted share, compared to $35.2 million, or $1.95 per diluted share in the prior year [4][32] - Non-GAAP net income for Q1 2025 was $28.0 million, with non-GAAP earnings per diluted share at $1.58, down from $37.7 million and $2.09 respectively in Q1 2024 [4][23] Segment Performance - In the Americas segment, net sales decreased by 7% to $213.7 million, while EMEA also saw a 7% decline to $129.3 million; Asia/Pacific segment net sales decreased by 2% to $99.9 million [9][27] - Segment operating earnings for Q1 2025 were $107.8 million, down from $126.7 million in Q1 2024, with declines noted across all segments [9][27] Cash Flow and Liquidity - The company reported net cash used by operating activities of $3.1 million for Q1 2025, a significant decrease from $27.2 million provided in Q1 2024 [13] - As of March 31, 2025, total gross debt was $737.0 million, with cash and cash equivalents at $186.2 million, resulting in net debt of approximately $550.8 million [14] Strategic Acquisitions - In 2025, Quaker Houghton made three strategic acquisitions: Chemical Solutions & Innovations for approximately $3.9 million, Natech for about $6.5 million, and Dipsol Chemicals for approximately $155.2 million [15][31] - These acquisitions are expected to strengthen the company's portfolio and provide avenues for growth in 2025 and beyond [5][15]