Quaker(US:KWR) Prnewswireยท2025-07-31 20:30Core Insights - Quaker Houghton reported a net loss of $66.6 million in Q2 2025, primarily due to an $88.8 million non-cash goodwill impairment charge related to its EMEA segment [4][6][7] - The company's net sales for Q2 2025 were $483.4 million, a 4% increase from $463.6 million in Q2 2024, driven by a 2% increase in sales volumes and a 6% contribution from acquisitions [3][6][8] - The company generated non-GAAP net income of $30.0 million and non-GAAP earnings per diluted share of $1.71 in Q2 2025, compared to $38.2 million and $2.13 in Q2 2024 [4][6][8] Financial Performance - Q2 2025 net sales increased by 4% year-over-year, with organic sales volumes up 2% and acquisitions contributing approximately 6% [3][6] - The adjusted EBITDA for Q2 2025 was $75.5 million, a decrease of about 10% from $84.3 million in Q2 2024, reflecting lower operating margins despite increased sales [4][6][8] - The company reported a diluted loss per share of $3.78 in Q2 2025, compared to earnings of $1.94 per share in Q2 2024 [4][6][8] Segment Performance - In Q2 2025, net sales in the Americas segment were $221.1 million, a decrease of approximately 1% from $223.5 million in Q2 2024 [9][10] - The EMEA segment saw net sales of $139.9 million, a slight increase of about 1% compared to the same period in 2024 [9][10] - The Asia/Pacific segment experienced a significant increase in net sales of 20% year-over-year, reaching $122.4 million, driven by strong sales volumes and contributions from acquisitions [9][10] Market Conditions - The company noted that underlying end market activity remained below prior year levels, particularly in the Americas and EMEA segments, due to uncertainties related to tariffs [10][11] - Despite the challenging macroeconomic environment, the Asia/Pacific segment showed improvement, with 8% organic volume growth compared to the prior year [5][10] - The company anticipates tepid economic conditions to persist in the second half of 2025, but expects to achieve full-year revenue and earnings in line with 2024 levels [7][10] Cash Flow and Liquidity - For the six months ended June 30, 2025, net cash provided by operating activities was $38.5 million, down from $73.5 million for the same period in 2024 [14][15] - As of June 30, 2025, the company's total gross debt was $936.7 million, with cash and cash equivalents of $201.9 million, resulting in net debt of approximately $734.8 million [15][16] - The company repurchased 296,113 shares for $32.7 million in Q2 2025 and raised its quarterly cash dividend by approximately 5% [6][15]