Quaker Chemical and EV Fluids: Why APAC Wins Matter in 2026

Core Insights - Quaker Chemical Corporation (KWR) is experiencing growth despite muted end markets, driven by share gains and electric vehicle (EV)-related successes, particularly in the Asia/Pacific (APAC) region [1][2] Growth Strategy - KWR's growth strategy is focused on capturing 2-4% net share gains in 2026, with recent performance leaning towards the higher end of this range, allowing for growth even in flat or slightly declining markets [2][9] - The company plans to scale successful initiatives while maintaining margin protection through self-help and integration discipline [1] Regional Performance - APAC has been a significant contributor to KWR's growth, achieving 10 consecutive quarters of organic volume growth, with a 14.7% year-over-year increase in net sales in Q4 2025, supported by 4% organic volume growth and acquisitions [3][5] - The region's consistent performance is crucial in a flat macroeconomic environment, positioning it as KWR's growth leader into 2026 [5] Electric Vehicle Sector - KWR's growth in APAC is closely linked to its success with electric vehicle original equipment manufacturers (OEM) and components, which align with the company's service-heavy and process-intensive model [4][5] Strategic Developments - The new manufacturing facility in China, set to begin operations in the second half of 2026, is expected to enhance local support and reduce logistics complexities, thereby improving service performance [6][7] - Acquisitions have become a predictable growth driver, with 2025 acquisitions contributing approximately $95 million in annualized revenues, and the Dipsol acquisition alone adding about $21 million to Q4 net sales [8][9] Cross-Selling and Local Support - The integration of Dipsol enhances KWR's surface treatment capabilities and facilitates broader account penetration, reinforcing share capture even in soft market conditions [11][12] - Localized technology support across APAC, EMEA, and the Americas is crucial for executing cross-selling strategies and achieving consistent share gains [12]