Core Insights - The SCCM Small Cap Value Equity Strategy reported a strong performance in Q3 2025, with a gross return of 14.4% and a net return of 14.2%, outperforming the Russell 2000 and Russell 2000 Value indices which returned 12.4% and 12.6% respectively [1] Company Overview - Quaker Chemical Corporation (NYSE:KWR) is recognized as a global leader in industrial process fluids, lubricants, and specialty chemicals, serving various industries including metalworking, steel, automotive, and aerospace [3] - The company has a market capitalization of $2.368 billion, with its stock closing at $136.15 per share on November 24, 2025 [2] Performance Metrics - Quaker Chemical Corporation experienced a one-month return of 2.48%, but its shares have declined by 13.72% over the past 52 weeks [2] Business Model and Strategy - Quaker Houghton has established a resilient business model characterized by high customer retention, strong pricing power, and disciplined execution through economic cycles [3] - The management effectively navigates raw material volatility while expanding margins through operational efficiencies and innovation-driven product differentiation [3] Market Position and Growth Potential - The company's exposure to industrial production, infrastructure investment, and reshoring trends positions it to benefit from a sustained recovery in global manufacturing [3] - Continued penetration in international markets, especially in emerging economies, along with prudent capital allocation and sustainability initiatives, supports durable earnings growth and attractive long-term compounding potential [3] Financial Health - Quaker Houghton boasts a strong balance sheet and solid free cash flow generation, which, combined with expanding strategic partnerships, positions it as a high-quality franchise likely to outperform in the next phase of the economic cycle [3]

Core Insights - TETRA Technologies reported a strong financial performance in Q3 2025, achieving a ten-year high adjusted EBITDA of $93 million for the first nine months, with Q3 adjusted EBITDA at $25 million and a margin of 16.3% despite challenges in the U.S. onshore oil and gas markets [2][4][6] Financial Performance - Revenue for Q3 2025 was $153 million, an 8% increase year-over-year, while adjusted EBITDA rose by 7% to $25 million [6][5] - Net income before taxes was $8.1 million, remaining flat year-over-year, with earnings per share at $0.03 and adjusted earnings per share at $0.04 [6][5] - The company ended Q3 with $67 million in cash and a net leverage ratio of 1.2 times trailing twelve-month adjusted EBITDA [3][24] Segment Performance - Completion Fluids & Products revenue increased by 39% year-over-year, with adjusted EBITDA margins reaching 30.5% [7][3] - Water & Flowback Services revenue decreased by 2% sequentially but saw an 18% decline year-over-year, with adjusted EBITDA margins improving to 11.9% due to cost control measures [9][3] Growth Initiatives - TETRA is advancing its Arkansas bromine processing facility, with an investment of $28 million and plans for full operational capacity by the end of 2027 [3][12] - The company is also focused on battery electrolyte production, anticipating significant revenue growth as Eos Energy ramps up deliveries from its automated production line [20][8] Full Year Guidance - For the full year 2025, TETRA expects GAAP net income before taxes to be between $19 million and $27 million, with adjusted EBITDA projected between $107 million and $112 million [4][6]

Core Viewpoint - Chemtrade Logistics Income Fund is taking strategic steps to optimize its capital structure by redeeming convertible debentures and implementing an automatic securities purchase plan to manage its unit purchases effectively [2][3][4]. Group 1: Strategic Transactions - Chemtrade announced the redemption of all issued and outstanding 6.25% Convertible Unsecured Subordinated Debentures due August 31, 2027, as part of its strategy to reduce exposure to convertible debt [2]. - The Fund intends to commence substantial issuer bids for both the 2027 Debentures and 7.00% Convertible Unsecured Subordinated Debentures due June 30, 2028 [2]. Group 2: Automatic Securities Purchase Plan (ASPP) - A new automatic securities purchase plan has been established, allowing for unit purchases during predetermined blackout periods, subject to specific price and quantity parameters [3]. - The previous automatic securities purchase plan was terminated in connection with the new Offers, and the new plan will only be effective after the termination or expiry of the Offers [3][4]. Group 3: Company Overview - Chemtrade operates a diversified business providing industrial chemicals and services, being one of North America's largest suppliers of sulphuric acid and other chemical products [5]. - The company is also a leading producer of high purity sulphuric acid for the semiconductor industry and provides various industrial services [5].

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Industrial Chemicals in Europe [1] - **Key Focus**: The call discusses the potential closure of old chemical capacity in China and its implications for the global chemical industry, particularly in Europe [2][3]. Core Insights - **China's Regulatory Actions**: The National Development and Reform Commission (NDRC) and other authorities in China are gathering data on petrochemical facilities over 20 years old, with plans to phase out 30-year-old capacity by 2030. This aims to alleviate overcapacity and promote industry consolidation [2]. - **Impact on Sentiment**: The prohibition of new capacity additions is viewed as a significant step to address oversupply, which is expected to positively influence market sentiment towards European chemical companies such as BASF, Wacker, Solvay, and Arkema [3]. - **Capacity Affected**: Approximately 25% of refining capacity and 14% of chemical capacity in China is expected to be impacted by the proposed regulations [4]. Company-Specific Insights - **BASF**: Upgraded to Overweight with a target price of €54, based on a DCF valuation and peer trading comparables [11]. The company is expected to benefit from improved market conditions due to regulatory changes in China [3]. - **Arkema**: Target price set at €97, indicating a favorable valuation with a 7% free cash flow yield based on 2025 estimates [8]. - **Solvay**: Target price of €30, with risks including a negative terminal growth rate and high costs for decarbonization [12]. - **Wacker Chemie**: Target price of €99, with significant upside potential if earnings expectations are met [15]. Risks and Considerations - **Upside Risks**: Include the maintenance of acrylic spreads, recovery in technical polymers, and favorable foreign exchange movements [9][13]. - **Downside Risks**: Potential liabilities related to PFAS in the US and failure to replace lost sales to Evonik [10][14]. - **Market Dynamics**: Geopolitical risks and fluctuations in commodity prices could impact feedstock costs and overall demand [14][17]. Conclusion - The regulatory changes in China are expected to have a ripple effect on the global chemical industry, particularly benefiting European companies by addressing overcapacity issues. The sentiment towards companies like BASF, Arkema, and Wacker Chemie is likely to improve as a result of these developments.

Financial Performance Highlights - Hawkins reported record full-year revenue of $9744 million in fiscal year 2025, a 6% increase compared to the prior year[75] - The company achieved a record full-year gross profit of $2255 million, representing a 16% growth over the previous year[75] - Hawkins' diluted earnings per share (EPS) reached a record $403, which is 12% higher than the prior year[75] - Adjusted EBITDA for fiscal year 2025 was a record $1675 million, a 17% increase compared to the trailing twelve-month (TTM) period[75] - The company's sales have grown at a compound annual growth rate (CAGR) of 13% from fiscal year 2020 to 2025[59] Segment Performance - Water Treatment segment sales reached $4465 million in fiscal year 2025[42] - Industrial segment sales were $3825 million in fiscal year 2025[42] - Health & Nutrition segment recorded sales of $1455 million in fiscal year 2025[42] Capital Allocation and Shareholder Returns - Hawkins has consistently paid out dividends since 1985[7] - The company's dividend CAGR is 105%[31] - The dividend per share has increased from $046 in fiscal year 2021 to $070 in fiscal year 2025[29] Strategic Initiatives - The company aims to grow all 51 water treatment facilities and add new locations through acquisitions or greenfield expansion[47] - Hawkins intends to grow its pharmaceutical, food, and agricultural business through new product development and investments[47] - The company focuses on growing specialty branded products with technical expertise[47]

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]