0001628280-26-028945
SEC filingQuaker Chemical Corporation reported Q1 2026 net sales of $480.5 million, up 8% year-over-year, with net income of $19.7 million and diluted EPS of $1.13, alongside amended credit facilities and a new cost savings program.
Quaker Chemical Corporation delivered first quarter 2026 results with net sales reaching $480.5 million, an 8% increase year-over-year, primarily fueled by 3% organic sales volume growth from 4% new business wins across all segments, 4% contribution from acquisitions like Dipsol, and 4% favorable foreign currency translation, though partially offset by a 3% decline in selling prices and product mix due to index-based contracts and geographic shifts. Gross profit expanded to $176.7 million from $161.3 million, reflecting improved margins from lower raw material costs, while operating income rose 22% to $33.6 million despite higher SG&A and restructuring charges of $7.4 million. Net income attributable to the company climbed to $19.7 million or $1.13 per diluted share, up from $12.9 million or $0.73, with adjusted EBITDA advancing 5% to $72.5 million on higher sales volumes despite margin compression to 15.1% from 15.6%. Segment performance varied: Asia/Pacific led with 25% sales growth to $124.7 million and operating earnings up to $34.3 million, driven by strong volumes and acquisitions; EMEA grew 10% to $142.1 million; Americas remained flat at $213.7 million with earnings declining to $53.9 million on softer volumes and price/mix. CEO Joe Berquist highlighted resilience amid soft end markets down low-single digits, attributing outperformance to sales execution, and noted expected raw material inflation in Q2 with pricing actions for recovery to target margins by year-end, anticipating full-year revenue and adjusted EBITDA growth barring Middle East conflict escalation. Balance sheet remains solid with net debt at $705.3 million and leverage at 2.3x trailing twelve-month adjusted EBITDA of $302.7 million. Post-quarter, the company amended its credit agreement, extending maturities to 2031 and boosting revolver capacity on better terms, while launching a global transformation program eyeing $20-30 million in annualized savings by 2028 with $10 million run-rate by year-end 2026, underscoring proactive liquidity and cost management.