CONSHOHOCKEN, PA — Quaker Houghton (NYSE: KWR) posted steady third-quarter 2025 results, achieving higher sales and earnings despite sluggish industrial demand, as the company continued executing its strategy for growth and margin improvement.
The global leader in industrial process fluids reported net sales of $493.8 million for the quarter ended September 30, up 7% from $462.3 million a year earlier. The increase was driven by 3% organic volume growth, a 5% contribution from acquisitions, and a 1% benefit from currency translation, offset slightly by a 2% decline in selling price and product mix.
Net income for the quarter was $30.5 million, or $1.75 per diluted share, compared to $32.3 million, or $1.81 per share, in the same period last year. Excluding non-recurring items, non-GAAP net income rose 10% year-over-year to $36.3 million, or $2.08 per share. Adjusted EBITDA reached $82.9 million, up 5% from the prior year, representing a margin of 16.8%. Operating cash flow came in at $51.4 million, helping reduce the company’s net leverage ratio to 2.4x.
Chief Executive Officer and President Joe Berquist called the quarter “strong,” citing disciplined execution and robust new business wins across global markets. “We achieved a 7% increase in sales on 3% organic volume growth, and a 5% improvement in adjusted EBITDA in the quarter, despite a softer than anticipated end market environment,” Berquist said. “Solid cash generation enabled us to strengthen our balance sheet and return cash to shareholders through dividends and share repurchases.”
Regionally, the Asia/Pacific segment led with an 18% sales increase, fueled by new business and contributions from the Dipsol acquisition. EMEA grew 7% year-over-year, while the Americas posted a modest 1% gain.
Looking ahead, Quaker Houghton expects market softness to persist through year-end but anticipates year-over-year revenue and earnings growth in the fourth quarter. “We are confident in our ability to convert our sales pipeline and execute on our cost and productivity initiatives,” Berquist added. “We’re building momentum to sustain above-market growth in 2026 and beyond.”
The company ended the quarter with $172 million in cash and $875 million in total debt, reflecting its ongoing investments in global expansion and innovation.
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