CONSHOHOCKEN, PA — Quaker Houghton (NYSE: KWR) reported higher second-quarter sales and earnings as new business wins across all operating regions offset inflationary pressures, prompting the industrial process fluids manufacturer to continue returning capital to shareholders through a dividend increase and a new $250 million stock repurchase program.
Second-quarter net sales rose 10% year over year to $532.6 million, driven by a 7% increase in sales volumes, favorable foreign currency translation and higher pricing. Net income totaled $26.8 million, or $1.55 per diluted share, compared with a net loss of $66.6 million, or $3.78 per share, a year earlier. On a non-GAAP basis, earnings increased to $37.9 million, or $2.19 per diluted share, while adjusted EBITDA climbed 13% to a record $85.2 million.
Chief Executive Officer and President Joe Berquist attributed the results to market share gains, pricing actions and new business awards despite higher raw material costs and geopolitical uncertainty.
“We achieved our fourth consecutive quarter of year-over-year profitability growth in Q2 2026, resulting in record adjusted EBITDA,” Berquist stated. “Net sales increased 10% against prior year, driven by strong share gains and pricing during a period of significant raw material inflation.”
Quaker Houghton reported sales growth in each geographic segment. Revenue increased 12% in Asia-Pacific, 13% in Europe, the Middle East and Africa, and 7% in the Americas, with the company attributing the gains primarily to higher sales volumes from new business wins, pricing actions and favorable currency translation.
The company indicated underlying end markets remained flat to slightly positive, while pricing actions helped offset rising raw material costs. Consolidated sales also increased approximately 11% from the first quarter of 2026.
Quaker Houghton ended the quarter with $155.1 million in cash and cash equivalents and total gross debt of $876.1 million, resulting in net debt of approximately $721 million, or 2.3 times trailing 12-month adjusted EBITDA. Operating cash flow for the first six months of the year was $33.2 million, down from $38.5 million in the prior-year period, primarily because of higher working capital requirements.
The company repurchased approximately $24.2 million of stock during the quarter and replaced its previous buyback authorization with a new $250 million share repurchase program that has no expiration date. It also increased its quarterly dividend by approximately 4.3%.
Looking ahead, Berquist indicated the company expects stable demand through the third quarter and anticipates continued revenue and adjusted EBITDA growth during 2026, supported by additional market share gains, pricing actions and cost management initiatives.
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