CONSHOHOCKEN, PA — Quaker Houghton (NYSE: KWR) reported a solid uptick in second quarter 2025 sales, driven by strong new business wins and continued growth in Asia. However, a significant goodwill impairment charge weighed heavily on profitability, resulting in a net loss for the quarter.
The global industrial process fluids company posted net sales of $483.4 million, up 4% from the same period last year. Organic volume growth of 2%, bolstered by approximately 5% in new business wins, helped offset pricing and product mix declines of roughly 4%. Growth was strongest in the Asia/Pacific segment, where sales jumped 20%, while the Americas saw a slight year-over-year decline of 1%.
Despite the top-line growth, the company recorded a net loss of $66.6 million, or $3.78 per diluted share, largely due to an $88.8 million non-cash goodwill impairment charge in its EMEA segment. On a non-GAAP basis, Quaker Houghton reported net income of $30 million and earnings per diluted share of $1.71.
Adjusted EBITDA for the quarter came in at $75.5 million, with a margin of 15.6%, down from $84.3 million a year earlier. Operating margins were compressed by higher raw material and manufacturing costs, as well as increased SG&A expenses.
“Quaker Houghton executed well in the second quarter of 2025,” said CEO Joe Berquist. “We delivered above-market growth through new business wins across all segments, and our Asia/Pacific business continued its strong momentum with 8% organic volume growth.”
Berquist acknowledged macroeconomic headwinds, particularly in the U.S. and Europe, but maintained a positive outlook for the remainder of the year. The company has launched new cost-saving initiatives expected to generate $20 million in annualized savings by the end of 2026.
Regionally, the Asia/Pacific region led the company’s performance, supported by the recent acquisitions of Dipsol and Sutai. The EMEA region posted modest growth, while the Americas remained challenged by weak market conditions and currency impacts.
Compared to the first quarter of 2025, total net sales rose 9%, with gains across all regions. However, price and product mix trends continued to drag on revenue growth.
Quaker Houghton also returned capital to shareholders, repurchasing $32.7 million in stock during the quarter and increasing its quarterly dividend by 5%. As of June 30, the company held $201.9 million in cash and carried total debt of $936.7 million. Net debt-to-adjusted EBITDA stood at 2.6x, reflecting the impact of the Dipsol acquisition in April.
Looking ahead, the company expects economic conditions to remain subdued but anticipates full-year 2025 revenue and earnings to remain in line with 2024 results.
“Our strong balance sheet and consistent cash flow generation will enable us to continue to execute our strategy and create value for shareholders,” Berquist added.
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