CONSHOHOCKEN, PA — Quaker Houghton (NYSE: KWR) reported first-quarter net sales of $480.5 million, up 8% from a year earlier, driven by higher organic sales volumes, acquisitions, and favorable foreign currency impacts.
The industrial process fluids manufacturer reported net income of $19.7 million, or $1.13 per diluted share, for the quarter ended March 31, compared with $12.9 million, or $0.73 per diluted share, in the prior-year period.
Adjusted EBITDA rose about 5% year over year to $72.5 million, while non-GAAP earnings per diluted share increased to $1.63 from $1.58.
Quaker Houghton said organic sales volumes increased 3% from the prior year, supported by approximately 4% in new business wins across all operating segments. The company cited particularly strong growth in the Asia/Pacific region.
Chief Executive Officer Joe Berquist said the company achieved volume growth despite softer end-market demand.
“We achieved 3% year-over-year organic volume growth despite challenging markets, resulting in our third consecutive quarter of profitability improvement compared to prior year,” Berquist said.
The company said first-quarter sales benefited from acquisitions, including Dipsol, and favorable foreign currency translation, partially offset by lower selling prices and changes in product and geographic mix.
Asia/Pacific sales increased 25% year over year, while EMEA sales rose 10%. Sales in the Americas segment were flat compared with the first quarter of 2025.
Berquist said the company expects raw material inflation to begin affecting results in the second quarter and has implemented pricing and cost-reduction measures intended to offset the impact.
“We expect to fully recover margins to reach our target range as we exit the year,” Berquist said.
The company also announced a new global transformation and cost savings program targeting between $20 million and $30 million in annualized savings by 2028, including a projected $10 million run-rate benefit by the end of 2026.
Subsequent to quarter-end, Quaker Houghton amended its credit agreement, extending its nearest-term debt maturity from June 2027 to April 2031 and increasing borrowing capacity under its revolving credit facility.
As of March 31, the company reported gross debt of $875 million and cash and cash equivalents of $169.7 million, resulting in net debt of approximately $705.3 million. Net debt equaled about 2.3 times trailing 12-month adjusted EBITDA, the company said.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.