Key Highlights

  • Net sales rose 10% to $544.5 million from $493.8 million in the third quarter.
  • GAAP diluted EPS was $1.73 versus $1.75, while non-GAAP EPS rose to $2.39 from $2.08.
  • Adjusted EBITDA increased to $89.8 million from $82.9 million.
  • Gross Margin was 35.5% compared with 36.6% a year earlier.
  • Net Debt stood at about $727.6 million as of September 30, 2026.

Price and Volume both add to a 10% sales gain

Quaker Chemical (NYSE:KWR), which operates as Quaker Houghton, is a Conshohocken, Pennsylvania company that supplies industrial process fluids to steel, aluminum, automotive, aerospace, Mining and metalworking customers in more than 25 countries. It filed its Quarterly Report for the period ended September 30, 2026 on October 29, 2026.

Net sales were $544.5 million, up 10% from $493.8 million. Selling price and product mix contributed about 7%, reflecting pricing actions to offset higher raw material costs and index-based customer contracts, while volumes added about 3% on new Business wins across all segments.

For the first nine months, net sales were $1,557.6 million, up about 10% on a calculated basis.

GAAP flat, non-GAAP up on costs and margins

Net income was $30.0 million, or $1.73 per diluted share, compared with $30.5 million, or $1.75. Excluding non-recurring and non-core items, non-GAAP Net Income was $41.4 million, or $2.39 per share, against $36.3 million, or $2.08.

Gross profit rose 7% to $193.5 million, but gross margin narrowed to 35.5% from 36.6% as global raw material costs increased. SG&A expenses climbed to $136.4 million from $126.5 million, and Operating Income was $48.9 million versus $46.6 million.

Adjusted EBITDA was $89.8 million compared with $82.9 million.

Segments show different mixes of price and volume

Americas, about 47% of sales, grew 14% to $254.0 million, with price and mix up about 8% and volumes up about 6%. Segment operating Earnings were $65.7 million, up 11%.

EMEA sales rose 6% to $152.5 million, as price and mix added about 10% but volumes fell about 2% and currency subtracted about 2%. The company tied the volume decline to the Reversal of prior pre-buy activity. Operating earnings rose 18% to $31.2 million.

Asia/Pacific sales increased 9% to $138.1 million on volume growth of about 5%. Operating earnings slipped 1% to $35.1 million because of higher input costs and SG&A.

Cash flow, refinancing and Capital returns

Operating Cash Flow for the first nine months was $47.6 million, down from $89.9 million, reflecting larger Working Capital outflows from receivables and inventory purchases.

In April 2026, it amended its Credit facility, establishing a $250.0 million Euro-equivalent term loan, a $550.0 million U.S. term Loan and an $800.0 million revolver, each maturing in April 2031. Total borrowings were $894.6 million, cash was $167.0 million, and unused revolver capacity was about $707.7 million.

Over the nine months, the company paid $26.4 million in dividends and spent $27.5 million on share repurchases. Net income for the period was $76.5 million, versus a loss of $23.2 million a year earlier that included $88.8 million of Impairment charges.

Geopolitical exposure and what to watch

Management said the Iran conflict has increased uncertainty through disrupted shipping routes, Supply chain delays and higher raw material and transportation costs. The company said the conflict has not had a material impact on results so far.

Readers tracking the name will likely follow whether pricing keeps pace with raw material costs, since gross margin slipped 110 basis points, and whether Asia/Pacific margins recover. Working capital and the level of net debt are also worth monitoring.