Quaker Houghton Posts Second Straight Record Adjusted Ebitda

The Tip Desk · November 1, 2026 · 3 min read

Third-quarter adjusted EBITDA was $89.8 million as net sales reached $544.5 million, up 10% from a year earlier.

Quaker Houghton (KWR), the industrial process-fluids company, reported third-quarter 2026 net sales of $544.5 million, up 10% from a year earlier, matching the year-over-year growth rate of the second quarter.

The 10% sales increase decomposed into 7% selling price and product mix and 3% volumes, versus a 7% volume, 2% foreign-currency and 1% price-and-mix mix in the second quarter. The company said the price-and-mix lift reflected pricing actions to offset higher raw-material costs, changes in the mix of products and services, and index-based customer contracts. Volume growth was primarily a result of new business wins across all segments.

GAAP net income was $30.0 million, or $1.73 a share, versus $30.5 million, or $1.75 a share, a year earlier. Non-GAAP net income was $41.4 million, up about 14% year-over-year. Non-GAAP earnings per diluted share were $2.39, up 15% year-over-year, a slower pace than the 28% year-over-year increase in the second quarter. Adjusted EBITDA was $89.8 million, up 8% year-over-year, a slower year-over-year rate than the 13% increase in the second quarter, and a second consecutive quarter of record adjusted EBITDA. Adjusted EBITDA margin compressed to 16.5% from 16.8% a year earlier. Non-GAAP gross margin was 35.5%, down from 36.8% a year earlier. Non-GAAP operating margin was 11.6%, versus 11.7% a year earlier.

Americas net sales were $254.0 million, up 14% year-over-year, from 6% volumes and 8% selling price and product mix. EMEA net sales were $152.5 million, up 6% year-over-year, from 10% selling price and product mix, offset by 2% lower volumes, which the company attributed to the reversal of second-quarter pre-buy activity, and 2% unfavorable foreign-currency translation. Asia/Pacific net sales were $138.1 million, up 9% year-over-year, from 5% volumes, 3% selling price and product mix and 1% foreign currency.

Americas segment operating earnings were $65.7 million, up from $58.9 million a year earlier, on higher sales, partially offset by lower segment operating margins and higher SG&A. EMEA segment operating earnings were $31.2 million, up from $26.5 million a year earlier, on higher sales and improved segment operating margins. Asia/Pacific segment operating earnings were $35.1 million, down from $35.6 million a year earlier, on lower segment operating margins, partially offset by higher sales.

Chief Executive Officer Joe Berquist said net sales increased 10% compared with the prior year, driven by new business wins across all segments, leading to a fifth consecutive quarter of year-over-year profitability improvement. He said results were led by strong growth in the Americas and improved operating earnings in EMEA despite end markets that remain challenged amid ongoing conflict in the Middle East, and that Asia Pacific continued to generate volume growth even as market conditions softened in China.

The company said it anticipates fourth-quarter revenue and adjusted EBITDA will improve year-over-year but decline sequentially from the third quarter’s record level in line with normal seasonal demand patterns from the holiday season in North America and EMEA. Activity in Asia is expected to remain soft in the fourth quarter as geopolitical and economic uncertainty have tempered industrial demand in China, and the company anticipates global raw-material costs will remain elevated through the end of the year as the conflict in the Middle East continues.