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1. Company Snapshot

1.a. Company Description

Quaker Chemical Corporation develops, produces, and markets various formulated chemical specialty products for a range of heavy industrial and manufacturing applications.The company operates through four segments: Americas; Europe, Middle East, and Africa; Asia/Pacific; and Global Specialty Businesses.It offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, metal finishing fluids, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals.


The company also provides chemical management services.It serves steel, aluminum, automotive, aerospace, offshore, can, mining, and metalworking companies.The company was formerly known as Quaker Chemical Products Corporation and changed its name to Quaker Chemical Corporation in August 1962.


Quaker Chemical Corporation was founded in 1918 and is headquartered in Conshohocken, Pennsylvania.

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1.b. Last Insights on KWR

Quaker Chemical Corporation's recent performance was positively driven by strong Q3 2025 results, with net sales increasing 7% year-over-year to $493.8 million, driven by new business wins of approximately 5%. The company's non-GAAP earnings per diluted share rose 10% year-over-year to $2.08. Quaker Houghton also generated $51.4 million of operating cash flow and reduced its net leverage ratio to 2.4x. Additionally, the company's leadership appointments and robust underlying cash flow engine are expected to support its enterprise growth strategy.

1.c. Company Highlights

2. Quaker Houghton Delivers Strong Q3 2025 Earnings

Quaker Houghton's third-quarter 2025 earnings report highlighted a robust financial performance, with net sales reaching $494 million, a 7% increase from the prior year. Organic volumes increased 3%, and acquisitions contributed an additional 5% to sales. Adjusted EBITDA was $83 million, a 5% increase compared to the prior year, and adjusted EBITDA margins were 16.8%. The company's adjusted earnings per share (EPS) came in at $2.08, beating estimates of $1.94. Gross profit dollars increased year-over-year and sequentially, with gross margins of 36.8%.

Publication Date: Nov -11

📋 Highlights
  • Adjusted EBITDA Growth: Increased by 5% year-over-year to $83 million, driven by higher organic sales and margin expansion.
  • Organic Sales Momentum: Global organic sales volumes rose 3%, with Asia Pacific leading at 8%, contributing to a 7% total sales increase.
  • Strong Cash Flow & Leverage: Generated $51 million in operating cash flow and reduced net leverage to 2.4x, while returning $62 million to shareholders.
  • Margin Expansion: Gross margins reached 36.8%, up sequentially and year-over-year, with adjusted EBITDA margins at 16.8%.
  • Asia Pacific Outperformance: Delivered 5% global net share gains, with growth in India and Southeast Asia offsetting softer markets elsewhere.

Regional Performance

The company achieved organic volume growth across all regions, with Asia Pacific delivering an 8% increase in organic sales volumes. Globally, net share gains were 5%. The Asia Pacific region's strong performance was driven by a combination of market growth and share gains, positioning the company for continued success in the region.

Cash Flow and Leverage

Quaker Houghton generated $51 million of operating cash flow and reduced its net leverage to 2.4x, while returning $62 million to shareholders through dividends and share repurchases. The company's solid cash generation and disciplined capital allocation are expected to continue, with a focus on driving sustainable long-term outperformance.

Outlook and Valuation

Quaker Houghton expects to deliver another quarter of revenue and adjusted EBITDA growth in the fourth quarter, driven by net business wins and cost control. Analysts estimate next year's revenue growth at 4.1%. With a current P/E Ratio of -269.92 and an EV/EBITDA ratio of 20.29, the company's valuation suggests that the market has already priced in some of its growth potential. However, with a strong global team and progress on strategic initiatives, Quaker Houghton is confident in its ability to outperform underlying end market conditions and drive growth in 2026 and beyond.

Growth Opportunities

The company is well-positioned to benefit from trends in robotics and additive manufacturing, with its Ultraseal business and specialty greases playing a key role. Quaker Houghton is also expanding its offering in the EV space, particularly in Asia, where it is growing with new winners in the EV market. The company's focus on providing a full portfolio of products to help customers manufacture better is expected to drive long-term growth.

3. NewsRoom

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Advantage Alpha Capital Partners LP Purchases 8,215 Shares of Quaker Houghton $KWR

Nov -28

Source: defenseworld.net

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Quaker Houghton Announces Quarterly Dividend

Nov -19

Source: prnewswire.com

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Quaker Chemical Corporation (KWR) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

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Quaker Chemical (KWR) Q3 Earnings and Revenues Beat Estimates

Oct -30

Source: zacks.com

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QUAKER HOUGHTON ANNOUNCES THIRD QUARTER 2025 RESULTS

Oct -30

Source: prnewswire.com

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Quaker Houghton Announces Third Quarter 2025 Earnings and Investor Call

Oct -16

Source: prnewswire.com

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Quaker Chemical: The Worst Should Be Behind Us Now

Oct -08

Source: seekingalpha.com

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Luminus Dumps About 43,000 Quaker Chemical Shares Worth $5.6 Million

Oct -07

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.81%)

6. Segments

Metalworking and Other

Expected Growth: 3.5%

Quaker Chemical's Metalworking and Other segment growth of 3.5% is driven by increasing demand for metalworking fluids and process chemicals in the automotive and aerospace industries, as well as growth in the company's pipeline of new product launches and expansion into emerging markets.

Metals

Expected Growth: 4.5%

Quaker Chemical Corporation's Metals segment growth of 4.5% is driven by increasing demand for specialized lubricants and coatings in the automotive and aerospace industries, coupled with the company's strategic acquisitions and expansion into emerging markets, as well as its focus on innovative product development and customer-centric solutions.

7. Detailed Products

Metalworking Fluids

Quaker Chemical Corporation offers a wide range of metalworking fluids, including cutting fluids, grinding fluids, and machining fluids, designed to improve tool life, reduce heat generation, and enhance surface finish.

Rolling Oils

Quaker Chemical Corporation's rolling oils are designed to provide lubrication and cooling during the hot and cold rolling of metals, ensuring consistent quality and surface finish.

Coil Coatings

Quaker Chemical Corporation's coil coatings provide corrosion protection and aesthetic appeal to metal coils, ensuring durability and performance.

Hydraulic Fluids

Quaker Chemical Corporation's hydraulic fluids are designed to provide high-performance lubrication and protection for hydraulic systems, ensuring reliability and efficiency.

Greases

Quaker Chemical Corporation's greases are formulated to provide long-lasting lubrication and protection for bearings, gears, and other moving parts.

Chemical Management Services

Quaker Chemical Corporation's chemical management services provide customized solutions for managing chemicals, including procurement, inventory management, and disposal.

8. Quaker Chemical Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Quaker Chemical Corporation faces moderate threat from substitutes due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

Quaker Chemical Corporation has a diverse customer base, which reduces the bargaining power of individual customers, resulting in a low threat.

Bargaining Power Of Suppliers

Quaker Chemical Corporation relies on a few key suppliers for raw materials, which gives them some bargaining power, but the company's large scale of operations mitigates this threat.

Threat Of New Entrants

The chemical industry has high barriers to entry, including significant capital requirements and regulatory hurdles, which reduces the threat of new entrants.

Intensity Of Rivalry

The chemical industry is highly competitive, with many established players, leading to a high intensity of rivalry among firms.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.60%
Debt Cost 10.94%
Equity Weight 64.40%
Equity Cost 11.35%
WACC 11.20%
Leverage 55.28%

11. Quality Control: Quaker Chemical Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Element Solutions

A-Score: 5.0/10

Value: 3.5

Growth: 6.3

Quality: 6.2

Yield: 2.0

Momentum: 5.0

Volatility: 6.7

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Axalta Coating Systems

A-Score: 4.6/10

Value: 5.8

Growth: 5.6

Quality: 6.9

Yield: 0.0

Momentum: 2.0

Volatility: 7.7

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Quaker Chemical

A-Score: 4.4/10

Value: 5.8

Growth: 6.3

Quality: 3.2

Yield: 3.0

Momentum: 2.5

Volatility: 5.3

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H.B. Fuller

A-Score: 4.3/10

Value: 5.0

Growth: 4.8

Quality: 4.1

Yield: 3.0

Momentum: 2.0

Volatility: 7.0

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Avient

A-Score: 4.2/10

Value: 5.2

Growth: 3.2

Quality: 4.0

Yield: 5.0

Momentum: 1.5

Volatility: 6.0

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Minerals Technologies

A-Score: 4.0/10

Value: 6.6

Growth: 4.3

Quality: 3.2

Yield: 1.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

134.64$

Current Price

134.64$

Potential

-0.00%

Expected Cash-Flows