By: ICN Bureau
Last updated : May 05, 2026 7:21 pm
Net income climbed to $19.7 million, compared with $12.9 million, a year earlier
Quaker Houghton has reported a stronger first quarter for 2026, delivering higher sales, improved earnings, and steady growth across key global markets despite ongoing industry challenges.
The company posted net sales of $480.5 million, up 8% year over year, driven by organic volume growth, acquisitions, and favorable currency effects. Organic volumes rose 3%, supported by roughly 4% new business wins, with particularly strong momentum in the Asia/Pacific region.
Net income climbed to $19.7 million, or $1.13 per diluted share, compared with $12.9 million, or $0.73 per share, a year earlier.
Adjusted performance was more stable: non-GAAP net income came in at $28.4 million, slightly higher than $28.0 million last year, while non-GAAP earnings per diluted share increased to $1.63 from $1.58. Adjusted EBITDA rose 5% to $72.5 million.
CEO Joe Berquist said the company continued to outperform soft end markets. He stated, "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."
He added that demand trends remain mixed but stable, noting, "Looking ahead we expect demand to improve incrementally with normal seasonality, even with volatility and current uncertainty in the market."
Berquist also cautioned on near-term pressure from rising input costs, saying, "We expect to incur raw material inflation beginning in the second quarter and have implemented price recovery and cost actions to mitigate the impact; however, some lag will temporarily impact gross margins in the second quarter."
Regionally, Asia/Pacific led performance with 25% sales growth, followed by 10% growth in EMEA, while the Americas segment remained flat overall.
Beyond earnings, the company strengthened its financial position by amending its credit agreement, extending debt maturity to 2031 and expanding available credit. Net debt stood at approximately $705 million, with leverage at 2.3x adjusted EBITDA.
Quaker Houghton also launched a global transformation program targeting $20–$30 million in annual cost savings by 2028, signaling a continued push for efficiency alongside growth.
Despite geopolitical uncertainty and soft industrial demand, the company expects year-over-year revenue and EBITDA growth in 2026, assuming no major deterioration in global markets.